MERCURY SYSTEMS INC (MRCY) FY2025 10-K Annual Report
MERCURY SYSTEMS INC (MRCY) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Aug 11, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
MERCURY SYSTEMS INC FY2025 10-K Analysis
Business Overview
- • Core business: Mission-critical edge processing solutions for aerospace and defense markets
- • New international business unit launched with facilities in U.K., Spain, Switzerland to expand global footprint
- • Strategic restructure in 2024 consolidated divisions into unified operating structure with 4 specialized business units
- • Revenue growth to $912M in FY25 from $835M in FY24; adjusted EBITDA rose sharply to $119.4M from $9.4M
- • Introduced Altera Agilex 9 Direct RF FPGA-powered products enabling direct digitization at antenna, eliminating legacy analog stages
Management Discussion & Analysis
- • Revenue $912.0M, up 9.2% YoY from $835.3M; point in time revenue up $112.3M, over time revenue down $35.5M
- • Gross margin 27.9% vs 23.5%, up 440 bps driven by $21.1M net EAC change and $16.4M lower manufacturing adjustments
- • Best segment: radar, other, and C4I end applications up $67.7M, $34.4M, and $15.1M; worst: other sensor and EW down $30.2M and $10.3M
- • Net loss $37.9M improved from $137.6M loss; operating expenses down to $274.1M from $343.7M, SG&A and R&D reduced significantly
- • No specific cash flow or capital allocation details disclosed; no programs >10% revenue in FY25 or FY24
Risk Factors
- • Regulatory risk: Impact of One Big Beautiful Bill Act (OBBBA) enacted July 4, 2025, affecting tax provisions, to reflect in fiscal 2026 results
- • Macroeconomic risk: $90.1 million decline in working capital during fiscal 2025 due to unbilled receivables and deferred revenue conversion
- • Supply chain risk: $50.0 million purchase commitment for inventory from Cicor Group over next five years linked to sale of manufacturing operations
- • Competitive risk: Workforce reductions trimming 211 employees in R&D and 145 in fiscal 2025 to realign cost structure amid evolving market demands
- • Financial risk: $591.5 million outstanding borrowings under $900 million Revolver with covenant temporarily increased to 5.25 in Q2 2024 due to government funding uncertainty
MERCURY SYSTEMS INC FY2025 Key Financial MetricsXBRL
Revenue
$912M
▲ +9.2% YoY
Net Income
-$38M
▲ +72.5% YoY
Gross Margin
27.9%
▲ +445bp YoY
Operating Margin
-2.2%
▲ +1554bp YoY
Net Margin
-4.2%
▲ +1232bp YoY
ROE
-2.6%
▲ +677bp YoY
Total Assets
$2.4B
▲ +2.3% YoY
EPS (Diluted)
$-0.65
▲ +72.7% YoY
Operating Cash Flow
$139M
▲ +130.0% YoY
Source: XBRL data from MERCURY SYSTEMS INC FY2025 10-K filing on SEC EDGAR. All figures in USD.
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