MRCY MERCURY SYSTEMS INC

Overview and Growth

In fiscal 2026, MERCURY SYSTEMS INC recorded $983.62M of revenue, net loss of $29.67M, and an operating cash inflow of $102.39M. The $983.62M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 7.9% from $912.02M in fiscal 2025, increasing the company’s operating scale. The company reported diluted EPS of -$0.50, adding a shareholder-level measure to the absolute income figures considered below. The company employed $2.32B of total assets, the balance-sheet base supporting its current operating and cash-flow results. Revenue equaled 0.42x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $281.17M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 28.6% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $280.00K, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 0.0%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was a net loss of $29.67M after operating, financing, tax, and other recognized items. Net margin was -3.0%, reflecting a loss equal to 3.0% of reported revenue. Before income taxes, the company recorded a loss of $28.89M, bridging the operating result to the final net loss. Measured against revenue, the pretax deficit represented 2.9%. Income tax expense totaled $784.00K, providing the reported tax component that separates pretax and after-tax earnings. Relative to period-end equity, the net loss represented 2.0%. The loss-to-assets relationship was 1.3%, placing the bottom-line deficit against the company’s resource base. The net loss narrowed to $29.67M from $37.90M in fiscal 2025.

Liquidity and Capital Structure

The company held $2.32B of assets against $825.32M of liabilities and $1.50B of equity, revealing how the asset base was financed. The near-term balance sheet paired $973.44M of current assets with $328.52M of current liabilities at the reporting date. At 2.96x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $214.31M, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 65.2% of current liabilities, showing how much near-term coverage came from cash alone. Relative to total assets, liabilities measured 35.5%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 9.2% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 4.6% lower than fiscal 2025 assets of $2.43B, measuring the company’s own balance-sheet change. Against $1.47B of equity in fiscal 2025, the current book-equity balance moved 1.6% and ended higher. Cash and equivalents were 30.7% lower than fiscal 2025 cash of $309.10M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $102.39M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Capital expenditures used $34.30M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 33.5% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $68.09M of positive free cash flow for the period. Relative to revenue, free cash flow equaled 6.9%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 2.9%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Jul 3, 2026. Analysis generated Oct 21, 2026.