mrcy-20251226

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM 10-Q

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☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 26, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

COMMISSION FILE NUMBER: 001-41194

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MERCURY SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

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Massachusetts		04-2741391
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

50 MINUTEMAN ROAD		01810
ANDOVER	MA
(Address of principal executive offices)		(Zip Code)

978-256-1300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	MRCY	Nasdaq Global Select Market

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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No x

Shares of Common Stock outstanding as of January 31, 2026: 60,014,632 shares.

MERCURY SYSTEMS, INC.

INDEX


		PAGE NUMBER
PART I. FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements (unaudited)	3

	Consolidated Balance Sheets as of December 26, 2025 and June 27, 2025	3

	Consolidated Statements of Operations and Comprehensive Loss for the second quarters and six months ended December 26, 2025 and December 27, 2024	4

	Consolidated Statements of Shareholders’ Equity for the second quarters and s ix months ended Decem ber 26, 2025 and December 27, 2024	5

	Consolidated Statements of Cash Flows for the si x m onths ended December 26, 2025 and Dece mber 27, 2024	6

	Notes to Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	39

Item 4.	Controls and Procedures	39

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	40

Item 1A.	Risk Factors	40

Item 5.	Other Information	40

Item 6.	Exhibits	41

	Signatures	42

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MERCURY SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)


	December 26, 2025		June 27, 2025
Assets
Current assets:
Cash and cash equivalents	$	334,990	$	309,099

Accounts receivable, net of allowance for credit losses of $1,832 and $1,767 at December 26, 2025 and June 27, 2025, respectively	105,832		109,588
Unbilled receivables and costs in excess of billings, net of allowance for credit losses of $5,311 for both December 26, 2025 and June 27, 2025	273,938		278,475
Inventory	349,645		332,920

Prepaid income taxes	1,230		457
Prepaid expenses and other current assets	66,518		27,639

Total current assets	1,132,153		1,058,178

Property and equipment, net	102,019		101,440
Goodwill	938,093		938,093
Intangible assets, net	193,232		210,611
Operating lease right-of-use assets, net	51,972		52,264
Deferred tax assets	76,429		69,016
Other non-current assets	8,206		5,162

Total assets	$	2,502,104	$

SEC Form 10-Q filed by Mercury Systems Inc