$MRCY

MERCURY SYSTEMS INC

CIK:0001049521|SEC Filings

Consolidated Statements Of Operations And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 03, 2026	Jun. 27, 2025	Jun. 28, 2024
Income Statement [Abstract]
Net revenues	$ 983,622	$ 912,020	$ 835,275
Cost of revenues	702,457	657,526	639,374
Gross margin	281,165	254,494	195,901
Operating expenses:
Selling, general and administrative	175,031	154,412	166,786
Research and development	59,736	67,647	101,328
Amortization of intangible assets	38,904	42,849	47,661
Restructuring and other charges	5,939	7,216	26,170
Acquisition costs and other related expenses	1,275	1,997	1,710
Total operating expenses	280,885	274,121	343,655
Income (loss) from operations	280	(19,627)	(147,754)
Interest income	7,723	3,607	1,199
Interest expense	(29,590)	(33,430)	(35,015)
Other expense, net	(7,302)	(974)	(7,705)
Loss before income taxes	(28,889)	(50,424)	(189,275)
Income tax expense (benefit)	784	(12,520)	(51,635)
Net loss	$ (29,673)	$ (37,904)	$ (137,640)
Basic net (loss) earnings per share (in dollars per share)	$ (0.50)	$ (0.65)	$ (2.38)
Diluted net (loss) earnings per share (in dollars per share)	$ (0.50)	$ (0.65)	$ (2.38)
Weighted-average shares outstanding:
Basic (in shares)	59,460	58,746	57,738
Diluted (in shares)	59,460	58,746	57,738
Comprehensive loss:
Net loss	$ (29,673)	$ (37,904)	$ (137,640)
Change in fair value of derivative instruments, net of tax	134	(4,666)	(833)
Foreign currency translation adjustments, net of tax	8,582	(20)	380
Deferred compensation and pension benefit plan, net of tax	(984)	(1,809)	(1,383)
Total other comprehensive income (loss), net of tax	7,732	(6,495)	(1,836)
Total comprehensive loss	$ (21,941)	$ (44,399)	$ (139,476)

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jul. 03, 2026	Jun. 27, 2025	Jun. 28, 2024
Cash flows from operating activities:
Net loss	$ (29,673)	$ (37,904)	$ (137,640)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	72,683	82,027	88,030
Stock-based compensation expense	41,132	25,019	25,669
Stock-based matching contributions on defined contribution plan	19,181	14,900	15,853
Provision (benefit) for deferred income taxes	1,834	(10,591)	(31,511)
Cash settlement for termination of interest rate swap	0		7,403
Provisions for bad debt	20	876	15,301
Other non-cash items	(831)	(3,577)	452
Changes in operating assets and liabilities:
Accounts receivable, unbilled receivables, and costs in excess of billings	32,718	29,950	76,458
Inventory	(44,457)	(17,087)	130
Prepaid income taxes	(1,797)	(575)	0
Prepaid expenses and other current assets	(6,705)	5,538	(1,693)
Other non-current assets	2,131	8,217	148
Accounts payable, accrued expenses, accrued compensation, and due to factoring	3,772	8,103	741
Deferred revenues and customer advances	23,846	49,890	17,307
Income taxes payable	(554)	(3,813)	(11,217)
Other non-current liabilities	(10,912)	(12,122)	(5,049)
Net cash provided by operating activities	102,388	138,851	60,382
Cash flows from investing activities:
Purchases of property and equipment	(34,301)	(19,803)	(34,291)
Acquisition of businesses, net of cash acquired	(1,415)	(4,543)	0
Proceeds from sale of manufacturing operations to Cicor Group	0	6,246	0
Other investing activities	0	4,600	0
Net cash used in investing activities	(35,716)	(13,500)	(34,291)
Cash flows from financing activities:
Proceeds from employee stock plans	5,418	3,661	4,642
Payments for retirement of common stock	(15,001)	0	(31)
Payments under credit facilities	(150,000)	0	(25,000)
Borrowings under credit facilities	0	0	105,000
Payments of deferred financing and offering costs	(3,156)	(2,249)	(1,931)
Net cash (used in) provided by financing activities	(162,739)	1,412	82,680
Effect of exchange rate changes on cash and cash equivalents	1,274	1,815	187
Net (decrease) increase in cash and cash equivalents	(94,793)	128,578	108,958
Cash and cash equivalents at beginning of year	309,099	180,521	71,563
Cash and cash equivalents at end of year	214,306	309,099	180,521
Cash paid (received) during the period for:
Interest	32,404	36,559	37,423
Income taxes paid (refunded), net	1,174	365	(9,315)
Non-cash investing activity: Purchases of property and equipment incurred but not yet paid	6,113	3,895	4,051
Non-cash investing activity: Inventory transfer to property and equipment, net	$ 4,444	$ 12,675	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 03, 2026	Jun. 27, 2025
Current assets:
Cash and cash equivalents	$ 214,306	$ 309,099
Accounts receivable, net of allowance for credit losses of $162 and $1,767 at July 3, 2026 and June 27, 2025, respectively	69,222	109,588
Unbilled receivables and costs in excess of billings, net of allowance for credit losses of $5,311 for both July 3, 2026 and June 27, 2025	285,760	278,475
Inventory	366,968	332,920
Prepaid income taxes	2,258	457
Prepaid expenses and other current assets	34,925	27,639
Total current assets	973,439	1,058,178
Property and equipment, net	108,413	101,440
Goodwill	942,419	938,093
Intangible assets, net	175,820	210,611
Operating lease right-of-use assets, net	47,713	52,264
Deferred tax assets	67,188	69,016
Other non-current assets	7,784	5,162
Total assets	2,322,776	2,434,764
Current liabilities:
Accounts payable	91,041	79,116
Accrued expenses	32,991	35,264
Due to factoring facility	391	7,879
Accrued compensation	54,537	51,321
Deferred revenues and customer advances	149,565	126,797
Total current liabilities	328,525	300,377
Income taxes payable	3,487	4,046
Long-term debt	441,500	591,500
Operating lease liabilities	45,829	52,738
Other non-current liabilities	5,977	12,642
Total liabilities	825,318	961,303
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.01 par value; 85,000,000 shares authorized; 59,600,732 and 59,003,174 shares issued and outstanding at July 3, 2026 and June 27, 2025, respectively	596	590
Additional paid-in capital	1,333,410	1,287,478
Retained earnings	152,222	181,895
Accumulated other comprehensive income	11,230	3,498
Total shareholders’ equity	1,497,458	1,473,461
Total liabilities and shareholders’ equity	$ 2,322,776	$ 2,434,764