NASDAQ: MRCY

Our consolidated revenues, net loss, diluted loss per share, adjusted earnings per share and adjusted EBITDA for fiscal 2026 were $983.6 million, $(29.7) million, $(0.50), $1.06 and $150.2 million, respectively. Our consolidated revenues, net loss, diluted loss per share, adjusted earnings per share and adjusted EBITDA for fiscal 2025 were $912.0 million, $(37.9) million, $(0.65), $0.64 and $119.4 million, respectively. See the Non-GAAP Financial Measures section of this annual report for a reconciliation of our adjusted EPS and adjusted EBITDA to the most directly comparable GAAP measures.

Our Business Strategy

Our business strategy is rooted in a unique market position: transforming advanced commercial technologies into trusted, secure and mission-critical solutions for the aerospace and defense industry. We have two models within our business: a product model and a solutions model, each with distinct approaches to innovation and go-to-market. In our product businesses, we invest in internal R&D to develop new capabilities that can be leveraged by multiple customers and support a broad range of mission needs and applications. In our solutions business, we engage directly with customers to develop capabilities that meet precise mission requirements, retiring many risks in the development phase before entering a production phase that can last many years and include multiple technological evolutions. Our businesses are mutually reinforcing, operating within a single integrated unit that shares talent, capital and IP to accelerate innovation across our offerings.

Our structure is aligned and optimized to execute against these different business models. Our U.S.-based businesses are aligned into two product-oriented business units, which we refer to as Signal Technologies and Processing Technologies, and a third business unit named Integrated Processing Solutions which focuses on more comprehensive solutions. Our fourth business unit, which we refer to as Europe, the Middle East, and Africa (“EMEA”), is dedicated to bringing our advanced edge processing capabilities to the global market. Our Engineering, Operations, and Mission Assurance organizations are also

centralized to drive performance excellence. Our Advanced Concepts Group, combined with our integrated Growth organization and the office of the Chief Technology Officer are focused on innovation and ensuring that our Processing Platform continues to solve our customers’ most challenging processing requirements into the future.

We have begun applying AI and automation across our operations to improve efficiency, enhance quality and reduce cycle times. Internally, we have deployed pilot programs to automate repetitive tasks such as test procedures, improve requirements and document analysis, optimize production and material planning and assist teams in navigating complex product and contract information. These automation initiatives drive performance by reducing manual touch labor, lowering the risk of human error and accelerating internal workflows to enable our teams across our Company to focus on higher value work.

We are focused on delivering industry-leading organic growth, adjusted EBITDA margins and cash flow through the execution of our strategy to innovate and advance our processing platform, expand our content across A&D platforms and deliver uncompromising performance for all of our stakeholders. Our ability to continue to improve our performance and deliver results demands that we all align around the few actions that unlock the intrinsic value in our business. As such, our focus is on four areas that drive our capacity to create value and reinvest for growth:

1.Performance Excellence – Ramp critical production programs aligned with our value creation model, deliver key development programs and product innovations and mature our management systems and processes.

2.Thriving Growth Engine – Create a growth engine that is consistently bidding and winning new contracts to drive industry leading organic growth at target margins.

3.Margin Expansion – Drive comprehensive cost management efforts company-wide including improvement in gross margins across all programs and products.

4.Cash Release – Enhance our cash flow conversion, including improvements in delivery and collection.

Our Solutions and Products

We believe we have built the most trusted, proven and contemporary portfolio of solutions and subsystems that are purpose-built to meet or exceed our customers’ most pressing processing needs. The Mercury Processing Platform now has an end-to-end suite of mission-critical processing technologies, comprising:

Signal: Microwave and mixed-signal technology for analog and digital signal processing, including frequency conversion, signal conditioning/routing, digitization and low-latency FPGA processing.

Compute: State-of-the-art digital data processing to ensure decision advantage, ranging from general purpose to tailored coprocessors, with high-performance CPU and GPU architectures.

Data Management: Data and video recording, storage and encryption to mitigate cyber vulnerability; connectivity and communications control to securely and efficiently share mission data.

Display: Products and technologies that integrate the human and machine to speed decision-making for mission execution.

Secure: Security engineering, trusted processing technologies, and integrated anti-tamper and cybersecurity software to ensure system wide integrity and protect critical program information, IP and sensitive data–including securing boot, key management, attack countermeasures and memory management.

We deliver technology at the intersection of the high-tech and defense industries, underpinned by key differentiators that set us apart in the market: Mission-Ready; Trusted and Secure; Software-Defined; and Open and Modular.

•Mission-Ready: Fit for purpose to meet the demanding needs of our customers’ missions. Advanced thermal management and rugged packaging technology ensures optimal performance and reliable operation in the most challenging environments on Earth and beyond. We deliver extended reliability and dependability through thermal management, component selection, environmental protection and testing.

•Trusted and Secure: A trusted supply chain, with products designed and manufactured onshore. Advanced cryptography, secure boot and physical protection technologies like our BuiltSECURE technology can mitigate reverse engineering, deliver cyber resiliency and safeguard confidential data and IP against adversarial threats, even when a system has been compromised. We also design safety-certifiable BuiltSAFE processing systems up to the highest design assurance levels.

•Software-Defined: Software enabled hardware for future proofing, rapid scaling, ease of maintenance and affordability. Flexible hardware architectures that are reconfigurable and upgradeable with software to extend the life of our systems and the platforms they are deployed on. Our Model-Based Systems Engineering (“MBSE”) design approach aims to significantly decrease the time and cost involved in developing and deploying military and aerospace platforms.

•Open and Modular: “Plug and play”, upgradeable and scalable. A Modular, Open, Systems Architecture (“MOSA”) approach to system design maximizes technology reuse to dramatically reduce development time and cost. This open systems approach mitigates obsolescence risk while emphasizing commonality, interoperability and sustainability across platforms and domains.

The Mercury Processing Platform is designed to meet the full range of requirements in compute-intensive, signal processing, image processing and command and control applications. To maintain a competitive advantage, we seek to leverage technology investments across multiple lines of business. Examples of hardware products include small, custom microelectronics, embedded sensor processing subsystems, RF and microwave components, modules and subsystems, rugged servers and avionics mission computers.

Our products are typically compute-intensive and require extremely high bandwidth and high throughput. These systems often must also meet significant Size, Weight and Power (“SWaP”) constraints for use in aircraft, Unmanned Aerial Vehicles (“UAVs”), ships and other platforms and be ruggedized for use in harsh environments. They are used in both commercial aerospace applications, such as communications and ground radar air traffic control, as well as advanced defense and intelligence applications, including space-time adaptive processing, synthetic aperture radar, airborne early warning, C4I, mission planning, image intelligence and signal intelligence systems. Our products transform the massive streams of digital data created in these applications into usable information in real time. The systems can scale from a few processors to thousands of processors.

Our processing technologies power AI engines across multiple platforms that help customers shorten decision timelines by enabling faster, more accurate interpretation of sensor data. Our processing and integrated technologies enable signal and data processing—ranging from cognitive electronic warfare to advanced radar and intelligence, surveillance, and reconnaissance (“ISR”) workloads, to help differentiate real signals from electronic deception, improve target identification and enhance mission effectiveness.

Across our processing platform, we are increasingly engineering sensor, compute, and data management technologies that are natively AI ready—capable of tagging, formatting, and moving data so that modern inference algorithms can generate usable insights faster. We integrate purpose-built AI inference engines, including GPUs, Field Programmable Gate Arrays (“FPGA”), and low power processors, that deliver the right performance within tight SWaP constraints, enabling AI applications to operate reliably at the edge where our customers need them most. As AI capabilities evolve rapidly, our open, modular architecture designs allow customers to refresh their computing more frequently and adopt new AI technologies without re-architecting entire platforms.

We group our products into the following categories:

•Components. Components represent the basic building blocks of an electronic system. They generally perform a single function such as switching, storing or converting electronic signals. Some examples include power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits) and memory and storage devices.

•Modules and Subassemblies. Modules and sub-assemblies combine multiple components to serve a range of complex functions, including processing, networking and graphics display. Typically delivered as computer boards or other packaging, modules and sub-assemblies are usually designed using open standards to provide interoperability when integrated in a subsystem. Examples of modules and sub-assemblies include embedded processing boards, switched fabrics and boards for high-speed input/output, digital receivers, graphics and video, along with multi-chip modules. Additional examples include integrated radio frequency and microwave multi-function assemblies and radio frequency tuners and transceivers.

•Integrated Solutions. Integrated solutions bring components, modules and/or sub-assemblies into one system, enabled with software. Subsystems are typically, but not always, integrated within an open standards-based chassis and often feature interconnect technologies to enable communication between disparate systems. Spares and replacement modules and sub-assemblies are provided for use with subsystems sold by us. Our subsystems are deployed in sensor processing, aviation and mission computing and C4I applications.

By providing pre-integrated subsystems to our customers, we enable them to rapidly and cost-effectively port and adapt their applications to changing threats. This approach also saves our customers valuable time and expense, as their initial costs to integrate modules and components typically far exceed the costs of the individual product procurement. This benefit continues over time because we are continually investing R&D into our products. This allows us to provide our customers the latest technologies in our pre-integrated subsystems faster than they can typically do it themselves. We believe this is a better business and technology model to operate within, as it continues to provide value and benefits to us and our customers over time.

We engage with global tech leaders to align technology roadmaps and deliver cutting-edge computing in scalable, field-deployable form factors that are fully configurable to each unique workload. We use the latest Altera® programmable solutions, AMD FPGAs, as well as NVIDIA GPU products in our embedded high-performance processing technologies. While this multi-computing and embedded processing technology is one of our core capabilities, the SWaP constraints inherent in high-performance embedded processing applications create unique challenges. For example, to address customer needs for faster signal conversion in radar, communications, electronic warfare, signals intelligence and industrial applications, recently we introduced several products powered by Altera's most advanced Agilex 9 Direct RF FPGA chips that allow radio frequency signals to be directly digitized at the antenna, eliminating the analog signal down conversion stages required by legacy hardware.

Embedded systems security has become a requirement for new and emerging military programs and our security solutions are a critical differentiator from our traditional competition. These security solutions, combined with our next-generation secure Intel® server-class product line, together with increasingly frequent mandates from the government to secure electronic systems for domestic and foreign military sales, position us well to capitalize on U.S. Department of War (“DoW”) program protection security requirements. Finally, our built-in security framework creates higher product differentiation, and drives greater program velocity, while lowering risk.

Open Standards Support

We have a long history of driving modular open systems architectures and we remain committed to creating, advancing and adopting open standards for all our products, from our smallest components and connectors to our largest, high-performance, integrated multi-computer systems. With over forty years of technology leadership within the high-performance embedded computing industry, we have pioneered or contributed to the development of many of the defense industry’s current and emerging open standards, including standards such as RACEway, RapidIO, VXS, VPX, REDI, OpenVPX, and the emerging VITA100 standard. These open standards allow system integrators to benefit from the interoperability of modules produced by multiple vendors. We also continue to be influential in the industry-standards organizations associated with our market segments. As a member of the VMEbus International Trade Association (“VITA”), the Sensor Open Systems Architecture (“SOSA”) initiative, among other standards bodies, we are helping to guide the aerospace and defense industry toward greater openness and vendor interoperability, consistent with the DoW’s focus on using MOSA in major programs.

Our software is based on open standards and includes heterogeneous processor support with extensive, highly optimized math libraries, multi-computing switch fabric support, net-centric and system management enabling services, extended operating system services, board support packages and development tools. This software platform delivers on the performance required for highly tuned real-time operation with the flexibility of open standards that are an essential ingredient of technology insertion and software life-cycle support.

As the U.S. government mandates more outsourcing and open standards, a major shift is occurring within the defense prime contractor community towards procurement of integrated subsystems that enable quick application-level porting through standards-based methodologies. We believe that our core expertise in this area is well aligned to capitalize on this trend. By leveraging our open architecture and high-performance modular product set, we provide defense prime contractors with rapid deployment and quick reaction capabilities through our professional services and systems integration offerings. This results in less risk for the defense prime contractors, shortened development cycles, quicker solution deployment and reduced life-cycle costs.

Commitment to Security

For Mercury, this means ensuring our products and solutions have not been and cannot be tampered with, and that what we deliver to our customers is not compromised at any point during the development lifecycle, from procurement to manufacturing. Our holistic approach includes:

•vigorously mitigating potential insider threats;

•proactively protecting our IT infrastructure with strong cybersecurity defenses;

•effectively managing and assessing our suppliers’ controls; and

•judiciously controlling design information through the entire development process.

We are investing in digital transformation, insider trust, cybersecurity, supply chain management and trusted microelectronics, all integral to our commitment to being a leader in delivering secure, uncompromised products and solutions to our customers.

Market Opportunity

We serve a large and growing global defense technology market with strong tailwinds from the current defense super-cycle and secular growth. We are focused on the Tier 2 and Tier 3 defense technology market, which continues to grow at a faster rate than the expected increase in total U.S. defense spending.

Market Size and Growth

According to Renaissance Strategic Advisors (“RSA”), as of July 2026, the global aerospace and defense electronics market is estimated to be $193 billion in 2026, growing to $303 billion by 2031. Within this global market, RSA estimates that the total Tier 2 defense electronics market, which we participate in, is approximately $66 billion in 2026, and will grow to $106 billion in 2031. RSA estimates that in 2026 the U.S. defense Tier 2 embedded computing and RF market addressable by suppliers such as Mercury was approximately $29 billion, and the International Tier 2 market is $35 billion.

The Tier 2 and Tier 3 aerospace and defense electronics marketplace consists of three primary sectors, subdivided into nine segments. The table below shows the 2026 market size and 2026-2031 market Compound Annual Growth Rate (“CAGR”) for each of the nine segments.

2026 Market Size

(in billions) 2026-2031 Market CAGR

Power Electronics $1.3 8.8%

Platform and Mission Management 8.1 8.0

Total Platform Systems 9.4 8.1

Command, Control, Computers and Intelligence 7.9 9.1

Communications 15.5 9.8

Total C4I Systems 23.4 9.6

Electronic Warfare 10.5 9.8

Radar 10.6 11.2

EO/IR 4.3 6.4

Acoustics 1.8 8.8

Weapons 6.1 14.3

Total Sensor & Effector Mission Systems 33.3 10.7

Total $66.1 9.9%

Our Market Position

Our market opportunity is defined by the growing demand for domestically designed, sourced and manufactured electronics for critical aerospace, defense and intelligence applications. Our primary market positioning is centered on enabling mission critical processing to the edge. Because of the broad demand for high-performance processing at the edge across defense missions, we operate in a number of the larger, faster growing parts of the market, from C4I to sensor processing, and spanning all operational domains: air, land, sea, space, and cyberspace.

The market can be segmented into a value chain that consists of prime integrators that contract directly with the government and deliver large scale platforms, supported by a multi-tiered supplier base. We span several levels of this supply chain, working directly with military organizations and supplying the global defense industrial base with subsystem capabilities, modules and components. The breadth and depth of our Processing Platform enables us to engage vertically from components, or chip-scale, all the way to integrated processing solutions. In some cases, we are a directed source to the primes by the U.S. government, reflecting the differentiation of our processing platform.

We are well positioned on a number of significant and enduring defense programs, with a diverse portfolio of contracts with blue-chip customers, a large installed base and the sole source for many unique capabilities. Our strategic acquisitions have substantially expanded our addressable market into defense platform management, mission computing, rugged server systems, embedded security and commercial aerospace markets aligned to our existing focus.

Key Market Trends and Growth Drivers

We believe there are a number of evolving trends that are reshaping our target markets and accordingly provide us with attractive growth opportunities:

•Geopolitical Tensions Driving Defense Spending Growth. Russia’s invasion of Ukraine, the conflict with Iran, rising tensions in the Asia-Pacific and continued threats from rogue states and violent extremists are contributing to the most challenging global threat environment since the Cold War. Our advisors estimate that U.S. growth, combined with

increases in NATO defense budgets, could drive up to $1.5 trillion of additional spending over the next decade. The Pentagon’s Munitions Acceleration Council is driving multi-year agreements for key munitions and missiles to ensure the U.S. stockpile remains robust. We believe that this could lead to higher bookings for us in the electronic systems associated with missiles, munitions, missile defense systems, unmanned systems, fixed wing aircraft, and rotary wing aircraft.

•Prime Contractor Outsourcing Represents Our Largest Secular Growth Opportunity. RSA estimates that the U.S. defense prime contractors currently outsource only a small percentage of their work. The U.S. government is intensely focused on making systems more affordable and shortening their development time, while challenging defense prime contractors to leverage commercial technology wherever possible. This trend, along with a scarcity of technical and engineering talent in the market, is causing defense prime contractors to outsource to companies like us. As a merchant supplier of commercial technologies to the defense industry, we believe our products and integrated solutions are often more affordable than solutions with the same functionality developed by a defense prime contractor. In addition, we believe our size, scale and stability, combined with the investments we have made in our domestic manufacturing capabilities and infrastructure, make us a more reliable and attractive outsourcing partner for our customers relative to smaller sub-scale providers.

•Increasing Electronics Content and Platform Modernization. We believe that a greater percentage of the value associated with future defense platforms will be driven by electronic systems content, and upgrades to existing platforms will focus on sensors, signal processing, sensor algorithms, multi-intelligence fusion and exploitation and computing and communications capability—all areas where we participates. Ongoing modernization of legacy defense platforms is necessary to maintain relevance in the current near-peer threat environment. We believe that our addressable market continues to increase, driven in large part by our strategic move into mission systems and potential to deliver innovative processing solutions at chip-scale, and that primes will increasingly seek out our high-performance, cost-effective products.

•Space Domain Growth and Strategic Investment. Space represents a critical growth area for us with substantial Pentagon focus and investment. The increasing importance of space-based ISR, communications, and missile warning and tracking systems is driving demand for advanced processing capabilities in orbit. The proliferation of low Earth orbit constellations requires ruggedized, radiation-tolerant processing solutions that can operate reliably in the harsh space environment. As space becomes an increasingly contested domain, the need for secure, high-performance computing solutions purpose-built for space applications continues to expand. Space-qualified processing technologies will be required to address this growing segment of our addressable market.

•All-Domain Operations and Cross-Domain Integration. The Pentagon’s focus on Joint All-Domain Command and Control (“JADC2”) and an integrated system-of-systems approach to warfare across all operational domains is creating significant opportunities for us. Modern military operations require processing solutions that work consistently and reliably across air, land, sea, space, and cyberspace, with the ability to enable cross-domain data fusion and integration. Our unique position with solutions deployed across all domains, combined with our vertical integration from chip-scale to integrated systems, enables us to deliver the interoperability and common processing architecture designs required for all-domain operations. This capability is increasingly critical as the DoW seeks to connect sensors and shooters across domains in near-real-time.

•Extreme Operational Environments Demand Purpose-Built Ruggedization. Our processing solutions must survive and perform reliably in the harshest conditions—from carrier deck landings generating extreme shock loads, to ground vehicles experiencing continuous vibration over rough terrain for extended periods, to thermal extremes from arctic to desert operations, to the electromagnetic interference of contested environments. Our investments in ruggedized computing combined with specialized manufacturing processes and comprehensive environmental testing ensure our solutions maintain signal integrity and mechanical reliability when failure is not an option. This combination of extreme ruggedization with high-performance processing and embedded security across our full product portfolio represents a significant competitive advantage.

•Explosive Growth in Sensor Data and Edge Processing Requirements. The rapidly expanding demand for tactical ISR is leading to significant growth in sensor data being generated, creating even greater demand for the capability of our products to securely store and process data onboard platforms. Several factors are driving the defense and intelligence industries to demand greater capability to collect, store and process data onboard aircraft, UAVs, ships and other vehicles: limited communications bandwidth of existing platforms, the need for platforms that can operate more autonomously in denied communications environments, the need for platforms with increased persistence, and the need for greater onboard processing capabilities. In addition, the advent of sophisticated AI algorithms is beginning to revolutionize the ability of sensor processing systems to intelligently and efficiently process and act upon these large data sets, creating additional opportunities for advanced processing capabilities onboard the platform.

•Security and Domestic Sourcing Requirements Creating New Opportunities. The U.S. government is focused on ensuring that the U.S. military protects its defense electronic systems and the information held within them from nefarious activities such as tampering, reverse engineering and other forms of advanced attacks, including cyber. The requirement to add security comes at a time when the commercial technology world continues to offshore more of the design, development, manufacturing and support of such capabilities. The DoW has a mandate to ensure both the provenance and integrity of the technology and its associated supply chain. These factors have created a unique opportunity for us to expand beyond sensor processing into the provision of technologies ranging from advanced secure processing subsystems to miniaturized custom microelectronics devices and capabilities for other onboard critical computing applications designed, developed, manufactured and supported in the U.S.

Competition

We operate in a highly competitive marketplace characterized by rapidly changing technology, frequent product performance improvements, increasing speed of deployment to align with warfighters’ needs and evolving industry standards, including open architecture requirements and requirements coming from our customers or the DoW. Competition typically occurs at the design and qualification stage of a prospective customer’s product, where the customer evaluates alternative technologies and design approaches. We work with defense prime contractors as well as directly with the DoW. We help drive subsystem development and deployment in both classified and unclassified environments.

The principal competitive factors in our market are price/performance value proposition, available new products at the time of design win engagement, services and systems integration capability, effective marketing and sales efforts and reputation in the market. Our competitive strengths include rapid, innovative engineering in both hardware and software products, subsystem design expertise, trusted and secure processing capabilities, advanced packaging capability to deliver the most optimized SWaP solution possible, our ability to respond rapidly to varied customer requirements and a track record of successfully supporting many high-profile programs in the defense and aerospace markets. There are competitors in the different market segments and application types in which we participate. Some of these competitors are larger and have greater resources than us. Some of these competitors compete against us at purely a component or board-level, others at a subsystem level. We also compete with in-house design teams at our customers. The DoW as well as the defense prime contractors are pushing for more outsourcing of subsystem designs to mitigate risk and to enable concurrent design of the platform which ultimately leads to faster time to deployment. We have aligned our strategy to capitalize on that trend and are leveraging our longstanding subsystem expertise to provide this value to our customers.

Research and Product Development

Our R&D efforts are focused on developing new products and subsystems as well as enhancing existing hardware and software products in mission, signal and image processing. Our R&D goal is to fully exploit and maintain our technological lead in the high-performance, real-time sensor processing industry and in mission computing, microelectronics, platform management and other safety-critical applications. Total expenditures for R&D amounted to $59.7 million, $67.6 million and $101.3 million in fiscal years 2026, 2025 and 2024, respectively. As of July 3, 2026, we had 518 employees, including hardware and software architects and design engineers, primarily engaged in engineering, research, and product development activities. These individuals, in conjunction with our growth team, also devote a portion of their time to assisting customers in utilizing our products, developing new uses for these products and anticipating customer requirements for new products.

Manufacturing

The majority of our products and solutions are produced in AS9100 quality system-certified facilities. The current scope of delivered hardware products includes commercial and industrial class printed circuit board assemblies (modules), complex chassis subsystems, rugged display systems and servers and RF and microwave components and subsystems.

Our Phoenix, Arizona campus manufactures our custom microelectronics products in an AS9100 quality system-certified facility. Our Phoenix campus is also an IPC1791 certified and DMEA certified trusted manufacturing facility, primarily focused on advanced secure system-on-chip design, assembly, packaging and test. We have invested in our Phoenix campus over the past year and plan to incorporate an additional 50,000 square feet of manufacturing space over the next 18 months. Our Cypress, California, West Lafayette, Indiana, Huntsville, Alabama, and Hudson, New Hampshire facilities are AS9100 quality systems-certified facilities as well. Our Alpharetta, Georgia facility is ISO 9001:2015 quality systems-certified. Our Chantilly, Virginia location is an IPC1791 and AS9100 quality systems-certified facility. Our Andover, Massachusetts facility is an AS9100 quality systems-certified facility and a DMEA certified trusted design facility that is primarily focused on advanced security features for the processing product line. Our Silchester, England facility provides engineering, development and integration services and is AS9100 quality systems-certified.

We rely on both vertical integration and subcontracting to contract manufacturers to meet our manufacturing needs. Our Phoenix campus has the manufacturing capabilities to complete the assembly and testing for a subset of our embedded multi-computing products. We subcontract as needed a portion of the assembly and testing for our other embedded multi-computing

products to contract manufacturers in the U.S. to build to our specifications. Our printed circuit board assemblies and chassis subsystems’ manufacturing operations also consist of materials planning and procurement, final assembly and test and logistics (inventory and traffic management). Our vertically integrated subsystem product solutions rely on strong relationships with strategic suppliers to ensure on-time delivery and high-quality products. We manage supplier performance and capability through quality audits and stringent source, incoming and/or first article inspection processes. We have a comprehensive quality and process control plan for each of our products, which include a supply chain management program and the use of automated inspection and test equipment to assure the quality and reliability of our products. We perform most post-sales service obligations (both warranty and other lifecycle support) in-house through a dedicated service and repair operation. We periodically review our contract manufacturing capabilities to ensure we are optimized for the right mix of quality, affordability, performance and on-time delivery.

In fiscal 2025, to support the Readiness 2030 initiative to enhance European Union and NATO military capabilities, we signed a strategic supply agreement with Cicor Group (“Cicor”), the leading European manufacturer for aerospace and defense. With a presence across many European countries, Cicor is partnering with us to manufacture key non-ITAR technologies required by European customers. The agreement supports local production requirements and accelerates delivery needs of customers in the region, enabling our next phase of growth in the international market.

Our Advanced Microelectronics Center (“AMC”) in Phoenix, Arizona is built around scalable, repeatable, secure, affordable and predictable manufacturing. The high mix, low volume and high complexity/density nature of our products require speed and seamless interaction with all internal functions (as opposed to with an external contract manufacturer) which is a key value proposition of the Phoenix operations facility. Our Phoenix campus is also designed for efficient showcasing to customers who at any point wish to access the best proven technology and high performing, secure electronics and processing manufacturing solutions within a broader product company such as Mercury. Proximity and interaction with our internal engineering organization is a significant benefit. This allows for the most repeatable product performance, while optimizing affordability and production responsiveness. Our Phoenix AMC also provides manufacturing and assembly for SWaP-optimized multi-chip modules and system-in-package devices. We combine surface-mount, flip chip, die attach, wire bond and rugged 3D packaging on the same devices to provide a SWaP-optimized solution for our customers.

Our Hudson, New Hampshire, West Caldwell, New Jersey and Oxnard, California facilities are specifically aimed at providing scalable manufacturing within our critical businesses. We leverage best practices in design, development, manufacturing and materials handling at these production and subsystems integration facilities. These facilities include the design, build and test of both RF and microwave components and subsystems in support of a variety of key customer programs. Our Alpharetta, Georgia facility offers active matrix liquid crystal display systems which enhances the highly sophisticated human/ machine interface. Our facility in Torrance, California is an AS9100 and AS9110C facility that offers Avionics Safety-Certifiable subsystems. Our facility in Upper Saddle River, New Jersey is ISO 9001:2015 certified and offers digital signal processing products. Our facility in Gulf Breeze, Florida is AS9100 certified and offers rugged avionics and electronics. Our facility in Norcross, Georgia is AS9100 certified and offers RF and microwave products.

Although we generally use standard parts and components for our products, certain components, including custom designed Application-Specific Integrated Circuits (“ASICs”), static random access memory, FPGAs, microprocessors and other third party chassis peripherals (single board computers, power supplies, blowers, etc.), are currently available only from a single source or from limited sources.

We also design, develop and manufacture digital radio frequency memory units for a variety of modern electronic warfare applications, as well as radar environment simulation and test systems for defense and intelligence applications. We develop high performance signals intelligence payloads and EO/IR technologies for small UAV platforms as well as powerful onboard UAV processor systems for real-time wide area motion imagery.

Intellectual Property and Proprietary Rights

We hold a broad collection of IP rights to protect our proprietary technologies and our brands. These include patents, designs, copyrights, trademarks and trade secrets in the U.S. and various foreign countries. Although we believe the ownership of such IP rights is an important factor in differentiating our business and that our success depends in part on such ownership, we primarily rely on the innovation skills and technical expertise of our employees.

We regularly file patent and trademark applications, including payment of related maintenance fees, to protect innovations and brands arising from our R&D. We also rely on a combination of trade secret, patent, copyright and trademark laws, as well as contractual agreements, to safeguard our proprietary rights in technologies and in our products. In seeking to limit access to sensitive information to the greatest extent practicable, we routinely enter into confidentiality agreements and assignment of invention agreements with each of our employees and consultants, and execute nondisclosure agreements with our customers, suppliers and vendors.

We have licensed IP rights in the past and expect that we may license such rights in the future to certain other parties. Some of our products may include IP owned by third parties. It may be necessary in the future to review or renew such licenses to various aspects of our products and services.

Over time, we have accumulated a significant portfolio of issued patents and registered trademarks, including other IP rights. No single IP right is solely responsible for protecting our products, processes and services. We believe our policies and safeguard measures to protect our IP are sufficient relative to the use and lives of our products and services.

Backlog

As of July 3, 2026, we had a backlog of orders aggregating approximately $1.9 billion, of which $996.0 million is expected to be recognized as revenue within the next twelve months. As of June 27, 2025, backlog was approximately $1.4 billion. Our backlog is comprised of accepted purchase orders for which a majority are fully funded. Orders included in backlog may be canceled or rescheduled by customers, although the customer may incur cancellation penalties depending on the timing of the cancellation. A variety of conditions, both specific to the individual customer and generally affecting the customer’s industry, may cause customers to cancel, reduce or delay orders that were previously made or anticipated. We cannot assure the timely replacement of canceled, delayed or reduced orders.

Human Capital

Our people are at the center of everything we do in driving Innovation that Matters®. We believe that our success depends on our ability to foster a company-wide culture that values a broad range of solutions to problems, a wide array of skills and experiences and multiple perspectives. We believe that the workforce required to grow our business and deliver creative solutions must be rich in diverse thought, experience and culture, and are committed to providing an environment that respects the varied backgrounds and viewpoints of our employees. Our initiatives focus on building and maintaining talent that will create cohesive and collaborative teams that drive innovation. Our Board of Directors provides oversight of our people practices, including regularly reviewing workforce metrics such as those described below.

•Employee Overview: As of July 3, 2026, we employed 2,102 people excluding contractors around the globe, including 518 in R&D, 111 in sales and marketing, 1,186 in manufacturing and customer support and 287 in general and administrative functions. Our primary operations are in the U.S. with 2,031 employees and we operate offices in 12 states. Outside the U.S., we had 71 employees, and operate from locations in Spain, Switzerland, and the United Kingdom. No employees are covered by any collective bargaining or similar agreements. We also use contractors on an as-needed basis.

•Culture and Employee Engagement: We believe our workplace culture drives engagement that turns ideas into action, delivering trusted and secure solutions at the speed of innovation. We regularly seek employee input through engagement surveys, the results of which drive meaningful and timely action, as appropriate, from our leadership team and people leaders across the Company. Participation in our most recent employee engagement survey in January 2026 remained strong at 75%. Our investment in our employees extends to our workplaces. For fiscal 2026, we invested over $4.3 million to upgrade our locations to world-class facilities. We also encourage employees to give back to our communities. We sponsor and participate in a number of philanthropic events in our communities, such as Run to Home Base, an annual event that funds clinical care and support for veterans and their families who are impacted by the invisible wounds of war. Our employees also have opportunities to engage and inspire students in our local communities to pursue STEM education and career path.

•Training and Development: We encourage life-long learning through our offering of formal learnings, structured mentoring, tuition reimbursement and other employee development opportunities. We are deeply invested in building the next generation of engineers and scientists with our internship and co-op programs. We offer a two-year engineering rotational program to recent graduates in electrical, firmware, software, RF and systems engineering disciplines. During the program, employees gain insight and experience rotating through multiple engineering disciplines and upon program completion are matched with a position. During fiscal 2026, we also invested $1.6 million in formal leadership programs to further develop our leaders, at various levels: leadership cohorts, mentor programs, team excellence discussions, training programs for new managers and regular engagement with our executive leadership team.

•Pay and Benefits: We seek competitiveness and fairness in total compensation with reference to external pay data and internal equity. We also offer a variety of well-being programs to support our employees and their families with healthy living. These programs include paid time off, paid parental leave, health insurance coverage, voluntary benefits (including pet insurance and caregiver support), company contributions to retirement savings and employee assistance and work-life programs. In addition, we offer employees less traditional benefits to support employee well-being such as access to fitness and meditation apps, as well as an online platform through which employees participate in healthy living challenges and earn financial rewards.

•Environmental, Health and Safety: On our website, we disclose environmental stewardship, quality and safety information, including OSHA injury data. We received an Environment, Social, and Governance (“ESG”) score of AAA on the Morgan Stanley Capital International ("MSCI") ESG Rating scale during 2026.

•Diversity and Employee Initiatives: Development of a broad talent pipeline is a business imperative at Mercury and critical to our ability to drive innovation and improve long-term results. We have established relationships with job networks and educational institutions to proactively attract a diverse pool of talent. Our employees are afforded opportunities to deliver creative solutions that are rich in thought, experience, and culture within Mercury and our industry. We also regularly conduct pay equity assessments to help ensure the fairness of our pay practices and make adjustments as needed.

Customers

Customers comprising 10% or more of the our revenues for the periods shown below are as follows:

Fiscal Years Ended

July 3, 2026 June 27, 2025 June 28, 2024

RTX Corporation 15 % 13 % 10 %

Lockheed Martin Corporation 11 % 10 % 11 %

Northrop Grumman 10 % * *

U.S. Navy * 10 % *

L3Harris * * 12 %

36 % 33 % 33 %

* Indicates that the amount is less than 10% of the our revenue for the respective period.

While we typically have customers from which we derive 10% or more of our revenue, the sales to each of these customers are spread across multiple programs and platforms. There were no programs comprising 10% or more of the our revenues for the years ended July 3, 2026, June 27, 2025 and June 28, 2024.

Corporate Headquarters and Incorporation

Our corporate headquarters is located in Andover, Massachusetts. Mercury Systems, Inc. was incorporated in Massachusetts in 1981.

Financial Information about Geographic Scope

Information about revenue we receive within and outside the U.S. can be found in Note Q - Operating Segment, Geographic Information and Significant Customers - to the accompanying Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K.

Website

We maintain a website at www.mrcy.com. We make available on our website, free of charge, our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, including exhibits and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended, as soon as reasonably practicable after such reports are electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”). Our code of business conduct and ethics is also available on our website. We intend to disclose any future amendments to, or waivers from, our code of business conduct and ethics within four business days of the waiver or amendment through a website posting or by filing a current report on Form 8-K with the SEC. Information contained on our website does not constitute part of this report. Our reports filed with, or furnished to, the SEC are also available on the SEC’s website at www.sec.gov.

Investors and others should note that we announce material financial information using our website (www.mrcy.com), SEC filings, press releases, public conference calls, webcasts and social media, including X (X.com/mrcy) and LinkedIn (www.linkedin.com/company/mercury-systems). Therefore, we encourage investors and others interested in Mercury to review the information we post on social media and other communication channels listed on our website.