Mercury Systems FY2026: Revenue +7.9% to $983.6M, operating loss swings positive, $150M debt repaid

Filed August 18, 2026 · Period ending July 3, 2026 · Compared to 10-K Aug 11, 2025 · ~1 min read

Key Changes

• high

  Operating income swung from a $19.6M loss to $280K income, driven by 70bp gross margin improvement (28.6% vs 27.9%), lower R&D spend ($59.7M vs $67.6M from headcount cuts), and lower amortization, partially offset by 13.4% higher SG&A ($175.0M vs $154.4M, primarily compensation and stock-based comp).

  MD&A: Operating Income Turnaround verify on EDGAR →
• high

  Revenue grew 7.9% to $983.6M (from $912.0M), but the fiscal year contained 53 weeks vs 52 weeks in the prior year—the filing attributes the growth to the extra week before demand factors. Net loss improved 21.7% to -$1.1M (diluted EPS -$0.50, up 23.1% from -$0.65).

  MD&A: Revenue Growth / Key Financials verify on EDGAR →
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  Backlog surged 35.7% to $1.9B (from $1.4B), with $996.0M expected to convert to revenue within twelve months. The company repaid $150M of revolver debt in April 2026, reducing outstanding borrowings to $441.5M and interest expense by $3.8M.

  Business: Backlog / MD&A: Debt Repayment view on EDGAR →