The earnings call presented a positive picture overall, with significant improvements in free cash flow and adjusted EBITDA, as well as strong revenue and backlog growth. However, there are ongoing challenges with sequential revenue declines due to timing shifts and achieving target EBITDA margins.

Company Guidance -

Q4 2025

During the Mercury Systems Third Quarter Fiscal 2025 earnings call, guidance was provided on several key financial metrics. The company reported Q3 bookings of $200 million, with a trailing 12-month book-to-bill ratio of 1.1, and revenue of $211 million, reflecting a year-to-date growth of 8.9% year-over-year. The adjusted EBITDA for the quarter was $25 million, with an adjusted EBITDA margin of 11.7%, which marked a significant year-over-year improvement. Free cash flow reached $24 million, up $50 million from the previous year, contributing to a total of $146 million over the past four quarters. Mercury ended Q3 with $270 million in cash. In terms of future expectations, the company anticipates annual revenue growth approaching mid-single digits for FY 2025, with low double-digit adjusted EBITDA margins, and Q4 adjusted EBITDA margins expected to be the highest of the fiscal year, approaching mid-teens.

Strong Free Cash Flow Performance

Free cash flow for the third quarter was approximately $24 million, compared to an outflow of $26 million in the prior year. Year-to-date free cash flow is $85 million, above previous expectations.

Revenue and Backlog Growth

Revenue for Q3 was $211 million, with a year-to-date growth of 8.9% year-over-year. Backlog increased by 4% year-over-year to $1.34 billion.

Improvement in Adjusted EBITDA

Q3 adjusted EBITDA was $24.7 million, compared to negative $2.4 million in the same quarter last year. Adjusted EBITDA margin improved to 11.7%.

Operational Efficiency

Operating expenses decreased approximately $12 million year-over-year due to actions taken to streamline and focus operations.

Notable Contract Wins

Significant contract awards include $40 million for the common processing architecture and $20 million for the F-35 program.

Mercury Systems (MRCY) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

MRCY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 11, 2025	2025 (Q4)	0.22 / -	0.23	―	―	―
May 06, 2025	2025 (Q3)	0.08 / 0.06	-0.26	123.08% (+0.32)
Feb 04, 2025	2025 (Q2)	-0.05 / 0.07	-0.42	116.67% (+0.49)
Nov 05, 2024	2025 (Q1)	-0.08 / 0.04	-0.24	116.67% (+0.28)
Aug 13, 2024	2024 (Q4)	>-0.01 / 0.23	0.11	109.09% (+0.12)
May 07, 2024	2024 (Q3)	-0.02 / -0.26	0.4	-165.00% (-0.66)
Feb 06, 2024	2024 (Q2)	0.07 / -0.42	0.26	-261.54% (-0.68)
Nov 07, 2023	2024 (Q1)	0.18 / -0.24	0.24	-200.00% (-0.48)
Aug 15, 2023	2023 (Q4)	0.52 / 0.11	0.81	-86.42% (-0.70)
May 02, 2023	2023 (Q3)	0.37 / 0.40	0.57	-29.82% (-0.17)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

MRCY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 06, 2025	$50.41	$47.95	-4.88%
Feb 04, 2025	$42.09	$49.88	+18.51%
Nov 05, 2024	$34.19	$42.22	+23.49%
Aug 13, 2024	$34.00	$40.00	+17.65%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Mercury Systems (MRCY) report earnings?

Mercury Systems (MRCY) is schdueled to report earning on Aug 11, 2025, After Close (Confirmed).

What is Mercury Systems (MRCY) earnings time?

Mercury Systems (MRCY) earnings time is at Aug 11, 2025, After Close (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

You can see a list of the companies which are reporting today on TipRanks earnings calendar.

What is MRCY EPS forecast?

MRCY EPS forecast for the fiscal quarter 2025 (Q4) is 0.22.

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