Baron Funds, an investment management company, released its “Baron Discovery Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Year-to-date, the fund was up 10.75% (Institutional Shares), compared to a 11.65% return for the Russell 2000 Growth Index. The fund was up 2.85% in the third quarter, lagging behind the Index’s 12.19% return.  In addition, please check the fund’s top five holdings to know its best picks in 2025. In its third-quarter 2025 investor letter, Baron ...

Conestoga Capital Advisors, LLC disclosed in an October 24, 2025, SEC filing the sale of 279,026 shares of Mercury Systems (MRCY +2.35%), totaling $17,348,965.What HappenedConestoga Capital Advisors reported a reduction of 279,026 shares in its position in Mercury Systems, according to a U.S. Securities and Exchange Commission (SEC) 13F filing dated October 24, 2025 (link). The shares sold were valued at an estimated $17.35 million. The fund now holds 2,279,909 shares.What Else to KnowThe sale reduced Mercu ...

ANDOVER, Mass., Oct. 22, 2025 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a global technology company that delivers mission-critical processing to the edge, today announced it was awarded a multi-year, cost-plus-fixed-fee development contract in September to develop a multi-mission, multi-domain subsystem for a U.S. defense prime contractor. “This program will leverage open standards and a broad set of capabilities from the Mercury Processing Platform, including advanced microele ...

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. In the quarter, the Conestoga Small Cap Composite returned -1.4% net-of-fees, underperforming the Russell 2000 Growth Index’s impressive 12.2% gain. Most of the Index's gains come from low-quality stock leadership, where unprofitable, high-beta ...

Core Insights - Mercury Systems Inc. will release its first quarter fiscal year 2026 financial results on November 4, 2025, after market close [1] - A conference call and webcast will be held at 5:00 p.m. ET on the same day to discuss the financial results and business outlook [2] - The company provides mission-critical processing solutions for aerospace and defense, with products deployed in over 300 programs across 35 countries [4] Financial Results Announcement - The financial results for the first quarter of fiscal year 2026 will be disclosed after market close on November 4, 2025 [1] - The conference call will include discussions on quarterly results, business highlights, and future outlook [2] Conference Call Details - Participants can register for the conference call and webcast online, with a recommendation to register a day in advance or at least 15 minutes before the call [3] - A replay of the webcast will be available two hours after the call and archived for six months [3] Company Overview - Mercury Systems is a global technology company focused on mission-critical processing for aerospace and defense applications [4] - The company operates more than 20 locations worldwide and offers innovative capabilities from silicon to system scale [4]

Core Insights - Mercury Systems, Inc. is set to showcase an AI-powered hardware-software threat detection solution at the 2025 AUSA Annual Meeting and Exposition, highlighting its commitment to advanced technology in defense applications [1][2]. Company Overview - Mercury Systems is a global technology company focused on delivering mission-critical processing solutions for aerospace and defense, with products deployed in over 300 programs across 35 countries [4]. - The company emphasizes its ability to provide innovative capabilities from silicon to system scale, enabling rapid decision-making in critical situations [4]. Product and Technology Highlights - The Aided Target Recognition software, compliant with the Future Airborne Capability Environment (FACE), utilizes AI for target identification, threat detection, and information sharing, proven in government-sponsored flight tests [2]. - The demonstration at AUSA will feature this software running on CMOSS-aligned computing hardware, showcasing its integration with display hardware for actionable intelligence [2]. Strategic Importance - The U.S. Army's modernization efforts rely on partnerships with companies like Mercury that can deliver advanced, adaptable, and secure solutions quickly [3]. - Mercury aims to empower military operations and enhance battlefield advantages through its range of processing capabilities [3].

Core Insights - Mercury Systems and Nightwing have entered into an agreement to enhance the cyber resiliency of Mercury's hardware using Nightwing's technology [1][2] - The collaboration aims to provide pre-integrated cybersecurity and anti-tamper solutions, enhancing application integrity throughout their runtimes [2][3] - This partnership is expected to improve security for critical missions and reduce total cost of ownership for government customers [3] Company Overview: Mercury Systems - Mercury Systems is a global technology company focused on delivering mission-critical processing power to the edge, particularly for aerospace and defense applications [4] - The Mercury Processing Platform enables customers to leverage innovative capabilities from silicon to system scale, facilitating timely decision-making [4] - Mercury's products are utilized in over 300 programs across 35 countries, covering various applications such as mission computing and sensor processing [4] Company Overview: Nightwing - Nightwing specializes in national security solutions, providing advanced cyber, data operations, systems integration, and intelligence services [5] - The company aims to protect critical information and systems for government and commercial clients through innovative technology and expertise [5] - Nightwing became independent in April 2024, previously being part of a Fortune 100 company [5]

Core Points - Mercury Systems, Inc. has received a $12.3 million development contract from a defense prime contractor to develop an avionics subsystem for a new U.S. military aircraft [1] - The contract, signed in July, is a three-year agreement for the development of a Communication Management Unit (CMU) control head, which will manage multiple cockpit communications systems [2] - The new product is part of Mercury's Displays and Networking product line and reflects the company's capability to deliver critical hardware for defense missions [3] Company Overview - Mercury Systems is a global technology company focused on mission-critical processing for aerospace and defense applications, with products deployed in over 300 programs across 35 countries [3] - The Mercury Processing Platform enhances the pilot-machine interface, enabling faster decision-making and providing innovative capabilities from silicon to system scale [3] - The company is headquartered in Andover, Massachusetts, and operates more than 20 locations worldwide [3]

Group 1 - The core viewpoint is that U.S. small and mid-sized defense stocks have significantly outperformed large competitors due to increased demand for cost-effective and adaptable military systems driven by global conflicts and Pentagon priorities [1] - The NYSE Arca Defense Index rose by 34% in 2025, compared to a 12% increase in the S&P 500, highlighting the strong performance of companies like Kratos Defense & Security Solutions (KTOS.US), AeroVironment (AVAV.US), Astronics (ATRO.US), and Mercury Systems (MRCY.US) [1] - The Pentagon's proposed budget of $892.6 billion for fiscal year 2026 allocates nearly $6 billion for drone and counter-drone systems, nearly double the amount from the previous year, indicating a shift away from traditional projects like warships and fighter jets [1] Group 2 - Mergers and venture capital are increasingly flowing into the aerospace and defense sector, with U.S. startups in this field raising over $14 billion in 2025, the highest amount in at least a decade, as investors are optimistic about companies providing next-generation systems for modern battlefields [2]

Company Overview - Mercury Systems reported adjusted earnings of 47 cents per share for Q4 fiscal 2025, beating the Zacks Consensus Estimate by 123.81% and increasing 104.3% year-over-year from 23 cents per share in the prior year quarter [2][5] - Revenues for Q4 fiscal 2025 were $273.1 million, reflecting a 9.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 12.99% [3][4] - Total bookings for Q4 fiscal 2025 were $341.5 million, resulting in a book-to-bill ratio of 1.25 [4] Financial Performance - Adjusted EBITDA for Q4 fiscal 2025 was $51.3 million, compared to $31.2 million for Q4 fiscal 2024, with an adjusted EBITDA margin of 18.8%, an improvement of 620 basis points year-over-year [5] - GAAP net income for Q4 fiscal 2025 was $16.4 million, with diluted earnings per share of $0.27, compared to a GAAP net loss of $10.8 million and a loss per share of $0.19 in Q4 fiscal 2024 [5] Balance Sheet & Cash Flow - As of June 27, 2025, cash and cash equivalents totaled $309.1 million, up from $269.8 million as of March 28, 2025, while long-term debt remained unchanged at $591.5 million [6] - Cash flow from operations was $38.1 million in the reported quarter, down from $71.8 million in the prior year quarter, with free cash flow at $34.0 million compared to $61.4 million for Q4 fiscal 2024 [6] Future Guidance - The company expects low single-digit revenue growth for fiscal 2026, with the first half remaining relatively flat year-over-year and sequential volume increases in the second half [7] - Adjusted EBITDA margin is projected to approach mid-teens for fiscal 2026, starting with low double-digit margins in the first half and expanding through the year [7] Market Position - Mercury Systems has a Zacks Rank 3 (Hold), indicating an expectation of an in-line return from the stock in the coming months [11] - The stock has a Growth Score of A but lags in Momentum Score with a D, and a Value Score of D, placing it in the bottom 40% for value investors [10]