Mercury Systems(MRCY) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 FY25 bookings were $200.4 million, with a trailing-twelve-month book-to-bill ratio of 1.1[5] - Revenue for Q3 FY25 was $211.4 million, reflecting an 8.9% year-to-date growth compared to the previous fiscal year[4] - Adjusted EBITDA for Q3 FY25 was $24.7 million, with an adjusted EBITDA margin of 11.7%, significantly up from $(2.4) million in Q3 FY24[8] - Free cash flow for Q3 FY25 was $24.1 million, an increase of $49.8 million year-over-year[4] - Total backlog as of March 28, 2025, was $1.34 billion, representing a 4% increase year-over-year[10] - GAAP net loss for Q3 FY25 was $19.2 million, improving from a net loss of $44.6 million in Q3 FY24[7] - Adjusted earnings per share (EPS) for Q3 FY25 was $0.06, compared to $(0.26) per share in Q3 FY24[7] - Net revenues for the third quarter of 2025 were $211,358 thousand, a slight increase of 1% compared to $208,258 thousand in the same quarter of 2024[23] - The net loss for the third quarter of 2025 was $19,170 thousand, compared to a net loss of $44,574 thousand in the same quarter of 2024, representing a 57% improvement[23] - For the nine months ended March 28, 2025, the net loss was $54,274,000, compared to $126,863,000 for the same period in 2024, showing a 57.3% improvement[52] Cash Flow and Liquidity - Operating cash flow for Q3 FY25 was $30.0 million, compared to $(17.8) million in Q3 FY24[9] - Cash and cash equivalents increased to $269.8 million as of March 28, 2025, from $180.5 million a year earlier[22] - Cash flows from operating activities generated $29,974 thousand in Q3 2025, a turnaround from a cash outflow of $17,805 thousand in Q3 2024[24] - Cash and cash equivalents at the end of Q3 2025 were $269,822 thousand, significantly higher than $142,645 thousand at the end of Q3 2024[24] - The company reported net cash provided by operating activities of $29,974,000 for the third quarter, a substantial increase from $(17,805,000) in the prior year[46] Expenses and Cost Management - Total operating expenses decreased to $74,454 thousand in Q3 2025, down 14% from $86,298 thousand in Q3 2024[23] - Research and development expenses decreased to $15,983 thousand in Q3 2025, down 26% from $21,563 thousand in Q3 2024[23] - The company incurred restructuring and other charges of $4,931 thousand in Q3 2025, down from $9,841 thousand in Q3 2024, indicating a reduction of 50%[23] - Total interest expense for the third quarter was $6,778,000, down from $8,777,000 in the same quarter of the previous year, reflecting a 22.7% decrease[41] Shareholder Information - The diluted weighted-average shares outstanding for the third quarter were 59,367,000, compared to 57,698,000 in the prior year, reflecting an increase in shares[49] - Adjusted income for the third quarter was $3,589,000, translating to adjusted earnings per share of $0.06, compared to an adjusted loss of $15,136,000 or $(0.26) per share in the previous year[49] Future Outlook - The company expects to continue incurring expenditures similar to those reflected in the free cash flow financial adjustment, indicating ongoing investment in business operations[44]