Mercury Systems Reports Third Quarter Fiscal 2025 Results

Core Insights - Mercury Systems, Inc. reported solid financial results for the third quarter of fiscal year 2025, with revenues of $211.4 million, reflecting an 8.9% year-to-date growth compared to the previous year [2][4][19] - The company secured bookings of $200.4 million in the quarter, resulting in a trailing twelve-month book-to-bill ratio of 1.1, indicating strong demand for its products and services [3][10] - Adjusted EBITDA for the quarter was $24.7 million, a significant improvement from a loss of $(2.4) million in the same quarter of the previous year, showcasing enhanced operational efficiency [6][34] Financial Performance - Total revenues for the third quarter of fiscal 2025 were $211.4 million, compared to $208.3 million in the same quarter of fiscal 2024 [4] - The company reported a GAAP net loss of $19.2 million, or $0.33 per share, which is an improvement from a net loss of $44.6 million, or $0.77 per share, in the prior year [5][19] - Free cash flow for the quarter was $24.1 million, a substantial increase of $49.8 million year-over-year, indicating strong cash generation capabilities [7][40] Operational Highlights - Mercury's total backlog as of March 28, 2025, was $1.34 billion, reflecting a $51.0 million increase from the previous year, with $787.6 million expected to be recognized as revenue within the next 12 months [8][10] - The company achieved a gross margin of $57.1 million for the quarter, compared to $40.6 million in the same quarter of the previous year, indicating improved profitability [19] - Operating cash flow was reported at $30.0 million, a significant turnaround from $(17.8) million in the same quarter of fiscal 2024 [7][21] Strategic Outlook - The CEO expressed confidence in the company's strategic positioning and its ability to deliver predictable organic growth with expanding margins and robust free cash flow [2] - Management plans to discuss the quarterly financial results, business highlights, and outlook in an upcoming conference call, indicating a commitment to transparency and investor engagement [9]