Mercury Systems Reports First Quarter Fiscal 2026 Results

Core Insights - Mercury Systems, Inc. reported strong Q1 results for fiscal year 2026, exceeding expectations with significant year-over-year growth in backlog, revenue, adjusted EBITDA, and free cash flow [2][3][4] Financial Performance - Q1 fiscal 2026 revenues reached $225.2 million, a 10.2% increase from $204.4 million in Q1 fiscal 2025 [3][20] - The company achieved total bookings of $250 million, resulting in a book-to-bill ratio of 1.11 and a record backlog of $1.4 billion, up approximately $86.4 million year-over-year [2][7][9] - GAAP net loss for Q1 fiscal 2026 was $12.5 million, or $0.21 per share, an improvement from a net loss of $17.5 million, or $0.30 per share, in Q1 fiscal 2025 [4][21] - Adjusted EBITDA for Q1 fiscal 2026 was $35.6 million, a significant increase of 66% from $21.5 million in the same quarter last year [5][39] Cash Flow and Working Capital - Operating cash flow for Q1 fiscal 2026 was $2.2 million, a substantial improvement from $(14.7) million in Q1 fiscal 2025 [6][22] - Free cash flow for Q1 fiscal 2026 was $(4.4) million, improving from $(20.9) million in the prior year [6][40] Backlog and Future Outlook - The total backlog as of September 26, 2025, was $1.4 billion, with $815.6 million expected to be recognized as revenue within the next 12 months [7][9] - The company continues to focus on enhancing execution across its production and development programs, contributing to strong operational results [2][4] Shareholder Actions - On November 3, 2025, the Board of Directors authorized a new share repurchase program for up to $200 million of the company's outstanding common stock [8] - The company amended its revolving credit facility, extending the maturity date by five years with a facility size of $850 million [9][10]