Mercury Systems Reports Second Quarter Fiscal 2026 Results

Core Insights - Mercury Systems, Inc. reported strong second quarter results for fiscal year 2026, exceeding expectations with significant year-over-year growth in backlog, revenue, and adjusted EBITDA, alongside robust free cash flow [2][9] Financial Performance - Revenue for the second quarter of fiscal 2026 was $233 million, a 4.5% increase from $223 million in the same quarter of fiscal 2025 [3][9] - Total bookings for the quarter reached $288 million, resulting in a book-to-bill ratio of 1.23, contributing to a record backlog of approximately $1.5 billion, which is an 8.8% increase year-over-year [3][9] - The GAAP net loss for the quarter was $15 million, or $0.26 per share, an improvement from a net loss of $18 million, or $0.30 per share, in the prior year [4][9] - Adjusted EBITDA for the quarter was $30 million, up 36.3% from $22 million in the same quarter of the previous year, with an adjusted EBITDA margin of 12.9% [5][9] Cash Flow and Backlog - Operating cash flow for the second quarter was $52 million, while free cash flow was $46 million, both significantly ahead of expectations [2][5] - The total backlog as of December 26, 2025, was $1.5 billion, with $807 million expected to be recognized as revenue within the next 12 months, reflecting a $119 million increase from the previous year [6][9]