Financial Performance - Total revenues increased by $9.7 million, or 4.4%, to $232.9 million for the second quarter ended December 26, 2025, compared to $223.1 million for the same period in 2024[140] - Total revenues increased by $30.5 million, or 7.1%, to $458.1 million for the six months ended December 26, 2025, compared to $427.6 million for the same period in 2024[158] - The net loss for the second quarter ended December 26, 2025, was $15.1 million, compared to a net loss of $17.6 million for the same period in 2024[139] - Net loss for the six months ended December 26, 2025, was $27.6 million, compared to a net loss of $35.1 million for the same period in 2024[157] - Net loss for the second quarter ended December 26, 2025, was $15,095 thousand, compared to a net loss of $17,579 thousand for the same period in 2024, representing a 8.4% improvement[196] - For the six months ended December 26, 2025, the net loss was $27,610 thousand, compared to $35,104 thousand for the same period in 2024, showing a 21.2% improvement[201] Margins and Expenses - Gross margin was 26.0% for the second quarter ended December 26, 2025, a decrease of 130 basis points from 27.3% in the prior year[142] - Gross margin improved to 27.0%, up 70 basis points from 26.3% in the prior year, driven by lower manufacturing variances and net estimate at completion changes[160] - Research and development expenses decreased by $6.0 million, or 28.0%, to $15.4 million during the second quarter ended December 26, 2025, primarily due to efficiency improvements and headcount reductions[145] - Research and development expenses decreased by $11.2 million, or 28.1%, to $28.6 million, attributed to efficiency improvements and headcount reductions[163] - Selling, general and administrative expenses increased by $1.6 million, or 4.0%, to $42.1 million during the second quarter ended December 26, 2025, driven by higher litigation and settlement expenses[144] - Selling, general and administrative expenses rose by $14.4 million, or 19.5%, to $88.0 million, primarily due to higher litigation and settlement expenses[162] Cash Flow and Capital Management - Net cash provided by operating activities was $53.8 million for the six months ended December 26, 2025, down from $70.8 million in the same period of the previous year[184] - Net cash provided by operating activities for the second quarter ended December 26, 2025, was $51,611 thousand, compared to $85,462 thousand for the same period in 2024, reflecting a decrease of 39.7%[205] - Cash and cash equivalents increased by $25.9 million from June 27, 2025, resulting in a total of $334.99 million at the end of the period[183] - The company incurred $15.0 million in cash for the purchase and retirement of common stock during the six months ended December 26, 2025[186] - The company has a 5-year Revolver with a borrowing capacity of $850.0 million, with outstanding borrowings of $591.5 million as of December 26, 2025[178] Strategic Initiatives - The company is committed to investing in R&D and maintaining a diverse workforce to drive innovation and meet customer needs[135] - The company is exploring acquisitions or strategic alliances as part of its growth strategy, which may incur significant costs[190] - A new share repurchase program was authorized for up to $200.0 million, with $185.0 million available for future repurchases as of December 26, 2025[181] Employee and Workforce Information - The company had 2,135 employees as of December 26, 2025, focusing on engineering and research to maintain technological leads[135] - The company incurred $4.1 million in restructuring and other charges during the second quarter ended December 26, 2025, primarily related to severance for workforce reductions[147] - Restructuring and other charges increased to $5.6 million, primarily related to severance costs from workforce reductions[165] Other Financial Metrics - Adjusted EBITDA for the second quarter ended December 26, 2025, was $30,015 thousand, up 36.4% from $22,029 thousand in the prior year[196] - Adjusted income for the second quarter ended December 26, 2025, was $9,437 thousand, or $0.16 per share, compared to $3,940 thousand, or $0.07 per share, in the same quarter of 2024[199] - The effective tax rate for the six months ended December 26, 2025, was impacted by federal and state research and development credits and non-deductible compensation[172] - Interest income increased to $3.7 million for the six months ended December 26, 2025, compared to $1.0 million in the prior year, driven by higher average cash and cash equivalents[168] - Interest expense decreased to $15.7 million from $17.3 million, reflecting lower interest rates on the Revolver[169] - The company reported an impact to income taxes of $(8,135) thousand for the second quarter ended December 26, 2025, compared to $(7,022) thousand for the same period in 2024[199] - Free cash flow for the second quarter ended December 26, 2025, was $45,709 thousand, compared to $81,907 thousand for the same period in 2024, indicating a decrease of 44.3%[205] - Total commitments and contractual obligations amounted to $277.7 million as of December 26, 2025, including $203.7 million in purchase obligations[187] - Acquisition costs and other related expenses were $0.7 million for the six months ended December 26, 2025, compared to $0.4 million in the prior year[166] - Point in time revenue and over time revenue represented 55% and 45% of total revenues, respectively, for the second quarter ended December 26, 2025[140]

SECOND QUARTER FISCAL YEAR 2026 FINANCIAL RESULTS Bill Ballhaus Chairman and CEO David Farnsworth Executive Vice President and CFO February 3, 2026, 5:00 pm ET WEBCAST LOGIN AT WWW.MRCY.COM/INVESTOR WEBCAST REPLAY AVAILABLE BY 7:00 P.M. ET FEBRUARY 3, 2026 © Mercury Systems, Inc. 1 Forward-looking safe harbor statement This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Mercury Systems Reports Second Quarter Fiscal 2026 Results ANDOVER, Mass. February 3, 2026 Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), reported operating results for the second quarter of fiscal year 2026, ended December 26, 2025. "We delivered second quarter fiscal 2026 results that were ahead of our expectations, with solid year-over-year growth in backlog, revenue, and adjusted EBITDA, and robust free cash flow," said Bill Ballhaus, Mercury's Chairman and CEO. " ...

Q2 FY26 Bookings of $288 million grew 18.6% year-over-year; book-to-bill of 1.23Record backlog of $1.5 billion; up 8.8% year-over-yearRecord first-half revenue with Q2 FY26 Revenue of $233 million; GAAP net loss of $15 million; and adjusted EBITDA of $30 million, up 36.3% year-over-yearQ2 FY26 Operating Cash Flow of $52 million with Free Cash Flow of $46 million ANDOVER, Mass., Feb. 03, 2026 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), reported operating results for the second qua ...

Industry Overview - The U.S. defense budget continues to increase, with the E.U. also planning a nearly $1 trillion remilitarization program, focusing on artificial intelligence (AI) and drones for military enhancement [1] Company Highlights Dassault Aviation (EPA: AM) - Dassault Aviation, known for the Rafale multirole fighter, has seen its stock rise by 52.94% over the last 12 months, trading at €312.60 ($362.89) as of January 16 [3] - The company is expected to benefit from the E.U.'s rearmament program and has invested $200 million in Harmattan AI to enhance capabilities in electronic warfare, drone interception, and surveillance [6] Howmet Aerospace (NYSE: HWM) - Howmet Aerospace has experienced significant growth, with its stock increasing by 82.81% over the past year, reaching $224.82 [8] - The company's strong performance is attributed to a 14% revenue growth in 2025 and a shift towards higher-margin aftermarkets and critical engine components [9] - The stock rally is expected to continue, especially if the U.S. military budget increases to $1.5 trillion as proposed [10] Mercury Systems (NASDAQ: MRCY) - Mercury Systems specializes in mission-critical processing technologies for defense and aerospace, with its stock rising by 40.99% since the start of 2026, reaching an all-time high of $102.94 [11] - The recent stock surge is driven by a $60 million contract for U.S. strategic and space weapons programs, utilizing Mercury's advanced data processing capabilities [13] - The company is likely to maintain its growth trajectory due to its long-standing government contracts and the duration of the new contract extending through 2031 [14]

Core Viewpoint - Bel Fuse Inc. has appointed Tom Smelker as President of Connectivity Solutions, effective January 26, 2026, to drive growth and innovation in the aerospace and defense sectors [1][4]. Group 1: Appointment and Background - Tom Smelker brings over two decades of experience in the aerospace and defense sectors, previously serving as Senior Vice President and General Manager at Mercury Systems, managing a $400+ million P&L across ten sites [2]. - At Mercury Systems, he achieved a significant turnaround in profitability and repositioned key product lines into top-performing units [2]. - Prior to Mercury Systems, Smelker spent 19 years at Raytheon, where he advanced to Senior Fellow in Secure Processing and launched a secure systems business [2][3]. Group 2: Expertise and Strategic Fit - Smelker's expertise includes ruggedized computing, RF systems, secure microelectronics, and space technologies, aligning closely with Bel's strategic priorities [3]. - His leadership experience in P&L management and global operational oversight positions him well to lead Bel's Connectivity Solutions business unit [3]. Group 3: Leadership Comments - Farouq Tuweiq, CEO of Bel, expressed enthusiasm about Smelker's appointment, highlighting his leadership skills and industry knowledge as crucial for the company's growth [4]. - Smelker noted the opportunity to contribute to Bel's commitment to innovation and its strong position in the aerospace and defense markets [4]. Group 4: Company Overview - Bel Fuse Inc. designs, manufactures, and markets products that power, protect, and connect electronic circuits, serving various industries including defense, commercial aerospace, telecommunications, and automotive [5]. - The company's product groups include Power Solutions, Connectivity Solutions, and Magnetic Solutions, with operations in facilities worldwide [5].

Core Viewpoint - Mercury Systems, Inc. has secured contract awards exceeding $60 million for two significant U.S. space and strategic weapons programs, highlighting the company's growing role in national security initiatives [1]. Group 1: Contract Awards - In December, Mercury was awarded a development contract extension for a large strategic weapons program, extending its work through 2031 and including additional flight-testing units [2]. - Mercury received a new contract from a space systems prime contractor to produce subsystems for a U.S. national security space program, marking the second adoption of its radiation-tolerant wideband storage and processing subsystem [3]. Group 2: Technology and Capabilities - The Mercury Processing Platform offers unique capabilities that enhance performance and resiliency for space and strategic weapons programs, reflecting the increasing demand for the company's technology [4]. - Mercury's products and solutions are utilized in over 300 programs across 35 countries, supporting various applications in mission computing, sensor processing, command and control, and communications [4].

Core Viewpoint - Mercury Systems Inc. is set to release its second quarter fiscal year 2026 financial results on February 3, 2026, after market close [1] Financial Results Announcement - The company will host a conference call and webcast at 5:00 p.m. ET on the same day to discuss the quarterly financial results, business highlights, and outlook [2] - Company representatives may address questions regarding business and financial developments, earnings forecasts, and other relevant matters, which may include previously undisclosed information [2] Participation Details - Participants interested in attending the conference call or webcast should register online at ir.mrcy.com/events-presentations, ideally a day in advance or at least 15 minutes before the call starts [3] - A replay of the webcast will be available two hours after the call and archived for six months on the same webpage [3] Company Overview - Mercury Systems is a global technology company focused on delivering mission-critical processing to the edge, particularly for aerospace and defense missions [4] - The Mercury Processing Platform enables customers to leverage innovative capabilities from silicon to system scale, facilitating timely data-driven decisions [4] - The company's products and solutions are utilized in over 300 programs across 35 countries, covering applications in mission computing, sensor processing, command and control, and communications [4] - Mercury is headquartered in Andover, Massachusetts, with more than 20 locations worldwide [4]

Core Insights - nLIGHT, Inc. has appointed Gerald Haines to its Board of Directors as a Class I director, with a term expiring at the 2028 annual meeting of stockholders [1] - Haines will also serve on the Audit Committee, bringing extensive experience in finance, legal roles, and defense technology to enhance the company's governance and growth strategy [1][2] Company Overview - nLIGHT, Inc. is a leading provider of high-power lasers for mission-critical applications in directed energy, optical sensing, and advanced manufacturing [4] - The company is headquartered in Camas, Washington, and employs approximately 800 people with operations in the United States, Europe, and Asia [4] Leadership Background - Gerald Haines has over two decades of leadership experience in aerospace and defense, advanced manufacturing, and high-technology sectors [2][3] - His previous roles include Chief Financial Officer at Metabolon and Executive Vice President at Impulse Dynamics, as well as senior leadership positions at Mercury Systems, where he contributed to significant revenue and earnings growth [3]

Company Overview - Mercury Systems, Inc. is a leading technology provider for the aerospace and defense industry, focusing on proprietary hardware and advanced subsystems for mission-critical applications [4] - The company serves approximately 300 programs with 25 major defense contractors and commercial aviation clients across the United States, Europe, and Asia Pacific [7] - Mercury Systems operates an original equipment manufacturing model, generating revenue through the sale of proprietary hardware and subsystems [7] Financial Performance - As of November 11, 2025, Mercury Systems had a market capitalization of $4.38 billion and revenue of $933 million for the trailing twelve months (TTM) [2] - The company reported a net income of -$33 million for the TTM [2] - The stock price was $72.74, reflecting a 65.66% increase over the past year, significantly outperforming the S&P 500 by 56.16 percentage points [6] Recent Transactions - Staley Capital Advisers sold 58,820 shares of Mercury Systems in Q3 2025, reducing its stake to 411,310 shares valued at $31.84 million [2] - Following the sale, Staley's stake in Mercury Systems accounted for 1.31% of its reportable assets under management (AUM) [2][9] - The sale appears to be part of a broader strategy, as Staley also sold stakes in other stocks, indicating a profit-taking move while retaining confidence in Mercury [9]