−Removed: Mercury Systems is a technology company that delivers mission-critical processing power to the edge - where signals and data are collected - to solve the most pressing aerospace and defense challenges.
+Added: Mercury Systems is a technology company that delivers mission-critical processing to the edge - where signals and data are collected - to solve the most pressing aerospace and defense challenges.
Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries.
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The Mercury Processing Platform is the unique advantage we provide to our customers.
−Removed: It comprises the innovative technologies we’ve developed and acquired for more than 40 years that bring integrated, mission-critical processing capabilities to the edge.
+Added: It comprises the innovative technologies we’ve developed and acquired for more than 40 years that bring integrated, mission-critical processing to the edge.
Our processing platform spans the full breadth of signal processing—from radio frequency (“RF”) front end to the human-machine interface—to rapidly convert meaningful data, gathered in the most remote and hostile environments, into critical decisions.
It allows us to offer standard products and custom solutions from silicon to system scale, including components, modules, subsystems, and systems and it embodies the customer-centric approach we take to delivering capabilities that are mission-ready, trusted and secure, software-defined, and open and modular.
−Removed: As a leading manufacturer of essential components, products, modules and subsystems, we sell to all of the top defense prime contractors, the U.S.
+Added: As a leading manufacturer of essential components, products, modules and subsystems, we sell to the top U.S.
+Added: and European defense prime contractors, the U.S.
government and original equipment manufacturers (“OEM”) commercial aerospace companies.
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We maintain our technological edge by investing in critical capabilities and intellectual property (“IP” or “building blocks”) in processing, leveraging open standards and open architectures to adapt quickly those building blocks into solutions for highly data-intensive applications, including emerging needs in areas such as artificial intelligence (“AI”).
−Removed: Our consolidated revenues, net loss, diluted loss per share, adjusted loss per share, and adjusted EBITDA for fiscal 2024 were $835.3 million, $(137.6) million, $(2.38), $(0.69) and $9.4 million, respectively.
Our consolidated revenues, net loss, diluted loss per share, adjusted earnings per share, and adjusted EBITDA for fiscal 2025 were $912.0 million, $(37.9) million, $(0.65), $0.64 and $119.4 million, respectively.
−Removed: See the Non-GAAP Financial Measures section of this annual report for a reconciliation of our acquired revenues, adjusted EPS and adjusted EBITDA to the most directly comparable GAAP measures.
+Added: Our consolidated revenues, net loss, diluted loss per share, adjusted loss per share, and adjusted EBITDA for fiscal 2024 were $835.3 million, $(137.6) million, $(2.38), $(0.69) and $9.4 million, respectively.
+Added: See the Non-GAAP Financial Measures section of this annual report for a reconciliation of our adjusted EPS and adjusted EBITDA to the most directly comparable GAAP measures.
Our Business Strategy
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Our businesses are complementary and synergistic, as they are organized within a single integrated operating unit, leverage common human and capital resources, and share IP to accelerate innovation across our offerings.
−Removed: Our structure is now aligned and optimized to execute against these different business models.
−Removed: In 2024, we reorganized to streamline and simplify operations, consolidating two divisions into a single integrated structure that unified all lines of business and matrixed business functions under a Chief Operating Officer.
+Added: Our structure is aligned and optimized to execute against these different business models.
+Added: In 2024, we reorganized to streamline and simplify operations, consolidating two divisions into a single integrated structure that unified all lines of business and matrixed business functions.
Our U.S.-based businesses are aligned into two product-oriented business units – Signal Technologies and Processing Technologies –and a third business unit focused on more comprehensive solutions – Integrated Processing Solutions.
A fourth business unit is dedicated to bringing our advanced edge processing capabilities to the international market, with facilities in the U.K., Spain, and Switzerland.
−Removed: Our Engineering, Operations, Mission Assurance, and Advanced Concepts functions are also centralized under our Chief Operating Officer, driving innovation, execution, and growth across of all our businesses.
+Added: Our Engineering, Operations, and Mission Assurance organizations are also centralized to drive performance excellence.
+Added: Our Advanced Concepts Group, combined with our integrated Growth organization and the office of the Chief Technology Officer are focused on innovation and ensuring that our Processing Platform continues to solve our customer's most challenging processing requirements into the future.
We are focused on delivering industry-leading organic growth, adjusted EBITDA margins, and cash flow through the execution of our strategy to innovate and advance our processing platform, expand our content across A&D platforms, and deliver uncompromising performance for all of our stakeholders.
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As such, our focus is on four areas that unlock our capacity to create value and reinvest for growth:
−Removed: Delivering Predictable Results – Continuous improvement in the performance of our programs, transition our development programs into production and mature our management systems and processes.
−Removed: Building a Thriving Organic Growth Engine – Create a growth engine that is consistently bidding and winning new contracts to drive industry leading organic growth.
−Removed: Expanding Margins – Drive comprehensive cost management efforts corporate-wide including improvement in gross margins across all programs, facilitating clearer accountability and streamlining our structure and processes.
−Removed: Driving Cash Release – Enhance our cash flow conversion, including improvements in delivery and collection.
+Added: Performance Excellence – Ramp critical production programs aligned with our value creation model, deliver key development programs and product innovations, and mature our management systems and processes.
+Added: Thriving Growth Engine – Create a growth engine that is consistently bidding and winning new contracts to drive industry leading organic growth at target margins.
+Added: Margin Expansion – Drive comprehensive cost management efforts corporate-wide including improvement in gross margins across all programs and products.
+Added: Cash Release – Enhance our cash flow conversion, including improvements in delivery and collection.
Our Solutions and Products
−Removed: Since 2015, we have acquired and fully or partially integrated 15 businesses, which have added substantial capabilities to our technology portfolio including:
−Removed: Lewis Innovative Technologies Inc., a carve-out acquisition from Microsemi Corporation, The Athena Group, Inc., Delta Microwave LLC, Syntonic Microwave LLC, Pentek Technologies, LLC and Pentek Systems, Inc., Atlanta Micro, Inc., CES Creative Electronic Systems, S.A., Richland Technologies, LLC, GECO Avionics LLC, American Panel Corporation, Physical Optics Corporation, Avalex Technologies LLC, Themis Computer and Germane Systems LC.
−Removed: We believe we have built the most trusted, proven, contemporary portfolio of solutions and sub-systems that are purpose-built to meet or exceed our customers’ most pressing high-tech needs.
+Added: We believe we have built the most trusted, proven, contemporary portfolio of solutions and sub-systems that are purpose-built to meet or exceed our customers’ most pressing processing needs.
The Mercury Processing Platform now has an end-to-end suite of mission-critical processing technologies, comprising:
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Products and technologies that integrate the human and machine to speed decision-making for mission execution.
−Removed: Security engineering to ensure systemwide integrity and protect Critical Program Information, IP and sensitive data–including securing boot, key management, attack countermeasures, and memory management.
+Added: Security engineering to ensure system wide integrity and protect Critical Program Information, IP and sensitive data–including securing boot, key management, attack countermeasures and memory management.
We deliver technology at the intersection of the high-tech and defense industries, underpinned by key differentiators that set us apart in the market:
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The Mercury Processing Platform is designed to meet the full range of requirements in compute-intensive, signal processing, image processing and command and control applications.
−Removed: To maintain a competitive advantage, we seek to leverage technology investments across multiple product lines and product solutions.
+Added: To maintain a competitive advantage, we seek to leverage technology investments across multiple lines of business.
Examples of hardware products include small, custom microelectronics, embedded sensor processing subsystems, RF and microwave components, modules and subsystems, rugged servers and avionics mission computers.
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We engage with global tech leaders to align technology roadmaps and deliver cutting-edge computing in scalable, field-deployable form factors that are fully configurable to each unique workload.
−Removed: We use the latest Intel® server-class processing
−Removed: products, AMD Field Programmable Gate Arrays (“FPGA”), as well as NVIDIA GPU products in our embedded high-performance processing technologies.
+Added: We use the latest Altera® server-class processing products, AMD Field Programmable Gate Arrays (“FPGA”), as well as NVIDIA GPU products in our embedded high-performance processing technologies.
While this multi-computing and embedded processing technology is one of our core capabilities, the SWaP constraints inherent in high-performance embedded processing applications create unique challenges.
−Removed: For example, to deal with the heat build-up involved in fanless compact rugged subsystems, we introduced a key technology called Air Flow-By™ that enables previously unattainable levels of processing power within a small footprint by effectively removing heat so server-class processors can perform at maximum designed power limits.
−Removed: In environments where air is limited, such as high-altitude operations, our Liquid-Flow-By™ technology allows maximum server-class processor performance.
−Removed: These innovative cooling techniques allow full performance server-class processing in rugged environments enabling new and advanced modes of operation that enhance the multi-intelligence, situational awareness and electronic warfare capabilities in military platforms.
+Added: For example, to address customer needs for faster signal conversion in radar, communications, electronic warfare, signals
+Added: intelligence, and industrial applications, in the past year we introduced several products powered by Altera's most advanced Agilex 9 Direct RF FPGA chips that allow radio frequency signals to be directly digitized at the antenna, eliminating the analog signal down conversion stages required by legacy hardware.
Embedded systems security has become a requirement for new and emerging military programs and our security solutions are a critical differentiator from our traditional competition.
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Mercury has a long history of driving modular open systems architectures and has remained committed to creating, advancing and adopting open standards for all our products, from our smallest components and connectors to our largest, high-performance, integrated multi-computer systems.
−Removed: With forty years of technology leadership within the high-performance embedded computing industry, we have pioneered or contributed to the development of many of the defense industry’s current and emerging open standards, including standards such as RACEway, RapidIO, VXS, VPX, REDI and notably OpenVPX.
+Added: With over forty years of technology leadership within the high-performance embedded computing industry, we have pioneered or contributed to the development of many of the defense industry’s current and emerging open standards, including standards such as RACEway, RapidIO, VXS, VPX, REDI and notably OpenVPX.
These open standards allow system integrators to benefit from the interoperability of modules produced by multiple vendors.
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Mercury serves a large and growing global defense technology market with strong tailwinds from the current defense super-cycle and secular growth targets.
−Removed: We are focused on the Tier 2 and Tier 3 defense technology market, which continues to grow while the total U.S.
−Removed: defense spending is expected to flatten over the next five years.
+Added: We are focused on the Tier 2 and Tier 3 defense technology market, which continues to grow at a faster rate than the expected increase in total U.S.
+Added: defense spending.
The primary demand drivers for our unique capabilities include:
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outsourcing and delayering from the government and prime customers seeking to access innovation from smaller players like Mercury;
−Removed: and a focus on open systems, which allow customers to upgrade capabilities more rapidly and efficiently and better leverage advances in commercial technology such as AI-powered processing.
+Added: and a focus on open systems, which allow
+Added: customers to upgrade capabilities more rapidly and efficiently and better leverage advances in commercial technology such as AI-powered processing.
The market can be segmented into verticals aligned with mission capabilities, and a value chain that consists of prime integrators that contract directly with the government and deliver large scale platforms.
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The additions of Themis and Germane provided us with new capabilities and positioned us with a significant footprint within the rugged server business.
−Removed: Our organic investments as well as the acquisitions of LIT, the Microsemi Carve-Out Business and Athena added to our portfolio of embedded security products that can be leveraged across our business.
−Removed: Finally, our CES addition, due to its location in Geneva, Switzerland is helping to open more opportunities in international markets.
+Added: Our organic investments as well as the acquisitions of LIT, the Microsemi Carve-Out Business, Athena, and Star Lab added to our portfolio of embedded security products that can be leveraged across our business.
We believe there are a number of evolving trends that are reshaping our target markets and accordingly provide us with attractive growth opportunities.
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RSA estimates the compound annual growth rate (“CAGR”) from 2025-2029 for these markets to be 6.6% for platform and mission management, 6.1% for C2I and 7.0% for dedicated communications.
−Removed: Within the global Tier 2 sensor and effector mission systems market in which we participate, RSA estimated the market for 2024 to be $6.2 billion for EW, $7.0 billion for radar, $2.8 billion for EO/IR,
−Removed: $1.4 billion for acoustics and $4.1 billion for weapons systems.
+Added: Within the global Tier 2 sensor and effector mission systems market in which we participate, RSA estimated the market for 2025 to be $6.5 billion for EW, $7.0 billion for radar, $2.9 billion for EO/IR, $1.5 billion for acoustics and $4.1 billion for weapons systems.
RSA estimates the 2025-2029 CAGR for these markets to be 6.2% for EW, 6.9% for radar, 6.0% for EO/IR, 7.0% for acoustics and 6.6% for weapons systems.
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• The rapidly expanding demand for tactical ISR is leading to significant growth in sensor data being generated, leading to even greater demand for the capability of our products to securely store and process data onboard platforms .
−Removed: An increase in the prevalence and resolution of ISR is generating significant growth in the associated data that needs to be stored and turned into information for the warfighter in a timely manner.
+Added: increase in the prevalence and resolution of ISR is generating significant growth in the associated data that needs to be stored and turned into information for the warfighter in a timely manner.
In addition, several factors are driving the defense and intelligence industries to demand greater capability to collect, store and process data onboard the aircraft, UAVs, ships and other vehicles, which we refer to collectively as platforms.
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• A greater percentage of the value associated with future defense platforms will be driven by electronic systems content, and upgrades to existing platforms will focus on sensors, signal processing, sensor algorithms, multi-intelligence fusion and exploitation and computing and communications capability – all areas where Mercury participates.
−Removed: These trends remain favorable in our view and the demand environment is improving due to urgent needs for warfighting capability at a more rapid pace than traditional defense prime contractors can easily react to, as demonstrated by our strong bookings and design wins, in fiscal 2024.
+Added: These trends remain favorable in our view and the demand environment is improving due to urgent needs for warfighting capability at a more rapid pace than traditional defense prime contractors can easily react to, as demonstrated by our history of design wins.
We believe that our addressable market continues to increase, driven in large part by our strategic move into mission systems and potential to deliver innovative processing solutions at chip scale, and that primes will increasingly seek out our high-performance, cost-effective open architecture products.
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military protects its defense electronic systems and the information held within them from nefarious activities such as tampering, reverse engineering and other forms of advanced attacks, including cyber.
−Removed: The requirement to add security comes at a
−Removed: time when the commercial technology world continues to offshore more of the design, development, manufacturing and support of such capabilities, making it more difficult to protect against embedded vulnerabilities, tampering, reverse engineering and other undesired activities.
+Added: The requirement to add security comes at a time when the commercial technology world continues to offshore more of the design, development, manufacturing and support of such capabilities, making it more difficult to protect against embedded vulnerabilities, tampering, reverse engineering and other undesired activities.
The DoD has a mandate to ensure both the provenance and integrity of the technology and its associated supply chain.
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• Mercury is well-positioned to help address the need for DoD to access the latest commercial silicon, combined with the desire to ensure a trusted domestic supply of silicon technologies .
−Removed: In May 2023, DoD’s National Defense Science and Technology Strategy listed microelectronics among its critical technology areas for investment.
−Removed: DoD’s FY23 budget requested $3.3 billion to fund microelectronics research and development initiatives, a historically large increase in funding.
−Removed: DoD's FY24 budget requested $2.6 billion to fund microelectronic initiatives, and the FY25 President's Budget request includes $2.5 billion to fund microelectronics initiatives.
−Removed: Along with Congress' passage of the Creating Helpful Incentives to Produce Semiconductors ("CHIPS") act in August 2022, DoD's investments in microelectronics further amplify the U.S.
−Removed: government's commitment to reinforcing the U.S.
−Removed: semiconductor supply chain.
+Added: In May 2023, DoD’s National Defense Science
+Added: and Technology Strategy listed microelectronics among its critical technology areas for investment.
+Added: DoD’s fiscal year 23 budget requested $3.3 billion to fund microelectronics research and development initiatives, a historically large increase in funding.
+Added: DoD's FY24 budget requested $2.6 billion to fund microelectronic initiatives, and the fiscal year 25 President's Budget request includes $2.5 billion to fund microelectronics initiatives.
We believe Mercury is the leading provider of commercially developed silicon purpose-built for the specific requirements of aerospace and defense customers.
This capability began with our 2016 acquisition of the Microsemi Carve-Out Business, which included capabilities in trusted and secure microelectronics.
−Removed: Since the acquisition, we have made additional investments in security and advanced packaging, most notably our announced $15 million capital investment in fiscal year 2020 to expand our trusted custom microelectronics business in Phoenix, Arizona, to bring cutting-edge commercial silicon to the DoD.
+Added: Since the acquisition, we have made additional investments in security and advanced packaging.
This initiative is specifically intended to bridge DoD technologies from monolithic ASIC designs, which are purpose-built for DoD but are deployed on legacy silicon designs, to heterogeneous “chiplet” architectures, which leverage best-of-breed silicon from commercial providers and packages the silicon for defense-specific applications, including the ability to embed security into the device itself.
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government and other key organizations in the defense industry over our 30 years in the defense electronics industry.
−Removed: Our top customers include Airbus, BAE Systems, Boeing, General Atomics, General Dynamics, L3Harris Technologies, Leonardo, Lockheed Martin Corporation, Northrop Grumman Corporation, RTX Corporation (formerly known as Raytheon Technologies) and the U.S.
+Added: Our top customers include Airbus, BAE Systems, Boeing, General Atomics, General Dynamics, L3Harris Technologies, Leonardo, Lockheed Martin Corporation, Northrop Grumman Corporation, RTX Corporation and the U.S.
Over this period, we have become recognized for our ability to develop new technologies and meet stringent program requirements.
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They also bring experience in effectively implementing operational transformations that deliver strong results and drive long-term value creation.
−Removed: Our leadership team is focused on operational execution, including setting clear priorities, developing
−Removed: the appropriate processes and systems, and delivering results.
+Added: Our leadership team is focused on operational execution, including setting clear priorities, developing the appropriate processes and systems, and delivering results.
We are focused on four priorities to unlock capacity to create value and reinvest for growth.
They include:
−Removed: delivering predictable results, building a thriving growth engine, expanding margins, and driving cash release.
+Added: performance excellence, building a thriving growth engine, expanding margins, and driving cash release.
Our ability to make progress in each of these areas is predicated upon having the highest performing team in our industry, which is the thrust of several significant workforce development initiatives.
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We operate in a highly competitive marketplace characterized by rapidly changing technology, frequent product performance improvements, increasing speed of deployment to align with warfighters’ needs and evolving industry standards and requirements coming from our customers or the DoD.
−Removed: Competition typically occurs at the design stage of a prospective customer’s product, where the customer evaluates alternative technologies and design approaches.
+Added: Competition typically occurs at the design stage of a prospective
+Added: customer’s product, where the customer evaluates alternative technologies and design approaches.
We work with defense prime contractors as well as directly with the DoD.
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The principal competitive factors in our market are price/performance value proposition, available new products at the time of design win engagement, services and systems integration capability, effective marketing and sales efforts and reputation in the market.
−Removed: Our competitive strengths include rapid, innovative engineering in both hardware and software products, subsystem design expertise, advanced packaging capability to deliver the most optimized SWaP solution possible, our ability to respond rapidly to varied customer requirements and a track record of successfully supporting many high profile programs in the defense market.
+Added: Our competitive strengths include rapid, innovative engineering in both hardware and software products, subsystem design expertise, advanced packaging capability to deliver the most optimized SWaP solution possible, our ability to respond rapidly to varied customer requirements and a track record of successfully supporting many high-profile programs in the defense and aerospace markets.
There are competitors in the different market segments and application types in which we participate.
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The majority of our products and solutions are produced in AS9100 quality system-certified facilities.
−Removed: The current scope of delivered hardware products includes commercial and industrial class printed circuit board assemblies (modules), complex chassis subsystems, rugged display system and servers and RF and microwave components and subsystems.
+Added: The current scope of delivered hardware products includes commercial and industrial class printed circuit board assemblies (modules), complex chassis subsystems, rugged display systems and servers and RF and microwave components and subsystems.
Our Phoenix, Arizona facility manufactures our custom microelectronics products in an AS9100 quality system-certified facility.
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Our Fremont, California and Alpharetta, Georgia facilities are ISO 9001:2015 quality systems-certified.
−Removed: Our Hudson, New Hampshire and Chantilly, Virginia locations are IPC1791 and AS9100 quality systems-certified facility.
+Added: Our Hudson, New Hampshire and Chantilly, Virginia locations are IPC1791 and AS9100 quality systems-certified facilities.
Our Andover, Massachusetts and Hudson, New Hampshire facilities design and assemble our processing products and are AS9100 quality systems-certified facilities.
Our Andover, Massachusetts facility is also a DMEA-certified trusted design facility and is primarily focused on advanced security features for the processing product line.
−Removed: Our Geneva, Switzerland facility, the headquarters of our international operations, provides electronic design and manufacturing, maintenance and support services and is AS9100 and EASA Part 145 quality systems-certified.
Our Silchester, England facility provides engineering, development and integration services and is AS9100 quality systems-certified.
We rely on both vertical integration and subcontracting to contract manufacturers to meet our manufacturing needs.
−Removed: Our Phoenix and Geneva facilities have the manufacturing capabilities to complete the assembly and testing for certain of our embedded multi-computing products.
+Added: Our Phoenix facility has the manufacturing capabilities to complete the assembly and testing for certain of our embedded multi-computing products.
We subcontract as needed a portion of the assembly and testing for our other embedded multi-computing products to contract manufacturers in the U.S.
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Our advanced microelectronics center in Phoenix, Arizona is built around scalable, repeatable, secure, affordable and predictable manufacturing.
−Removed: The high mix, low volume and high complexity/density nature of our products require speed and seamless interaction with all internal functions (as opposed to with an external contract manufacturer) which is a key value proposition of the Phoenix operations facility.
+Added: The high mix, low volume and high complexity/density nature of our products require speed and
+Added: seamless interaction with all internal functions (as opposed to with an external contract manufacturer) which is a key value proposition of the Phoenix operations facility.
Phoenix is also designed for efficient showcasing to customers who at any point wish to access the best proven technology and high performing, secure electronics and processing manufacturing solutions within a broader product company such as Mercury.
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Intellectual Property and Proprietary Rights
−Removed: We hold a broad collection of intellectual property rights to protect our proprietary technology and our brand.
−Removed: This includes patents, designs, copyrights, trademarks and trade secrets in the U.S.
+Added: We hold a broad collection of intellectual property rights to protect our proprietary technologies and our brands.
+Added: These include patents, designs, copyrights, trademarks and trade secrets in the U.S.
and various foreign countries.
−Removed: Although we believe the ownership of such intellectual property rights is an important factor in differentiating our business and that our success depends in part on such ownership, we rely primarily on the innovation skills and technical expertise of our employees.
−Removed: We regularly file patent and trademark applications and continuations to protect innovations arising from our research and development.
−Removed: We also rely on a combination of trade secret, copyright and trademark laws, as well as contractual agreements, to safeguard our proprietary rights in technology and products.
−Removed: In seeking to limit access to sensitive information to the greatest practical extent, we routinely enter into confidentiality and assignment of invention agreements with each of our employees and consultants and nondisclosure agreements with our customers and vendors.
−Removed: We have licensed in the past, and expect that we may license in the future, certain of our rights to other parties.
−Removed: Some of our products are designed to include intellectual property owned by third parties.
−Removed: It may be necessary in the future to seek or renew licenses to various aspects of our products, processes and services.
−Removed: Over time, we have accumulated a meaningful portfolio of issued and registered intellectual property rights.
+Added: Although we believe the ownership of such intellectual property rights is an important factor in differentiating our business and that our success depends in part on such ownership, we primarily rely on the innovation skills and technical expertise of our employees.
+Added: We regularly file patent and trademark applications, including payment of related maintenance fees, to protect innovations and brands arising from our research and development.
+Added: We also rely on a combination of trade secret, patent, copyright, and trademark laws, as well as contractual agreements, to safeguard our proprietary rights in technologies and in our products.
+Added: In seeking to limit access to sensitive information to the greatest extent practicable, we routinely enter into confidentiality agreements and assignment of invention agreements with each of our employees and consultants, and execute nondisclosure agreements with our customers, suppliers, and vendors.
+Added: We have licensed intellectual property rights in the past and expect that we may license such rights in the future to certain other parties.
+Added: Some of our products may include intellectual property owned by third parties.
+Added: It may be necessary in the future to review or renew such licenses to various aspects of our products and services.
+Added: Over time, we have accumulated a significant portfolio of issued patents and registered trademarks, including other intellectual property rights.
No single intellectual property right is solely responsible for protecting our products, processes and services.
−Removed: We believe the duration of our intellectual property rights is adequate relative to the expected lives of our products, processes and services.
+Added: We believe our policies and safeguard measures to protect our intellectual property are sufficient relative to the use and lives of our products and services.
As of June 27, 2025, we had a backlog of orders aggregating approximately $1.4 billion, of which $807.8 million is expected to be recognized as revenue within the next twelve months.
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We cannot assure the timely replacement of canceled, delayed or reduced orders.
−Removed: At June 28, 2024, we employed a total of 2,364 people excluding contractors, including 790 in research and development, 126 in sales and marketing, 1,160 in manufacturing and customer support and 288 in general and administrative functions.
−Removed: We have 137 employees located outside of the United States and 2,227 located in the United States.
−Removed: We also use contractors on an as-needed basis.
Human Capital
−Removed: At Mercury, our people are at the center of everything we do in driving Innovation That Matters® by and for People Who Matter.
−Removed: We recognize that Mercury will succeed only if our employees are engaged, given an opportunity to develop and provided with a safe workplace that values diverse perspectives from a population that represents our communities.
+Added: At Mercury, our people are at the center of everything we do in driving Innovation that Matters®.
+Added: We believe that our success depends on our ability to foster a company-wide culture that values a broad range of solutions to problems, a wide array of skills and experiences, and multiple perspectives.
+Added: We believe that the workforce required to grow our business and deliver creative solutions must be rich in diverse thought, experience, and culture, and are committed to providing an environment that respects the varied backgrounds and viewpoints of our employees.
+Added: Our initiatives focus on building and maintaining talent that will create cohesive and collaborative teams that drive innovation.
Our Board of Directors provides oversight of our people practices, including regularly reviewing workforce metrics such as those described below.
−Removed: Additional data related to these metrics can be found on our website at www.mrcy.com under the Company – Environmental, Social and Governance tab (our “Website”).
• Employee Overview:
−Removed: As of June 28, 2024, we had 2,364 employees around the globe.
+Added: As of June 27, 2025, we employed 2,162 people excluding contractors around the globe, including 579 in research and development, 112 in sales and marketing, 1,180 in manufacturing and customer support and 291 in general and administrative functions.
Our primary operations are in the U.S.
with 2,061 employees and we operate offices in 12 states.
−Removed: Outside the U.S., we had 137 employees, and operate from locations in Canada, Spain, Switzerland, and the United Kingdom.
+Added: Outside the U.S., we had 101 employees, and operate from locations in Spain, Switzerland, and the United Kingdom.
No employees are covered by any collective bargaining or similar agreements.
+Added: We also use contractors on an as-needed basis.
• Culture and Employee Engagement:
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We regularly seek employee input through engagement surveys, the results of which drive meaningful and timely action, as appropriate, from our leadership team and people leaders across the Company.
−Removed: Participation in our most recent employee engagement survey in October 2023 remained strong at 75%.
+Added: Participation in our most recent employee engagement survey in April 2025 remained strong at 75%.
Our investment in our employees extends to our workplaces.
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We offer a two-year engineering rotational program to recent graduates in electrical, firmware, software, RF and systems engineering disciplines.
−Removed: During the program, employees gain insight and experience rotating through multiple business units and engineering disciplines and upon program completion are matched with a position.
−Removed: We also have formal programs to further develop our leaders, at various levels:
−Removed: leadership cohorts, mentor programs, team excellence discussions, training programs for new managers and regular engagement with our executive leadership team.
+Added: During the program, employees gain insight and experience rotating through multiple engineering disciplines and upon program completion are matched with a position.
+Added: During fiscal 2025, we have also invested $1.7 million in formal leadership programs to further develop our leaders, at various levels:
+Added: leadership cohorts, mentor programs;
+Added: team excellence discussions, training programs for new managers and regular engagement with our executive leadership team.
• Pay and Benefits:
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On our website, we disclose environmental stewardship, quality and safety information, including OSHA injury data.
−Removed: We received an Environment, Social, and Governance ("ESG") score
−Removed: of AAA on the Morgan Stanley Capital International ("MSCI") ESG Rating scale during 2024, placing us in the top 5% of their ratings group for aerospace and defense.
−Removed: • Diversity, Equity & Inclusion:
−Removed: Our Website discloses detailed workplace data surrounding our gender composition, racial/ethnic representation and turnover data.
−Removed: As of June 28, 2024, women and racially/ethnically diverse employees represented 30% and 44%, respectively, of our workforce.
+Added: We received an Environment, Social, and Governance ("ESG") score of AAA on the Morgan Stanley Capital International ("MSCI") ESG Rating scale during 2025, placing us in the top 5% of their ratings group for aerospace and defense.
+Added: • Diversity and Employee Initiatives:
Development of a broad talent pipeline is a business imperative at Mercury and critical to our ability to drive innovation and improve long-term results.
We have established relationships with job networks and educational institutions to proactively attract a diverse pool of talent.
−Removed: Our employees are afforded opportunities to cultivate diversity, equity, and inclusion both within Mercury and our industry.
−Removed: For example, we sponsor, and our leaders participate in, the annual Simmons Leadership Conference which has the goal of preparing the next generation of female leaders and furthering equality in the workplace.
−Removed: We also regularly conduct pay equity assessments and makes adjustments to pay levels for employees in protected classes, as appropriate, as a result of such assessments.
−Removed: L3Harris comprised 12% of our revenues in fiscal 2024, and accounted for less than 10% of our revenues in fiscal 2023 and 2022.
+Added: Our employees are afforded opportunities to deliver creative solutions that are rich in thought, experience, and culture within Mercury and our industry.
+Added: We also regularly conduct pay equity assessments to help ensure the fairness of our pay practices and make adjustments as needed.
RTX Corporation comprised 13%, 10%, and 14% of our revenues in each of the fiscal years 2025, 2024 and 2023, respectively.
Lockheed Martin comprised 10%, 11%, and 13% of our revenues in each of the fiscal years 2025, 2024 and 2023, respectively.
−Removed: The United States Navy accounted for less than 10% of our revenues in fiscal 2024 and 2023, and comprised 14% of our revenues in fiscal year 2022.
−Removed: Northrop Grumman accounted for less than 10% of our revenues in fiscal 2024, 11% in fiscal 2023, and less than 10% in fiscal year 2022.
+Added: The United States Navy comprised 10% of our revenues in fiscal 2025, and accounted for less than 10% of our revenues in fiscal years 2024 and 2023.
+Added: L3Harris accounted for less than 10% of our revenues in fiscal 2025, 12% of our revenues in fiscal 2024, and less than 10% of our revenues in fiscal 2023.
+Added: Northrop Grumman accounted for less than 10% of
+Added: our revenues in fiscal 2025 and fiscal 2024, and comprised 11% in fiscal year 2023.
While sales to each of these customers may comprise 10% or more of our annual revenue, the sales to these customers are spread across multiple programs and platforms.
13 unchanged sentences
Our reports filed with, or furnished to, the SEC are also available on the SEC’s website at www.sec.gov .
−Removed: Investors and others should note that we announce material financial information using our website ( www.mrcy.com ), SEC filings, press releases, public conference calls, webcasts, and social media, including X (formerly Twitter) ( X.com/mrcy ) and LinkedIn ( www.linkedin.com/company/mercury-systems ).
+Added: Investors and others should note that we announce material financial information using our website ( www.mrcy.com ), SEC filings, press releases, public conference calls, webcasts, and social media, including X ( X.com/mrcy ) and LinkedIn ( www.linkedin.com/company/mercury-systems ).
Therefore, we encourage investors and others interested in Mercury to review the information we post on the social media and other communication channels listed on our website.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.