Mercury Systems stock soars 16% after big revenue beat

EditorSenad Karaahmetovic
Published 05-02-2025, 03:12 am
Updated 05-02-2025, 03:14 am

ANDOVER, Mass. - Mercury Systems, Inc. (NASDAQ:MRCY) reported second quarter fiscal 2025 results that exceeded analyst expectations for revenue, sending its stock up 16% in after-hours trading.

The aerospace and defense technology company posted revenue of $223.1 million for the quarter ended December 27, 2024, surpassing the consensus estimate of $185.35 million and marking a 13% increase YoY. However, Mercury Systems reported a GAAP net loss of $17.6 million, or -$0.30 per share, which was worse than the analyst estimate of -$0.04 per share.

Despite the earnings miss, investors appeared to focus on the strong revenue growth and improved cash flow. The company generated record operating cash flow of $85.5 million and free cash flow of $81.9 million in the quarter, up $44.4 million YoY.

"We delivered solid results in the second quarter of fiscal 2025 that were once again in line with or ahead of our expectations," said Bill Ballhaus, Mercury's Chairman and CEO.

"These results reflect continued progress in each of our four priority areas, highlighted by solid execution across our broad portfolio of production and development programs."

Mercury Systems reported bookings of $242.4 million for the quarter, resulting in a book-to-bill ratio of 1.09. The company's backlog reached a record $1.4 billion, up 6% YoY.

Adjusted EBITDA for the quarter was $22.0 million, with an adjusted EBITDA margin of 9.9%, both showing substantial improvement from the previous year when the company reported negative adjusted EBITDA.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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