Slide 1: Third Quarter Fiscal Year 2026 Financial Results
THIRD QUARTER FISCAL YEAR 2026 FINANCIAL RESULTS Bill Ballhaus Chairman and CEO David Farnsworth Executive Vice President and CFO May 5, 2026, 5:00 pm ET WEBCAST LOGIN AT WWW.MRCY.COM/INVESTOR WEBCAST REPLAY AVAILABLE BY 7:00 P.M. ET MAY 5, 2026 1 © Mercury Systems, Inc.
Slide 2: Forward-looking safe harbor statement
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 on enhanced execution of the Company's strategic plan. You can identif
Slide 3: Today's call
Today’s call Opening remarks on business and results Update on our four priorities Performance expectations for FY26 and beyond Q&A 3 © Mercury Systems, Inc. /Mercury Proprietary/No Tech Data/
Slide 4: Business and results
Business and results Our Q3 results reflected robust organic growth and margin expansion: • Record quarterly bookings of $348M and a 1.48 book-to-bill resulting in record backlog approaching $1.6B. • Q3 revenue of $236M, up 11.5% organically year-over-year. • Q3 adjusted EBITDA of $36M and adjuste
Slide 5: Driving performance excellence
Driving performance excellence Efforts to align our supply base to yield faster backlog conversion contributed to top-line growth, adjusted EBITDA margin, and free cash flow that exceeded our expectations. • Focus on accelerating customer deliveries generated approximately $25M of revenue, $15M of
Slide 6: Driving organic growth
Driving organic growth Record Q3 bookings of $348M resulted in a book-to-bill of 1.48 and record backlog approaching $1.6B. Q3 bookings were driven largely by follow-on production orders, reflecting strong customer demand across franchise programs. • This bookings mix reflects the transition of
Slide 7: Expanding margins
Expanding margins In our efforts to progress toward our targeted adjusted EBITDA margins in the low to mid 20% range, we remain focused on the following drivers: • Backlog margin expansion as we convert low-margin backlog and add new bookings aligned with our target margin profile. • Ongoing initi
Slide 8: Driving improved free cash flow conversion and release
Driving improved free cash flow conversion and release Progress on drivers of free cash flow. Net working capital at approximately $434M is down $19M year-over-year. Net debt down to $260M. Our strong balance sheet provides sufficient flexibility for us to pursue and capture potential market t
Slide 9: Expectations for FY26 and beyond
Expectations for FY26 and beyond Optimistic about our expected ability to deliver results in line with our target profile of above market top-line growth, adjusted EBITDA margins in the low to mid 20% range, and FCF conversion of 50%. Our Q4 bookings have the potential to be the strongest of the
Slide 10: Q3 FY26 vs. Q3 FY25
Q3 FY26 vs. Q3 FY25 Notes $ millions, except percentage and per share data Q3 FY26(2) Q3 FY25(2) CHANGE 1. Non-GAAP, see reconciliation table. 2. All references in this presentation to Bookings $348.3 $200.4 the third quarter of fiscal 2026 are to 74% the quarter ended March 27, 2026. All Book-to-Bi
Slide 11: Balance sheet
Balance sheet As of Notes 1. Rounded amounts used. (In $ millions)(1) 3/28/25 6/27/25 9/26/25 12/26/25 3/27/26 ASSETS Cash & cash equivalents $269.8 $309.1 $304.7 $335.0 $331.8 Accounts receivable and unbilled receivables, net 374.7 388.1 367.5 379.8 365.0 Inventory, net 352.7 332.9 340.2 349.6 361.
Slide 12: Cash flow summary
Cash flow summary For the Fiscal Quarters Ended Notes 1. Rounded amounts used. (In $ millions)(1) 3/28/25 6/27/25 9/26/25 12/26/25 3/27/26 2. Non-GAAP, see reconciliation table. Net (loss) income ($19.2) $16.4 ($12.5) ($15.1) ($2.9) Depreciation and amortization 19.9 20.0 18.9 18.3 18.0 Other non-ca
Slide 13: Appendix
APPENDIX © Mercury Systems, Inc.
Slide 14: Adjusted EPS reconciliation
Adjusted EPS reconciliation Notes (In thousands, except per share data)(2) Q3 FY25 Q3 FY26 LTM Q3 FY25 LTM Q3 FY26 1. Per share information is presented on a fully diluted basis. Loss per share(1) ($0.33) ($0.04) ($1.12) ($0.24) 2. Rounded amounts used. 3. Impact to income taxes is calculated by rec
Slide 15: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Notes (In thousands)(1)(2) Q3 FY25 Q3 FY26 LTM Q3 FY25 LTM Q3 FY26 1. Rounded amounts used. 2. All references in this presentation to the third Net loss ($19,170) ($2,861) ($65,051) ($14,101) quarter of fiscal 2026 and LTM Q3 FY26 are to the quarter ended March 27, 202
Slide 16: Free cash flow reconciliation
Free cash flow reconciliation Notes (In thousands)(1) Q3 FY25 Q3 FY26 LTM Q3 FY25 LTM Q3 FY26 1. Rounded amounts used. Cash provided by operating activities $29,974 $6,442 $172,537 $98,310 Purchases of property and equipment (5,914) (8,263) (26,053) (24,811) Free cash flow $24,060 ($1,821) $146,484