Filing Flows › Mercury Systems (MRCY) › Q1 FY26
Mercury Systems (MRCY) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Nov 4, 2025
Mercury Systems (MRCY) reported revenue of $225M for the first quarter fiscal 2026 (Q1 FY26), +10% from a year earlier and -18% from the quarter before. Operating margin was -3.8%, net loss $12.5M (5.6% of revenue).
Mercury Systems, Q1 FY26: revenue $225M (+10% year over year), operating margin -3.8%, net loss $12.5M, operating cash flow $2.2M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $225M | -18% | +10% |
| Operating profit | −$8.6M | -137% | — |
| Net earnings | −$12.5M | -176% | — |
| Operating cash flow | $2.2M | -94% | — |
What changed
Revenue was $225.2M in Q1 FY26, up 10% year over year and down 18% from the previous quarter. Airborne was the largest line at 42% of revenue. Land added $8.6M year over year (up 25%), 41% of the total change. Naval declined 5%.
Gross margin was 27.9%, up 2.6 points from a year earlier. Operating costs exceeded revenue by $8.6M, an operating margin of -3.8%. Operating expenses grew 10% against revenue growth of 10%. The fastest-growing cost line was SG&A (+38%). The quarter ended with a net loss of $12.5M, after a profit of $16.4M the previous quarter. Net interest and other expense of $7.9M was the main reason.
Operating cash flow was $2.2M. Non-cash charges added back $18.9M of depreciation and amortization and $9.6M of share-based compensation. Working capital and other items used $13.8M. Capital expenditures of $6.5M exceeded it, leaving free cash flow of −$4.4M.
Questions
What was Mercury Systems' revenue in the first quarter fiscal 2026?
Mercury Systems (MRCY) reported revenue of $225M for the first quarter fiscal 2026 (Q1 FY26), +10% from a year earlier and -18% from the quarter before.
Was Mercury Systems profitable in the first quarter fiscal 2026?
Operating loss was $8.6M (-3.8% of revenue) and net loss $12.5M.
Source: Mercury Systems 10-Q on SEC EDGAR.