Filing Flows › Mercury Systems (MRCY) › Q2 FY25
Mercury Systems (MRCY) Q2 FY25 earnings results (second quarter fiscal 2025)
10-Q filed Feb 4, 2025
Mercury Systems (MRCY) reported revenue of $223M for the second quarter fiscal 2025 (Q2 FY25), +13% from a year earlier and +9% from the quarter before. Operating margin was -5.6%, net loss $17.6M (7.9% of revenue).
Mercury Systems, Q2 FY25: revenue $223M (+13% year over year), operating margin -5.6%, net loss $17.6M, operating cash flow $85.5M. The chart follows the revenue to costs, profit and cash.
| Q2 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $223M | +9% | +13% |
| Operating profit | −$12.4M | — | — |
| Net earnings | −$17.6M | — | — |
| Operating cash flow | $85.5M | — | +88% |
| Free cash flow | $81.9M | — | +118% |
What changed
Revenue was $223.1M in Q2 FY25, up 13% year over year and up 9% from the previous quarter. Airborne was the largest line at 43% of revenue. Naval added $13.5M year over year (up 156%), 53% of the total change. Airborne declined 19%.
Gross margin was 27.3%, up 11.3 points from a year earlier. Operating costs exceeded revenue by $12.4M, an operating margin of -5.6%. Operating expenses fell 14% while revenue rose 13%. The quarter ended with a net loss of $17.6M, wider than the previous quarter's $17.5M loss. Net interest and other expense of $11.9M was the main reason.
Operating cash flow was $85.5M (up 88% year over year). Non-cash charges added back $20.9M of depreciation and amortization and $8.0M of share-based compensation. Working capital and other items added $74.2M. After purchases of property and equipment ($3.6M), free cash flow as the company reports it was $81.9M.
Questions
What was Mercury Systems' revenue in the second quarter fiscal 2025?
Mercury Systems (MRCY) reported revenue of $223M for the second quarter fiscal 2025 (Q2 FY25), +13% from a year earlier and +9% from the quarter before.
Was Mercury Systems profitable in the second quarter fiscal 2025?
Operating loss was $12.4M (-5.6% of revenue) and net loss $17.6M.
Source: Mercury Systems 10-Q on SEC EDGAR.