Mercury Systems (MRCY) FY2024 results: revenue $835 million, down 14.2% on the year

Mercury Systems Inc. (MRCY) reported revenue of $835 million for fiscal 2024, the year ended 28 June 2024, down 14.2% on the year before. Net income was -$138 million, and diluted earnings per share $-2.38. The figures are the company's own, from the 10-K it filed with the SEC on 13 August 2024.

Revenue

$835 million

-14.2% on the year

FY2017FY2024

Operating margin

-17.7%

-2.2% a year earlier

FY2017FY2024

Net income

-$138 million

FY2017FY2024

Diluted EPS

-$2.38

FY2017FY2024

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2024 · Q2 FY2024 · Q3 FY2024 · Q4 FY2024

Income statement (profit and loss)

$ million	FY2024	FY2023	FY2022	On the year
Revenue	835	974	988	-14.2%
Cost of revenue	639	657	593	-2.7%
Gross profit	196	317	395	-38.1%
Gross margin	23.5%	32.5%	40.0%
Research and development	101	109	107	-6.9%
Selling, general and administrative	167	161	157	+3.8%
Operating income	-148	-21.7	31.6
Operating margin	-17.7%	-2.2%	3.2%
Interest expense	35.0	25.2	5.8	+39.2%
Pre-tax income	-189	-48.5	18.4
Income tax	-51.6	-20.2	7.1
Effective tax rate	n/a	n/a	38.7%
Net income	-138	-28.3	11.3
Net margin	-16.5%	-2.9%	1.1%
Diluted EPS	-$2.38	-$0.50	$0.20

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2024	FY2023	FY2022	On the year
Operating cash flow	60.4	-21.3	-18.9
Capital expenditure	34.3	38.8	27.7	-11.6%
Free cash flow	26.1	-60.0	-46.5
Free cash flow margin	3.1%	-6.2%	-4.7%
Cash from investing	-34.3	-38.6	-274
Cash from financing	82.7	65.4	246	+26.4%
Depreciation and amortisation	88.0	97.3	93.4	-9.6%
Share-based compensation	25.7	27.8	38.3	-7.5%
Buybacks	0.0	0.1	8.2	-50.8%
Diluted shares, weighted	58m	57m	56m	+2.1%
Shares outstanding at period end	58m	57m	56m	+2.0%

Balance sheet

$ million	FY2024	FY2023	FY2022	On the year
Shareholders' equity	1,473	1,567	1,537	-6.0%
Debt	592	512	452	+15.6%
Operating lease liabilities	62.6	66.8	69.9	-6.3%
Other liabilities	252	246	246	+2.3%
Total liabilities and equity	2,379	2,391	2,304	-0.5%
Fixed assets	110	120	127	-7.7%
Goodwill	938	938	938	0.0%
Intangible assets	251	298	352	-15.9%
Cash and equivalents	181	71.6	65.7	+152.3%
Receivables	111	125	144	-10.7%
Inventory	335	337	270	-0.6%
Other assets	453	502	407	-9.9%
Total assets	2,379	2,391	2,304	-0.5%

10-K for the year ended 28 June 2024, filed 13 August 2024: the filing.