Mercury Systems Inc.

Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $34.0 million for the fourth quarter of fiscal 2025 and $61.4 million for the fourth quarter of fiscal 2024.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $119.0 million for fiscal 2025 and $26.1 million for fiscal 2024.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

These amounts may vary from period to period due to changes in cash and debt balances and interest rates driven by general market conditions or other circumstances which may be outside of the normal course of the Company s operations.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

Additionally, the Company incurs unused revolver and bank fees associated with maintaining its credit facility as well as non-cash financing expenses associated with obtaining its credit facility.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

com X MRCY Mercury Reports Fourth Quarter and Fiscal 2025 Results, Page 14 Free cash flow, a non-GAAP measure for reporting cash flow, is defined as cash provided by operating activities less capital expenditures for property and equipment, which includes capitalized software development costs, and, therefore, has not been calculated in accordance with GAAP.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

Full year FCF is $119M, and net debt is down to $282M the lowest level since Q1 of FY22.

SEC original ↗Mercury Systems Inc. — Presentation / slide deck (8-K exhibit)EX-99Aug 11, 2025

com X MRCY Mercury Reports Fourth Quarter and Fiscal 2025 Results, Page 6 Forward-Looking Safe Harbor Statement This press release 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.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

Management excludes the above-described items from its internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to the Company s board of directors, determining a portion of bonus compensation for executive officers and other key employees based on operating performance, evaluating short-term and long-term operating trends in the Company s operations, and allocating resources to various initiatives and operational requirements.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

/Mercury Proprietary/No Tech Data/ 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.

SEC original ↗Mercury Systems Inc. — Presentation / slide deck (8-K exhibit)EX-99Aug 11, 2025

/Mercury Proprietary/No Tech Data/ Delivering predictable performance Our focus on performance excellence positively impacted our results primarily in two areas: Net adverse EAC change impacts were in line with recent quarters, reflects maturing capabilities in program management, engineering, and operations, and progress in completing development programs.

SEC original ↗Mercury Systems Inc. — Presentation / slide deck (8-K exhibit)EX-99Aug 11, 2025

Focus on accelerating customer deliveries generated approximately $30M of revenue and approximately $15M of adjusted EBITDA planned for FY26.

SEC original ↗Mercury Systems Inc. — Presentation / slide deck (8-K exhibit)EX-99Aug 11, 2025

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company s markets, effects of any U.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

Litigation and settlement income and expense.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

The Company periodically receives income and incurs expenses related to pending claims and litigation and associated legal fees and potential case settlements and or judgments.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025

The Company defines adjusted income as income before other non-operating adjustments, amortization of intangible assets, restructuring and other charges, impairment of long-lived assets, acquisition, financing and other third party costs, fair value adjustments from purchase accounting, litigation and settlement income and expense, and stock-based and other non-cash compensation expense.

SEC original ↗Mercury Systems Inc. — Earnings release (8-K exhibit)EX-99Aug 11, 2025