Business Description

Our Company Mercury Systems is a global leader in aerospace and defense electronics, providing breakthrough capabilities in signal and data processing. With a four-decade legacy of innovation that spans silicon to systems and radio frequency (“RF”) front ends to effectors, we accelerate commercial technology adoption to deliver powerful and secure mission-critical processing solutions to the edge. We are headquartered in Andover, Massachusetts, and have multiple locations worldwide. Our end-to-end processing ecosystem, the Mercury Processing Platform, is built on technologies we have developed and acquired over 40 years. Our technologies are available as standard products or custom solutions from silicon to system scale to ensure interoperability, reduced complexity, optimized performance and speed development. As a leading manufacturer of essential components, modules and subsystems, we sell to the top U.S. and European defense prime contractors, the U.S. government and original equipment manufacturers (“OEM”) commercial aerospace companies. Our customers deploy our solutions for a variety of applications including sensor and radar processing, electronic warfare, avionics, weapons, and command, control, communications, computers, and intelligence (“C4I”). We deliver a trusted, robust portfolio of proven capabilities, built on the most advanced commercial silicon technologies to exceed the performance needs of our defense and commercial customers. Our capabilities, technology, people, culture, and research and development (“R&D”) strategy all differentiate Mercury in the aerospace and defense industry. We maintain our technological edge by investing in the critical building blocks of processing, developing valuable Intellectual Property (“IP”) and embracing open standards and architectures. This lets us rapidly shape these building blocks into products and solutions for highly data-intensive missions, including emerging areas like artificial intelligence (“AI”) processing at the edge. Our consolidated revenues, net loss, diluted loss per share, adjusted earnings per share and adjusted EBITDA for fiscal 2026 were $983.6 million, $(29.7) million, $(0.50), $1.06 and $150.2 million, respectively. Our consolidated revenues, net loss, diluted loss per share, adjusted earnings per share and adjusted EBITDA for fiscal 2025 were $912.0 million, $(37.9) million, $(0.65), $0.64 and $119.4 million, respectively. See the Non-GAAP Financial Measures section of this annual report for a reconciliation of our adjusted EPS and adjusted EBITDA to the most directly comparable GAAP measures. Our Business Strategy Our business strategy is rooted in a unique market position: transforming advanced commercial technologies into trusted, secure and mission-critical solutions for the aerospace and defense industry. We have two models within our business: a product model and a solutions model, each with distinct approaches to innovation and go-to-market. In our product businesses, we invest in internal R&D to develop new capabilities that can be leveraged by multiple customers and support a broad range of mission needs and applications. In our solutions business, we engage directly with customers to develop capabilities that meet precise mission requirements, retiring many risks in the development phase before entering a production phase that can last many years and include multiple technological evolutions. Our businesses are mutually reinforcing, operating within a single integrated unit that shares talent, capital and IP to accelerate innovation across our offerings. Our structure is aligned and optimized to execute against these different business models. Our U.S.-based businesses are aligned into two product-oriented business units, which we refer to as Signal Technologies and Processing Technologies, and a third business unit named Integrated Processing Solutions which focuses on more comprehensive solutions. Our fourth business unit, which we refer to as Europe, the Middle East, and Africa (“EMEA”), is dedicated to bringing our advanced edge processing capabilities to the global market. Our Engineering, Operations, and Mission Assurance organizations are also 3 Table of Contents centralized to drive performance excellence.…