MRCYMERCURY SYSTEMS INC
Electronic Components & Accessories
- Revenue
- $984M
- 7.9% YoY
- Operating margin
- 0.0%
- 101% YoY
- EBITDA
- $73M
- 17% YoY
- Market cap
- $4.6B
- Employees
- 518
- $2M revenue each
- Net debt / EBITDA
- -0.3×
- −$22M net debt
- AI in 10-K
- 5.6
- mentions per 10K words
Takeover score 5 of 13
Fixable underperformance 2 of 7
- TSR below peersYes4 of 5 years3+ of last 5 years
- High CEO pay despite TSRNo—Median CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo—Cash flow under 80% of net income
- Dilutive SBCNo4% of revenueOver 10% of revenue
- Payouts exceed cash flowNo15% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyYes41% of assetsOver 40% of assets
- Shareholder dissentNo93% lowest supportAny vote under 80% support
Buyer economics 2 of 4
- Low revenue per employeeNo$2M · 91st pctBottom quartile of its SIC industry
- Quiet on AINo5.6 per 10K words · 85th pctBottom quartile of AI mentions in 10-Ks
- Net cashYesNet cash · 0.3× EBITDAMore cash than debt, positive EBITDA
- Buyout-sizedYes$4.6B market capMarket cap $500M–$5B
Catalysts 1 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingYes−$194M netNet sales over $10M in 12 months
Financials
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $988M | $974M | $835M | $912M | $984M | 7.9% |
| Operating income | $32M | −$22M | −$148M | −$20M | $280K | 101% |
| Net income | $11M | −$28M | −$138M | −$38M | −$30M | 22% |
| Operating cash flow | −$19M | −$21M | $60M | $139M | $102M | 26% |
| Capex | $28M | $39M | $34M | $20M | $34M | 73% |
| Stock-based comp | $38M | $28M | $26M | $25M | $41M | 64% |
| Buybacks | $8M | $63K | $31K | $0 | $15M |
Deal filings
None.
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| Mar 4, 2026 | JANA Partners Management, LP | SCHEDULE 13D/A | 6.9% | Passive |
| Nov 10, 2025 | JANA Partners Management, LP | SCHEDULE 13D/A | 8.3% | Passive |
| Aug 15, 2025 | JANA Partners Management, LP | SCHEDULE 13D/A | 10.0% | Passive |
| Feb 13, 2024 | JANA Partners Management, LP | SC 13D/A | 11.0% | Passive |
| Jul 6, 2023 | JANA PARTNERS LLC | SC 13D | 8.0% | Active |
| Jun 15, 2023 | Starboard Value LP | SC 13D/A | 2.6% | Passive |
| Feb 3, 2023 | JANA PARTNERS LLC | SC 13D/A | 4.6% | Active |
| Jun 27, 2022 | JANA PARTNERS LLC | SC 13D/A | 5.6% | Passive |
| Jun 24, 2022 | Starboard Value LP | SC 13D/A | 10.0% | Passive |
| Jan 13, 2022 | Starboard Value LP | SC 13D/A | — | Passive |
Insider trading
- Open-market buys, 12 mo
- $0 · 0
- Open-market sells, 12 mo
- $194M · 47
- Net
- −$194M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2026 | — | — | 191 | 241 |
| FY2025 | — | — | 81 | 187 |
| FY2024 | — | — | 41 | 136 |
| FY2023 | — | — | 52 | 112 |
| FY2022 | — | — | 97 | 94 |