Company: MRCY
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001049521-25-000029
Chunk: 122

Company: MERCURY SYSTEMS INC
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 122
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 warranty claims from customers and makes warranty claims towards its vendors and supply chain. Management believes the expenses and gains associated with these recurring warranty items are within the normal operations and operating cycle of the Company's business. Therefore, management deems no adjustments are necessary unless under extraordinary circumstances.

• Stock-based and other non-cash compensation expense . The Company incurs expense related to stock-based compensation included in its GAAP presentation of cost of revenues, selling, general and administrative expense and research and development expense. The Company also incurs non-cash based compensation in the form of pension related expenses. Although stock-based and other non-cash compensation is an expense of the Company and viewed as a form of compensation, these expenses vary in amount from period to period, and are affected by market forces that are difficult to predict and are not within the control of management, such as the market price and volatility of the Company's shares, risk-free interest rates and the expected term and forfeiture rates of the awards, as well as pension actuarial assumptions. Management believes that exclusion of these expenses allows comparisons of operating results to those of other companies, both public, private or foreign, that disclose non-GAAP financial measures that exclude stock-based compensation and other non-cash compensation.

Below is a reconciliation between adjusted EBITDA and the most comparable GAAP financial measure, net income.

| (in millions)                                       |     | Fiscal 2024 |        |     | Fiscal 2025 |       |
|:----------------------------------------------------|:----|:------------|-------:|:----|:------------|------:|
| Net loss                                            |     | $           | -137.6 |     | $           | -37.9 |
| Other non-operating adjustments, net                |     |             |   -0.6 |     |             |  -7.7 |
| Interest expense, net                               |     |             |   33.8 |     |             |  29.8 |
| Income tax benefit                                  |     |             |  -51.6 |     |             | -12.5 |
| Depreciation                                        |     |             |   40.4 |     |             |  39.2 |
| Amortization of intangible assets                   |     |             |   47.7 |     |             |  42.8 |
| Restructuring and other charges                     |     |             |   26.2 |     |             |   7.2 |