Company: MRCY
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001049521-25-000062
Chunk: 104

Company: MERCURY SYSTEMS INC
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 104
---
 to adjusted income and adjusted EPS: 

First Quarters Ended(In thousands, except per share data)September 26, 2025September 27, 2024Net loss and loss per share$(12,515)$(0.21)$(17,525)$(0.30)Other non-operating adjustments, net748 (1,735)Amortization of intangible assets10,259 11,235 Restructuring and other charges1,584 2,260 Impairment of long-lived assets— — Acquisition, financing and other third party costs1,317 2,331 Fair value adjustments from purchase accounting131 177 Litigation and settlement expense, net7,224 1,394 Stock-based and other non-cash compensation expense16,328 10,560 Impact to income taxes(1)(9,516)(6,253)Adjusted income and adjusted earnings per share(2)$15,560 $0.26 $2,444 $0.04 Diluted weighted-average shares outstanding60,140 58,585 (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax expense or benefit related to the items. (2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share or Adjusted loss per share is calculated using basic shares. There was no impact to the calculation of adjusted earnings per share as a result of this for the first quarters ended September 26, 2025 and September 27, 2024.

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. We believe free cash flow provides investors with an important perspective on cash available for investments and acquisitions after making capital investments required to support ongoing business operations and long-term value creation. We believe that trends in our free cash flow can be valuable indicators of our operating performance and liquidity.

Free cash flow is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur