Company: MRCY
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001049521-25-000017
Chunk: 136

Company: MERCURY SYSTEMS INC
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 136
---
 We believe that trends in our adjusted EBITDA are valuable indicators of our operating performance.

Adjusted EBITDA 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 expenses similar to the adjusted EBITDA financial adjustments described above, and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring.

33

The following table reconciles our net loss, the most directly comparable GAAP financial measure, to our adjusted EBITDA:

 Third Quarters EndedNine Months Ended(In thousands)March 28, 2025March 29, 2024March 28, 2025March 29, 2024Net loss$(19,170)$(44,574)$(54,274)$(126,863)Other non-operating adjustments, net(3,911)(64)(3,097)(375)Interest expense, net6,778 8,777 23,164 25,182 Income tax benefit(2,648)(12,643)(14,967)(43,811)Depreciation9,731 10,221 29,484 30,289 Amortization of intangible assets10,185 11,533 32,574 36,350 Restructuring and other charges4,931 9,841 7,231 19,389 Impairment of long-lived assets— — — — Acquisition, financing and other third party costs1,072 778 4,512 2,970 Fair value adjustments from purchase accounting131 177 486 532 Litigation and settlement expense, net5,467 2,096 8,948 3,982 Stock-based and other non-cash compensation expense12,124 11,461 34,108 30,607 Adjusted EBITDA$24,690 $(2,397)$68,169 $(21,748)

Adjusted income and adjusted EPS exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. We believe that exclusion of these items assists in providing a more complete understanding of our underlying results and trends and allows for comparability with our peer company index and industry