MRCYMercury Systems, Inc.
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MRCY?
Mercury Systems, Inc. earns 0.01% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 9.0 points below what the capital costs: growth destroys value
- Operating margin
- 0.03%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q4 2026
- R&D as % of revenue
- 6.1%
R&D as % of revenue
- Gross margin
- 29%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 8.8% |
| FY2022 | 3.2% |
| FY2023 | −2.2% |
| FY2024 | −18% |
| FY2025 | −2.1% |
| FY2026 | 0.03% |
Details›
- Gross margin12 months to Q4 2026
- 29%
- Operating margin12 months to Q4 2026
- 0.03%
- Net margin12 months to Q4 2026
- −3.0%
- Free cash flow margin
- 6.9%
- R&D as % of revenue
- 6.1%
- Revenue, trailing twelve months
- $984M
- Free cash flow, trailing twelve months
- $68M
- Net income, trailing twelve months
- −$30M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.01%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from MRCY and who it buys from, as the companies report it.
- RTXRTX Corporation15%
Share of revenue · FY2026 10-K
- LMTLockheed Martin11%
Share of revenue · FY2026 10-K
- NOCNorthrop Grumman10%
Share of revenue · FY2026 10-K
- Five major customers, cumulative36%
Combined share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; MRCY’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Aerospace & Defense
Ranks #31 of 35 by RyuScore