• Mercury Systems is like the Intel Inside for advanced military and aerospace computing systems.
• Mercury Systems is like a specialized NVIDIA for ruggedized defense and radar processing applications.

• Mission Computing Solutions: Provides rugged, high-performance, and secure embedded computing systems for aerospace and defense applications.
• RF and Microwave Subsystems: Delivers advanced radio frequency, microwave, and millimeter-wave components and subsystems for electronic warfare, radar, and communications.
• Sensor and Digital Processing: Offers high-speed digital signal processing and general-purpose processing modules for critical sensor data acquisition and analysis.
• Secure Processing Solutions: Develops trusted, embedded security technologies to protect critical data and systems in defense computing environments.

Mercury Systems (MRCY) sells primarily to other companies and directly to the U.S. government, not to individuals. Its advanced processing, RF/microwave, and trusted mission-critical capabilities are integrated into larger platforms and systems within the defense and aerospace sectors.

Its major customers include:

• The U.S. Government (as a direct customer for certain programs and as the ultimate end-user through prime contractors)
• Major defense prime contractors, which utilize Mercury Systems' technologies in their defense systems and platforms. These include, but are not limited to:
• Lockheed Martin (Symbol: LMT)
• RTX Corporation (Symbol: RTX)
• Northrop Grumman (Symbol: NOC)
• Boeing (Symbol: BA)
• General Dynamics (Symbol: GD)
• L3Harris Technologies (Symbol: LHX)

William L. Ballhaus, Chairman & Chief Executive Officer

William L. Ballhaus was appointed Chairman and Chief Executive Officer of Mercury Systems in 2023, having served as interim President and CEO since June 2023. He has extensive experience across the aerospace, defense, and technology sectors, including multiple CEO roles. Prior to joining Mercury, he was Chairman and CEO of Blackboard Inc., an EdTech company, from 2016 until its merger with Anthology in 2021. He also served as CEO and President of SRA International, Inc. from 2011 to 2015, leading its merger with CSC's federal business to create CSRA. From 2008 to 2010, he was CEO and President of DynCorp International. Mr. Ballhaus has held senior leadership positions at BAE Systems, Boeing, and Hughes. He founded MilestoneRoad Partners, a business consulting firm, in 2021. He also serves as a senior advisor at PSG, a private equity firm focused on the software industry, and as Executive Chairman at Catalis and Elite, and on the Board of Directors of Qmulos, which are private company boards.

David Farnsworth, Executive Vice President & Chief Financial Officer

David Farnsworth was appointed Executive Vice President and Chief Financial Officer of Mercury Systems in July 2023, bringing decades of experience as a financial executive in the defense technology sector. Before Mercury Systems, he served as CFO of HawkEye 360 from April 2020 to July 2023. Prior to that, Mr. Farnsworth held several leadership positions at Raytheon from 2007 to April 2020, including Vice President and CFO of its Integrated Defense Systems business, CFO of its Intelligence, Information and Services segment, and CFO of its Technical Services business.

Stuart Kupinsky, Executive Vice President & Chief Legal Officer

Stuart Kupinsky serves as Mercury's Executive Vice President and Chief Legal Officer, overseeing the company's legal strategy, including M&A, intellectual property, and enterprise contracts. His previous roles include Chief Legal Officer and General Counsel for several public and private technology companies, such as Blackboard Inc., through its sale to Anthology Inc., and Tekelec, Inc., which was sold to Oracle. He also served as Chief Counsel for FirstNet, a government agency, and as a trial attorney for the U.S. Department of Justice.

Steve Ratner, Executive Vice President & Chief Human Resources Officer

Steve Ratner joined Mercury Systems as Senior Vice President and Chief Human Resources Officer in May 2022, bringing over 20 years of human resources leadership experience. Before Mercury, he was Vice President of Human Resources for Raytheon Missiles & Defense, and earlier, Vice President of Human Resources and Security at Raytheon Integrated Defense Systems.

Tod Brindlinger, Senior Vice President, Operations

Tod Brindlinger was appointed Senior Vice President of Operations at Mercury Systems in June 2024. He possesses over 30 years of leadership experience in various areas including business development, operations, engineering, supply chain, and quality. Most recently, he served as Vice President of Global Operations, Quality, and Supply Chain in L3Harris Technologies' Commercial Aerospace Sector. His career also includes executive positions at Paradigm Precision, Ducommun, and United Technologies Corporation.

The increasing penetration of hyperscale commercial cloud computing, artificial intelligence (AI), and advanced data analytics platforms (e.g., from AWS, Microsoft Azure, Google Cloud) into defense systems, including tactical edge applications, poses an emerging threat. While Mercury Systems specializes in rugged, secure, and SWaP-optimized (Size, Weight, and Power) embedded processing solutions for mission-critical aerospace and defense environments, the Department of Defense's push for initiatives like Joint All-Domain Command and Control (JADC2) emphasizes cloud-like architectures and the rapid deployment of AI/ML capabilities. If hyperscale providers or their partners can adapt their commercial off-the-shelf (COTS) technologies to meet defense requirements for security, ruggedization, and performance at the tactical edge—potentially offering faster innovation cycles and lower costs—it could disrupt demand for Mercury's highly specialized and often custom-engineered hardware and software solutions by shifting procurement priorities and architectural paradigms.

Mercury Systems (MRCY) operates within the aerospace and defense industry, providing mission-critical processing power, open-architecture computer hardware and software, secure embedded processing modules and subsystems, avionics mission computers and displays, rugged secure computer servers, and trusted microelectronics components.

The company estimates its overall addressable market to be approximately $40 billion, primarily within the defense electronics systems sector.

More specifically, the addressable markets for Mercury Systems' main products and services are sized as follows:

• Defense Cybersecurity: Projected to reach $43.54 billion by 2027, with an annual growth rate of 9.2%. The market for this segment is likely global, with a significant focus on U.S. and allied defense sectors.
• Secure Computing Solutions: Expected to reach $22.7 billion by 2027, with a 12.5% annual growth rate. This market primarily serves the defense sector, indicating a global or U.S./allied nations scope.
• AI and Machine Learning Defense Market: Anticipated to reach $32.4 billion by 2026, offering substantial opportunities in embedded computing solutions. This market largely pertains to the defense sector, implying a global or U.S./allied nations focus.
• Military Satellite Communication Market: The global satellite communication market is projected to reach $77.6 billion by 2028, with military satellite communications experiencing a 6.5% compound annual growth rate. The military satellite technology market was valued at $22.3 billion in 2023.
• Quantum Computing Defense Market: Expected to reach $8.6 billion by 2026. This market primarily serves the defense sector, suggesting a global or U.S./allied nations scope.
• Edge Computing: Projected to reach $61.14 billion by 2028. While broader than defense, Mercury Systems' participation would be within the defense applications of this technology, implying a global or U.S./allied nations focus.

1. Record Backlog and Accelerated Deliveries: Mercury Systems has consistently reported a robust and growing backlog, which provides a strong foundation for future revenue. In Q1 FY26, the company achieved a record backlog of $1.4 billion, demonstrating solid demand for its products and services. Management has also highlighted its ability to accelerate deliveries on high-priority customer programs, effectively pulling revenue forward and contributing to immediate growth.
2. Favorable Defense Market Dynamics: The company anticipates benefiting from potential tailwinds stemming from rising global defense budgets and domestic initiatives, such as Golden Dome. Mercury Systems has already experienced significant growth in its European defense business, with a reported 15% increase in direct and indirect European defense business over the past year. This expanding market, driven by geopolitical factors and modernization efforts, is expected to fuel continued demand for Mercury's mission-critical technologies.
3. Operational Excellence and Capacity Expansion: Mercury Systems is focused on enhancing operational efficiencies, including increased automation and the expansion of its Phoenix facility. These initiatives are part of a broader "performance excellence" strategy aimed at streamlining operations, reducing working capital, and optimizing factory capacity. By improving execution and capacity, the company aims to enhance profitability and its ability to take on and fulfill more contracts, thereby driving revenue growth.
4. Strategic Partnerships and New Contract Wins: The company's strategy includes securing strategic agreements and new defense contract wins. Recent examples include two key deals with a European defense contractor to accelerate the output of radar and electronic subsystems. Such partnerships and successful contract acquisitions expand Mercury's market reach and integrate its technology into crucial defense programs, providing significant revenue streams.
5. Continuous Innovation in Mission-Critical Processing Technologies: Mercury Systems positions itself as a technology company delivering mission-critical processing at the edge, offering innovative capabilities from silicon to system scale. The company's focus on its Common Processing Architecture (CPA) and strong momentum in mission computing and processing technologies underscores its commitment to ongoing development. This continuous innovation ensures that Mercury's products remain essential for advanced aerospace and defense missions, leading to sustained demand and new opportunities within its broad portfolio, which is deployed in over 300 programs across 35 countries.