Forensic Analysis · Technology / Software · as of Aug 11, 2026

Mercury Systems Inc (MRCY)

A forensic read on Mercury Systems Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

D · Weak — demands caution

Forensic grade

Safe

Financial health

9.3

Distress distance

Clean

Earnings quality

Forensic signals

-128.6

P / E (ttm)

-2.6%

ROE

$6.5B

Market cap

0.00%

Dividend yield

9.2%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Mercury Systems Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 9.3, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

-0.8%

FY2025

Return on invested capital. Return on invested capital is -0.8% in the latest fiscal year and slipping from 1% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.

+1.7%/yr

FY2022–FY2025

Share-count dilution. Diluted share count changed +5% over the last 3 years to FY2025 (+1.7%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~5%.

stopped

FY2024→FY2025

Shareholder returns — halted. Capital returns have STOPPED — $31,000 of buybacks + dividends in FY2024, but ~$0 in FY2025. A halt usually means the company is conserving cash.

Key fundamentals

Latest Revenue$912.0M

Revenue Growth YoY+9.2%

Revenue CAGR (3yr)-2.6%

Net Margin-4.2%

Free Cash Flow$119.0M

Return on Equity-2.6%

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Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.