Updated
The most significant concentration Mercury Systems discloses is U.S. and foreign government defense programs at 97%, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Source: Mercury Systems’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
“10-K Item 1A: 'Sales of our products and services, primarily as a subcontractor or team member with defense prime contractors, and in some cases directly, to the U.S. government, as well as foreign governments, accounted for approximately 97%, 95% and 98% of our total net revenues in fiscal years 2025, 2024 and 2023, respectively.'”
“10-K Item 1A: 'Several components used in our products are currently obtained from sole-source suppliers. We are dependent on a limited number of key vendors for certain critical components such as FPGAs, ASICS, processors, memory products and specialty glass.'”
“10-K Item 1A: 'In fiscal 2025, RTX Corporation accounted for 13% of our total net revenues and both Lockheed Martin and U. S. Navy accounted for 10% of our total net revenues.'”
“10-K Item 1A: 'In fiscal 2025, RTX Corporation accounted for 13% of our total net revenues and both Lockheed Martin and U. S. Navy accounted for 10% of our total net revenues.'”
“10-K Item 1A: 'In fiscal 2025, RTX Corporation accounted for 13% of our total net revenues and both Lockheed Martin and U. S. Navy accounted for 10% of our total net revenues.'”
Mercury Systems' revenue is overwhelmingly tied to a single end market: sales to U.S. and foreign government defense programs, primarily as a subcontractor to defense prime contractors, accounted for approximately 97% of total net revenues in fiscal 2025 (95% and 98% in the prior two years) — a high-share, structural exposure to defense budgets and program cycles rather than to any one counterparty. Within that base, no single customer dominates: RTX Corporation accounted for 13% of total net revenues, a low-share dependency exposure, while Lockheed Martin and the U.S. Navy each accounted for 10% of total net revenues in fiscal 2025 — a low-share dependency exposure for Lockheed Martin and a low-share structural exposure for the U.S. Navy. On the supply side, the company depends on a limited number of key vendors for critical, sole-sourced components including FPGAs, ASICs, processors, memory products, and specialty glass, a high-share dependency exposure. Taken together, the picture is one of deep sectoral concentration in defense end markets paired with a reasonably diversified customer roster beneath that umbrella, while the sole-source component dependency remains the exposure most capable of disrupting execution independent of defense spending trends.
For the engine’s reasoning on MRCY’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| MRCY● | Mercury Systems Inc | 2 | 0 | 3 | 5 |
| AVAV | AeroVironment, Inc. | 1 | 1 | 0 | 2 |
| ACHR | Archer Aviation Inc. | 1 | 0 | 0 | 1 |
| AXON | Axon Enterprise, Inc. | 0 | 2 | 0 | 2 |
| AIR | AAR Corp. | 0 | 0 | 1 | 1 |
| ATRO | Astronics Corporation | 0 | 0 | 1 | 1 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.