Reco d Q1 FY27 Booki gs of $370 millio g ew 48.0% yea -ove -yea ; book-to-bill of 1.46 Reco d Backlog app oachi g $2.1 billio ; up 44.7% yea -ove -yea Reco d Q1 FY27 Reve ue of app oximately $253 millio ; up 12.4% yea -ove -yea GAAP et i come of $13 millio ; eco d Q1 adjusted EBITDA of $56 millio g ew 58.6% yea -ove -yea ; a d adjusted EBITDA ma gi of 22.3% Dave Fa swo th’s title cha ged to Chief Fi a cial Office a d Chief Ope ati g Office
ANDOVER, Mass., Nov. 10, 2026 (GLOBE NEWSWIRE) — Me cu y Systems, I c. (NASDAQ: MRCY, www.m cy.com), epo ted ope ati g esults fo the fi st qua te of fiscal yea 2027, e ded Octobe 2, 2026.
“We delive ed st o g fi st qua te fiscal 2027 esults, with eco d fi st qua te booki gs, eve ue, a d adjusted EBITDA, a d eco d backlog,” said Bill Ballhaus, Me cu y’s Chai ma a d CEO. “Ou fi st qua te esults eflect obust o ga ic g owth a d ma gi s that a e i -li e with ou ta get p ofile. Based o this solid executio , we a e aisi g ou outlook fo fiscal yea 2027.”
“I the fi st qua te we delive ed booki gs of $370 millio , up 48% yea -ove -yea , expa di g ou backlog to $2.1 billio a d ext-12-mo th backlog to ove $1 billio ; eve ue of $253 millio , up 12.4% yea -ove -yea ; GAAP et i come of $13 millio ; adjusted EBITDA of $56 millio , up 58.6% yea ove -yea ; adjusted EBITDA ma gi of 22.3%; cash flows used i ope ati g activities of $14 millio ; f ee cash out flow of $24 millio ; a d et debt of $232 millio , dow 19% yea -ove -yea .”
Fi st qua te fiscal 2027 eve ues we e $253 millio , compa ed to $225 millio i the fi st qua te of fiscal 2026.
Total booki gs fo the fi st qua te of fiscal 2027 we e $370 millio , yieldi g a book-to-bill atio of 1.46 fo the qua te .
GAAP et i come a d diluted ea i gs pe sha e fo the fi st qua te of fiscal 2027 we e $13 millio a d $0.21, espectively, compa ed to GAAP et loss a d loss pe sha e of $13 millio a d $0.21, espectively, fo the fi st qua te of fiscal 2026. Adjusted ea i gs pe sha e (“adjusted EPS”) was $0.52 pe sha e fo the fi st qua te of fiscal 2027, compa ed to $0.26 pe sha e i the fi st qua te of fiscal 2026.
Fi st qua te fiscal 2027 adjusted EBITDA was $56 millio , compa ed to $36 millio fo the fi st qua te of fiscal 2026.
Cash flows (used i ) p ovided by ope ati g activities i the fi st qua te of fiscal 2027 we e $(14) millio , compa ed to $2 millio i the fi st qua te of fiscal 2026. F ee cash flow, defi ed as cash flows f om ope ati g activities less capital expe ditu es fo p ope ty a d equipme t, was $(24) millio fo the fi st qua te of fiscal 2027 a d $(4) millio fo the fi st qua te of fiscal 2026.
Me cu y’s total backlog at Octobe 2, 2026 was app oachi g $2.1 billio , a app oximate $637 millio i c ease f om a yea ago. Of the Octobe 2, 2026 total backlog, ove $1.0 billio ep ese ts o de s expected to be ecog ized as eve ue withi the ext 12 mo ths.
O Novembe 10, 2026, Me cu y fo malized Dave Fa swo th’s ole as Chief Ope ati g Office , i additio to his espo sibilities as Chief Fi a cial Office . M . Fa swo th has bee effectively ope ati g i this capacity fo quite some time.
Ma ageme t will host a co fe e ce call a d simulta eous webcast at 5:00 p.m. ET o Tuesday, Novembe 10, 2026, to discuss Me cu y’s qua te ly fi a cial esults, busi ess highlights a d outlook. I additio , Compa y ep ese tatives may a swe questio s co ce i g busi ess a d fi a cial developme ts a d t e ds, the Compa y’s view o ea i gs fo ecasts, a d othe busi ess a d fi a cial matte s affecti g the Compa y, the espo ses to which may co tai i fo matio that has ot bee p eviously disclosed.
To pa ticipate i the co fe e ce call Q&A as a a alyst please egiste o li e at https://eve ts.q4i c.com/a alyst/478903701?pwd=p1C55pmZ o dial +1 833 461 5787 by pho e usi g Meeti g ID: 478903701. The live liste -o ly webcast a d eplay will be available i .m cy.com/eve ts-p ese tatio s. A eplay of the webcast will be available two hou s afte the call a d a chived o the same web page fo six mo ths.
I additio to epo ti g fi a cial esults i acco da ce with ge e ally accepted accou ti g p i ciples, o GAAP, the Compa y p ovides adjusted EBITDA, adjusted i come, adjusted ea i gs pe sha e (“adjusted EPS”) a d f ee cash flow, which a e o -GAAP fi a cial measu es. Adjusted EBITDA, adjusted i come, a d adjusted EPS exclude ce tai o -cash a d othe specified cha ges. The Compa y believes these o -GAAP fi a cial measu es a e useful to help i vesto s u de sta d its past fi a cial pe fo ma ce a d p ospects fo the futu e. Howeve , these o -GAAP measu es should ot be co side ed i isolatio o as a substitute fo fi a cial i fo matio p ovided i acco da ce with GAAP. Ma ageme t believes these o -GAAP measu es assist i p ovidi g a mo e complete u de sta di g of the Compa y’s u de lyi g ope atio al esults a d t e ds, a d ma ageme t uses these measu es alo g with the co espo di g GAAP fi a cial measu es to ma age the Compa y’s busi ess, to evaluate its pe fo ma ce compa ed to p io pe iods a d the ma ketplace, a d to establish ope atio al goals. A eco ciliatio of GAAP to o -GAAP fi a cial esults discussed i this p ess elease is co tai ed i the attached exhibits.
Me cu y Systems is a global leade i ae ospace a d defe se elect o ics, p ovidi g b eakth ough capabilities i sig al a d data p ocessi g. With a fou -decade legacy of i ovatio that spa s silico to systems a d adio f eque cy f o t e ds to effecto s, we accele ate comme cial tech ology adoptio to delive powe ful a d secu e missio -c itical p ocessi g solutio s to the edge. We a e headqua te ed i A dove , Massachusetts, a d have multiple locatio s wo ldwide. Ou e d-to-e d p ocessi g ecosystem, the Me cu y P ocessi g Platfo m, is built o tech ologies we have developed a d acqui ed ove 40 yea s. Ou tech ologies a e available as sta da d p oducts o custom solutio s f om silico to system scale to e su e i te ope ability, educed complexity, optimized pe fo ma ce a d speed developme t. To lea mo e, visit m cy.com. (Nasdaq: MRCY)
I vesto s a d othe s should ote that we a ou ce mate ial fi a cial i fo matio usi g ou website (www.m cy.com), SEC fili gs, p ess eleases, public co fe e ce calls, webcasts, a d social media, i cludi g X (X.com/m cy) a d Li kedI (www.li kedi .com/compa y/me cu y-systems). The efo e, we e cou age i vesto s a d othe s i te ested i Me cu y to eview the i fo matio we post o the social media a d othe commu icatio cha els listed o ou website.
Co tact:Tyle Hojo, CFA, Se io Vice P eside t, St ategy a d Co po ate Developme tMe cu y Systems, I c.978-967-3676
Me cu y Systems a d I ovatio That Matte s a e egiste ed t adema ks of Me cu y Systems, I c. Othe p oduct a d compa y ames me tio ed may be t adema ks a d/o egiste ed t adema ks of thei espective holde s.
| (I thousa ds) | Octobe 2, | July 3, | 2026 | 2026 | Assets | Cu e t assets: | Cash a d cash equivale ts | $ | 109,679 | $ | 214,306 | Accou ts eceivable, et | 80,772 | 69,222 | U billed eceivables a d costs i excess of billi gs, et | 290,348 | 285,760 | I ve to y | 398,570 | 366,968 | P epaid i come taxes | 1,683 | 2,258 | P epaid expe ses a d othe cu e t assets | 36,114 | 34,925 | Total cu e t assets | 917,166 | 973,439 | P ope ty a d equipme t, et | 110,320 | 108,413 | Goodwill | 941,637 | 942,419 | I ta gible assets, et | 166,517 | 175,820 | Ope ati g lease ight-of-use assets, et | 44,079 | 47,713 | Defe ed tax asset | 67,333 | 67,188 | Othe o -cu e t assets | 8,847 | 7,784 | Total assets | $ | 2,255,899 | $ | 2,322,776 | Liabilities a d Sha eholde s’ Equity | Cu e t liabilities: | Accou ts payable | $ | 96,212 | $ | 91,041 | Acc ued expe ses | 30,986 | 32,991 | Due to facto i g facility | 6,979 | 391 | Acc ued compe satio | 32,270 | 54,537 | Defe ed eve ues a d custome adva ces | 150,181 | 149,565 | Total cu e t liabilities | 316,628 | 328,524 | I come taxes payable | 3,487 | 3,487 | Lo g-te m debt | 341,500 | 441,500 | Ope ati g lease liabilities | 41,994 | 45,829 | Othe o -cu e t liabilities | 5,614 | 5,977 | Total liabilities | 709,223 | 825,318 | Sha eholde s’ equity: | P efe ed stock | — | — | Commo stock | 607 | 596 | Additio al paid-i capital | 1,370,452 | 1,333,410 | Retai ed ea i gs | 165,310 | 152,222 | Accumulated othe comp ehe sive i come | 10,307 | 11,230 | Total sha eholde s’ equity | 1,546,676 | 1,497,458 | Total liabilities a d sha eholde s’ equity | $ | 2,255,899 | $ | 2,322,776 |
| (I thousa ds, except pe sha e data) | Fi st Qua te s E ded | Octobe 2, 2026 | Septembe 26, 2025 | Net eve ues | $ | 253,153 | $ | 225,209 | Cost of eve ues(1) | 163,965 | 162,310 | G oss ma gi | 89,188 | 62,899 | Ope ati g expe ses: | Selli g, ge e al a d admi ist ative(1) | 43,029 | 45,906 | Resea ch a d developme t(1) | 16,051 | 13,184 | Amo tizatio of i ta gible assets | 9,303 | 10,259 | Rest uctu i g a d othe cha ges | 2,018 | 1,584 | Acquisitio costs a d othe elated expe ses | 253 | 563 | Total ope ati g expe ses | 70,654 | 71,496 | I come (loss) f om ope atio s | 18,534 | (8,597 | ) | I te est i come | 1,327 | 2,027 | I te est expe se | (5,406 | ) | (7,886 | ) | Othe expe se, et | (1,147 | ) | (2,080 | ) | I come (loss) befo e i come tax p ovisio (be efit) | 13,308 | (16,536 | ) | I come tax p ovisio (be efit) | 220 | (4,021 | ) | Net i come (loss) | $ | 13,088 | $ | (12,515 | ) | Basic et ea i gs (loss) pe sha e | $ | 0.22 | $ | (0.21 | ) | Diluted et ea i gs (loss) pe sha e | $ | 0.21 | $ | (0.21 | ) | Weighted-ave age sha es outsta di g: | Basic | 60,121 | 59,191 | Diluted | 61,623 | 59,191 | (1) I cludes stock-based compe satio expe se, allocated as follows: | Cost of eve ues | $ | 1,146 | $ | 1,760 | Selli g, ge e al a d admi ist ative | $ | 9,299 | $ | 6,296 | Resea ch a d developme t | $ | 1,726 | $ | 1,517 |
| (I thousa ds) | Fi st Qua te s E ded | Octobe 2, 2026 | Septembe 26, 2025 | Cash flows f om ope ati g activities: | Net i come (loss) | $ | 13,088 | $ | (12,515 | ) | Dep eciatio a d amo tizatio | 17,789 | 18,913 | Othe o -cash items, et | 17,096 | 12,720 | Cha ges i ope ati g assets a d liabilities | (61,939 | ) | (16,936 | ) | Net cash (used i ) p ovided by ope ati g activities | (13,966 | ) | 2,182 | Cash flows f om i vesti g activities: | Pu chases of p ope ty a d equipme t | (10,413 | ) | (6,548 | ) | Net cash used i i vesti g activities | (10,413 | ) | (6,548 | ) | Cash flows f om fi a ci g activities: | P oceeds f om stock optio exe cise | 19,848 | — | Payme ts u de c edit facilities | (100,000 | ) | — | Net cash used i fi a ci g activities | (80,152 | ) | — | Effect of excha ge ate cha ges o cash a d cash equivale ts | (96 | ) | (17 | ) | Net dec ease i cash a d cash equivale ts | (104,627 | ) | (4,383 | ) | Cash a d cash equivale ts at begi i g of pe iod | 214,306 | 309,099 | Cash a d cash equivale ts at e d of pe iod | $ | 109,679 | $ | 304,716 |
Adjusted EBITDA, a o -GAAP measu e fo epo ti g fi a cial pe fo ma ce, excludes the impact of ce tai items a d, the efo e, has ot bee calculated i acco da ce with GAAP. Ma ageme t believes that exclusio of these items assists i p ovidi g a mo e complete u de sta di g of the Compa y’s u de lyi g esults a d t e ds, a d ma ageme t uses these measu es alo g with the co espo di g GAAP fi a cial measu es to ma age the Compa y’s busi ess, to evaluate its pe fo ma ce compa ed to p io pe iods a d the ma ketplace, a d to establish ope atio al goals. The adjustme ts to calculate this o -GAAP fi a cial measu e, a d the basis fo such adjustme ts, a e outli ed below:
Othe o -ope ati g adjustme ts. The Compa y eco ds othe o -ope ati g adjustme ts such as gai s o losses o fo eig cu e cy emeasu eme t, i vestme ts a d fixed asset sales o disposals amo g othe adjustme ts. These adjustme ts may va y f om pe iod to pe iod without a y di ect co elatio to u de lyi g ope ati g pe fo ma ce.
I te est i come a d expe se. The Compa y eceives i te est i come o i vestme ts a d i cu s i te est expe se o loa s, fi a ci g leases a d othe fi a ci g a a geme ts. These amou ts may va y f om pe iod to pe iod due to cha ges i cash a d debt bala ces a d i te est ates d ive by ge e al ma ket co ditio s o othe ci cumsta ces which may be outside of the o mal cou se of the Compa y’s ope atio s.
I come taxes. The Compa y’s GAAP tax expe se ca fluctuate mate ially f om pe iod to pe iod due to tax adjustme ts that a e ot di ectly elated to u de lyi g ope ati g pe fo ma ce o to the cu e t pe iod of ope atio s.
Dep eciatio . The Compa y i cu s dep eciatio expe se elated to capital assets pu chased to suppo t the o goi g ope atio s of the busi ess. These assets a e eco ded at cost o fai value a d a e dep eciated usi g the st aight-li e method ove the useful life of the asset. Pu chases of such assets may va y sig ifica tly f om pe iod to pe iod a d without a y di ect co elatio to u de lyi g ope ati g pe fo ma ce.
Amo tizatio of i ta gible assets. The Compa y i cu s amo tizatio of i ta gible assets p ima ily as a esult of acqui ed i ta gible assets such as backlog, custome elatio ships a d completed tech ologies but also due to lice ses, pate ts a d othe a a geme ts, i cludi g the impleme tatio costs of cloud computi g a a geme ts. These i ta gible assets a e valued at the time of acquisitio o upo eceipt of ight to use the asset, amo tized ove the equisite life a d ge e ally ca ot be cha ged o i flue ced by ma ageme t afte acquisitio .
Rest uctu i g a d othe cha ges. The Compa y i cu s est uctu i g a d othe cha ges i co ectio with ma ageme t’s decisio s to u de take ce tai actio s to ealig ope ati g expe ses th ough wo kfo ce eductio s a d the closu e of ce tai Compa y facilities, busi esses a d li es of busi ess. The Compa y’s adjustme ts eflected i est uctu i g a d othe cha ges a e typically elated to acquisitio s a d o ga izatio al edesig p og ams i itiated as pa t of disc ete post-acquisitio i teg atio activities o othe t a sfo matio activities, i cludi g the a alysis, evaluatio , a d pla i g of i fo matio system upg ades a d/o deployme ts. Ma ageme t believes these items a e o – outi e a d may ot be i dicative of o goi g ope ati g esults.
Impai me t of lo g-lived assets. The Compa y i cu s impai me t cha ges of lo g-lived assets based o eve ts that may o may ot be withi the co t ol of ma ageme t. Ma ageme t believes these items a e outside the o mal ope atio s of the Compa y’s busi ess a d a e ot i dicative of o goi g ope ati g esults.
Acquisitio , fi a ci g a d othe thi d pa ty costs. The Compa y i cu s t a sactio costs elated to acquisitio a d pote tial acquisitio oppo tu ities, such as legal, accou ti g, a d othe thi d pa ty adviso y fees. The Compa y may also i cu thi d pa ty costs, such as legal, ba ki g, commu icatio s, p oxy solicitatio , a d othe thi d pa ty adviso y fees i co ectio with e gageme ts by activist i vesto s o u solicited acquisitio offe s. Although the Compa y may i cu such thi d pa ty costs a d othe elated cha ges a d adjustme ts, it is ot i dicative that a y t a sactio will be co summated. Additio ally, the Compa y i cu s u used evolve a d ba k fees associated with mai tai i g its c edit facility as well as o -cash fi a ci g expe ses associated with obtai i g its c edit facility. Ma ageme t believes these items a e outside the o mal ope atio s of the Compa y’s busi ess a d a e ot i dicative of o goi g ope ati g esults.
Fai value adjustme ts f om pu chase accou ti g. As a esult of applyi g pu chase accou ti g ules to acqui ed assets a d liabilities, ce tai fai value adjustme ts a e eco ded i the ope i g bala ce sheet of acqui ed compa ies. These adjustme ts a e the eflected i the Compa y’s i come stateme ts i pe iods subseque t to the acquisitio . I additio , the impact of a y cha ges to o igi ally eco ded co ti ge t co side atio amou ts a e eflected i the i come stateme ts i the pe iod of the cha ge. Ma ageme t believes these items a e outside the o mal ope atio s of the Compa y a d a e ot i dicative of o goi g ope ati g esults.
Litigatio a d settleme t i come a d expe se. The Compa y pe iodically eceives i come a d i cu s expe ses elated to pe di g claims a d litigatio a d associated legal fees a d pote tial case settleme ts a d/o judgme ts. Although the Compa y may i cu such costs a d othe elated cha ges a d adjustme ts, it is ot i dicative of a y pa ticula outcome u til the matte is fully esolved. Ma ageme t believes these items a e outside the o mal ope atio s of the Compa y’s busi ess, ofte occu i pe iods othe tha the pe iod of activity, a d a e ot i dicative of o goi g ope ati g esults. The Compa y pe iodically eceives wa a ty claims f om custome s a d makes wa a ty claims towa ds its ve do s a d supply chai . Ma ageme t believes the expe ses a d gai s associated with these ecu i g wa a ty items a e withi the o mal ope atio s a d ope ati g cycle of the Compa y’s busi ess. The efo e, ma ageme t deems o adjustme ts a e ecessa y u less u de ext ao di a y ci cumsta ces.
Stock-based a d othe o -cash compe satio expe se. The Compa y i cu s expe se elated to stock-based compe satio i cluded i its GAAP p ese tatio of cost of eve ues, selli g, ge e al a d admi ist ative expe se a d esea ch a d developme t expe se. The Compa y also i cu s o -cash based compe satio i the fo m of pe sio elated expe ses a d matchi g co t ibutio s to its defi ed co t ibutio pla . Although stock-based a d othe o -cash compe satio is a expe se of the Compa y a d viewed as a fo m of compe satio , these expe ses va y i amou t f om pe iod to pe iod, a d a e affected by ma ket fo ces that a e difficult to p edict a d a e ot withi the co t ol of ma ageme t, such as the ma ket p ice a d volatility of the Compa y’s sha es, isk-f ee i te est ates a d the expected te m a d fo feitu e ates of the awa ds, as well as pe sio actua ial assumptio s. Ma ageme t believes that exclusio of these expe ses allows compa iso s of ope ati g esults to those of othe compa ies, both public, p ivate o fo eig , that disclose o -GAAP fi a cial measu es that exclude stock-based compe satio a d othe o -cash compe satio .
Me cu y uses adjusted EBITDA as a impo ta t i dicato of the ope ati g pe fo ma ce of its busi ess. Ma ageme t excludes the above-desc ibed items f om its i te al fo ecasts a d models whe establishi g i te al ope ati g budgets, suppleme ti g the fi a cial esults a d fo ecasts epo ted to the Compa y’s boa d of di ecto s, dete mi i g a po tio of bo us compe satio fo executive office s a d othe key employees based o ope ati g pe fo ma ce, evaluati g sho t-te m a d lo g-te m ope ati g t e ds i the Compa y’s ope atio s, a d allocati g esou ces to va ious i itiatives a d ope atio al equi eme ts. The Compa y believes that adjusted EBITDA pe mits a compa ative assessme t of its ope ati g pe fo ma ce, elative to its pe fo ma ce based o its GAAP esults, while isolati g the effects of cha ges that may va y f om pe iod to pe iod without di ect co elatio to u de lyi g ope ati g pe fo ma ce. The Compa y believes that these o -GAAP fi a cial adjustme ts a e useful to i vesto s because they allow i vesto s to evaluate the effective ess of the methodology a d i fo matio used by ma ageme t i its fi a cial a d ope atio al decisio -maki g. The Compa y believes that t e ds i its adjusted EBITDA a e valuable i dicato s of its ope ati g pe fo ma ce.
Adjusted EBITDA is a o -GAAP fi a cial measu e a d should ot be co side ed i isolatio o as a substitute fo fi a cial i fo matio p ovided i acco da ce with GAAP. This o -GAAP fi a cial measu e may ot be computed i the same ma e as simila ly titled measu es used by othe compa ies. The Compa y expects to co ti ue to i cu expe ses simila to the adjusted EBITDA fi a cial adjustme ts desc ibed above, a d i vesto s should ot i fe f om the Compa y’s p ese tatio of this o -GAAP fi a cial measu e that these costs a e u usual, i f eque t o o – ecu i g.
The followi g table eco ciles the most di ectly compa able GAAP fi a cial measu e to the o -GAAP fi a cial measu e.
| Fi st Qua te s E ded | Octobe 2, 2026 | Septembe 26, 2025 | Net i come (loss) | $ | 13,088 | $ | (12,515 | ) | Othe o -ope ati g adjustme ts, et | 584 | 748 | I te est expe se, et | 4,079 | 5,859 | I come tax p ovisio (be efit) | 220 | (4,021 | ) | Dep eciatio | 8,486 | 8,654 | Amo tizatio of i ta gible assets | 9,303 | 10,259 | Rest uctu i g a d othe cha ges | 2,018 | 1,584 | Impai me t of lo g-lived asset | — | — | Acquisitio , fi a ci g a d othe thi d pa ty costs | 750 | 1,317 | Fai value adjustme ts f om pu chase accou ti g | 131 | 131 | Litigatio a d settleme t expe se, et | 545 | 7,224 | Stock-based a d othe o -cash compe satio expe se | 17,191 | 16,328 | Adjusted EBITDA | $ | 56,395 | $ | 35,568 |
F ee cash flow, a o -GAAP measu e fo epo ti g cash flow, is defi ed as cash p ovided by ope ati g activities less capital expe ditu es fo p ope ty a d equipme t, which i cludes capitalized softwa e developme t costs, a d, the efo e, has ot bee calculated i acco da ce with GAAP. Ma ageme t believes f ee cash flow p ovides i vesto s with a impo ta t pe spective o cash available fo i vestme t a d acquisitio s afte maki g capital i vestme ts equi ed to suppo t o goi g busi ess ope atio s a d lo g-te m value c eatio . The Compa y believes that t e ds i its f ee cash flow a e valuable i dicato s of its ope ati g pe fo ma ce a d liquidity.
F ee cash flow is a o -GAAP fi a cial measu e a d should ot be co side ed i isolatio o as a substitute fo fi a cial i fo matio p ovided i acco da ce with GAAP. This o -GAAP fi a cial measu e may ot be computed i the same ma e as simila ly titled measu es used by othe compa ies. The Compa y expects to co ti ue to i cu expe ditu es simila to the f ee cash flow fi a cial adjustme t desc ibed above, a d i vesto s should ot i fe f om the Compa y’s p ese tatio of this o -GAAP fi a cial measu e that these expe ditu es eflect all of the Compa y’s obligatio s which equi e cash.
The followi g table eco ciles the most di ectly compa able GAAP fi a cial measu e to the o -GAAP fi a cial measu e.
| Fi st Qua te s E ded | Octobe 2, 2026 | Septembe 26, 2025 | Net cash (used i ) p ovided by ope ati g activities | $ | (13,966 | ) | $ | 2,182 | Pu chases of p ope ty a d equipme t | (10,413 | ) | (6,548 | ) | F ee cash flow | $ | (24,379 | ) | $ | (4,366 | ) |
Adjusted i come a d adjusted ea i gs pe sha e (“adjusted EPS”) a e o -GAAP measu es fo epo ti g fi a cial pe fo ma ce, exclude the impact of ce tai items a d, the efo e, have ot bee calculated i acco da ce with GAAP. Ma ageme t believes that exclusio of these items assists i p ovidi g a mo e complete u de sta di g of the Compa y’s u de lyi g esults a d t e ds a d allows fo compa ability with its pee compa y i dex a d i dust y. These o -GAAP fi a cial measu es may ot be computed i the same ma e as simila ly titled measu es used by othe compa ies. The Compa y uses these measu es alo g with the co espo di g GAAP fi a cial measu es to ma age the Compa y’s busi ess a d to evaluate its pe fo ma ce compa ed to p io pe iods a d the ma ketplace. The Compa y defi es adjusted i come as i come befo e othe o -ope ati g adjustme ts, amo tizatio of i ta gible assets, est uctu i g a d othe cha ges, impai me t of lo g-lived assets, acquisitio , fi a ci g a d othe thi d pa ty costs, fai value adjustme ts f om pu chase accou ti g, litigatio a d settleme t i come a d expe se, a d stock-based a d othe o -cash compe satio expe se. The impact to i come taxes i cludes the impact to the effective tax ate, cu e t tax p ovisio a d defe ed tax p ovisio (1). Adjusted EPS exp esses adjusted i come o a pe sha e basis usi g weighted ave age diluted sha es outsta di g.
The followi g table eco ciles the most di ectly compa able GAAP fi a cial measu es to the o -GAAP fi a cial measu es.
| Fi st Qua te s E ded | Octobe 2, 2026 | Septembe 26, 2025 | Net i come (loss) a d ea i gs (loss) pe sha e | $ | 13,088 | $ | 0.21 | $ | (12,515 | ) | $ | (0.21 | ) | Othe o -ope ati g adjustme ts, et | 584 | 748 | Amo tizatio of i ta gible assets | 9,303 | 10,259 | Rest uctu i g a d othe cha ges | 2,018 | 1,584 | Impai me t of lo g-lived assets | — | — | Acquisitio , fi a ci g a d othe thi d pa ty costs | 750 | 1,317 | Fai value adjustme ts f om pu chase accou ti g | 131 | 131 | Litigatio a d settleme t expe se, et | 545 | 7,224 | Stock-based a d othe o -cash compe satio expe se | 17,191 | 16,328 | Impact to i come taxes(1) | (11,605 | ) | (9,516 | ) | Adjusted i come a d adjusted ea i gs pe sha e | $ | 32,005 | $ | 0.52 | $ | 15,560 | $ | 0.26 | Diluted weighted-ave age sha es outsta di g | 61,623 | 60,140 | (1) Impact to i come taxes is calculated by ecasti g i come befo e i come taxes to i clude the items i volved i dete mi i g adjusted i come a d ecalculati g the i come tax p ovisio usi g this adjusted i come f om ope atio s befo e i come taxes. The ecalculatio also adjusts fo a y disc ete tax p ovisio o be efit elated to the items. | (2) Adjusted ea i gs pe sha e is calculated usi g diluted sha es whe eas Net loss pe sha e is calculated usi g basic sha es. The e was o impact to the calculatio of adjusted ea i gs pe sha e as a esult of this fo the fi st qua te e ded Septembe 26, 2025. |




 