Mercury Systems Inc

ITEM 1A. RISK FACTORS

You should carefully review Other than as noted below, there have been no material changes to the risk factors presented in our Annual Report on Form 10-K for the fiscal year ended June 28, 2024. For further discussion of our risk factors, refer to the section titled Risk Factors in our 2024 Annual Report on Form 10-K. See also Part I Item 2, Managements Discussion and consider the inAnalysis of Financial Condition and Results of Operations, of this Quarterly Report on Form 10-Q for additional information regarding certain factorsrisks related to tariffs.

Current trade policies could increase thate couldst of our materinufacturing operations, potentially affectreducing our business, financiagross margins and demand for our products.

There is substantial condition or future results set forth under Item 1A (Risk Factors) in our Annual Report on Form 10-K for urrent uncertainty with respect to trade policies and treaties between the U.S. and other countries. The U.S. has recently announced a broad increase in tariffs on imported components, subject to limited exceptions. Major U.S. trading partners have announced retaliatory tariffs in response. As a result, we are exposed to increased tariffs with respect to products and components that we import into the U.S. Our gross margins could be reduced, potentially significantly, in the event we are unable to recover tariffs or duties from our customers. Furthe fiscal year endr, although we are required June 28, 2024. There have been no changeto pay tariffs upon importation of the components, we may not be able to recover these amounts from the factors disclosed in our 2024 Annual Reporour customers until sometime later, if at all, which could materially adversely impact our operating cash flow in a given period. Any significant increase in the price of our products due to increased costs may result in a reduction in demand from our customers at such higher prices. The impact on Form 10-K filef any tariff increases will depend on August 13, 2024, although we may disclose addivarious factors, including if such increases are ultimately implemented, the timing of implementation, contractual terms and the amount, scope and nature of the tariffs.

Tariffs and other restrictive trade measures may require us to take various actionals, including changes to such factors from timing suppliers and altering business relationships. Changing our operations in accordance with new or evolving trade restrictions can be expensive, time-consuming, disruptive to time in our future filings our operations and distracting to management. Tariffs and trade restrictions can be announced with the Securitieslittle or no advanced notice, and Exchange Commissionwe may not be able to effectively mitigate all adverse impacts from such measures.