Zebra Technologies Corp. Reports Strong Q2 2025 Financial Results

By Philip Seaworth • Tuesday, August 05 10:29 • Permanent Link

Zebra Technologies Corporation has released its second-quarter 2025 financial results, which reflect a year-over-year increase in net sales, adjusted net sales, and non-GAAP metrics.

Here are the key financial highlights for the second quarter of 2025: Net sales increased to $1,293 million, reflecting a 6.2% year-over-year increase. Gross profit was $616 million, representing a 4.6% increase over the prior year. Net income was reported at $112 million, with net income per diluted share at $2.19. Non-GAAP measures show an increase in adjusted net sales, adjusted gross profit, adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share.

Organic net sales growth for the second quarter of 2025 increased by 6.3% year-over-year, with the Enterprise Visibility & Mobility (EVM) segment showing a 6.5% increase and the Asset Intelligence & Tracking (AIT) segment showing a 5.8% increase.

The company also reported a gross margin decrease to 47.6% for the second quarter of 2025 compared to 48.4% in the prior year, primarily due to U.S. import tariff expenses.

Looking at the balance sheet and cash flow: As of June 28, 2025, Zebra Technologies had cash and cash equivalents of $872 million and total debt of $2,183 million. Net cash provided by operating activities for the first six months of 2025 was $325 million, resulting in free cash flow of $288 million.

In terms of the outlook for the third quarter and full year of 2025: The company expects third-quarter sales growth between 2% and 6% compared to the prior year, with adjusted EBITDA margin expected to be approximately 21%. For the full year, Zebra Technologies is raising its sales growth outlook to between 5% and 7% compared to the prior year, with adjusted EBITDA margin expected to be between 21% and 22%.

Additionally, the company announced the acquisition of Elo Touch Solutions, Inc. for $1.3 billion, which is expected to close in 2025.

The press release does not provide a reconciliation for non-GAAP estimates on a forward-looking basis.

These figures and developments demonstrate Zebra Technologies' solid performance and its strategic initiatives to further drive growth and shareholder value. Following these announcements, the company's shares moved 1.83%, and are now trading at a price of $341.36. If you want to know more, read the company's complete 8-K report here.

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