Slide 1: Zebra Technologies First Quarter 2025 Results
Click to enter Presentation Title Subhead Copy here Zebra Technologies First Quarter 2025 Results April 29, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements made in this presentation which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results may differ from those expressed or impli
Slide 3: Agenda
Agenda Q1 Summary 01 Bill Burns, CEO Q1 Financials and Outlook 02 Nathan Winters, CFO Advancing Enterprise Asset Intelligence 03 Bill Burns, CEO Q&A 04 Bill Burns, CEO Nathan Winters, CFO ZEBRA TECHNOLOGIES
Slide 4: First Quarter 2025 Summary
Q1 Summary First Quarter 2025 Summary (1) • Delivered results above our outlook • Sales of $1,308M, reflecting 11.9% organic net sales growth o Strong broad-based growth across all major product categories, vertical markets and regions o Modest growth in Services and Software • Adjusted EBITDA Margi
Slide 5: Agenda
Agenda Q4 Summary 01 Bill Burns, CEO Q1 Financials and Outlook 02 Nathan Winters, CFO Advancing Enterprise Asset Intelligence 03 Bill Burns, CEO Q&A 04 Bill Burns, CEO Nathan Winters, CFO ZEBRA TECHNOLOGIES
Slide 6: First Quarter P&L Summary
Q1 Financials First Quarter P&L Summary(1) In millions, except per share data 1Q25 1Q24 Change SEGMENT ORGANIC NET SALES GROWTH Net Sales $1,308 $1,175 +11.3% • Asset Intelligence & Tracking +18.4% • Enterprise Visibility & Mobility +8.6% Organic Net Sales Growth +11.9% $649 $565 +14.9% REGIONAL ORG
Slide 7: Cash Flow & Balance Sheet
Q1 Financials Cash Flow & Balance Sheet(1) Cash Flow: 1Q25 Strong Liquidity Position: 1Q25 • Free cash flow of $158M, $47M higher YoY • $879M cash & cash equivalents o Stronger operating performance o Working capital improvement • $2.2B balance sheet debt o $45M less settlement payments • 1.2x net d
Slide 8: Zebra Well Equipped to Navigate Global Environment
Q1 Financials Zebra Well Equipped to Navigate Global Environment • Highly diversified business: global footprint, broad product & solution set, increasingly diverse end-markets • Flexible and Capital-Light Business Model o Flexible cost structure with capital expenditures less than 1.5% of sales o A
Slide 9: Working to Mitigate U.S. Import Tariffs
Q1 Financials Working to Mitigate U.S. Import Tariffs • We have made good progress diversifying our global sourcing footprint, improving resiliency • Over the last decade, shifted U.S. imports from China to approximately 30% from 85% • ~ $80-90M annualized gross profit impact, net of mitigation, fro
Slide 10: Outlook & Assumptions
2025 Outlook Outlook & Assumptions(1) 2Q25 FY25 • Sales growth between 4% and 7% • Sales growth between 3% and 7% o Includes net neutral impact from recently acquired o Includes net neutral impact from recently acquired business(1) and FX business(1) and FX • Adjusted EBITDA margin 20% - 21% • Adjus
Slide 11: Agenda
Agenda Q1 Summary 01 Bill Burns, CEO Q1 Financials and Outlook 02 Nathan Winters, CFO Advancing Enterprise Asset Intelligence 03 Bill Burns, CEO Q&A 04 Bill Burns, CEO Nathan Winters, CFO ZEBRA TECHNOLOGIES
Slide 12: Zebra Digitizes & Automates the Front Line of Business
Advancing Our Vision Zebra Digitizes & Automates the Front Line of Business Purpose-Built Hardware + Software + Cloud Analytics ZEBRA TECHNOLOGIES 12
Slide 13: Enabling Improved Outcomes Across Our End Markets
Advancing Our Vision Enabling Improved Outcomes Across Our End Markets Retail & Transportation Manufacturing Healthcare Other Markets E-Commerce & Logistics Elevated Customer Enhanced Worker Actionable Visibility Patient Safety Supply Chain Experience Productivity Optimized Quality Unified Staff Mod
Slide 14: Zebra Solutions Address Manufacturers' Biggest Challenges
Advancing Our Vision Zebra Solutions Address Manufacturers’ Biggest Challenges Actionable Optimized Augmented Visibility Quality Workforce Gain visibility into inventory, Digitize and integrate inspection, track- Improve agility and flexibility by assets and production and-trace and quality manageme
Slide 15: Opportunity Across Our End Markets
Advancing Our Vision Opportunity Across Our End Markets Market Served Longer-Term Opportunity • Technology equipped frontline workers to drive productivity and satisfaction Retail & E-commerce • Reimagining point-of-sale and solutions to address shrink • E-commerce growth with shorter lead time expe
Slide 16: Agenda
Agenda Q1 Summary 01 Bill Burns, CEO Q1 Financials and Outlook 02 Nathan Winters, CFO Advancing Enterprise Asset Intelligence 03 Bill Burns, CEO Q&A 04 Bill Burns, CEO Nathan Winters, CFO ZEBRA TECHNOLOGIES
Slide 17: Q&A
Q&A ZEBRA TECHNOLOGIES
Slide 18: Appendix
Appendix ZEBRA TECHNOLOGIES 18
Slide 19: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information This presentation contains certain Non-GAAP financial measures, consisting of “Adjusted EBITDA,” “Adjusted EBITDA margin,” “Adjusted EBITDA % of adjusted net sales,” “adjusted gross margin,” “adjusted gross profit,” “adjusted net sales,” “adjusted operating expe
Slide 20: GAAP to Non-GAAP Organic Net Sales Growth Reconciliation
GAAP to Non-GAAP Organic Net Sales Growth Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 20 20
Slide 21: GAAP to Non-GAAP Regional Organic Net Sales Growth Reconciliation
GAAP to Non-GAAP Regional Organic Net Sales Growth Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 21 21
Slide 22: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation ZEBRA TECHNOLOGIES 22 22
Slide 23: GAAP to Non-GAAP Net Income Reconciliation
($ in millions, except share data) GAAP to Non-GAAP Net Income Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 23 23
Slide 24: GAAP to Non-GAAP EBITDA Reconciliation
GAAP to Non-GAAP EBITDA Reconciliation ZEBRA TECHNOLOGIES 24 24
Slide 25: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation ($ in millions) (Unaudited) ZEBRA TECHNOLOGIES 25 25
Slide 26: GAAP to Non-GAAP Net Debt to Adjusted EBITDA Reconciliation
GAAP to Non-GAAP Net Debt to Adjusted EBITDA Reconciliation ($ in millions) (Unaudited) ZEBRA TECHNOLOGIES 26 26
Slide 27: About Zebra
About Zebra Zebra (NASDAQ: ZBRA) provides the tools to help businesses grow with asset visibility, connected frontline workers and intelligent automation. The company operates in more than 100 countries, and our customers include over 80% of the Fortune 500. Designed for the frontline, Zebra’s award