Zebra Technologies Announces Third-Quarter 2025 Results

About this update from Zebra Technologies Corporation

Third-Quarter Financial Highlights Net sales of $1,320 million ; year-over-year increase of 5.2% Net income of $101 million and net income per diluted share of $1.97 Non-GAAP diluted EPS increased year-over-year to $3.88 Adjusted EBITDA increased year-over-year to $285 million Returning value to shareholders with $284 million of share repurchases year to date, and expect to repurchase an additional $500 million through the third quarter of 2026 LINCOLNSHIRE, Ill. --(BUSINESS WIRE)-- Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating workflows to deliver intelligent operations, today announced results for the third quarter ended September 27, 2025 . “Our strong third quarter results were driven by solid demand, lower-than-expected tariffs, operating expense leverage and continued excellent execution by our teams,” said Bill Burns , Chief Executive Officer of Zebra Technologies . “We continue to advance our industry leadership with solutions that digitize and automate our customers’ workflows, and are excited about the opportunity to accelerate our connected frontline vision through our recent acquisition of Elo Touch Solutions . We are also building on our track record of value creation for shareholders, committing to $500 million of share repurchases over the next twelve months, supported by our strong balance sheet and cash flow.” $ in millions, except per share amounts 3Q25 3Q24 Change Select reported measures: Net sales $ 1,320 $ 1,255 5.2 % Gross profit 634 613 3.4 % Gross margin 48.0 % 48.8 % (80) bps Net income 101 137 (26.3 %) Net income margin 7.7 % 10.9 % (320) bps Net income per diluted share $ 1.97 $ 2.64 (25.4 %) Select Non-GAAP measures: Adjusted net sales $ 1,320 $ 1,255 5.2 % Organic net sales growth 4.8 % Adjusted gross profit 636 616 3.2 % Adjusted gross margin 48.2 % 49.1 % (90) bps Adjusted EBITDA 285 268 6.3 % Adjusted EBITDA margin 21.6 % 21.4 % 20 bps Non-GAAP net income $ 198 $ 181 9.4 % Non-GAAP diluted earnings per share $ 3.88 $ 3.49 11.2 % Net sales were $1,320 million in the third quarter of 2025 compared to $1,255 million in the prior year. Net sales in the Enterprise Visibility & Mobility ("EVM") segment were $865 million in the third quarter of 2025 compared to $845 million in the prior year. Asset Intelligence & Tracking ("AIT") segment net sales were $455 million in the third quarter of 2025 compared to $410 million in the prior year. Consolidated organic net sales for the third quarter of 2025 increased 4.8% year-over-year, with a 2.0% increase in the EVM segment and a 10.6% increase in the AIT segment(1). Third quarter 2025 gross profit was $634 million compared to $613 million in the prior year. Gross margin decreased to 48.0% for the third quarter of 2025 compared to 48.8% in the prior year primarily due to approximately $6 million of U.S. import tariff expense net of mitigating actions. Adjusted gross margin was 48.2% in the third quarter of 2025 compared to 49.1% in the prior year. Operating expenses increased to $451 million in the third quarter of 2025 from $422 million in the prior year primarily due to increased stock based compensation expense. Adjusted operating expenses increased to $368 million in the third quarter of 2025 from $364 million in the prior year. Net income for the third quarter of 2025 was $101 million , or $1.97 per diluted share, compared to net income of $137 million , or $2.64 per diluted share, in the prior year. Non-GAAP net income increased to $198 million for the third quarter of 2025, or $3.88 per diluted share, compared to $181 million , or $3.49 per diluted share, for the prior year. Adjusted EBITDA for the third quarter of 2025 increased to $285 million , or 21.6% of adjusted net sales, compared to $268 million , or 21.4% of adjusted net sales in the prior year due to lower adjusted operating expense as a percentage of sales, partially offset by lower gross margin. (1) Effective with the fourth quarter of 2025, the Company’s reportable segments will be changed to Connected Frontline and Asset Visibility & Automation. Reference the appendix of this press release for additional information, including recast financial performance. Balance Sheet and Cash Flow As of September 27, 2025 , the Company had cash and cash equivalents of $1,053 million and total debt of $2,183 million . For the first nine months of 2025, net cash provided by operating activities was $560 million and the Company invested $56 million in capital expenditures, resulting in free cash flow of $504 million . The Company also made share repurchases of $284 million and acquired Photoneo for $62 million . Outlook The Company expects fourth quarter sales growth between 8% and 11% compared to the prior year. This expectation includes approximately 850 basis points of favorable impact from acquisitions and foreign currency translation. Adjusted EBITDA margin for the fourth quarter is expected to be approximately 22% which includes the impact of approximately $6 million U.S. import tariff expense, net of mitigating actions, assuming current rates and exemptions. Non-GAAP diluted earnings per share are expected to be in the range of $4.20 to $4.40 . This assumes an adjusted effective tax rate of approximately 18%. Free Cash Flow for the full year 2025 is expected to be greater than $800 million . Beginning in the fourth quarter of 2025 and continuing through the next 12 months, the Company expects to repurchase $500 million of its common stock. The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of the most directly comparable forward-looking GAAP financial measure as discussed under the "Forward-Looking Statements" caption below. This would include items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. Conference Call Notification Investors are invited to listen to a live webcast of Zebra’s conference call regarding the Company’s financial results. The conference call will be held today at 7:30 a.m. Central Time ( 8:30 a.m. Eastern Time ). To view the webcast, visit the investor relations section of the Company’s website at investors.zebra.com. About Zebra Zebra (NASDAQ: ZBRA) provides the foundation for intelligent operations with an award-winning portfolio of connected frontline, asset visibility and automation solutions. Organizations globally across retail, manufacturing, transportation, logistics, healthcare, and other industries rely on us to deliver outcomes today while driving innovation for what’s next. Together with our partners, we create new ways of working that improve productivity and empower organizations to be better every day. Learn more at www.zebra.com . Follow Zebra on our Blog , LinkedIn , Facebook , X , Instagram and YouTube . Forward-Looking Statements This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company’s outlook. Actual results may differ from those expressed or implied in the company’s forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release. These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra’s offerings and competitors' offerings, and the potential effects of emerging technologies and changes in customer requirements. The effect of global market conditions, and the availability of credit and capital markets volatility may have adverse effects on Zebra, its suppliers and its customers. In addition, natural disasters, man-made disasters, public health issues (including pandemics), and cybersecurity incidents may have negative effects on Zebra's business and results of operations. Zebra's ability to purchase sufficient materials, parts, and components, and ability to provide services, software and products to meet customer demand could negatively impact Zebra's results of operations and customer relationships. Profits and profitability will be affected by Zebra’s ability to control manufacturing and operating costs. Because of its debt, interest rates and financial market conditions may also have an adverse impact on results. Foreign exchange rates, customs duties and trade policies may have an adverse effect on financial results because of the global nature of Zebra's business. The impacts of changes in foreign and domestic governmental policies, regulations, or laws, as well as the outcome of litigation or tax matters in which Zebra may be involved are other factors that could adversely affect Zebra's business and results of operations. The success of integrating acquisitions could also adversely affect profitability, reported results and the company’s competitive position in its industry. These and other factors could have an adverse effect on Zebra’s sales, gross profit margins and results of operations and increase the volatility of Zebra's financial results. When used in this release and documents referenced, the words “anticipate,” “believe,” “outlook,” and “expect” and similar expressions, as they relate to the company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of certain risks, uncertainties and other factors that could adversely affect the company’s future operations and results can be found in Zebra’s filings with the Securities and Exchange Commission, including the company’s most recent Form 10-K and Form 10-Q. Use of Non-GAAP Financial Information This press release contains certain Non-GAAP financial measures, consisting of “Adjusted EBITDA,” “Adjusted EBITDA margin,” “adjusted gross margin,” “adjusted gross profit,” “adjusted net sales,” “adjusted operating expenses,” “EBITDA,” “free cash flow,” “non-GAAP diluted earnings per share,” “non-GAAP earnings per share,” “non-GAAP net income,” “organic net sales,” and “organic net sales growth.” Management presents these measures to focus on the on-going operations and believes it is useful to investors because they enable them to perform meaningful comparisons of past and present operating results. The company believes it is useful to present non-GAAP financial measures, which exclude certain significant items, as a means to understand the performance of its ongoing operations and how management views the business. Please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables and accompanying disclosures at the end of this press release for more detailed information regarding non-GAAP financial measures herein, including the items reflected in adjusted net earnings calculations. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis (including the information under “Outlook” above) where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred, are out of the company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share, the most directly comparable forward-looking GAAP financial measure. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. As a global company, Zebra's operating results reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which the company transacts change in value over time compared to the U.S. dollar; accordingly, the company presents certain organic growth financial information, which includes impacts of foreign currency translation, to provide a framework to assess how the company’s businesses performed excluding the impact of foreign currency exchange rate fluctuations. Foreign currency impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. dollar. This impact is calculated by translating current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods. The company believes these measures should be considered a supplement to and not in lieu of the company’s performance measures calculated in accordance with GAAP. ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except per share data) September 27 , 2025 December 31 , 2024 (Unaudited) Assets Current assets: Cash and cash equivalents $ 1,053 $ 901 Accounts receivable, net of allowances for doubtful accounts of $1 each as of September 27, 2025 and December 31, 2024 655 692 Inventories, net 663 693 Income tax receivable 106 20 Prepaid expenses and other current assets 99 134 Total Current assets 2,576 2,440 Property, plant and equipment, net 327 305 Right-of-use lease assets 165 167 Goodwill 3,931 3,891 Other intangibles, net 376 422 Deferred income taxes 475 512 Other long-term assets 217 231 Total Assets $ 8,067 $ 7,968 Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt $ 66 $ 79 Accounts payable 533 633 Accrued liabilities 497 503 Deferred revenue 456 453 Income taxes payable 51 36 Total Current liabilities 1,603 1,704 Long-term debt 2,107 2,092 Long-term lease liabilities 151 155 Deferred income taxes 65 57 Long-term deferred revenue 318 304 Other long-term liabilities 76 70 Total Liabilities 4,320 4,382 Stockholders’ Equity: Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued — — Class A common stock, $.01 par value; authorized 150,000,000 shares; issued 72,151,857 shares 1 1 Additional paid-in capital 781 669 Treasury stock at cost, 21,414,382 and 20,645,798 shares as of September 27, 2025 and December 31, 2024 , respectively (2,181 ) (1,900 ) Retained earnings 5,209 4,860 Accumulated other comprehensive loss (63 ) (44 ) Total Stockholders’ Equity 3,747 3,586 Total Liabilities and Stockholders’ Equity $ 8,067 $ 7,968 ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share data) (Unaudited) Three Months Ended Nine Months Ended September 27 , 2025 September 28 , 2024 September 27 , 2025 September 28 , 2024 Net sales: Tangible products $ 1,081 $ 1,019 $ 3,198 $ 2,931 Services and software 239 236 723 716 Total Net sales 1,320 1,255 3,921 3,647 Cost of sales: Tangible products 557 526 1,652 1,539 Services and software 129 116 374 343 Total Cost of sales 686 642 2,026 1,882 Gross profit 634 613 1,895 1,765 Operating expenses: Selling and marketing 159 151 478 449 Research and development 146 141 441 425 General and administrative 111 96 324 274 Amortization of intangible assets 25 29 74 80 Acquisition and integration costs 10 1 17 3 Exit and restructuring costs — 4 — 17 Total Operating expenses 451 422 1,334 1,248 Operating income 183 191 561 517 Other income (loss), net: Foreign exchange gain (loss) 1 (9 ) (15 ) (6 ) Interest expense, net (23 ) (31 ) (71 ) (71 ) Other expense, net (2 ) (2 ) (13 ) (13 ) Total Other expense, net (24 ) (42 ) (99 ) (90 ) Income before income tax 159 149 462 427 Income tax expense 58 12 113 62 Net income $ 101 $ 137 $ 349 $ 365 Basic earnings per share $ 1.98 $ 2.65 $ 6.83 $ 7.09 Diluted earnings per share $ 1.97 $ 2.64 $ 6.78 $ 7.04 ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Nine Months Ended September 27 , 2025 September 28 , 2024 Cash flows from operating activities: Net income $ 349 $ 365 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 126 130 Share-based compensation 130 68 Deferred income taxes 61 (62 ) Unrealized gain on forward interest rate swaps — (31 ) Other, net 13 12 Changes in operating assets and liabilities: Accounts receivable, net 57 (120 ) Inventories, net 30 161 Other assets 16 5 Accounts payable (115 ) 79 Accrued liabilities (49 ) 68 Deferred revenue 16 (34 ) Income taxes (71 ) 25 Settlement liability — (45 ) Cash receipts on forward interest rate swaps — 86 Other operating activities (3 ) — Net cash provided by operating activities 560 707 Cash flows from investing activities: Acquisition of businesses (62 ) — Purchases of property, plant and equipment (56 ) (41 ) Proceeds from sale of short-term investments — 2 Proceeds from sale of long-term investments 1 — Purchases of long-term investments (4 ) (3 ) Net cash used in investing activities (121 ) (42 ) Cash flows from financing activities: Payment of debt issuance costs, extinguishment costs and discounts — (9 ) Payments of debt — (694 ) Proceeds from issuance of debt — 651 Payments for repurchases of common stock (284 ) (16 ) Net payments related to share-based compensation plans (15 ) (27 ) Change in unremitted cash collections from servicing factored receivables 9 (35 ) Other financing activities 4 3 Net cash used in financing activities (286 ) (127 ) Effect of exchange rate changes on cash and cash equivalents (1 ) — Net increase in cash and cash equivalents 152 538 Cash and cash equivalents at beginning of period 901 138 Cash and cash equivalents at end of period $ 1,053 $ 676 Supplemental disclosures of cash flow information: Income taxes paid $ 124 $ 90 Interest paid, net of forward interest rate swaps $ 79 $ 3 ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES RECONCILIATION OF ORGANIC NET SALES GROWTH (Unaudited) Three Months Ended September 27, 2025 AIT EVM Consolidated Reported GAAP Consolidated Net sales growth 11.0 % 2.4 % 5.2 % Adjustments: Impact of foreign currency translations (1) (0.4 )% (0.1 )% (0.2 )% Impact of acquisitions (2) — % (0.3 )% (0.2 )% Consolidated Organic Net sales growth 10.6 % 2.0 % 4.8 % Nine Months Ended September 27, 2025 AIT EVM Consolidated Reported GAAP Consolidated Net sales growth 11.3 % 5.6 % 7.5 % Adjustments: Impact of foreign currency translations (1) 0.3 % 0.3 % 0.3 % Impact of acquisitions (2) — % (0.3 )% (0.2 )% Consolidated Organic Net sales growth 11.6 % 5.6 % 7.6 % (1) Operating results reported in U.S. Dollars are affected by foreign currency exchange rate fluctuations. Foreign currency translation impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. Dollar. This impact is calculated by translating the current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods. (2) For purposes of computing Organic Net sales growth, amounts directly attributable to business acquisitions are excluded for twelve months following their respective acquisitions. ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN ($ In millions) (Unaudited) Three Months Ended September 27, 2025 September 28, 2024 AIT EVM Consolidated AIT EVM Consolidated GAAP Reported Net sales $ 455 $ 865 $ 1,320 $ 410 $ 845 $ 1,255 Reported Gross profit 230 404 634 199 414 613 Gross Margin 50.5 % 46.7 % 48.0 % 48.5 % 49.0 % 48.8 % Non-GAAP Adjusted Net sales $ 455 $ 865 $ 1,320 $ 410 $ 845 $ 1,255 Adjusted Gross profit (1) 231 405 636 200 416 616 Adjusted Gross Margin 50.8 % 46.8 % 48.2 % 48.8 % 49.2 % 49.1 % Nine Months Ended September 27, 2025 September 28, 2024 AIT EVM Consolidated AIT EVM Consolidated GAAP Reported Net sales $ 1,335 $ 2,586 $ 3,921 $ 1,199 $ 2,448 $ 3,647 Reported Gross profit 669 1,226 1,895 570 1,195 1,765 Gross Margin 50.1 % 47.4 % 48.3 % 47.5 % 48.8 % 48.4 % Non-GAAP Adjusted Net sales $ 1,335 $ 2,586 $ 3,921 $ 1,199 $ 2,448 $ 3,647 Adjusted Gross profit (1) 673 1,231 1,904 572 1,200 1,772 Adjusted Gross Margin 50.4 % 47.6 % 48.6 % 47.7 % 49.0 % 48.6 % (1) Adjusted Gross profit excludes share-based compensation expense. ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP NET INCOME ($ In millions, except share data) (Unaudited) Three Months Ended Nine Months Ended September 27 , 2025 September 28 , 2024 September 27 , 2025 September 28 , 2024 GAAP Net income $ 101 $ 137 $ 349 $ 365 Adjustments to Cost of sales(1) Share-based compensation 2 3 9 7 Total adjustments to Cost of sales 2 3 9 7 Adjustments to Operating expenses(1) Amortization of intangible assets 25 29 74 80 Acquisition and integration costs 10 1 17 3 Share-based compensation 48 24 131 78 Exit and restructuring costs — 4 — 17 Total adjustments to Operating expenses 83 58 222 178 Adjustments to Other expense, net(1) Amortization of debt issuance costs and discounts 1 — 2 1 Investment loss 1 — 11 6 Foreign exchange (gain) loss (1 ) 9 15 6 Forward interest rate swap gain — — — (31 ) Total adjustments to Other expense, net 1 9 28 (18 ) Income tax effect of adjustments(2) Reported income tax expense 58 12 113 62 Adjusted income tax (47 ) (38 ) (129 ) (101 ) Total adjustments to income tax 11 (26 ) (16 ) (39 ) Total adjustments 97 44 243 128 Non-GAAP Net income $ 198 $ 181 $ 592 $ 493 GAAP earnings per share Basic $ 1.98 $ 2.65 $ 6.83 $ 7.09 Diluted $ 1.97 $ 2.64 $ 6.78 $ 7.04 Non-GAAP earnings per share Basic $ 3.90 $ 3.52 $ 11.59 $ 9.58 Diluted $ 3.88 $ 3.49 $ 11.51 $ 9.51 Basic weighted average shares outstanding 50,800,552 51,567,216 51,044,563 51,480,812 Diluted weighted average and equivalent shares outstanding 51,171,119 51,918,055 51,429,532 51,845,572 (1) Presented on a pre-tax basis. (2) Represents adjustments to GAAP income tax expense commensurate with pre-tax non-GAAP adjustments (including the resulting impacts to U.S. BEAT/GILTI provisions), as well as adjustments to exclude the impacts of certain discrete income tax items and incorporate the anticipated annualized effects of current year tax planning. ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES GAAP to NON-GAAP RECONCILIATION TO EBITDA ($ In millions) (Unaudited) Three Months Ended Nine Months Ended September 27 , 2025 September 28 , 2024 September 27 , 2025 September 28 , 2024 GAAP Net income $ 101 $ 137 $ 349 $ 365 Add back: Depreciation (excluding exit and restructuring) 17 16 52 50 Amortization of intangible assets 25 29 74 80 Total Other expense, net 24 42 99 90 Income tax expense 58 12 113 62 EBITDA (Non-GAAP) 225 236 687 647 Adjustments to Cost of sales Share-based compensation 2 3 9 7 Total adjustments to Cost of sales 2 3 9 7 Adjustments to Operating expenses Acquisition and integration costs 10 1 17 3 Share-based compensation 48 24 131 78 Exit and restructuring costs — 4 — 17 Total adjustments to Operating expenses 58 29 148 98 Total adjustments to EBITDA 60 32 157 105 Adjusted EBITDA (Non-GAAP) $ 285 $ 268 $ 844 $ 752 Adjusted EBITDA margin (Non-GAAP) 21.6 % 21.4 % 21.5 % 20.6 % FREE CASH FLOW Nine Months Ended September 27 , 2025 September 28 , 2024 Net cash provided by operating activities $ 560 $ 707 Less: Purchases of property, plant and equipment (56 ) (41 ) Free cash flow (Non-GAAP)(1) $ 504 $ 666 (1) Free cash flow, a non-GAAP measure, is defined as Net cash provided by (used in) operating activities in a period minus purchases of property, plant and equipment (capital expenditures) made in that period. ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES SEGMENT INFORMATION Effective with the fourth quarter, the Company’s reportable segments will be changed to Connected Frontline (“CF”) and Asset Visibility & Automation (“AVA”). The CF segment will consist of our mobile computing products, and related services and software-based offerings that were formerly part of our EVM segment, as well as the Elo Touch Solutions acquisition. The AVA segment will consist of our barcode and card printing products and related supplies and sensors, RFID and RTLS offerings, and related services that collectively represented our former AIT segment, as well as our data capture, machine vision, and robotics automation offerings and related services that were formerly part of our EVM segment. This change aligns with how we are operating our business to advance our strategy and the level of detailed financial information reviewed by our chief operating decision-maker going forward. Our CF and AVA results will also exclude share-based compensation expense from the measurement of segment operating income with respect to how we report our results on both a GAAP and Non-GAAP basis. The table below contains our segment results reflecting these changes in the current and historical periods on a comparable basis. These changes will not have an impact on our Consolidated Financial Statements. QTD Full Year 2025 2024 2024 2023 Q1 2025 Q2 2025 Q3 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net sales: CF Tangible products $ 481 $ 521 $ 509 $ 436 $ 479 $ 481 $ 520 $ 1,916 $ 1,522 CF Services and software 203 196 196 205 193 194 206 798 758 Total CF sales 684 717 705 641 672 675 726 2,714 2,280 AVA Tangible products 581 534 572 493 504 538 565 2,100 2,143 AVA Services and software 43 42 43 41 41 42 43 167 161 Total AVA sales 624 576 615 534 545 580 608 2,267 2,304 Total Net sales $ 1,308 $ 1,293 $ 1,320 $ 1,175 $ 1,217 $ 1,255 $ 1,334 $ 4,981 $ 4,584 Gross profit: CF $ 333 $ 339 $ 324 $ 314 $ 333 $ 331 $ 356 $ 1,334 $ 1,031 AVA 316 280 312 251 258 285 294 1,088 1,098 Corporate (4 ) (3 ) (2 ) (2 ) (2 ) (3 ) (2 ) (9 ) (6 ) Total Gross profit $ 645 $ 616 $ 634 $ 563 $ 589 $ 613 $ 648 $ 2,413 $ 2,123 Gross margin CF 48.7 % 47.3 % 46.0 % 49.0 % 49.6 % 49.0 % 49.0 % 49.2 % 45.2 % AVA 50.6 % 48.6 % 50.7 % 47.0 % 47.3 % 49.1 % 48.4 % 48.0 % 47.7 % Operating expenses CF (1) $ 193 $ 197 $ 192 $ 189 $ 197 $ 191 $ 198 $ 775 $ 703 AVA (1) 181 173 176 159 161 173 175 668 671 Corporate 76 63 83 56 64 58 50 228 268 Total Operating expenses $ 450 $ 433 $ 451 $ 404 $ 422 $ 422 $ 423 $ 1,671 $ 1,642 Operating income: CF (2) $ 140 $ 142 $ 132 $ 125 $ 136 $ 140 $ 158 $ 559 $ 328 AVA (2) 135 107 136 92 97 112 119 420 427 Total segment operating income 275 249 268 217 233 252 277 979 755 Corporate (3) (80 ) (66 ) (85 ) (58 ) (66 ) (61 ) (52 ) (237 ) (274 ) Total Operating income $ 195 $ 183 $ 183 $ 159 $ 167 $ 191 $ 225 $ 742 $ 481 (1) CF and AVA segment operating expenses include Selling and marketing, Research and development, and General and administrative expenses, excluding the amounts classified within Corporate. (2) CF and AVA segment operating income includes depreciation expense proportionate to each segment’s Net sales. (3) To the extent applicable, amounts included in Corporate consist of Share-based Compensation, Amortization of intangible assets, Acquisition and integration costs, Exit and restructuring costs, as well as certain other non-recurring costs (impairment of goodwill and other intangibles, and business acquisition purchase accounting adjustments). View source version on businesswire.com : https://www.businesswire.com/news/home/20251028143531/en/ Investors Michael Steele , CFA, IRC Vice President, Investor Relations Phone: + 1 847 518 6432 [email protected] Media Therese Van Ryne Senior Director, External Communications Phone: + 1 847 370 2317 [email protected] Source: Zebra Technologies Corporation

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