Financial Data and Key Metrics Changes - In Q2, total company sales reached $1.3 billion, reflecting a greater than 6% increase year-over-year, with adjusted EBITDA margin at 20.6%, a 10 basis point improvement [9][11][13] - Non-GAAP diluted earnings per share were $3.61, representing a 14% increase compared to the prior year [9][13] - Year-to-date free cash flow generated was $288 million, with $250 million in stock repurchases [14] Business Line Data and Key Metrics Changes - Strong growth was observed in mobile computing, scanning, and RFID, particularly in North America, Latin America, and Asia Pacific [9][12] - North America sales grew by 8%, with double-digit growth in mobile computing and RFID; Asia Pacific sales increased by 20% [12] - EMEA experienced a sales decline of 1%, cycling strong comparisons, particularly in mobile computing [12] Market Data and Key Metrics Changes - North America, Latin America, and Asia Pacific regions showed strong sales growth, while EMEA faced challenges [12][70] - The company noted resilience in demand despite uncertainties in trade policy, with customers maintaining capital spending levels [10][34] Company Strategy and Development Direction - The acquisition of Elo Touch Solutions is aimed at enhancing the connected frontline experience and expanding the addressable market by approximately $8 billion [7][23] - The company is focused on digitizing and automating workflows, leveraging innovations in hardware, software, and services [20][25] - Strategic priorities include expanding into consumer-facing solutions and enhancing self-service capabilities [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand, noting that customers are navigating uncertain trade policies but have generally maintained spending [10][34] - The company raised its full-year sales growth guidance to between 5% and 7%, reflecting strong second-quarter results and a solid backlog [18][84] - Management highlighted the potential positive impact of recent U.S. tax legislation on capital spending [35][43] Other Important Information - The company is experiencing a gross profit impact of approximately $30 million from U.S. import tariffs for the full year, which is favorable compared to previous expectations [15][18] - The balance sheet remains strong, with $872 million in cash and a net debt to adjusted EBITDA leverage ratio of 1.2 [14] Q&A Session Questions and Answers Question: Can you explain how the Elo acquisition technology ties in with Zebra's? - The acquisition enhances Zebra's portfolio with self-service and customer-facing solutions, expanding the addressable market significantly [30][31] Question: How do you feel about customer budget releases for the second half? - Demand has remained resilient, and customers are generally maintaining their capital spending levels despite some caution [34][35] Question: Can you discuss Elo's business cyclicality compared to Zebra's? - Elo's business is more balanced throughout the year, unlike Zebra's which typically sees year-end spending [40][41] Question: What is the potential for market share gains given competitive dynamics? - The company feels confident about its competitive position and sees opportunities for market share gains through strong customer relationships and expanded offerings [64][66] Question: What changes have been observed in various market sectors? - Strong growth continues in North America, Asia Pacific, and Latin America, while EMEA has shown mixed performance with some softness [68][70]

Financial Data and Key Metrics Changes - In Q2 2025, Zebra Technologies reported sales of $1.3 billion, representing a greater than 6% increase compared to the prior year [6] - Adjusted EBITDA margin was 20.6%, reflecting a 10 basis point improvement year over year [6] - Non-GAAP diluted earnings per share were $3.61, a 14% increase from the previous year [6][11] Business Line Data and Key Metrics Changes - Strong growth was observed in mobile computing, scanning, and RFID, with double-digit growth in mobile computing and RFID in North America [6][10] - The services and software recurring revenue business grew slightly during the quarter [8] - Transportation logistics, retail, and e-commerce were the highest growth verticals, while healthcare and manufacturing continued to lag [6][10] Market Data and Key Metrics Changes - North America sales grew by 8%, while Asia Pacific sales increased by 20%, led by Australia, New Zealand, and India [10] - Latin America saw an 11% sales growth, while EMEA experienced a slight decline of 1% due to strong prior year comparisons [10] Company Strategy and Development Direction - The acquisition of Elo Touch Solutions is aimed at enhancing Zebra's market leadership and expanding its portfolio of customer-facing solutions [5][21] - The company is focused on digitizing and automating workflows across various industries, leveraging its innovative solutions [18][22] - Zebra plans to pursue attractive market and geographic expansion opportunities while delivering a comprehensive software-differentiated portfolio [22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand resilience despite uncertainties in trade policy and macroeconomic conditions [7][34] - The recently passed U.S. tax legislation is expected to be beneficial for some customers, although its impact on demand is still uncertain [7][34] - The company raised its full-year sales growth guidance to between 5% and 7%, reflecting strong second-quarter results and a solid backlog [16][34] Other Important Information - Zebra generated $288 million of free cash flow year to date and repurchased $250 million of stock [12] - The company expects a $30 million gross profit impact from tariffs for the full year, which is favorable compared to previous expectations [16][14] Q&A Session Summary Question: How does the Elo acquisition technology tie in with Zebra's? - The acquisition expands Zebra's addressable market by approximately $8 billion, enhancing customer-facing solutions like point of sale and self-service kiosks [28][30] Question: How is customer budget release expected in the second half? - Demand has remained resilient, with customers generally maintaining capital spending levels despite some caution [32][34] Question: What is Elo's business cyclicality compared to Zebra's? - Elo's demand cycle is more balanced throughout the year, unlike Zebra's which sees significant year-end spending [39] Question: How are tariffs being monitored and managed? - Zebra is actively working with trade partners to understand tariff impacts and has a playbook for managing supply chain resilience [63][64] Question: What is the competitive landscape post-Elo acquisition? - The acquisition is expected to enhance Zebra's competitive position, leveraging strong customer relationships and expanding into new markets [66][68] Question: What are the trends in various verticals? - Retail and e-commerce continue to show strength, while manufacturing is slower compared to other sectors [71][94]

Core Insights - Zebra Technologies (ZBRA) reported quarterly earnings of $3.61 per share, exceeding the Zacks Consensus Estimate of $3.31 per share, and up from $3.18 per share a year ago [1] - The earnings surprise for the quarter was +9.06%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - Zebra's revenues for the quarter reached $1.29 billion, surpassing the Zacks Consensus Estimate by 1.17% and increasing from $1.22 billion year-over-year [3] Financial Performance - The company has consistently exceeded consensus revenue estimates over the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is $3.24, with expected revenues of $1.28 billion, and for the current fiscal year, the EPS estimate is $14.51 on revenues of $5.23 billion [8] Market Position - Zebra shares have underperformed the market, losing about 11.6% since the beginning of the year, while the S&P 500 has gained 7.6% [4] - The Zacks Industry Rank for Manufacturing - Thermal Products is in the top 41% of over 250 Zacks industries, indicating a favorable position within the sector [9] Future Outlook - The earnings outlook and estimate revisions will be crucial for Zebra's stock performance moving forward [5][6] - The current Zacks Rank for Zebra is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [7]

Q2 2025 Performance - Zebra Technologies delivered better-than-expected results, driven by demand recovery, lower U S import tariff expenses, operating leverage, and strong execution[8, 11] - Net sales reached $1293 million, reflecting a 6 3% organic net sales growth, with strong performance in North America, Asia Pacific, and Latin America[11, 15] - Adjusted EBITDA margin increased by 10bps to 20 6%, despite a 70bps decline in adjusted gross margin primarily due to U S import tariffs[11, 15] - Non-GAAP diluted EPS increased by 13 5% to $3 61[11, 15] Regional and Segment Performance - North America experienced an 8% organic net sales growth, while Asia Pacific grew by 20% and Latin America by 11%[17] - EMEA saw a (1)% decline in regional organic net sales growth[17] - Asset Intelligence & Tracking segment grew by 5 8%, and Enterprise Visibility & Mobility grew by 6 5%[17] Financial Position and Outlook - The company has a strong liquidity position with $872 million in cash and cash equivalents and a $1 5 billion revolving credit facility capacity[19] - Free cash flow was $288 million year-to-date, $101 million lower year-over-year due to higher incentive compensation payments and timing of inventory purchases[19] - The company expects approximately $30 million gross profit net impact for FY25 from U S import tariffs, improved from $70 million as of prior guidance[20] - The full-year outlook for sales growth is between 5% and 7%, with an adjusted EBITDA margin between 21% and 22%, and non-GAAP diluted EPS between $15 25 and $15 75[22]

Exhibit 99.1 Zebra Technologies Corporation 3 Overlook Point Lincolnshire, IL 60069 USA +1 847 634 6700 www.zebra.com Zebra Technologies Announces Second-Quarter 2025 Results Second-Quarter Financial Highlights Lincolnshire, Ill., August 5, 2025 — Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating frontline workflows, today announced results for the second quarter ended June 28, 2025. "Solid demand, excellent execution by our team and lower-than-expected tariffs enab ...

Core Viewpoint - Zebra Technologies Corporation (ZBRA) is expected to report second-quarter 2025 results on August 5, with projected revenues of $1.28 billion, reflecting a 5% year-over-year growth, and adjusted earnings of $3.31 per share, indicating a 4.1% increase from the previous year [1][9]. Revenue Estimates - The Zacks Consensus Estimate for revenues is $1.28 billion, which indicates a growth of 5% from the year-ago quarter's figure [1]. - The Enterprise Visibility & Mobility segment is expected to generate revenues of $853 million, reflecting a 4% increase from the previous year [3]. - The Asset Intelligence and Tracking segment's revenues are projected to be $430 million, indicating an 8.3% growth from the year-ago number [4]. Earnings Performance - The consensus estimate for adjusted earnings has remained stable over the past 60 days, with an impressive earnings surprise history, outperforming the consensus estimate in each of the last four quarters, averaging an 8.4% surprise [2]. - In the last reported quarter, Zebra Technologies delivered an earnings surprise of 11.7% [2]. Segment Performance Drivers - The Enterprise Visibility & Mobility segment's performance is driven by strong demand for mobile computing products and data capture solutions, along with increased sales of services and software due to retail software wins [3]. - The Asset Intelligence and Tracking segment is expected to benefit from solid demand for printing solutions and RFID products [4]. Strategic Acquisitions - Zebra Technologies is focused on acquisitions to expand its product offerings and customer base, such as the acquisition of Photoneo in March 2025, enhancing its portfolio in 3D machine vision solutions [5]. Cost and Currency Challenges - The company's performance has been negatively impacted by high costs and expenses, with increased raw material costs expected to affect the bottom line [6]. - A stronger U.S. dollar is likely to have hurt Zebra Technologies' overseas business due to its extensive geographic presence [6]. Earnings Prediction Model - The current model does not predict an earnings beat for ZBRA, as the Earnings ESP is 0.00%, with both the Zacks Consensus Estimate and the Most Accurate Estimate at $3.31 [7][8]. Zacks Rank - Zebra Technologies currently holds a Zacks Rank of 3, indicating a hold position [10].

Group 1 - Zebra Technologies (NASDAQ: ZBRA) is a well-known company in the B2B sector, yet it lacks excitement in the stock market [1] - The company operates in a niche market that is not widely covered by analysts, indicating potential for contrarian investment opportunities [1] - The current market sentiment towards Zebra Technologies is lukewarm, despite its established presence and recognition in the industry [1]

Core Insights - Zebra Technologies Corporation (ZBRA) is positioned to benefit from strong performance across its business segments, operational excellence, and strategic acquisitions, focusing on growth opportunities and long-term market positioning [1] Business Performance - The Enterprise Visibility & Mobility segment has seen an 8.1% year-over-year revenue increase in Q1 2025, driven by higher sales of mobile computing and data capture solutions, along with increased service and software sales [2] - The Asset Intelligence & Tracking segment experienced an 18.4% year-over-year sales increase in Q1 2025, supported by solid demand for printing solutions and RFID products [3] - For Q2 2025, the company anticipates net sales growth of 4-7% compared to the same quarter last year, reflecting overall business strength [3] Acquisition Strategy - Zebra Technologies acquired Photoneo in March 2025, enhancing its 3D machine vision solutions by integrating Photoneo's technology with its existing capabilities [4] - The acquisition of Matrox Imaging in June 2022 has allowed Zebra to strengthen its fixed industrial scanning and machine vision portfolio [5] Stock Performance and Shareholder Returns - ZBRA's stock has increased by 44.6% over the past three months, outperforming the industry average growth of 42% [8] - The company has repurchased shares worth $125 million in Q1 2025, compared to $47 million in Q1 2024, with a remaining buyback capacity of $721 million from a $1 billion program authorized in May 2022 [9] - Free cash flow for Q1 2025 reached $158 million, marking a 42.3% year-over-year increase, supporting shareholder-friendly policies [9] Earnings Estimates - The Zacks Consensus Estimate for ZBRA's 2025 earnings is $14.51 per share, reflecting a 7.3% year-over-year increase, while the estimate for 2026 earnings is $16.41 per share, indicating a 13.1% increase from the previous year [10]

Group 1 - The "Trump Tariff Losers" index decreased by 0.20% on June 30, closing at 98.34 points, with a cumulative increase of 3.86% in June [1] - In the first half of the year, component stocks such as Coach, Hasbro, and Dollar Tree saw increases ranging from 32.16% to 35.59%, while 3M and Mattel increased by at least 11.22% [2] - Companies like Best Buy, Zebra Technologies, Harley-Davidson, FND, FBIN, and Polaris experienced declines of at least 19.67%, with AEO, Carter's, CRI, Newell NWL, and Dex Outdoor dropping by at least 41.16% [2] Group 2 - Helen of Troy (HELE) saw a significant decline of 52.57%, while the energy storage company Fluence Energy dropped by 57.75% [2]

Group 1 - The article discusses the positions of various analysts and their affiliations with specific stocks, particularly highlighting Zebra Technologies [1] - It mentions that The Motley Fool has positions in and recommends Zebra Technologies, indicating a positive outlook on the company [1] - The article also notes that one analyst has short positions on Zebra Technologies, suggesting a mixed sentiment among analysts regarding the stock [1]