Zebra(US:ZBRA)2025-04-29 11:39Financial Performance - Net sales for Q1 2025 were $1,308 million, an increase of 11.3% year-over-year from $1,175 million in Q1 2024[5] - Gross profit for Q1 2025 was $645 million, up 14.6% from $563 million in Q1 2024, with a gross margin of 49.3%[6] - Net income for Q1 2025 was $136 million, or $2.62 per diluted share, representing an 18.3% increase from $115 million, or $2.23 per diluted share, in Q1 2024[8] - Non-GAAP net income increased to $208 million for Q1 2025, or $4.02 per diluted share, compared to $147 million, or $2.84 per diluted share, in the prior year[8] - Adjusted EBITDA for Q1 2025 was $292 million, a 24.8% increase from $234 million in Q1 2024, with an adjusted EBITDA margin of 22.3%[9] - Total net sales for the three months ended March 29, 2025, increased to $1,308 million, a 11.3% growth compared to $1,175 million for the same period in 2024[28] - Gross profit for the same period rose to $645 million, up from $563 million, reflecting a gross margin of 49.3%[28] - Net income for the three months ended March 29, 2025, was $136 million, compared to $115 million in the prior year, resulting in a basic earnings per share of $2.64[28][36] - The adjusted gross margin improved to 49.6% from 48.1% year-over-year[34] - Adjusted EBITDA for Q1 2025 reached $292 million, compared to $234 million in Q1 2024, reflecting a 24.8% growth[40] - Adjusted EBITDA margin improved to 22.3% in Q1 2025, up from 19.9% in Q1 2024[40] Future Outlook - The company expects Q2 2025 sales growth between 4% and 7% compared to the prior year[11] - Full year 2025 sales growth is maintained at 3% to 7% compared to the prior year[13] - Adjusted EBITDA margin for the full year is expected to be between 20% and 21%, including approximately $70 million in U.S. import tariff expenses[14] - Free cash flow for the full year 2025 is expected to exceed $700 million[15] Cash Flow and Investments - Cash and cash equivalents at the end of the period were $879 million, down from $901 million at the beginning of the period[30] - The company invested $62 million in acquisitions during the three months ended March 29, 2025[30] - Free cash flow for Q1 2025 was $158 million, significantly higher than $111 million in Q1 2024, marking a 42.3% increase[42] - Net cash provided by operating activities increased to $178 million in Q1 2025, compared to $125 million in Q1 2024, a rise of 42.4%[42] Expenses and Liabilities - Research and development expenses increased to $151 million, compared to $138 million in the same period last year[28] - Total current liabilities decreased to $1,581 million from $1,704 million, primarily due to a reduction in accounts payable and accrued liabilities[28] - Total liabilities decreased to $4,273 million from $4,382 million, indicating a stronger balance sheet position[28] - Total adjustments to operating expenses in Q1 2025 amounted to $52 million, compared to $30 million in Q1 2024, indicating a 73.3% increase[40] - Share-based compensation in operating expenses rose to $49 million in Q1 2025 from $19 million in Q1 2024, a substantial increase of 157.9%[40] - Total other expenses increased to $30 million in Q1 2025, up from $17 million in Q1 2024, representing a 76.5% rise[40] - Income tax expense for Q1 2025 was $29 million, compared to $27 million in Q1 2024, a 7.4% increase[40] - Depreciation and amortization expenses remained relatively stable, with depreciation at $17 million and amortization at $24 million in Q1 2025[40] Share Repurchase - The company repurchased $125 million in shares during the first quarter of 2025[4] Organic Growth - The company reported an organic net sales growth of 11.9% after adjusting for foreign currency translations and acquisitions[32]