Zebra(US:ZBRA)2026-02-12 12:48Financial Performance - Net sales for Q4 2025 were $1,475 million, a year-over-year increase of 10.6% compared to $1,334 million in Q4 2024[4]. - Net income for Q4 2025 was $70 million, a decrease of 57.1% from $163 million in Q4 2024, resulting in a net income per diluted share of $1.39[4][8]. - Adjusted EBITDA for Q4 2025 increased to $326 million, representing a 10.5% year-over-year growth[9]. - Total net sales for the year ended December 31, 2025, reached $5,396 million, a 8.3% increase compared to $4,981 million in 2024[28]. - Gross profit for the year ended December 31, 2025, was $2,593 million, resulting in a gross margin of 48.1%, slightly down from 48.4% in 2024[35]. - Net income for the year ended December 31, 2025, was $419 million, compared to $528 million in 2024, reflecting a decrease of 20.7%[30]. - Operating income for the year ended December 31, 2025, was $700 million, down from $742 million in 2024[28]. - GAAP net income for Q4 2025 was $70 million, compared to $163 million in Q4 2024, representing a decrease of 57.0%[37]. - Non-GAAP net income for Q4 2025 was $219 million, slightly up from $208 million in Q4 2024, indicating a growth of 5.3%[37]. - Adjusted EBITDA for the twelve months ended December 31, 2025, was $1,170 million, an increase of 11.7% from $1,047 million in 2024[40]. - Free cash flow for the twelve months ended December 31, 2025, was $831 million, down from $954 million in 2024, reflecting a decrease of 12.9%[42]. Sales Growth - The company expects sales growth between 11% and 15% for Q1 2026, including a favorable impact of approximately 10 percentage points from acquisitions and foreign currency translation[12]. - For the full year 2026, the company anticipates sales growth between 9% and 13%, with an expected adjusted EBITDA margin of approximately 22%[13]. - Organic net sales growth for Q4 2025 was 2.5%, with a 3.6% increase in the Connected Frontline segment and a 1.3% increase in the Asset Visibility & Automation segment[5]. - The company reported a consolidated organic net sales growth of 6.2% for the twelve months ended December 31, 2025[32]. Expenses and Costs - Operating expenses increased to $559 million in Q4 2025, primarily due to exit and restructuring charges and the addition of the Elo Touch acquisition[7]. - Research and development expenses for the year ended December 31, 2025, were $593 million, compared to $563 million in 2024, reflecting a 5.3% increase[28]. - The company incurred acquisition and integration costs of $24 million for the year ended December 31, 2025, compared to $6 million in 2024[28]. - Total adjustments to operating expenses for Q4 2025 amounted to $155 million, significantly higher than $50 million in Q4 2024[37]. - Share-based compensation in operating expenses for the twelve months ended December 31, 2025, was $163 million, compared to $101 million in 2024, an increase of 61.4%[40]. - The company incurred $76 million in exit and restructuring costs for the twelve months ended December 31, 2025, compared to $17 million in 2024, reflecting a significant increase[40]. Cash and Assets - Cash and cash equivalents at the end of the period decreased to $125 million from $901 million in 2024, indicating a significant cash outflow[30]. - Total assets increased to $8,502 million as of December 31, 2025, compared to $7,968 million in 2024, marking a growth of 6.7%[26]. - Total liabilities rose to $4,914 million in 2025, up from $4,382 million in 2024, an increase of 12.1%[26].