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]

Financial Performance - Zebra Technologies reported Q1 2025 sales of $1,308 million, reflecting 11.9% organic net sales growth[10] - The adjusted EBITDA margin increased by 240bps to 22.3%[10] - Non-GAAP diluted EPS increased by 41.5% to $4.02[10] - Free cash flow for Q1 2025 was $158 million, $47 million higher year-over-year[18] Segment and Regional Growth - Asset Intelligence & Tracking segment organic net sales grew by 18.4%[16] - Enterprise Visibility & Mobility segment organic net sales grew by 8.6%[16] - EMEA region experienced organic net sales growth of 18%[16] - Latin America region experienced organic net sales growth of 18%[16] Outlook and Tariffs - The company expects sales growth between 4% and 7% for Q2 2025[24] - The company expects sales growth between 3% and 7% for FY25[24] - The company anticipates approximately $70 million gross profit impact for FY25 due to U S import tariffs[20] - The company anticipates $25-30 million gross profit net impact from import tariffs for 2Q25[20]