Core Insights - Zebra Technologies Corporation (ZBRA) has underperformed in operational performance, leading to a Zacks Rank of 5 (Strong Sell) with a stock loss of 3.2% over the past year, consistent with industry trends [1] Rising Costs - ZBRA experienced an 8.3% year-over-year increase in the cost of sales in Q1 2025, primarily due to high raw material costs [4] - Selling and marketing expenses also rose by 8.8% year-over-year, indicating escalating operational costs that may negatively impact profitability in the future [4] High Debt Level - The company's long-term debt has grown at a CAGR of 18.9% over the past five years, reaching $2.10 billion by the end of Q1 2025, a slight increase from $2.09 billion at the end of 2024 [5] - Interest expenses surged by 35.3% year-over-year in Q1, totaling $23 million, raising concerns about the sustainability of its financial structure [5][8] - ZBRA completed a $500 million senior notes offering with a fixed interest rate of 6.5%, which, while aimed at reducing term loan obligations, will add to the existing debt burden [6] Forex Woes - The company operates in multiple regions, exposing it to geopolitical risks, including conflicts in Russia & Ukraine and tensions in U.S.-China relations, which could adversely affect business operations [7] - A stronger U.S. dollar poses additional challenges, potentially impacting ZBRA's performance in overseas markets [7][8]