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Zebra Technologies (ZBRA) investor relations material

Zebra Technologies Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary28 Oct, 2025

Executive summary

  • Q3 2025 net sales reached $1.32 billion, up 5.2% year-over-year, with strong demand in Asia Pacific, Latin America, and North America, and notable growth in printing, mobile computing, and RFID segments.

  • Adjusted EBITDA margin rose to 21.6%, with adjusted EBITDA of $285 million, and non-GAAP diluted EPS increased 11.2% to $3.88.

  • Net income was $101 million ($1.97 per diluted share), down from the prior year due to higher taxes and operating expenses.

  • Growth was driven by retail, e-commerce, and AIT segment performance, while healthcare and manufacturing faced headwinds.

  • The company is investing in AI, mobile computing, and expanding its portfolio through acquisitions like Elo Touch Solutions and Photoneo.

Financial highlights

  • Q3 2025 net sales grew 5.2% year-over-year to $1.32 billion, with organic growth of 4.8%.

  • Adjusted gross margin was 48.2%, down 90 basis points due to U.S. import tariffs; gross profit was $634 million.

  • Operating expenses increased to $451 million, mainly from higher stock-based compensation.

  • Free cash flow for the first nine months was $504 million, with cash and cash equivalents at $1,053 million.

  • Year-to-date, $284 million in share repurchases were completed, with $500 million more planned.

Outlook and guidance

  • Q4 2025 sales growth expected between 8% and 11%, with 850 basis points from acquisitions and FX.

  • Q4 adjusted EBITDA margin projected at approximately 22%, with non-GAAP EPS between $4.20 and $4.40.

  • Full-year 2025 sales growth forecasted at 8%, adjusted EBITDA margin at 21.5%, and non-GAAP EPS at $15.80.

  • Free cash flow for FY25 expected to exceed $800 million.

  • $500 million share repurchase planned through Q3 2026.

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Frequently asked questions

Zebra Technologies Corporation, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry. The company manufactures handheld computers, mobile computers, printers, bar code scanners, and RFID readers. It offers capture devices such as closed-loop UHF RFID readers that read both EPCglobal Gen 2 (ISO18000-6C) and Gen 1 tags; short range EZRadio Wireless products; ultra-wide band (UWB) RFID readers for accessing both Gen 2 and Gen 1 tags; long range UWB RFID reader that reads both Type 4 and Type 5 UWB tags operating at 123KHz to 868MHz frequency bands; panel mount terminals; datalink USB adapters; and wireless portable printers. Zebra Technologies Corporation is based in Lincolnshire, Illinois.

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