Zebra Technologies (ZBRA) 46th Annual William Blair Growth Stock Conference summary

Market Positioning and Growth Strategy

• Maintains leadership in mission-critical enterprise workflows, supporting 80% of Fortune 500 companies and operating in 179–180 countries across a $35B+ served market.

• Positioned at the center of durable growth trends like automation, digitization, and AI, targeting 5%-7% organic growth and focusing on workflow transformation.

• Operates in two main segments: Connected Frontline Solutions and Asset Visibility & Automation, with significant revenue from both.

• Holds #1 positions in enterprise mobile computing and thermal barcode printing/data capture solutions, serving diverse end-markets including retail, manufacturing, T&L, and healthcare.

• Strategic priorities include profitable growth, advancing innovation, and enhancing financial strength and flexibility.

Technology and Product Innovation

• Focuses on innovation in machine vision, RFID, and mobile computing, with recent acquisitions expanding capabilities and enabling new use cases.

• New mobile computing platform integrates embedded RFID and AI, supporting productivity gains and real-time visibility.

• Acquisitions of Photoneo (3D machine vision) and Elo Touch (touchscreen, self-service kiosks) enhance product suite and differentiation.

• Unified software stack from Elo acquisition allows seamless integration of fixed and mobile screens for retail and QSR customers.

• Integrated platform of hardware and software solutions targets large, growing end markets, especially for AI on the frontline.

Financial Performance and Capital Allocation

• Net sales rebounded in FY24 and FY25 after a decline in FY23, with FY25 net sales at $5.4B and 8.3% growth.

• Adjusted EBITDA margin improved to 21.7% in FY25, with non-GAAP earnings per diluted share at $15.84.

• Capital-light business model supports strong margins, free cash flow, and disciplined capital allocation, with free cash flow conversion at 102% in FY25.

• Invests 9%-10% of sales in R&D, focusing on RFID and machine vision.

• Repurchased over $800 million in shares over the past three quarters, balancing investment and shareholder returns.