Loading...
•
Jun 28
Zebra Q2 2025 Earnings Report
Zebra Technologies reported solid second-quarter 2025 results with revenue and earnings growth driven by strong segment performance and cost discipline.
Key Takeaways
Zebra exceeded expectations in Q2 2025 with $1.29B in revenue and strong performance in both EVM and AIT segments. Adjusted EBITDA and non-GAAP EPS increased year-over-year, reflecting operational efficiency despite tariff-related margin pressure.
Revenue rose to $1.293 billion, a 6.2% year-over-year increase.
Adjusted EBITDA increased to $267 million, representing a 20.6% margin.
Non-GAAP EPS grew to $3.61, up from $3.18 last year.
Strong performance in both EVM and AIT segments supported growth.
Zebra
Zebra
Zebra Revenue by Segment
Revenue by Segment
EVM Revenue
CapyFin.comAIT Revenue
CapyFin.com Forward Guidance
Zebra expects modest Q3 sales growth and strong full-year performance, supported by operational execution, acquisitions, and innovation.
Positive Outlook
- Q3 sales expected to grow 2% to 6% YoY
- Photoneo acquisition to contribute ~30bps to Q3 revenue
- Q3 Adjusted EBITDA margin projected at ~21%
- Full-year sales growth guidance raised to 5%-7%
- Full-year free cash flow expected to exceed $800 million
Challenges Ahead
- Ongoing U.S. import tariff pressure (~$10M in Q3)
- Gross margin compression year-over-year
- Currency translation headwinds partially offsetting gains
- Higher operating expenses forecasted
- Acquisition of Elo not yet reflected in 2025 outlook
Revenue & Expenses
Visualization of income flow from segment revenue to net income