AI Takeaway
Zebra Technologies (ZBRA) delivered 8.3% revenue growth to $5.40B in FY2025, but net income fell 20.6% to $419M as higher costs, increased R&D spending, and a sharp rise in share buybacks weighed on profitability and cash balances.
Revenue
$5.4B
++8.33% YoY
EPS (Basic)
$8.24
-19.61% YoY
Gross Margin
48.1%
-0.39% YoY
Operating Income
$700M
-5.66% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
ZBRA posted FY2025 revenue of $5.40B, up 8.3% year-over-year from $4.98B, suggesting a meaningful recovery in demand for its enterprise mobile computing, barcode, and printing solutions after a period of inventory digestion across its customer base.
Source: Source: 10-K Income Statement
Gross profit rose 7.5% to $2.59B, with gross margin declining only modestly from 48.4% to 48.1%, indicating that ZBRA largely maintained its pricing power and product mix despite a 9.2% increase in cost of revenue.
Source: Source: 10-K Income Statement
Operating income fell 5.7% to $700M, with operating margin compressing from 14.9% to 13.0%, reflecting higher operating expenses including a 5.3% increase in R&D spending to $593M, suggesting the company is investing heavily in next-generation product development.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockCash and equivalents plunged 86.1% to just $125M at fiscal year-end, driven largely by $587M in share buybacks. With a current ratio of 0.97 (below 1.0), current liabilities of $1.85B exceed current assets of $1.80B, leaving limited buffer for unexpected cash needs.
Source: Source: 10-K Balance Sheet & Cash Flow Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $4.33 versus the $4.42 analyst consensus — a -2.0% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.4B | $4.98B | +8.33% |
Cost of Revenue | $2.8B | $2.57B | +9.15% |
Gross Profit | $2.59B | $2.41B | +7.46% |
Operating Income | $700M | $742M | -5.66% |
Net Income | $419M | $528M | -20.64% |
EPS (Basic) | $8.24 | $10.25 | -19.61% |
EPS (Diluted) | $8.18 | $10.18 | -19.65% |
R&D Expense | $593M | $563M | +5.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.5B | $7.97B | +6.70% |
Current Assets | $1.8B | $2.44B | -26.39% |
Total Liabilities | $4.91B | $4.38B | +12.14% |
Current Liabilities | $1.85B | $1.7B | +8.69% |
Stockholders' Equity | $3.59B | $3.59B | +0.06% |
Cash & Equivalents | $125M | $901M | -86.13% |
Long-Term Debt | $2.36B | $2.09B | +12.86% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $917M | $1.01B | -9.48% |
Investing Cash Flow | $-1.46B | $-57M | -2452.63% |
Financing Cash Flow | $-239M | $-190M | -25.79% |
Share Buybacks | $587M | $47M | +1148.94% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 48.1% | 48.4% | -0.39% |
Operating Margin | 13.0% | 14.9% | -1.92% |
Net Margin | 7.8% | — | — |
ROE | 11.7% | — | — |
ROA | 4.9% | — | — |
Current Ratio | $0.97 | — | — |
Debt to Equity | $1.37 | — | — |
Other companies in Electronic Equipment & Instruments
Zebra Technologies reported FY2025 revenue of $5.40B, an 8.3% increase from $4.98B in the prior year, reflecting a recovery in demand for its enterprise technology solutions. This growth came despite ongoing macroeconomic uncertainty, suggesting improving conditions in ZBRA's end markets.
ZBRA's net income declined 20.6% to $419M in FY2025 even as revenue grew 8.3%, primarily due to higher operating expenses including a 5.3% rise in R&D spending to $593M and increased interest costs from a growing debt load of $2.36B. Operating margin compressed from 14.9% to 13.0%, and non-operating costs further eroded the bottom line.
ZBRA's financial health shows some stress: cash fell sharply to $125M (from $901M), the current ratio dipped below 1.0 at 0.97, and long-term debt rose to $2.36B, pushing the debt-to-equity ratio to 1.37. However, operating cash flow remained solid at $917M, and the company's gross margin held near 48%, suggesting the core business remains fundamentally sound.
Zebra Technologies' cash and equivalents fell 86.1% from $901M to $125M in FY2025, primarily because the company spent $587M on share buybacks — a massive increase from just $47M the prior year — and had investing cash outflows of -$1.46B, likely related to acquisitions or other capital deployment. This aggressive capital return strategy significantly reduced the company's liquidity cushion.
Based on the financial data in ZBRA's FY2025 10-K, the key risks include near-term liquidity pressure with a current ratio below 1.0 and only $125M in cash, rising financial leverage with $2.36B in long-term debt, and declining net income and EPS despite revenue growth. Additionally, heavy R&D investment of $593M (about 11% of revenue) may weigh on margins if it does not translate into near-term revenue gains.