ZBRA

Technology

Zebra Technologies

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Market Data

Financials

XBRL · SEC EDGAR

2008–2025(18yr)

Revenue

Net Income

Free CF

Metric	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$976.7M	$803.6M	$956.8M	$983.5M	$996.2M	$1.0B	$1.7B	$3.7B	$3.6B	$3.7B	$4.2B	$4.5B	$4.4B	$5.6B	$5.8B	$4.6B	$5.0B	$5.4B	+8.3%
Gross Profit	$479.3M	$360.7M	$460.9M	$486.8M	$491.6M	$503.6M	$778.0M	$1.6B	$1.6B	$1.7B	$2.0B	$2.1B	$2.0B	$2.6B	$2.6B	$2.1B	$2.4B	$2.6B	+7.5%
Gross Margin	49.1%	44.9%	48.2%	49.5%	49.4%	48.5%	46.6%	45.0%	45.9%	45.9%	47.0%	46.8%	45.0%	46.7%	45.4%	46.3%	48.4%	48.1%	-0.4pp
Operating Income	-$15.3M	$68.8M	$143.9M	$182.0M	$164.4M	$160.3M	$88.6M	$53.0M	$80.0M	$322.0M	$610.0M	$692.0M	$651.0M	$979.0M	$529.0M	$481.0M	$742.0M	$700.0M	-5.7%
Operating Margin	-1.6%	8.6%	15.0%	18.5%	16.5%	15.4%	5.3%	1.5%	2.2%	8.7%	14.5%	15.4%	14.6%	17.4%	9.2%	10.5%	14.9%	13.0%	-1.9pp
Net Income	-$38.4M	$47.1M	$101.8M	$174.6M	$122.9M	$134.4M	$32.4M	-$137.0M	-$137.0M	$17.0M	$421.0M	$544.0M	$504.0M	$837.0M	$463.0M	$296.0M	$528.0M	$419.0M	-20.6%
Net Margin	-3.9%	5.9%	10.6%	17.8%	12.3%	12.9%	1.9%	-3.8%	-3.8%	0.5%	10.0%	12.1%	11.3%	14.9%	8.0%	6.5%	10.6%	7.8%	-2.8pp
Free Cash Flow	$97.4M	$80.8M	$109.7M	$52.7M	$160.9M	$174.6M	—	$0.00	$303.0M	$428.0M	$721.0M	$624.0M	$895.0M	$1.0B	$413.0M	-$91.0M	$954.0M	$831.0M	-12.9%
FCF Margin	10.0%	10.1%	11.5%	5.4%	16.2%	16.8%	—	0.0%	8.5%	11.5%	17.1%	13.9%	20.1%	17.9%	7.1%	-2.0%	19.2%	15.4%	-3.8pp
EPS (Diluted)	$-0.60	$0.79	$1.77	$3.22	$2.37	$2.63	$0.63	$-2.69	$-2.65	$0.32	$7.76	$9.97	$9.35	$15.52	$8.80	$5.72	$10.18	$8.18	-19.6%

Total Debt$2.4B

Cash & Equiv.$125.0M

Net Debt$2.2B

4 min read

1. THE BIG PICTURE

Zebra Technologies is at a crossroads, attempting to leverage its massive installed base of barcode scanners and printers into a high-margin ecosystem of "intelligent operations" (10-K Item 1). While Zebra Technologies remains the dominant force in the Automatic Identification and Data Capture (AIDC) industry, its recent financial performance is a tale of two realities: top-line growth fueled by acquisitions is being offset by a sharp contraction in net income as Zebra Technologies digests the $1.3 billion Elo Holdings deal (8-K).

2. WHERE THE RISKS HIT HARDEST

Zebra’s primary strength—its market leadership and "largest installed base" (10-K Item 1)—is increasingly threatened by technological evolution (10-K Item 1A). If Zebra fails to integrate artificial intelligence and advanced imaging into its hardware fast enough, its massive footprint of legacy devices could become a liability, allowing more agile competitors to erode its market share.

Furthermore, Zebra Technologies's global reach is directly undermined by its supply chain concentration (10-K Item 1A). While Zebra markets itself as a global strategic partner, its heavy reliance on third-party manufacturers in China and sole-source suppliers creates a single point of failure. Any escalation in trade disputes or geopolitical turmoil could abruptly inflate manufacturing costs, neutralizing the scale advantages that Zebra cites as a core competitive strength.

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a company in the middle of a costly transformation. Revenue grew 8.3% over the last twelve months, but the most recent quarter showed a staggering 57.1% drop in net income (8-K, XBRL). This divergence is largely structural: while the Elo Holdings acquisition added roughly 10 points of growth to the top line, it has also introduced significant goodwill and intangible assets that heighten the risk of future impairment charges (10-K Item 1A).

Despite these integration pains, Zebra’s capital allocation remains aggressive. Zebra Technologies leads its peer group with a 2.8% buyback yield, signaling that management views the current share price as a better investment than further cash accumulation (Yahoo Finance). This suggests confidence in their "healthy backlog and pipeline" for 2026, even as organic growth remains modest at 2.5% (8-K). Short interest of 4.8% indicates that a segment of the market remains skeptical of this hardware-to-software pivot, particularly given that Zebra’s 15.1% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin trails more software-heavy peers like PTC (40.4%) (XBRL).

4. IS IT WORTH IT AT THIS PRICE?

At 10.6x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Zebra Technologies trades at a 59% discount to the peer median of 25.6x (Yahoo Finance). The market is currently pricing in a long-term growth rate of approximately 4.3% (CAPM analysis). This valuation appears attractively valued because Zebra’s 8.3% trailing revenue growth and its 2.8% buyback yield provide a clear path to exceeding the market’s low expectations.

However, the discount is not without merit. Zebra’s 9.4% net margin is the second-lowest in its peer group, significantly trailing Motorola Solutions (18.6%) and Teledyne (14.8%) (XBRL). Investors are currently unwilling to pay a premium multiple for Zebra until it proves that its "Connected Frontline" and "Asset Visibility" segments can deliver the higher margins associated with software and services rather than just the high-volume, lower-margin hardware sales that currently dominate its mix.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if Zebra reports a material non-cash impairment charge related to the Elo Holdings acquisition, confirming that expected synergies are not materializing.
Constructive if organic growth in the Asset Visibility & Automation (AVA) segment accelerates beyond the current 1.3%, signaling that Zebra Technologies's "Vision Advancement" strategy is gaining independent traction (8-K).
Cautious if net leverage (currently 1.5x) increases to fund additional M&AM&AMergers & Acquisitions — the buying, selling, or combining of companies before the Elo integration is fully stabilized.

6. BOTTOM LINE

Structural Advantage: High switching costs created by a specialized ecosystem of 10,000 channel partners and the industry's largest installed base of proprietary AIDC hardware. Bottom Line: Zebra is a dominant but margin-pressured leader whose steep valuation discount offers a significant margin of safety for investors willing to overlook short-term acquisition friction.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Acquisition Integration: The $1.3 billion acquisition of Elo Holdings on September 30, 2025, significantly increased goodwill and intangible assets; failure to realize expected synergies or operating results could lead to material non-cash impairment charges.
Supply Chain and Manufacturing: Zebra Technologies relies on third-party electronics manufacturers and sole-source suppliers for hardware; disruptions or business failures at these partners can lead to inventory shortages and an inability to satisfy customer demand.
Geopolitical and Trade Policy: Operations are vulnerable to trade disputes, tariffs, and export restrictions, particularly given the concentration of suppliers in China and Zebra Technologies’s reliance on international shipments for a material portion of net sales.
Cybersecurity: Despite no material incidents to date, Zebra Technologies faces risks from sophisticated attacks on its IT systems and third-party cloud providers, which could result in business disruption, loss of intellectual property, and regulatory fines.
Technological Evolution: Zebra Technologies must continually innovate to address changing industry standards and customer demands; failure to adapt to new technologies, such as AI, could lead to decreased market acceptance and loss of market share.

2. Company-Specific Risks

Channel Partner Dependency: Zebra Technologies relies on a global network of distributors, VARs, and ISVs; changes to the channel program or financial insolvency of these partners can reduce Zebra Technologies's ability to bring offerings to market.
Fixed-Price Contract Exposure: Large, multi-year, fixed-price contracts expose Zebra Technologies to financial losses if cost estimates—impacted by inflation or technological difficulties—are inaccurate.
Outsourcing Limitations: Outsourcing repair, engineering, and IT services limits direct control over service levels and exposes Zebra Technologies to the financial viability and security vulnerabilities of third-party partners.
Radio Frequency Dependency: Certain offerings rely on specific radio frequency bands; regulatory reallocation of this spectrum or interference from other services could reduce the utility of Zebra Technologies' products and lower demand.

3. Regulatory/Legal Risks

Data Privacy: Zebra Technologies is subject to evolving and conflicting global laws regarding the handling of personal data; non-compliance or perceived failures in data protection can lead to enforcement actions, fines, and reputational damage.
Environmental and Product Regulation: Zebra Technologies faces stringent and proliferating laws regarding electronic waste, hazardous substances, energy efficiency, and battery transportation, which can restrict product design and increase compliance costs.
ESG Disclosures: Increased regulatory requirements for ESG reporting, including climate change-related matters, could lead to higher compliance costs and potential litigation if disclosures do not meet stakeholder expectations.
Intellectual Property Litigation: Zebra Technologies is subject to periodic claims of patent infringement; adverse outcomes could result in costly judgments, mandatory licensing arrangements, or the need to redesign products, negatively impacting operating margins.

4. Financial Impact Map

Elo Holdings Acquisition → Goodwill and Intangible Assets → $1.3 billion purchase price (approx. 9% of market capitalization) Supply Chain Disruptions → Inventory and Net Sales → Potential for shortages and inability to fulfill customer demand Trade Policy/Tariffs → Cost of Goods Sold → Increased manufacturing and delivery costs for products imported into the U.S. Cybersecurity Incident → Operating Expenses → Potential for legal costs, regulatory fines, and increased service/warranty expenses Fixed-Price Contract Overruns → Gross Profit/Operating Income → Cost overruns due to inflation or technological difficulties exceeding initial estimates

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
8-K	Feb 2026	—
10-K	Feb 2026	Dec 2025
10-Q	Oct 2025	Sep 2025
14A	Mar 2025	—