Zebra Technologies : 3Q 2025 Zebra Technologies Presentation

*yv ZEBRA

Zebra TechnoJogies

Third Ouarter Earnings Results

October 28, 2025

Safe Harbor Statement

Statements made in this presentation which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results may differ from those expressed or implied in the company's forward-looking statements. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release. These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra's industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra's offerings and competitors' offerings, and the potential effects of emerging technologies and changes in customer requirements. The effect of global market conditions and the availability of credit and capital markets volatility may have adverse effects on Zebra, its suppliers and its customers. In addition, natural disasters, man-made disasters, public health issues (including pandemics), and cybersecurity incidents may have negative effects on Zebra's business and results of operations. Zebra's ability to purchase sufficient materials, parts, and components, and ability to provide services, software, and products to meet customer demand could negatively impact Zebra's results of operations and customer relationships. Profits and profitability will be affected by Zebra's ability to control manufacturing and operating costs. Because of its debt, interest rates and financial market conditions may also have an adverse impaGt on Zebra's results. Foreign exchange rates, customs duties and trade policies may have an adverse effect on financial results because of the global nature of Zebra's business. The impacts of changes in foreign and domestic governmental policies, regulations, or laws, as well as the outcome of litigation or tax matters in which Zebra may be involved are other factors that could adversely affect Zebra's business and results of operations. The success of integrating acquisitions could also adversely affect profitability, reported results and the company's competitive position in its industry. These and other factors could have an

adverse effect on Zebra's sales, gross profit margins and results of operations and increase the volatility of Zebra's financial results. When used in this presentation, the words "anticipate," "believe," "outlook," and "expect" and similar expressions, as they relate to the company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of certain risks, uncertainties and other factors that could adversely affect the company's future operations and results can be found in Zebra's filings with the Securities and Exchange Commission. In particular, please refer to Zebra's latest filing of its Form 10-K and Form 10-Q. This presentation includes certain non-GAAP financial measures and we refer to the reconciliations to the comparable GAAP financial measures and related information contained in the appendix.

Agenda

01

Q3 Summary Bill Burns, CEO

02

Q3 Financials and Q4 Outlook Nathan Winters, CFO

03

Advancing Our Vision Bill Burns, CEO

04

Q&A

Bill Burns, CEO Nathan Winters, CFO

* *'yi« ZEBRA

Third Ouarter 2o25Summary(*!

• Delivered results exceeding our outlook

• Sales of lj1,320M, reflecting 4.8"/o organic net sales growth

  • Solid growth in Asia Pacific, Latin America, North America

  • Relative outperformance in printing, mobile computing, RFID

  • Strength in Retail & E-Commerce

• Adjusted EBITDA Margin of 21.6"/o, increased 20bps

  • Adjusted Gross Margin declined 90bps primarily due to U.S import tariffs

  • Adjusted Operating Expenses as a percent of sales improved by Il0bps

• Non-GAAP Diluted EPS S3.88, up 11.2"/o

Solid demand and operating expense leverage drove strong profitable growth.

!') Refer to the appendix of this presentation for reconciliations of GAAP to non-GAAP financial measures

Agenda

01

Q3 Summary Bill Burns, CEO

02

Q3 Financials and Q4 Outlook Nathan Winters, CFO

03

Advancing Our Vision Bill Burns, CEO

04

Q&A

Bill Burns, CEO Nathan Winters, CFO

Third0uarterP&LSummary(*!

In millions. except per share data 3Q25 3Q24 Ghange

SEGMENT ORGANIG NET SALES GROWTH 2)

• Asset Intelligence & Tracking +10.6o/o

• Enterprise Visibility & Mobility +2.0o/o

  $636	$616	+3.2%
  48.2%	49.1%	(90)bps
  $285	$268	+6.3"fo

  Adjusted Gross Profit

  REGIONAL ORGANIC NET SALES

  GROWTH/(DEGLINE)

  Adjusted Gross Margin

  
  
  

  Adjusted EBITDA

  Non-GAAP Diluted EPS

  $3.88 $3.49 +11.2%

• North America +6%

• EMEA(3)0/

  
  
  

• Asia Pacific +23o/o

• Latin America +ho/o

  1. Refer to the appendix of this presentation for reconciliations of GAAP to non-GAAP financial measures

^ (2) 3Q25 is the final quarter reporting under these segments; new segment reporting change effective 4Q25 *'y«ZEBRA

Cash Flow&Balance Sheet(*!

Cash Flow: YTD 3025

• Free cash flow of S504M, !*>162M lower YoY

  • Timing of inventory purchases

    Higher incentive compensation payments

  • Prior year interest rate swap settlements

• !*>62M Photoneo acquisition

• !*>284M share repurchases

  Strong Liquidity Position: 3025

• S1,053M cash & cash equivalents

• $2.2B balance sheet debt

• 1.0x net debt to adjusted EBITDA ratio

• $1.5B revolving credit facility capacity

!') 51.3 billion Elo Touch Solutions acquisition closed on September 30, 2025 (fiscal 4Q25), funded with cash on hand and borrowings from our existing credit facilities

› *'yi« ZEBRA

ExpecttoSubstantiallyMitigateTariffsEntering 2026

Driving an efficient and resilient global supply chain with streamlined product portfolio

• !*>24M expected gross profit impact for FY25, net of mitigation, from U.S. import tariffs

  • Assumes current effective rates along with electronics and USMCA exemptions

  • Improved from S30M as of prior guide

  • Realizing - 1"/o sales lift (mitigation) from previously announced U.S. pricing actions (- fj14M in 3Q25)

  • 3Q25: S6M net impact (expect -S6M Q4)

    Expect to substantially mitigate current U.S. import tariffs entering 2026

  • Moving to < 20"/o of U.S. imports from China

  • Rationalization of product portfolio in process

  • Strong progress in driving overall supply chain efficiency

Outlook & Assumptions

4Q25

• Sales growth between 8"/o and 11"/o

  - Includes - 850 basis point favorable impact from acquisitions(1) and FX

• Adjusted EBITDA margin - 22"/o

• Non-GAAP diluted EPS $4.20 - $4.40

• - S6M gross profit net impact from import tariffs

FY25

• - 8"/o sales growth (based on Q4 outlook midpoint)

  - -250 basis point favorable impact from acquisitions(1) and FX

• Adjusted EBITDA margin - 21.5"/o (based on Q4 outlook)

• Non-GAAP diluted EPS - $15.80 (based on Q4 outlook midpoint)

• Free cash flow at least $800M

• Capital expenditures $70M - $80M

• Depreciation $65M - $75M and Amortization $110M - $120M

• Stock-based compensation expense $170M - $180M

• Non-GAAP tax rate -18"/o

• - S24M gross profit net impact from import tariffs

'! Impact to sales growth for 12 months following business acquisitions: Elo Touch closed September 30, 2025 and Photoneo closed February 28, 2025

Agenda

01

Q3 Summary Bill Burns, CEO

02

Q3 Financials and Q4 Outlook Nathan Winters, CFO

03

Advancing Our Vision Bill Burns, CEO

04

Q&A

Bill Burns, CEO Nathan Winters, CFO