Zebra Technologies Corporation  announces results for the second quarter ended June 28, 2025.

Net sales were $1,293 million in the second quarter of 2025 compared to $1,217 million in the prior year.

Net sales in the Enterprise Visibility & Mobility (EVM) segment were $875 million in the second quarter of 2025. This compares to $820 million in the prior year.

Asset Intelligence & Tracking (AIT) segment net sales were $418 million in 2Q 2025. This compares to $397 million in the prior year.

“Solid demand, excellent execution by our team and lower-than-expected tariffs enabled us to deliver second quarter results that exceeded our expectations,” says Bill Burns, CEO of Zebra Technologies. “We are raising both our sales and profitability outlook for the full year, given our solid first half results and expectation for second half growth.”

Second quarter 2025 gross profit was $616 million compared to $589 million in the prior year. Gross margin decreased to 47.6% for the second quarter of 2025 compared to 48.4% in the prior year. This is primarily due to approximately $10 million of U.S. import tariff expense net of mitigating actions.

Adjusted EBITDA for the second quarter of 2025 was $267 million, or 20.6% of adjusted net sales. This compares to $250 million, or 20.5% of adjusted net sales, in the prior year.

As of June 28, 2025, the company had cash and cash equivalents of $872 million and total debt of $2,183 million. For the first six months of 2025, the company reports free cash flow of $288 million. Free cash flow for the full year 2025 is now expected to be greater than $800 million.