Okay, we can go ahead and get started. Welcome to the Zebra Technologies presentation. I'm Brian Drab, the Industrial Technology Analyst at William Blair. Of course, I first have to tell you that you can find a full list of research disclosures on our website, williamblair.com. Today, we're happy to have with us CFO Nathan Winters, and also Vice President of Investor Relations, Mike Steele. Thank you both for being with us today. I'm sure most of you are familiar with Zebra. I'll just say a couple words. This company, for a long time, has been the leader in barcode manufacturing, barcode printer manufacturing, RFID components, and that whole range of supplies for that industry, mobile computers. The company enables frontline workers and the mobile workforce across, I think, about 80% of the S&P 500 companies, and has a leading global market share and has in most of these areas, or all of these areas, for a long time. I will get out of the way and turn it over to Nate. We do have a breakout session as well. I think it's in the Adler room upstairs. We'll continue the discussion there after we finish here. Nate, over to you. Perfect, thank you. Thank you, Brian. It's a pleasure to be here today. Hope the slide presentation will be helpful for everyone learning about the company, or give an update on where we're at today. Just as we get started, just to have a moment to absorb the Safe Harbor statement regarding the forward-looking statements. Any non-GAAP financial measures in the presentation, we'll have reconciliations available on our website. I'd like to begin just by laying out the compelling investment thesis around Zebra today. First, we're a clear market leader in mission-critical workflows across a wide industry, and as Brian mentioned, we support 80% of the Fortune 500 companies around the world in various end- markets. Second, we're positioned at the center of durable long-term growth trends. As companies continue to accelerate the need for digitization, automation across their environments, now how they leverage AI, our portfolio allows us to really help our customers enable this at the frontline across many different settings in their company. Third, we're uniquely positioned to be the AI leader for the frontline. What I mean by that is our products really give assets a digital voice, give real-time visibilities across their operations that can feed data models, and then provide that output back to the frontline associates, so they can be more effective and drive a better experience for their customers. We have a strong and resilient financial model. Our capital-light business allows us to flex across various economic cycles, generate strong margins and free cash flow, and then the disciplined allocation strategy. If you look at the company today, we like the debt structure we have, the capital, which allows us to continue to invest in the company for long-term growth while returning capital to shareholders. If you look at the company, we think about really the foundational layer to intelligent operations for the frontline by, again, providing that real-time visibility, and better outcomes for our customers. We operate in two segments, the first being our Connected Frontline solutions, which includes mobile computing, the most recent Elo Touch acquisition, along with the associated services and software. Really think about empowering frontline workers with information and technology, so they can be more effective in their jobs and provide that better experience for their customers. Our Asset Visibility & Automation segment includes printing, supplies, data capture, along with RFID and machine vision, again, giving that real-time visibility to assets across the supply chain, along with the tools so they can automate those workflows with RFID and machine vision. Together, look at this, what we do, we can give our customers the ability to sense what's going on across their environment, analyze it, which is even more important now with the acceleration of AI, then act on that in real time by giving that information back to their associates and workflows. We're the industry leader across a diverse set of end markets. Again, if you look at Connected Frontline, about $3 billion in revenue in 2025. Our Asset Visibility & Automation segment, around $2.5 billion last year. We operate in 180 countries around the world, with about half our revenue coming from North America, significant opportunities we believe in regions like Asia Pacific and Latin America that have had really strong growth here over the last 12 months. We work across a diverse set of end- markets, from retail and e-commerce, which accounts for about 40% of the company, manufacturing in our T&L verticals, which each around 20%- 25%, then healthcare, which has historically been one of our higher growth vertical markets, around high single digits of the company. Again, supporting a wide range of customers who each have unique needs for our solutions, but leverages the same underlying technologies to help solve those issues, We'll talk more about that here in a few pages. Just want to take a minute to highlight the key strategic priorities for the company today. First, we're focused on driving profitable growth, again, really capitalizing on those durable growth trends of automation, digitization, and AI across a $35 billion served market. We believe ample room to continue to grow 5%-7% organically here over the cycle, while continuing to expand our margin rate and generating attractive free cash flow that we can continue to accelerate growth in the company. Continue to build on our industry leadership through innovation, both investing in new areas of growth like machine vision and RFID. Along with our core portfolio and continue to maintain that market leadership, maintain our premium in the market, and our new mobile computing platform we've rolled out over the last year is a great example of this. Our new mobile computing platform has embedded RFID readers on the device, which really allow our customers to take advantage of those assets being tagged with an RFID tag to open up new use cases and new form factors to be able to leverage that technology. Also the computing power to not only run AI models through, but on the device. Again, opening up new use cases, better sales experience, better way to upsell if you're from a front of store perspective or new applications like picture proof of delivery for last mile delivery drivers. Again, new different ways that they can leverage AI for the frontline to drive meaningful productivity that these new devices now enable our customers to execute on. Finally, committed to enhancing our financial strength and flexibility. I'd say the last year, I think, is a great example of how we execute on that. Investing 9%-10% of sales in R&D to continue to grow organically and fuel that growth engine, allocating capital within that with some actions we've taken over this last year to focus that investment around RFID and machine vision. We've added two assets to the portfolio over the last year. Photoneo we acquired in the first quarter of 2025, giving us 3D machine vision capability as a bolt-on to our existing machine vision business. Then the Elo acquisition at the end of last year, which gives us capabilities in touchscreen technology, self-service kiosks, self-checkout, complementary to our mobile computing platform, what really allows us to differentiate and provide a whole suite of solutions for our front of store retail customers, healthcare, quick serve restaurant, and industrial settings. We're really excited about the progress of that acquisition and believe there's still meaningful synergies here as we move forward. As I mentioned earlier, we're really at the center of several global mega trends that's powering the underlying growth of the company, starting with the growth of e-commerce and the expected growth of e-commerce. Not only the expected growth of it, but the expectation, particularly as all of us as consumers around those experiences from an e-commerce, visibility to where that package is at on its way to your doorstep, knowing that the inventory is there when you request it, all those are absolutely critical, and our products and solutions help our customers enable this. The continuing need for automation, even as the number of warehouses expected to grow over the next 5 to 10 years and the continuous automation in those environments, we play a critical part in that. Obviously the explosive growth around IoT and AI, again, both tailwinds for how our products can be used to help our customers deliver on that. Ultimately, what all this is ultimately doing is creating a more complex operating environment for our customers, and how do they leverage each one of these technologies to provide that better experience and drive productivity. Again, the breadth of our portfolio and being able to not only provide point solutions for every one of those, but give a balanced approach from whether it's barcode scanning, RFID, machine vision, leveraging our 10,000 partners around the globe to help with endpoint solutions or the global reach that's necessary is a real differentiator for us versus the competition. As I mentioned, we work across a diverse set of end markets. If you look at retail and e-commerce, again, all these have different expectations, and outcomes they're ultimately wanting to drive. From retail and e-commerce, it's how do they respond to that demand for shorter delivery times that all of us are expecting, as well as reimagining that in-store experience and providing that better touch and customer service with the technology that's available. In Transportation and Logistics is, again, need for real-time visibility and driving real productivity for that last mile delivery driver. With all the packages that are being delivered, it's a huge cost, and it's a lot of time allocated to delivering packages. Again, our products help deliver that productivity that's necessary for that last mile. In manufacturing, it's what you would expect. How do you provide more resiliency across the supply chain, which I think is ever more important, what's happened over the last five years, increasing production quality and output, leveraging our technology. In healthcare, it's how you connect assets, patients, with the care providers to better overall patient experience. That's exactly what our technology helps enable for our customers. If you just look at the picture, again, at each step of the supply chain and each step of the process, our products are there enabling the benefit for our customers. If you look at, we call it the life of a product, our products could touch it over 30 times. From the label that's being generated in the manufacturer to the machine vision inspection and doing the quality inspection down the production line, to the warehouse, whether it's a ring scanner, RFID, or machine vision, utilized within the warehouse. That in-store experience with our mobile computer or now with Elo from a digital touchscreen and service capability to that last mile delivery and the productivity it can drive. Embedded within each one of these operations, and an ability to go and talk to our customers about how they can link these all together to provide that overall better experience and then drive the efficiency they need for their business. Just pivoting here, if you look at our financial strategy, as you would expect, highly correlated and aligned with the overall strategy for the company. First, driving profitable growth, ensuring we're allocating our precious resources to the highest ROI projects and initiatives within the company. Disciplined capital management, ensuring we have the right capital structure to not only protect the company, but the ability to continue to invest organically and inorganically and return capital to shareholders. Continuously driving efficiency across our operation. I think a legacy of the company, that as we grow and scale, we can also accretively grow margins. Ultimately advancing our vision and strategy with both inorganic and organic investments. If you look back over the last five years, I'd say from a P&L perspective, it's been anything but a normal cycle for the business. Coming out of COVID, obviously incredible growth in 2021 that sustained into 2022. I think what ultimately that proved was the value of our products and solutions for our customers. As everyone had to not only expand their capabilities, expand their network, put the latest generation of technologies in the hands of their workers to meet the needs of the on-demand economy, I think just overall showed the resilience and the need for our products across those environments. Like many, in 2023 and 2024, there was a need for our customers to absorb that capacity they had built out over that timeframe across their network. We weren't immune to that. Coming out of 2023 and 2024, you see sustained growth in 2024, again last year, and now 5% organic as our current guidance for the full year, with incremental margin along the way while delivering solid free cash flow that we can continue to reinvest in the business. I think it's obviously worth pointing out, as a topic for many investors, is what we're seeing from an overall memory perspective. I want to start by saying we have a track record of taking on these global supply chain challenges, whether it's been the various rounds of tariffs to semiconductor shortages back a few years ago and now memory. The team has a playbook that they've executed with a commitment on delivering for our customers for the long term while protecting the overall profitability for the company in as short a timeframe as possible. The team's been actively working with our suppliers here to ensure we have the supply we need, obviously to meet the guidance we've given for the year, but incremental volume to get to the higher end of our guidance range, which we feel very comfortable with the guidance we have there and the supply visibility we need to achieve that. Along with working the actions to offset the cost increase, which we've done with a series of price increases in our mobile computing business, along with many other restructuring actions and productivity initiatives to help offset that cost within the P&L. Again, the team's actively working with our suppliers on qualifying second, third sources of memory, as well as ensuring that our portfolio is designed into the latest generation of memory chips, so that as that capacity comes online later this year and is shifted to that memory type, our products are designed in there so we can take advantage of that capacity and continue to grow the business as expected. Let me just wrap with where we started around the compelling investment thesis, which we believe in, and which is why we have repurchased over $800 million of shares over the past three quarters, which is we're the market leader in these complex enterprise-wide workflows. We have a real opportunity ahead of us to take advantage of being the AI leader for the frontline and helping our customers utilize that technology in the hands of those frontline workers in real use cases. Continuing to have a balanced capital allocation approach, investing for the long term while returning capital to shareholders. With that, I have plenty of time for Q&A. Yeah, we do have plenty of time. We have 14 minutes in this room for Q&A, and then we'll continue the discussion in the breakout room, Adler, upstairs. Nathan, maybe you could talk a little bit more about the memory issue. This is obviously one of the main sources of concern or questions around a lot of companies, including Zebra. Can you talk maybe just a little bit more in specifics around the margin pressure that you're seeing near term from that? Maybe give everyone a frame of reference for where memory sits within your cost of goods and how that's changed. The timing with which we'll be able to pass through all that increase. Yeah. You look from a cost perspective, memory is predominantly used in our mobile computing platform, within our Connected Frontline segment and our Elo portfolio as well. We've quantified the impact from the cost increase for the year as two points, around $120 million headwind for the year. We've offset that within the year with a couple things. One, the price increase we announced earlier this year offsets around half of that exposure, particularly as we ramp through the back half of the year and that pricing starts to flow through the P&L. The other half was offset with various other actions which somewhat unrelated, and actions we had taken just kind of set up as a tailwind for the year, but that was exiting our robotics business, which was $20 million-$25 million of annual benefit, just from the costs associated with that portfolio. FX was a tailwind for the year. Tariffs was a net tailwind for the year as we had fully mitigated that exposure coming into 2026. The volume leverage we have on the growth. I think you had this about half offset with unrelated operational actions. We feel very good about that. You see the benefit of that really flowing through our Q1 results. Our Q1 results were at 23% EBITDA rate. We guided 2022 for the full- year, so a lot of those we've already seen in the P&L now being utilized to offset the memory headwind. So far, the pricing actions, we haven't seen any detriment in demand or projects being delayed or pushed out because of the incremental price. You're seeing it across our competitors also raising, so we're not alone in that. Obviously our customers see it from a wide variety of their products. Again, so far so good on the expectations around that. It's obviously a dynamic environment. I think the guidance we laid out for the year at the beginning of the year has played out up to this point, which still embeds price increases in the back half of the year. So far, those are all playing out as we had modeled and expected. We just made that up. That's a lot of work with our suppliers around where they see prices going, and they've been very transparent around those expectations that we've modeled in for the year. Great. Thanks. Maybe sticking in the category of annoying external factors or things that are somewhat out of your control, tariffs. What is the impact this year, and how is that affecting margin this year? Then also, can you kind of weave in the dynamic with Mexico? You've been moving a lot of manufacturing out of places like China over the last year or two. A lot of it has gone to Mexico, and these dynamics are obviously changing, it seems. Yeah every day. Last year, we had about a little less than $20 million net cost from tariffs. That was, again, we fully mitigated the P&L as we exited the year. From a year-on-year perspective, think of a $20 million benefit, just as we had offset those costs either through production moves or the price increase we announced last year. Back on, if you look at the portfolio or the footprint today, historically, 80% of our North America inbound was from China back in pre-2019. Today, that number is less than 20%. Again, the vast majority of that moved to other parts of Southeast Asia, along with Mexico. I'd say, today, the rates vary from each one of those regions. In the short term, the IEEPA moving to 122 is a small benefit, just from a lower net rate. The announcement made yesterday by the administration is kind of in line with where the 122 rates are at. Not a lot of change coming there, and it's something we're monitoring. I go back to what I said on the point on memory, which is, that's not new. I think it's just part of our normal operating environment of adjusting to where the rates are, and we'll take the necessary actions, both from a pricing with our own portfolio or production capacity with our partners, to have a resilient and cost-effective supply chain. I think we're set up now with the diverse supplier base and locations to adjust as necessary. Again, to protect demand for our customers, and the profitability of the company. Great. We can take questions from the audience as well, but I'll ask one other one that's on my mind. It's just on the long-term growth rate for the company. How are you thinking about the 5%-7% growth longer term, driven in part by these bolt-on acquisitions, getting into these adjacencies, the higher growth adjacencies like robotics and the RFID, which you have a strong presence in, was growing well, machine vision, the Elo acquisition. Can you just talk about that strategy and how it's evolving, and whether that still feels like it's fully within reach for the next three to five years? Yeah. Look, we feel very confident in that organic growth profile. I think if you go back to the page we had in the presentation around just some of these mega trends that do support kind of the breadth of the portfolio, right? Whether that's the need to drive increased productivity, meet the demands of e-commerce, increase in warehouse capacity, all those, every one of those actions says we need more printers, scanners, mobile computers to support the growth across those different work streams. There's plenty of opportunities we have, even as the market leader, to continue to grow share in our traditional portfolio. Constantly looking at sub-vertical markets within manufacturing, regional markets like Japan, Southeast Asia, of how we can continue to take more than our fair share of that market. I think those are all actions the teams are actively working on. As you mentioned, RFID has grown double digits now for the past several years. I think it's pretty exciting in terms of the new use cases that it's opening up. We don't see it as displacing anything as much as opening up new opportunities. Seeing real where putting an RFID tag on fresh food out of a bakery had been talked about, but it's actually real and is happening. The great thing about that is you need more readers, and our printers are the one printing the label in the back. Again, those are just new use cases that are opening up again to enhance efficiency for our customers. Machine Vision is one that obviously we've been in for several years, but now had double-digit growth in the quarter. We see double-digit growth for that business here through the year. I think the work we've done over the prior years of integrating the business, building beachheads and footprints in large customers so that as you start to see the market turn and they start to invest, we can take our fair share of that. In some of the markets where we've had a historically strong presence with Matrox, like semiconductor, that's been in a cyclical downturn, are now starting to turn the other way. I guess if there was any benefit of memories, we're getting some benefit from our Machine Vision business on the other side. Again, I think you look at the combination of that, along with the opportunity we have. The one area that's kind of missing, has been in that last mile delivery refresh opportunity, going back to the post-pandemic area. That's a huge opportunity we have here over the next two to three years, as those mobile computers all need to be refreshed. We are the market leader, have the install base for that entire fleet, and now with our new mobile computer and the ability to use RFID and AI for that last mile delivery. There's meaningful productivity that our customers can drive with the new mobile computers, and they're all really excited about it, and that's a big opportunity. Layering all those in is what gives us that confidence here over the next several years to deliver on that growth. Thanks. You mentioned the Elo acquisition a couple of times. Can we dive into the details of that a little bit more and just remind people of the size of that acquisition, the thinking behind it, the growth that you've seen since acquiring it, and the growth expected? Yeah. Elo Touch we acquired at the beginning of the fourth quarter last year. It was about $400 million of annual revenue. The market growth rate, the historical growth rate was in line with our growth, mid-single digits, and that's what they've performed both in Q4 and Q1. I think many of us see it, which is touch- screen, quick service, self-service and multiple different applications. That's the core of what they do. They have a strong presence in quick-serve restaurant, which we think is a nice opportunity of how we leverage that presence with our portfolio, as more quick-serve restaurants are using things like RFID to blend those together. Ultimately, if you look at front-of-store retail, many of our customers would have Zebra mobile technology and Elo for fixed. Now we have the ability to integrate the back- end of that from a software perspective. They have a unified software stack to support both their fixed and mobile screens, if you will. Think of being able to update those from a security protocol, applications across, and provide that seamless experience for their consumer, whether they're looking at talking to a store associate and getting that service or maybe a screen. We think that's a real differentiator in the market and one that our customers have asked for going back several years. That thesis, we're really excited about over time as we integrate that back in, and we've committed to $25 million of synergies by year three. I think we're well on track for that. We have $10 million of committed cost synergies already identified. From an annual run- rate, the pipeline of opportunities is continuing to grow from cross-sell across our relationships. We'll start to see that play out maybe a little bit later this year into next year just because of the lead time and the cycle time of that product. I think it's been a great add to the company, and as we were going through diligence and some of the pre-meetings, you just look at it and said, they look and act just like us. From manufacturing footprint to Tier 2 distribution model, the customer, the buyer in the customer environment, were all similar to us. We just looked at that and said it was such a natural fit as part of the portfolio, which is why we feel so confident about the synergies, and the long-term positioning of that company within the portfolio. You mentioned the two-tiered distribution model for them as well. Can you talk about the overlap between your distribution channel? You've got 20,000 resellers ultimately that are within your core business, and what does their distribution look like, and how are you leveraging each other's? Yeah. Think Tier 2 means we sell through distributors around the world. Their primary distributor is one of our top three distributors, that's been easy. Think of the vast majority of those resellers are resellers, ISVs who have a local expertise in a market. They may be doing the final configuration, the rollout, the deployment. They may have certain software applications that they're adding to the device as a value add. They're a great partner network because, again, these are sometimes bespoke applications that are, I say, great businesses for that local company, maybe not a great business to be part of a public company like us from a size and scale that you'd want, but it's absolutely value add. Our customers, what they appreciate is we say, look, if we can't do it, here's the partners that can add that application or do that integration, whatever that might be. That, again, gives us the ability to reach the breadth we have at a cost structure that makes sense. Right? We think about capital light business model. That's the very definition is I don't need to add more sellers to hit a certain market. That's where a reseller can do it. Add more engineers to design bespoke applications because an ISV can do that, and that's great because it adds to the overall ecosystem and value. Yeah, that reseller network is something that really struck me when I first started covering Zebra. I went to, I think Orlando or something for some event, and it was a reseller convention. Yeah like a kickoff event, but there were over 1,000 people there who were not Zebra employees who really felt like Zebra employees who were all in on the product. As you look back on their LinkedIn, you'd see most of them probably were at some point. It's a tight community, whether you go to the NRF, National Retail Federation or as you said, a lot of our sales kickoffs are combined with our sellers and resellers. Yeah We want them to feel like they're part of it, but obviously they're running their own business, and it's up to us to make sure that we're their supplier of choice and who they recommend when they have those relationships at a local level. Is there anything that you want to close with? We can wrap up here and move to the breakout session. Yeah, look, I think we're excited about the business. We see a lot of underlying demand. I think we feel confident with where we're at from having the supply we need from a memory perspective to achieve our guidance and working every day, as I mentioned, to secure more supply that hopefully gets us to that higher end of our guidance range. This is all about continuing, no matter what the environment is, executing for our customers. That's I think the history of the company that's allowed us to sustain these different economic cycles and maintain our market leadership and grow as they do over time. I really appreciate all the time today. Yeah. Thanks a lot, Nathan. Appreciate it. Thanks, Mike, for being here. Thank you.