Zebra at 45th Annual William Blair Growth Stock Conference: Strategic Growth Plans

On Wednesday, June 4, 2025, Zebra Technologies Corporation (NASDAQ:ZBRA) presented at the 45th Annual William Blair Growth Stock Conference. The conference call, led by CFO Nathan Winters, highlighted Zebra’s strategic focus on digitizing and automating customer workflows, supported by a strong partner ecosystem and a capital-light business model. While the company experienced an 8% growth in 2024, it aims for a 5-7% revenue increase over a cycle. Despite macroeconomic uncertainties, Zebra’s Q1 2025 gross margin was the highest in a decade.

Key Takeaways

• Zebra achieved 8% growth in 2024, with the highest gross margin in ten years during Q1 2025.
• The company targets a 5-7% revenue growth over a cycle and aims to expand its margin profile by 50 basis points annually.
• Zebra’s capital allocation includes a focus on organic R&D investment, strategic M&A, and share repurchases.
• A 10% price increase in North America is expected to generate $50 million in additional revenue for 2025.
• Zebra plans to reduce its North America volume from China to 30% by mid-2025, mitigating tariff impacts.

Financial Results

• 2024 Performance: Enterprise Visibility and Mobility segment generated over $3 billion; Asset Tracking segment generated over $1.5 billion.
• Q1 2025 Highlights: Achieved the highest gross margin since the 2015 Motorola acquisition and generated over $1 billion in cash over the last four quarters.
• Future Financial Goals: Aims for 5-7% revenue growth, 50 basis points annual margin expansion, and double-digit EPS growth.
• Capital Allocation: 10% of sales dedicated to R&D, with $200 million in share repurchases year-to-date through April.

Operational Updates

• Vertical Market Performance: Retail focuses on modernizing store frameworks; T&L emphasizes productivity and visibility; Manufacturing is recovering with opportunities in machine vision and RFID; Healthcare aims to improve workflows and productivity.
• Innovation: R&D accounts for 10% of sales, with a third allocated to next-horizon technologies. The venture portfolio is valued at just over $100 million.
• Supply Chain Diversification: Efforts to decrease North America volume from China to 30% by mid-2025.

Future Outlook

• Growth Strategy: Core business targets mid-single-digit growth; adjacent markets, including RFID and kiosks, aim for high-single-digit growth; expansion areas like machine vision and robotics expect double-digit growth.
• Macroeconomic Considerations: Cautious outlook for the second half of the year due to uncertainties, but no significant changes in demand observed.
• RFID Opportunity: Anticipated double-digit growth in the second half of 2025, nearing $200 million in revenue.

Q&A Highlights

• End Market Health: No significant changes in buying behavior or project deferrals observed.
• China and Supply Chain: Significant diversification of supply chain outside China, with efforts to mitigate tariff impacts.
• Pricing Strategy: Demand remains strong despite a 10% price increase, with no loss of competitiveness reported.

For a detailed understanding, readers are encouraged to refer to the full transcript available below.

Full transcript - 45th Annual William Blair Growth Stock Conference:

Operator: Ten seconds.

Brian Draub, industrial technology analyst, William Blair: We’re we’re good? Yeah. Okay. Alright. We’ll go ahead and get started.

Thank you all for coming to the Zebra presentation. I’m Brian Draub, the industrial technology analyst at William Blair. Very happy today to have with us, from Zebra CFO, Nathan Winters. We also have vice president of investor relations, Mike Steele, in the audience and Emma how do you say your last name? Emma Kozol’s with us as well.

Thank you all for coming. I have to tell you that you can find a full list of research disclosures on our website, William Blair dot com. I’m sure most of you in the room are somewhat familiar with Zebra, this company that is the world leader in barcode printers, mobile computers, as many other technologies like RFID, robotics, machine vision, really, and any, retail environment that you’re in or warehouse or factory or hospital, is going to have, you know, Zebra printers and and and computers and and their other technologies. In the health care setting, unfortunately, I’ve been pretty familiar with, you know, the the Zebra products. You get the wristband every time you go in for a knee surgery after playing soccer, apparently.

So at this point, I’ll get out of the way, turn it over to Nathan, and, thank you very much for being here. Great. Thank you. Thanks.

Operator: Yeah. Thanks. Thanks, Brian. It’s great to be here this morning, give an overview of the company. We should have plenty of time for for q and a, at the end.

I guess to just before we get started, to take a moment on the safe harbor statements and any of the non GAAP financial measures you can reference and reconcile, on our website. So I wanna start by just framing the overall, investment opportunity for Zebra. And if you think about our portfolio today, we’re really integral to our customers’ ability to digitize and automate their workflows, and we do that by giving them our their assets and inventory a digital voice. And once they have that digital voice and once you can identify where the asset is, then you can have all kinds of opportunities to drive efficiency and automation across across any workflow in their operation. And that could just even be down to having the technology in the hands of their frontline workers or their supervisors.

So, again, they can drive efficiency in what they do or provide a better experience for their customers. And, hopefully, many of you have experienced that as a consumer in a retail store when you walk in and and ask for advice, ask where something is, wanna get a price check, and you no longer have to get called over the intercom, they can provide that real time service, at their fingertips with our mobile computers. And if you look you know, if you think about the secular trends across the vertical markets we serve, this I did need for digitizing automated workflows with resource constraints, the need for productivity isn’t going away. And, again, those are the solutions we provide for our customers. As Brian mentioned, we’re the market leader in our core portfolio of barcode scanning, mobile computing, scanning, and we’ve invested a lot over the last several years to expand that portfolio to be an end to end solutions provider by moving into new areas like machine vision, retail software, RFID, ruggedized tablets, and much more, and we’ll talk about, here a bit later.

If you look at our partner ecosystem, I mean, this is really a strength of the company. It gives us breadth across the globe, across each of the vertical markets we serve that we wouldn’t be able to do on our own. So if you think about, any area of the world and being able to identify a specific workflow, again, using our partner ecosystem allows us to provide that solution to the customer that, again, we wouldn’t have the scale and ability to do all by ourself across each of the different markets, that we operate in today. We outsource, through contract manufacturing most of our production, as well as have a vast distribution network, which gives us a capital light business model. And then our free cash flow profile and strong balance sheet really gives us flexibility to operate in any type of market environment.

If you look at the business today, it’s you see on the left the two segments we operate in, enterprise visibility and mobility. This captures our mobile computing business as well as machine vision, data capture, well as associated, support services for those businesses. This is also where our software portfolio, is embedded within this segment, just over $3,000,000,000 of revenue in 2024. Our asset, tracking segment, again, printing, RFID, as well as, the supplies business that goes along with our printers, and the associated services, just over a billion and a half. But then you look at the left, I mean, again, this is kind of the strength of the company, both not just the geographic mix, but the vertical mix.

And I’ll talk about this a little bit later, but, again, operating across retail, which includes think of retail and ecommerce, not just front of store, but back of store, regional warehouse, last mile delivery, traditional T and L providers, and manufacturing each rate about 20 to 25% of the company. And we support 80% of the Fortune 500 companies across the globe. So, again, not only with the scale of similar products and services and solutions across each one of those, again, allows us to help, you know, again, address some of those critical needs that are common across those vertical markets. And if you look, at the financial performance over the last several years, I’d say it’s been, you know, a bit uneven. Going back to 2020, like many businesses, we saw many of our customers, pause production or pause purchases during the peak of the pandemic, but just really saw accelerated growth coming out of 2020.

And you see the growth in ’21 of 20%, which sustained in ’22. And if you think about the new case use cases that came out of COVID, whether that’s the growth in ecommerce, the expect expectation for delivery within one to two days, buy online, pick up in store, all of those use cases use our technology at every step of the delivery. Right? So from the store associate who’s picking something on an aisle, putting a label on it, dropping it off, you know, at your car, scanning it, giving you a receipt, and that’s again, our technology is embedded across each one of those processes, and you saw that really just explosion of growth, in ’21 and ’22 2022. What I’d say is ’23 was many of our customers were digesting the capacity they had built out, over that time horizon.

So as ecommerce growth, still continue to grow but much at a at a lower rate, Many of our customers took pause in terms of the capacity they had built out, which had, you know, obviously, an impact on our business. And then our distributors had to destock, to support that as well. And so we took that opportunity to rightsize the cost structure, really focus on some of the core operating procedures. We saw steady growth throughout 2024, sequentially as we went through the year, recovering to 8% growth for the year. We had a strong q one here to start 2025.

But a couple other highlights. We generated over a billion dollars of cash over the last four quarters. Q one’s our highest gross margin we’ve had in ten years. It’s going back to the Motorola acquisition in 2015 that really put us in a strong position, here as we enter 2025, and to tackle some of the macroeconomic and trade uncertainty, that we’re experiencing here to the day. So, again, we feel like the business is well positioned, again, to continue to grow and drive margin expansion here as we go into the rest of the year and and into next year.

So I just wanna spend a minute on the on the vertical markets and talk about what do we provide and what makes it unique across each one of the verticals. So in retail, we have a modern store framework that really enables our customers to elevate their customer experience, provide that better consumer experience, optimize their inventory, and have engaged associates. If you think about one of the largest costs for our a retailer is their store associate turnover. So having a better working experience, and retaining those employees, training those employees quicker, is a real value proposition for for our customers. And with the growth of omnichannel, so the all ways that we as consumers want an intake, products, it’s a real strain on their resources.

And so that need to invest in technology is is is just as critical as it ever has been. So, again, we look at how do you get technology in the hands of frontline workers so they can provide a better experience, be more productive. How do we leverage new capabilities like artificial intelligence to enhance those experiences or task management so they know the right task at the right times going to the right associate, again, are all opportunities we have in front of us from a retail perspective. You know, in T and L, been pretty mixed results over the last couple years, across, you know, the traditional T and L providers, but the one thing that is constant is, again, how do you drive productivity? How do you provide visibility, for their customers around where an asset is at every stage of the production, and all the way up to being delivered at at your doorstep?

And so, again, how we use things like RFID to enhance and drive new applications and new workflows is still is a great opportunity we have in front of us from a T and L perspective. Manufacturing, you know, has been a vertical market for us that’s lagged, I say, the recovery, but we’ve seen in retail and T and L, but it’s still up high single digits in the first quarter. But one we’re really excited about, we have historically lower market share in manufacturing compared to retail and T and L. But if you look at where we’ve expanded the portfolio in areas like machine vision or if RFID moving more and more into manufacturing or the re you know, reassuring of manufacturing around the world, all different opportunities for us to gain share, and expand our presence in manufacturing. And so it’s, again, it’s a vertical market that we’re excited about and continuing to invest in new go go to market capabilities to supplement the technology expansion we’ve had over the last several years.

And then finally, in health care, again, you can think about it’s similar, and that they’re still looking for the same things. How do you improve workflows, drive health you know, productivity for those providers? How do you better connect the assets with the patients and staff to provide better care ultimately for the patients. But we do that with purpose built solutions. So, you know, products that are made to operate within a health care environment from a, you know, disease, an infectious perspective, to to operate in those environments.

So unique solutions, that, again, help address those needs for health care providers. And then if you look across each one of the vertical markets, there’s several themes that, for us, are all consistent. Track and trace mandates, across specific verticals, labor and resource constraints. If you look at the, like, increased consumer expectations, new applications with artificial intelligence for that need for real time visibility, again, consistent across all those vertical markets, which gives us, again, where our solutions can help provide value, for each one of our customers. I think going back to innovation, you know, it’s a it’s a heritage of the company.

We think about it in three pillars. You know, one, we invest about 10% of sales in r and d. That’s been pretty consistent over the last five to ten years. About a third of that goes on to the next horizon. So, again, where we’ve invested early on organic investments in machine vision, software, entering areas like kiosks, ruggedized tablets.

How do we think about what’s the next evolution of the technology, where can we supplement our portfolio today, as well as maintain our leadership, in our core markets? We also have a venture portfolio just over book value of just over a hundred million dollars. But, again, looking at emerging technologies, obviously, early stage companies that we can partner with, learn from, understand, see how those markets are evolving. So, areas like, vision systems, software within supply chains, supply chain software, platforms or, robotics, all areas we’ve invested in. Some have turned into, m and a opportunities, that we’ve acquire ultimately acquired, and and others, you know, we just, you know, kinda treat as they as they should be from a venture perspective.

And then the final from an m and a, it’s obviously been an area of activity over the last five years where we’ve expanded into to new and adjacent markets, which we’ll talk on here in a few minutes. But, again, from an m and a, we always look at, does it make sense to be part of Zebra? Would any investor look at that and go, yes. We could we’re not a portfolio company of of different brands and assets, but we wanna make sure that we can add value and really integrate into the core of our operations from on any m and a transaction we do. So if you look today, it’s a $30,000,000,000 served market against several megatrends that cut across each one of the businesses that we’re in, whether that’s the growth in on demand economy, artificial intelligence, intelligent automation.

The core business you see down the bottom represents about 80% of the business today. I guess that’s the, you know, the heritage and legacy of the company, growing mid single digits in a market that’s growing mid single digit. Complement that with these adjacent markets. So, RFID, which we’ve seen incredible growth over the past couple years, ruggedized tablets, areas like kiosk, or new use cases for mobile computers. So where, again, where can you use a mobile computer in new applications across our customers’ environment?

Growing high single digits. And then the expansion areas, whether it’s machine vision, retail software, or robotics, that have market growth rates over time that are in the double digits. So you kinda combine all this, gives us the confidence of growing five to 7% over a cycle. On top of that, we think we can, you know, continue to expand our margin profile by around 50 bps a year. A combination of our fixed infrastructure gives us incredible leverage.

You know, as we grow, we can really leverage our our repair depot network, our distribution network, our back office capabilities across each one of the portfolios. As we’ve grown into some of new some of these newer markets like make machine vision, has inherently higher gross margins. And you saw that in the first quarter with the record, gross margin profile, that we delivered in the in the first quarter. So take that with the free cash flow we generate, gives us that confidence to deliver double digit earnings per share growth, over a cycle. So just spend a minute just, you know, I get, you know, kind of how we think about our financial framework, the principles of how, you know, we as a leadership team think about the company.

But, obviously, first and foremost, driving profitable growth. Second is, you know, make sure we have, you know, disciplined financial management, driving operating efficiency. We take a lot of pride in in moments of when there’s a downturn in the market. We’ve rightsized the company, but also sure we double down in certain areas so that we’re stronger than our competition coming out of coming out of a cycle. And then I mentioned before that whether it’s organic or inorganic, that all the investments we make make sense and are, you know, really fit with the long term vision and strategy of the company.

And then that translates to the capital allocation approach, which has been pretty consistent, which is, you know, continue to invest organic, in from an r and d perspective, protect the company with a net leverage of less than two and a half times. Again, we sit today at about 1.2 x leverage. Systemic share repurchase, so minimum of offsetting dilution of around a hundred million, but being more opportunistic in times of volatility. Year to date through April, we had repurchased 200,000,000 of shares so far, and we continue to be active in the market with with the volatility we see. And then, again, complementing the portfolio and enhancing the portfolio from an inorganic perspective with m and a opportunities.

So with that, I’ll just, know, gonna reinforce, you know, why we believe, you know, we have the opportunity not only to extend our leadership within the markets, but be a compelling opportunity for investment. I think, again, back to the secular trends of digitizing and automating workflows continues to resonate across our vertical markets, and it’s and we’re absolutely imperative that for our customers. The track record of innovation of continuing to, you know, enhance our core business, but also look at new ways to be a full end to end solutions provider for our customers. Again, the park ecosystem really has a competitive advantage of enabling us to have the global reach and scale, but also provide those unique solutions, that our partners can provide that maybe we wouldn’t be able to on our own, to help our customers meet those challenges. The capital light business model, high free cash flow profile, and the strong balance sheet, again, gives us that benefit of not only protecting the company but being, you know, opportunistic where when available to drive attractive returns, for the long term.

So with that, wrap up the prepared remarks, and we can, open up for q and a.

Brian Draub, industrial technology analyst, William Blair: Okay. Alright. Thanks very much, Nathan. We do have thirteen minutes for q and a. So I was wondering if you could just start by, you know, taking a step back and looking at those different end markets.

You talked about how, you know, manufacturing has lagged retail, transportation, logistics. If if you could just give us, you know, a little bit more of a sense for the the health of those end markets and, you know, are are we seeing any customers within those end markets saying, you know, as we we’re seeing across many industries, we don’t know exactly what to do right now. We’re not sure where to allocate capital at the moment. So, we’re we’re seeing we’re hearing at the conference this week and in general, you know, pauses in in different industries. So just kind of the state of those three major end end markets for you.

Operator: Yeah. I think I think, you know, these are two ways. One, I’d say at a at a macro view, what we haven’t seen to date is any material changes in the buying behavior or projects here through the first half of the year. So what we haven’t seen is a pullback in demand or projects being deferred or delayed, through the first half. But what we did embed in the guide and and, you know, we talked about is a little bit more cautiousness in the second half is I think everyone’s planning and preparing and thinking of different scenarios, but we haven’t seen a if I go back to 2023, when we started to see kind of the downturn was customers at this point were going, I just got my budget froze.

We need to pause. This project’s now delayed to the second half or maybe in perpetuity. We haven’t seen that happen. I think we’ve seen customers who had projects in the pipeline continue to execute on those. But with that being said, it’s it’s not, you know, top of mind to go but everyone’s watching the same thing, which is as they go into the second half of the year being thoughtful about before, you know, moving forward, do they see any downturn in their business?

So, we’re obviously monitoring that very closely. But so far, the projects in the pipeline have continued to move forward, and I’d say it’s pretty consistent across each each of the vertical markets. I think, you know, the benefit or the opportunity, that’s obviously a challenge in terms of we’re not gonna be immune to any macro cycle. Where you go to, if there’s, you know, labor shortages, whether that’s because of, you know, increased manufacturing or because of immigration. I mean, one of the things we do is help our customers be more efficient with their human capital, with their frontline workers, and I think that’s gonna be a trend that doesn’t go away.

So you could see volatility a quarter. You know? But what we’ve seen in any downturn, and it’s proven out whether that was, you know, 02/2023 is there’s quarters of delays, but usually those last just quarters, not years. And I think, you know, we’re we’re well positioned to to manage that. The one advantage we have in the short term is the capital light business model by leveraging contract manufacturers and distributors gives us a lot of, you know, a pretty fair you know, a high degree of variability.

So if we’re not selling, I’m not paying the distributors. If we’re not producing, I’m not stuck with a big fixed overhead to absorb, if there is a is a market contraction in the second half.

Brian Draub, industrial technology analyst, William Blair: So is it thanks for that. Is it fair to say that manufacturing is still lagging? You said you had you were up in the first quarter, but how would you kinda rank order these major end markets for you, which is the healthiest?

Operator: It’s it’s it’s a relative lagging. So the other markets, you know, the other verticals were up double digits, and manufacturing was up high single digits. So it’s not a I wouldn’t say it was you know, it wasn’t because of the decline. And we saw sequential growth q three to q four to q one. So it’s continued to recover, get just not at the same, you know, relative pace.

And I think it’s you know? And we look across different markets whether it was Germany and others. You can see it more acute, kind of softness from a manufacturing perspective, but still a lot of opportunities. Because if you think about manufacturing for us, it’s not just the production line. It’s still how do they automate the warehouse on the back end of it.

You know? So that’s where you see some of these themes cut across. The same technology used in T and L is used in last mile delivery for ecommerce, which is used in inbound and outbound warehousing in a manufacturing environment. Right? So that’s where you get you still have similar needs cut across those vertical markets.

Brian Draub, industrial technology analyst, William Blair: Okay. Thanks. I’ll I’ll ask one more question, then I obviously open it up to anyone in the room. But can you focus in on on China and your supply position? You know, the I think you touched on you got a lot of contract manufacturing in China despite already having moved a lot out.

You know, where are you today in that process, and and and where are we going? I know you’ve talked about it this year, but kinda the level set for the room. And and also the the sub question to that is things have changed a lot, and they keep changing. How how is how has that affected your recent thinking and going forward?

Operator: Yeah. So if you went back, to pre 02/2019, about 85% of our North America volume was was out of China. As we entered this year, that was down to less than 50%. And by, you know, this month or middle of the year, we’ll be at 30%. So we’ve done a lot of work over the past, you know, five to seven years of diversifying our supply chain outside of China.

I’d say we have a host of other actions. We won’t be able to get it to zero. There’s still a large portion of business, whether that’s components or just quite frankly, production lines that don’t have the volume to move that will main remain in China. But we have several levers we can pull to continue to to diversify. And quite frankly, now we’re just waiting to understand, do I go to country a, b, or c based on where tariffs land for various countries and options?

So, you know, the team’s not waiting for the policy. It’s but making sure we have plenty of options irregardless of where the policy ends up shaking out, and the tariff rates. Let’s say one thing that is different from, you know, where we guided in May is, the guide in May, which we included 70,000,000 this year in direct cost of of tariffs. That was at China with a 45% rate. So now down to 30%, you know, will be a meaningful reduction in the exposure, which we’ll update in August once we hopefully have learned a bit more about all the other rates that are shaken out.

But at least so far relative to where we guided compared to where we are today, that we’re going from one forty five to 30 is is meaningfully, you know, helpful, for the year as well as how we think about the the long term costs and and mitigation actions. Okay.

Brian Draub, industrial technology analyst, William Blair: Thanks. Are there any questions from the audience? I I have a whole list of questions here, so don’t don’t worry. Nathan, pricing, I think you guys talked about a a price increase going through in April. Can you talk about what you know, how much is price contributing to growth on the top line this year?

How how is, have those price increases been received?

Operator: Yeah. So we, we announced a 10 price increase for most of our North America products that went in effect at the April. That represents, you know, on the grand scheme, about 60% of the North American revenue. That equates to about $50,000,000 of revenue for the year, in terms of incremental revenue for the year. What I would say is, none of that’s really been baked into the guidance.

So, we guided three to 5% of the midpoint back in February. We held that guide in May. We had not contemplated the price increase back in February, as we are still waiting to see how things played out. But we also didn’t think it was appropriate to to raise the guide in May, given the macro uncertainty in the back half. Not only did you have the price increase, FX was a tailwind relative to where we were in February.

We had beat in q one. We added photo neo. So we had several, I’d say, tailwinds from February to May relative to kind of our initial assumptions and guidance. Again but we thought just let’s take that to the bank, derisk the back half of the year. So instead of assuming, call it, 5% or mid single digit organic growth, low single digit organic growth in the back half, given the market uncertainty.

But, so, again, that’s I say so far, demand has held up. I think we’re we’re not hearing from our distributors, our partners that we’re, out of touch or materially different from our competitors, but it’s one that we’re monitoring closely, and, you know, we’ll we’ll adjust. You know, we’re not gonna, succeed market share or lose, if we think it’s a good deal just to to hit a pricing number. So, so we have we have many abilities to many a lot of different levers to adjust that here on the fly, but we wanted to get that out there, get it in the market, and ahead of, you know, where the tariffs we think will to adjust here as we go through the back half of the year based on how things shake out.

Brian Draub, industrial technology analyst, William Blair: K. Thank you very much. I have a few more questions if but please raise your hand if you’re interested in asking one. You know, you show that very good slide. I think it lays out, you know, how you’re thinking about the growth.

You have the core growth and then the, you know, these higher growth subsegments or or businesses. You know, which of those you’d I think there are a couple of them in my mind that are that are, you know, probably most strategic or, you know, the larger ones that are doing really well. RFID is the one that I I think stands out to me on that that slide. Can you just talk a little bit about that business, the momentum you have, the size of it? I think it’s maybe, like, a 200,000,000 ish revenue business, and I think you’re the world leader in what you’re doing in RFID.

So it might be worth just talking about for a minute.

Operator: Yeah. So I I I I agree. I think in the short term, I think over the next, you know, twelve to eighteen months, RFID is is is really, hit an inflection point, and we’ve seen double digit growth here over the past, you know, in the back half of the year, first half of this year. So you can see just incredible momentum from an RFID. It’s a approaching 200,000,000, so still still a little bit shy of that.

And we are the the world leader in, think, of fixed and mobile readers. So the infrastructure and the build out, we’re not you know, from a tag perspective, we don’t make the chip or the inlay. We’ll do the printing on the back end, so RFID print, but then it’s really around the reading and the technology. And I think what’s what’s exciting is now that the chip costs are at a point where there’s, you know, compelling, value proposition and ROI, the ability to see inventory where it’s at at any point in time just opens up opportunities that didn’t exist, kinda through the traditional methods. Or if you think about, you know, theft, being able to see items as they walk out the door, you may not stop it.

But if you can see it walking out the door with RFID real time to update your perpetual inventory, the last thing a retailer want is you to go online, see there’s two in the store, go to the store, and there’s nothing there. Right? That’s that’s not something they want, you know, their consumers to experience. And the only way you really know that is either have someone walking around all the time looking or, you you know, leverage a technology like RFID to be able to track that inventory. So I think just the number of use cases that are out there is continuing to expand.

And, you know, obviously, it’s one we’re take we wanna take advantage of, with our infrastructure, and with the partner, partners that we have. I think that’s that’s the one that definitely sticks out here over the next, you know, kind of twelve to eighteen months of continued momentum and growth.

Brian Draub, industrial technology analyst, William Blair: Yeah. Great. Thank you. There’s, like, one minute left. Is there some question that you wish I would have asked or, Mike, something we should touch on before we move on to the smaller group discussion.

Operator: Alright. Well, like, I think that was great. Last on you know, think from back to the tariff point, I think we’re again, we have a I think one of the advantages we have is the distribution or the partner that we have on contract manufacturing gives us a lot of ability to to flex. And so, you know, for us, it’s getting certainty around where the tariff rates are. I think we have multiple levers we can pull to shift production, move production, adjust pricing, drive incremental productivity, and and and manage through it.

But I think, again, part of it’s just, you know, not waiting on that, but making sure with our partners we’re ready for whatever the outcome is to adjust and and and, again, move on and take care of our customers, ultimately, what’s gonna drive the long term value.

Brian Draub, industrial technology analyst, William Blair: This presentation has now finished. Please check back shortly for the archive.

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