01—Abstract
Summary
Summary of the 10-Q filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Garmin Ltd. reported a strong second quarter for fiscal year 2025, with significant year-over-year growth across key financial metrics.
Net sales increased by 20% to $1.81 billiona for the quarter and by 16% to $3.35 billion for the first half of the year. This growth was primarily driven by robust performance in the Fitness segment, which saw a 41% increase in net sales for the quarter, fueled by high demand for advanced wearables. The Outdoor segment also showed resilience with an 11% increase in quarterly net sales, supported by adventure watch sales.
Profitability saw substantial improvements, with operating income rising by 38% to $472.3 millionb in the second quarter and by 26% to $805.1 million for the first half. This was supported by a 24% increase in gross profit for the quarter, with consolidated gross margin expanding by 150 basis points to 59%.
The company also demonstrated improved operational efficiency, with total operating expenses as a percentage of revenue decreasing. Diluted earnings per share increased to $2.07c for the quarter and $3.79 for the first half, reflecting strong operational execution and profitability.
02—Key points
Key Highlights
- Net sales surged 20% year-over-year to $1.81 billion in Q2 2025, and 16% to $3.35 billion in the first half.
- Operating income increased significantly by 38% to $472.3 million in Q2 2025 and by 26% to $805.1 million in the first half.
- The Fitness segment was a key driver of growth, with net sales up 41% in Q2 2025 due to strong demand for advanced wearables.
- Consolidated gross margin improved by 150 basis points to 59% in Q2 2025.
- Operating expenses as a percentage of revenue decreased, indicating improved operational leverage.
- Diluted earnings per share (EPS) rose to $2.07 in Q2 2025, up from $1.56 in the prior year period.
- The company maintained a strong liquidity position with approximately $3.9 billion in cash, cash equivalents, and marketable securities as of June 28, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Garmin Ltd kept $0.22.
- Revenue$1.81B100.0%
- Cost of revenue−$747.6M41.2%
- Gross profit$1.07B58.8%
- Operating costs−$594.7M32.8%
- Operating income$472.3M26.0%
- Interest, other & tax−$71.5M3.9%
- Net income$400.8M22.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.81B$1.51B | +20.4% |
| Cost of Revenue | $747.55M$643.78M | +16.1% |
| Gross Profit | $1.07B$862.89M | +23.7% |
| R&D Expenses | $276.66M$243.15M | +13.8% |
| SG&A Expenses | $318.05M$277.71M | +14.5% |
| Operating Expenses | $594.72M$520.86M | +14.2% |
| Operating Income | $472.30M$342.03M | +38.1% |
| Net Income | $400.82M$300.63M | +33.3% |
| EPS (Basic) | $2.08$1.57 | +32.5% |
| EPS (Diluted) | $2.07$1.56 | +32.7% |
| Shares Outstanding (Basic) | 192.52M192.07M | +0.2% |
| Shares Outstanding (Diluted) | 193.42M192.90M | +0.3% |
05—Questions
Frequently Asked Questions
What were the main drivers of Garmin's revenue growth in the second quarter of 2025?
Garmin's revenue growth in the second quarter of 2025 was primarily driven by strong demand in the Fitness segment for advanced wearables, and solid sales in the Outdoor segment, particularly adventure watches. Growth was also observed in the Aviation and Marine segments, led by OEM and aftermarket product categories, and chartplotters, respectively.
How did Garmin's profitability perform in the reported period?
Garmin demonstrated robust profitability, with operating income increasing by 38% year-over-year in the second quarter of 2025. This improvement was supported by a 24% increase in gross profit dollars and an expansion of the consolidated gross margin by 150 basis points to 59%. Operating expenses as a percentage of revenue also decreased, contributing to enhanced operational efficiency.
What is the company's outlook regarding its cash position and liquidity?
Garmin maintained a strong liquidity position, holding approximately $3.9 billion in cash, cash equivalents, and marketable securities as of June 28, 2025. The company believes its existing cash balances and cash flow from operations are sufficient to meet its short- and long-term projected working capital needs, capital expenditures, and other cash requirements.
What impact did foreign currency fluctuations have on Garmin's results?
Foreign currency fluctuations had a mixed impact. In the second quarter of 2025, a weakening U.S. dollar against the Taiwan Dollar resulted in a significant loss, though this was partially offset by gains from the U.S. dollar weakening against the Euro and British Pound Sterling. For the first half of 2025, the overall impact was a net gain due to a weakening U.S. dollar against the Euro, British Pound Sterling, and Polish Zloty, offset by a loss against the Taiwan Dollar.
06—Continue