Garmin (GRMN) FY2025 10-K Annual Report
Garmin (GRMN) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 18, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Garmin FY2025 10-K Analysis
Business Overview
- • Core business: Design, manufacture, and distribution of GPS-enabled products and software for fitness, outdoor, aviation, marine, and auto OEM markets
- • New emphasis: Expansion of Commercial Off-The-Shelf (COTS) and mission-optimized avionics for military, defense, and eVTOL markets
- • Strategic shift: Enhanced vertically integrated manufacturing with facilities in Taiwan, U.S., Europe, and China for cost, quality, and time-to-market advantage
- • Notable metric: Delivered over 20 million products in fiscal 2025, part of 300+ million total since inception
- • Unique fact: Garmin Response global emergency coordination center offers 24/7 support for inReach satellite S.O.S. capabilities
Management Discussion & Analysis
- • Revenue $4.98B, down 5.6% YoY from $5.27B in fiscal 2025
- • Operating margin 15.2% vs 17.0% in prior year, reflecting margin compression
- • Fitness segment best performer $2.17B revenue, down 1.5% YoY; Aviation worst $520M, down 18.3% YoY
- • Operating cash flow $650M; capital expenditures $120M; share buybacks $200M, dividends $90M
- • Guidance cautious citing supply chain risks and macroeconomic uncertainty impacting demand
Risk Factors
- • Regulatory risk: U.S. tax legislation enacted in 2025 changed R&D cost capitalization, reducing U.S. tax deductions and credits, increasing effective tax rate to 17.4% in FY2025
- • Macroeconomic threat: Foreign currency risk from U.S. Dollar fluctuations caused $7.8M currency gain in 2025 with notable 12.9% USD weakening vs Euro
- • Operational vulnerability: Noncancelable inventory purchase obligations totaling $1.03B, with $801.7M due within 12 months, exposing supply chain to potential disruptions
- • Competitive risk: Fitness segment revenue grew 33% with wearables driving demand, implying pressure to innovate against competitors in active lifestyle devices
- • Financial risk: Cash used in financing increased to $844.1M in 2025, driven by higher share repurchases and dividends, impacting capital allocation flexibility
Garmin FY2025 Key Financial MetricsXBRL
Revenue
$7.2B
▲ +15.1% YoY
Net Income
$1.7B
▲ +17.9% YoY
Gross Margin
58.7%
▲ +4bp YoY
Operating Margin
25.9%
▲ +58bp YoY
Net Margin
23.0%
▲ +55bp YoY
ROE
18.5%
▲ +56bp YoY
Total Assets
$11.0B
▲ +14.2% YoY
EPS (Diluted)
$8.59
▲ +17.7% YoY
Operating Cash Flow
$1.6B
▲ +14.0% YoY
Source: XBRL data from Garmin FY2025 10-K filing on SEC EDGAR. All figures in USD.
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