# GARMIN LTD (GRMN) Informational only - not investment advice. CIK: 0001121788 SIC: 3812 Search, Detection, Navigation, Guidance, Aeronautical Sys SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3812 Search, Detection, Navigation, Guidance, Aeronautical Sys](/industry/3812/) Latest 10-K filed: 2026-02-18 SEC page: https://www.sec.gov/edgar/browse/?CIK=1121788 Filing source: https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm ## At a glance FY2025 · period end 2025-12-27 · filed 2026-02-18 · accession 0001193125-26-056028 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001121788.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 7,245,519,000 USD | 2025 | verified | | Net income | 1,663,887,000 USD | 2025 | verified | | Assets | 10,993,669,000 USD | 2025 | verified | | Free cash flow | 1,362,913,000 USD | 2025 | computed | | Net margin | 22.96% | 2025 | computed | | Operating margin | 25.89% | 2025 | computed | | Revenue YoY | +15.06% | 2025 | computed | | ROE | 18.54% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | GRMN | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 23.0% | 3.1% | 93 | 148 | | Operating margin | 25.9% | 6.4% | 95 | 145 | | Revenue growth | 15.1% | 8.3% | 71 | 153 | | FCF margin | 18.8% | 7.4% | 84 | 152 | | ROE | 18.5% | 2.4% | 85 | 145 | | ROA | 15.1% | 1.1% | 95 | 154 | | Liabilities / equity | 0.23 | 0.82 | 11 | 150 | | Current ratio | 3.63 | 2.81 | 62 | 153 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 38 SIC Major Group 38, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 7245519000 | USD | 2025 | 2026-02-18 | | Net income | 1663887000 | USD | 2025 | 2026-02-18 | | Assets | 10993669000 | USD | 2025 | 2026-02-18 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-18. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001121788.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 3,121,560,000 | 3,347,444,000 | 3,757,505,000 | 4,186,573,000 | 4,982,795,000 | 4,860,286,000 | 5,228,252,000 | 6,296,903,000 | 7,245,519,000 | | Net income | 517,724,000 | 709,007,000 | 694,080,000 | 952,486,000 | 992,324,000 | 1,082,200,000 | 973,585,000 | 1,289,636,000 | 1,411,436,000 | 1,663,887,000 | | Operating income | 632,864,000 | 683,637,000 | 778,343,000 | 945,586,000 | 1,054,240,000 | 1,218,620,000 | 1,027,845,000 | 1,092,160,000 | 1,593,994,000 | 1,876,076,000 | | Gross profit | 1,688,525,000 | 1,797,941,000 | 1,979,719,000 | 2,233,976,000 | 2,481,336,000 | 2,890,459,000 | 2,806,775,000 | 3,004,955,000 | 3,696,555,000 | 4,256,303,000 | | Diluted EPS | 2.73 | 3.76 | 3.66 | 4.99 | 5.17 | 5.61 | 5.04 | 6.71 | 7.30 | 8.59 | | Operating cash flow | 705,682,000 | 660,842,000 | 919,520,000 | 698,549,000 | 1,135,267,000 | 1,012,427,000 | 788,259,000 | 1,376,265,000 | 1,432,471,000 | 1,633,359,000 | | Capital expenditures | 90,960,000 | 139,696,000 | 155,755,000 | 118,031,000 | 185,401,000 | 307,645,000 | 244,286,000 | 193,524,000 | 193,571,000 | 270,446,000 | | Dividends paid | 481,452,000 | 382,976,000 | 296,148,000 | 417,264,000 | 450,631,000 | 491,457,000 | 679,096,000 | 558,769,000 | 572,355,000 | 663,885,000 | | Assets | 4,525,133,000 | 4,948,289,000 | 5,382,858,000 | 6,166,799,000 | 7,031,373,000 | 7,854,427,000 | 7,731,170,000 | 8,603,569,000 | 9,630,527,000 | 10,993,669,000 | | Stockholders' equity | 3,453,259,000 | 3,852,419,000 | 4,162,974,000 | 4,793,496,000 | 5,516,116,000 | 6,114,159,000 | 6,204,340,000 | 7,012,060,000 | 7,848,398,000 | 8,972,564,000 | | Cash and cash equivalents | 846,883,000 | 891,488,000 | 1,201,732,000 | 1,027,567,000 | 1,458,442,000 | 1,498,058,000 | 1,279,194,000 | 1,693,452,000 | 2,079,468,000 | 2,278,646,000 | | Free cash flow | 614,722,000 | 521,146,000 | 763,765,000 | 580,518,000 | 949,866,000 | 704,782,000 | 543,973,000 | 1,182,741,000 | 1,238,900,000 | 1,362,913,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | 22.71% | 20.73% | 25.35% | 23.70% | 21.72% | 20.03% | 24.67% | 22.41% | 22.96% | | Operating margin | | 21.90% | 23.25% | 25.17% | 25.18% | 24.46% | 21.15% | 20.89% | 25.31% | 25.89% | | Return on equity | 14.99% | 18.40% | 16.67% | 19.87% | 17.99% | 17.70% | 15.69% | 18.39% | 17.98% | 18.54% | | Return on assets | 11.44% | 14.33% | 12.89% | 15.45% | 14.11% | 13.78% | 12.59% | 14.99% | 14.66% | 15.13% | | Liabilities / equity | 0.31 | 0.28 | 0.29 | 0.29 | 0.27 | 0.28 | 0.25 | 0.23 | 0.23 | 0.23 | | Current ratio | 2.89 | 2.96 | 2.89 | 2.95 | 3.15 | 2.94 | 3.26 | 3.41 | 3.54 | 3.63 | ## As-reported value updates 7 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/GRMN/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001121788.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-25 | | | 1.33 | reported discrete quarter | | 2022-Q3 | 2022-09-24 | | | 1.09 | reported discrete quarter | | 2023-Q1 | 2023-04-01 | | | 1.05 | reported discrete quarter | | 2023-Q2 | 2023-07-01 | 1,320,795,000 | 287,939,000 | 1.50 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 1,277,531,000 | 257,243,000 | 1.34 | reported discrete quarter | | 2023-Q4 | 2023-12-30 | 1,482,501,000 | 542,127,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-30 | 1,381,649,000 | 275,961,000 | 1.43 | reported discrete quarter | | 2024-Q2 | 2024-06-29 | 1,506,671,000 | 300,630,000 | 1.56 | reported discrete quarter | | 2024-Q3 | 2024-09-28 | 1,586,022,000 | 399,111,000 | 2.07 | reported discrete quarter | | 2024-Q4 | 2024-12-28 | 1,822,561,000 | 435,733,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-29 | 1,535,099,000 | 332,769,000 | 1.72 | reported discrete quarter | | 2025-Q2 | 2025-06-28 | 1,814,564,000 | 400,822,000 | 2.07 | reported discrete quarter | | 2025-Q3 | 2025-09-27 | 1,770,901,000 | 401,615,000 | 2.08 | reported discrete quarter | | 2025-Q4 | 2025-12-27 | 2,124,955,000 | 528,681,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-28 | 1,753,489,000 | 405,078,000 | 2.09 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from GRMN's latest 10-K: [/company/GRMN/business/](/company/GRMN/business/). ## Risk Factors Verbatim Item 1A Risk Factors from GRMN's latest 10-K: [/company/GRMN/risk-factors/](/company/GRMN/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1121788/000119312526322114/grmn-20260627.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-07-29 Report date: 2026-06-27 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The discussion set forth below, as well as other portions of this Quarterly Report on Form 10-Q, contain statements concerning potential future events. Such forward-looking statements are based upon assumptions by management, as of the date of this Quarterly Report on Form 10-Q, including assumptions about risks and uncertainties faced by the Company. Readers can identify these forward-looking statements by their use of such words as "future", "expects", "anticipates", "believes", “estimates”, “would”, “could”, “can”, “may,” or other similar words or other comparable terms. If any of the Company’s assumptions prove incorrect or should unanticipated circumstances arise, actual results could materially differ from those anticipated by such forward-looking statements. The differences could be caused by a number of factors or combination of factors including, but not limited to, those factors identified in Part II, Item 1A of this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended December 27, 2025. Readers are strongly encouraged to consider those factors when evaluating any forward-looking statement concerning the Company. These forward-looking statements are made as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements in this Quarterly Report on Form 10-Q to reflect future events or developments, except as required by law. The information contained in this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and Notes thereto included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 27, 2025. Unless the context otherwise requires, references in this document to "we", "us", "our", the "Company" and similar terms refer to Garmin Ltd. and its subsidiaries. Unless otherwise indicated, amounts set forth in the discussion below are in thousands. Company Overview The Company is a leading worldwide provider of wireless devices, many of which feature location technology such as Global Positioning System (GPS), and applications that are designed for people who live an active lifestyle. Garmin is organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM, which represent the primary markets served by the Company. Garmin designs, develops, manufactures, markets, and distributes a diverse family of GPS-enabled products and other navigation, communications, sensor-based and information products and services for these markets, as well as products installed by original equipment manufacturers (OEMs) and for aftermarket applications. Garmin products are sold through a variety of indirect distribution channels, including a large worldwide network of independent retailers, dealers, distributors, installation and repair shops, and OEMs. Garmin also sells its products and services directly through the Garmin online webshop (garmin.com), subscriptions for connected services, and Garmin retail stores. Business Environment Update Global economic and geopolitical conditions impact our operations and financial results, although we believe our vertically integrated and diversified business model enables us to be resilient and flexible in a dynamic business environment. Recent global supply constraints of memory chips have increased operational complexities and costs, which may unfavorably impact our future gross margin. Foreign currency fluctuations and rapidly changing global trade policies, particularly those affecting the United States (“U.S.”), increase the economic and operational uncertainties that could significantly impact our business and results of operations. Refer to Part II, Item 1A, “Risk Factors” of this Quarterly Report for further discussion of the risks and uncertainties facing our Company. 18 Results of Operations The following tables and discussion provide an analysis of our results of operations for the second quarter of 2026 compared to the second quarter of 2025 and the first half of 2026 compared to the first half of 2025. Comparison of 13-Weeks Ended June 27, 2026 and June 28, 2025 Net Sales [[GREPCENT_TABLE]] [["Net Sales","","13-Weeks Ended June 27, 2026","","","Year-over-Year Change","","","13-Weeks Ended June 28, 2025"],["Fitness","","$","756,823","","","","25","%","","$","605,425"],["Percentage of Total Net Sales","","","37","%","","","","","","33","%"],["Outdoor","","","482,740","","","","(2","%)","","","490,357"],["Percentage of Total Net Sales","","","24","%","","","","","","27","%"],["Aviation","","","268,749","","","","8","%","","","249,366"],["Percentage of Total Net Sales","","","13","%","","","","","","14","%"],["Marine","","","341,369","","","","14","%","","","299,262"],["Percentage of Total Net Sales","","","17","%","","","","","","17","%"],["Auto OEM","","","172,411","","","","1","%","","","170,154"],["Percentage of Total Net Sales","","","9","%","","","","","","9","%"],["Total","","$","2,022,092","","","","11","%","","$","1,814,564"]] [[/GREPCENT_TABLE]] Net sales (or “revenue”) increased 11% for the 13-week period ended June 27, 2026 when compared to the year-ago quarter. Total unit sales in the second quarter of 2026 increased by approximately 9% to 5,686 when compared to total unit sales of 5,203 in the second quarter of 2025, which differs from the percent increase in revenue primarily due to shifts in segment and product mix. Fitness was the largest portion of our revenue mix in the second quarter of 2026 at 37% compared to 33% in the second quarter of 2025. The increase in fitness revenue was driven by growth across all product categories, led by strong demand for advanced wearables. The increase in aviation revenue was driven by growth in OEM and aftermarket product categories. The increase in marine revenue was driven by growth across multiple product categories. The increase in auto OEM revenue was primarily driven by growth in domain controllers. The outdoor revenue decrease was primarily due to declines in consumer auto and adventure watches. Gross Profit [[GREPCENT_TABLE]] [["Gross Profit","","13-Weeks Ended June 27, 2026","","","Year-over-Year Change","","","13-Weeks Ended June 28, 2025"],["Fitness","","$","480,723","","","","32","%","","$","364,670"],["Percentage of Segment Net Sales","","","64","%","","","","","","60","%"],["Outdoor","","","332,319","","","","2","%","","","324,429"],["Percentage of Segment Net Sales","","","69","%","","","","","","66","%"],["Aviation","","","201,971","","","","9","%","","","185,472"],["Percentage of Segment Net Sales","","","75","%","","","","","","74","%"],["Marine","","","208,964","","","","27","%","","","164,338"],["Percentage of Segment Net Sales","","","61","%","","","","","","55","%"],["Auto OEM","","","38,045","","","","35","%","","","28,103"],["Percentage of Segment Net Sales","","","22","%","","","","","","17","%"],["Total","","$","1,262,022","","","","18","%","","$","1,067,012"],["Percentage of Total Net Sales","","","62","%","","","","","","59","%"]] [[/GREPCENT_TABLE]] Gross profit dollars in the second quarter of 2026 increased 18% when compared to the year-ago quarter primarily due to the increase in net sales as described above. Consolidated gross margin as a percent of net sales increased 360 basis points when compared to the year-ago quarter with higher margins across all segments. The consolidated gross margin increase was primarily attributable to favorable product mix within certain segments and a favorable 100 basis point impact related to approximately $21 million in refunds of previously paid tariffs, of which approximately $14 million was attributable to marine. 19 The fitness and outdoor gross margin percentage increases of 330 basis points and 270 basis points, respectively, were primarily attributable to favorable product mix when compared to the year-ago quarter. The aviation gross margin percentage remained relatively flat with an 80 basis point increase when compared to the year-ago quarter. The marine gross margin percentage increase of 630 basis points when compared to the year-ago quarter was primarily attributable to refunds of previously paid tariffs and favorable product mix. The auto OEM gross margin percentage increase of 560 basis points when compared to the year-ago quarter was primarily attributable to year-to-date cost recoveries recognized as revenue during the current quarter. Operating Expense [[GREPCENT_TABLE]] [["Operating Expense","","13-Weeks Ended June 27, 2026","","","Year-over-Year Change","","","13-Weeks Ended June 28, 2025"],["Research and development expense","","","303,940","","","","10","%","","","276,663"],["Percentage of Total Net Sales","","","15","%","","","","","","15","%"],["Selling, general and administrative expenses","","","342,574","","","","8","%","","","318,054"],["Percentage of Total Net Sales","","","17","%","","","","","","18","%"],["Total","","$","646,514","","","","9","%","","$","594,717"],["Percentage of Total Net Sales","","","32","%","","","","","","33","%"]] [[/GREPCENT_TABLE]] Total operating expense in the second quarter of 2026 increased 9% in absolute dollars and decreased 80 basis points as a percent of revenue when compared to the year-ago quarter. Operating expense, as a percent of segment net sales, decreased in the fitness, aviation, marine, and auto OEM segments by 70 basis points, 70 basis points, 190 basis points, and 170 basis points, respectively, when compared to the year-ago quarter primarily due to increased revenue and greater leverage of expenses. Operating expense, as a percent of segment net sales, increased in the outdoor segment by 100 basis points when compared to the year-ago quarter as decreased revenue and increased expenses were offset by improved gross margin percentage. Research and development expense increased 10% in absolute dollars when compared to the year-ago quarter. The absolute dollar expense increase was primarily due to higher engineering personnel-related expenses. Selling, general and administrative expenses increased 8% in absolute dollars when compared to the year-ago quarter. The absolute dollar expense increase was primarily due to higher personnel-related expenses. Operating Income [[GREPCENT_TABLE]] [["Operating Income (Loss)","","13-Weeks Ended June 27, 2026","","","Year-over-Year Change","","","13-Weeks Ended June 28, 2025"],["Fitness","","$","277,039","","","","40","%","","$","197,630"],["Percentage of Segment Net Sales","","","37","%","","","","","","33","%"],["Outdoor","","","163,583","","","","4","%","","","157,881"],["Percentage of Segment Net Sales","","","34","%","","","","","","32","%"],["Aviation","","","72,166","","","","14","%","","","63,383"],["Percentage of Segment Net Sales","","","27","%","","","","","","25","%"],["Marine","","","99,848","","","","59","%","","","62,921"],["Percentage of Segment Net Sales","","","29","%","","","","","","21","%"],["Auto OEM","","","2,872","","","NM","","","","(9,520",")"],["Percentage of Segment Net Sales","","","2","%","","","","","","(6","%)"],["Total","","$","615,508","","","","30","%","","$","472,295"],["Percentage of Total Net Sales","","","30","%","","","","","","26","%"]] [[/GREPCENT_TABLE]] NM - Represents that the percentage change is not meaningful. Total operating income in the second quarter of 2026 increased 30% in absolute dollars and increased 440 basis points as a percent of revenue when compared to the year-ago quarter. The increase in operating income as a percent of revenue was driven by gross margin improvements and lower operating expenses as a percent of revenue, as described above. Operating performance improved across all segments when [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm Complete FY 2025 MD&A: /company/GRMN/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-18 Report date: 2025-12-27 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations focuses on and is intended to clarify the results of our operations, certain changes in our financial position, liquidity, capital structure and business developments during the fiscal years ended December 27, 2025 and December 28, 2024 and a year-to-year comparison of these two fiscal years. This discussion should be read in conjunction with, and is qualified by reference to, the other related information including, but not limited to, the audited consolidated financial statements (including the notes thereto), the description of our business, all as set forth in this Form 10-K, as well as the risk factors discussed above in Item 1A. Discussion regarding our results of operations for the fiscal year ended December 30, 2023 and a year-to-year comparison between the fiscal years ended December 28, 2024 and December 30, 2023 can be found in Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 28, 2024. As previously noted, the discussion set forth below, as well as other portions of this Form 10-K, contain statements concerning potential future events. Readers can identify these forward-looking statements by their use of such verbs as “expects,” “anticipates,” “believes”, or similar verbs or conjugations of such verbs. If any of our assumptions on which the statements are based prove incorrect or should unanticipated circumstances arise, our actual results could materially differ from those anticipated by such forward-looking statements. The differences could be caused by a number of factors or combination of factors including, but not limited to, those discussed above in Item 1A. Readers are strongly encouraged to consider those factors when evaluating any such forward-looking statement. Except as may be required by law, we do not undertake to update any forward-looking statements in this Form 10-K. Garmin’s fiscal year is based on a 52- or 53-week period ending on the last Saturday of the calendar year. Fiscal years 2025, 2024, and 2023 each contained 52 weeks. Unless otherwise stated, all years and dates refer to the Company’s fiscal year and fiscal periods. Unless the context otherwise requires, references in this document to “we”, “us”, “our”, “the Company” and similar terms refer to Garmin Ltd. and its subsidiaries. Unless otherwise indicated, dollar amounts set forth in the tables are in thousands, except per share data. Overview The Company is a leading worldwide producer of innovative products, many of which feature Global Positioning System (GPS) navigation, services and applications that are designed for people who live an active lifestyle. Garmin is organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM, which represent the primary markets served by the Company. These operating segments also represent our reportable segments. The Company’s Chief Executive Officer, who has been identified as the Chief Operating Decision Maker (CODM), allocates resources and assesses performance of each operating segment individually. Critical Accounting Estimates General Our discussion and analysis of financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The presentation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to customer sales programs and incentives, product returns, bad debts, inventories, investments, goodwill, intangible assets, income taxes, warranty obligations, and contingencies and litigation. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Refer to Note 1 – Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements for our significant accounting policies related to our critical accounting estimates. 34 Uncertain Tax Positions The Company recognizes liabilities associated with uncertain income tax positions, including those related to the application of transfer pricing rules to certain intercompany transactions, based on our estimate of whether, and the extent to which, additional taxes will be due. The Company recognizes the tax benefits from an uncertain tax position only if payment of those amounts ultimately proves to be not required or it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are measured based on the largest amount of benefit that is more likely than not to be realized upon ultimate settlement. Assessing uncertain tax positions requires significant judgment, including the evaluation of unique facts and circumstances and the interpretation of laws and regulations, especially the assessment of pricing analyses that may produce various ranges of outcomes. Variations in the actual outcome of these future tax consequences could materially impact our consolidated financial statements. Accounting Terms and Characteristics Net Sales Our net sales are primarily generated through retail partners, a dealer and distributor network, installation and repair shops, original equipment manufacturers (OEMs), our online webshop (garmin.com), subscriptions for connected services, and our own retail stores. Refer to the Revenue Recognition discussion in Note 1 – Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements for additional information regarding our revenue recognition policies. Certain arrangements with OEM customers are entered into at the beginning of an aircraft, boat, or vehicle life cycle with the intent to fulfill customer purchasing requirements for the entire production life, although there are generally no firm volume commitments, and sales are therefore generated on an order-by-order basis. Orders from dealer and distributor customers for Garmin’s consumer products are typically subject to certain fulfillment requirements and placed with short lead times. As a result, we do not believe backlog information is material to the understanding of our business. Net sales are subject to seasonal fluctuation. Typically, sales of our consumer products are highest in the fourth quarter due to increased demand during the holiday buying season, and many marine products experience increased demand in the first and second quarters in advance of the summer boating season. Sales of our consumer products are also influenced by the timing of the release of new products. Our aviation and auto OEM products do not experience much seasonal variation but are more influenced by the timing of aircraft certifications, regulatory mandates, auto program manufacturing, and the release of new products when the initial demand is typically the strongest. Cost of Goods Sold and Gross Profit Raw materials are our most significant component of cost of goods sold. Our existing practice of performing the design and manufacture of the majority of our products in-house has enabled us to source components from different suppliers and, where possible, to redesign our products to leverage lower-cost or more readily available components. We believe that our flexible production model allows our factories to experience relatively low costs of manufacturing. In general, products manufactured in Taiwan have been our highest volume products. Our manufacturing labor costs historically have been lower in Taiwan than in most other locations. Shipping and handling costs associated with the transportation and delivery of our products are included in cost of goods sold. Such costs fluctuate due to a number of factors, including freight market pricing and the mix of modes of transportation we utilize. Sales price variability, including that which is associated with foreign currency fluctuations, has had and can be expected to have an effect on our gross profit. Our consolidated gross margin, representing gross profit as a percentage of net sales, is also dependent on segment mix and product mix within each segment. 35 Research and Development The majority of our research and development costs represent engineering personnel costs, costs of test equipment and components used in product and prototype development, and outside product development costs. We are committed to increasing the level of innovative design and development of new products as we strive to expand our ability to serve our existing consumer and aviation markets as well as new auto OEM programs and new markets for active lifestyle products. Selling, General and Administrative Expenses Our selling, general and administrative expenses consist primarily of: • advertising costs associated primarily with media advertising, cooperative advertising with our retail partners, point of sale displays, and sponsorships; • information technology costs; • salaries for sales, marketing and product support personnel; • salaries and related costs for executives and administrative personnel; • marketing, and other brand building costs; • finance and legal costs; • human resource costs; • travel and related costs; and • occupancy and other overhead costs. Results of Operations As previously announced, beginning in the first quarter of fiscal 2024, the Company changed the presentation of operating expense to include advertising expense within selling, general and administrative expenses on the Company’s consolidated statements of income, which management believes to be a more meaningful presentation. The Company continued this presentation of operating expense in the current period. Results for the 52-week period ended December 30, 2023 were recast to conform to this presentation. This change had no effect on the Company’s consolidated operating or net income. The following table sets forth our results of operations as a percentage of net sales during the periods shown (the table may not foot due to rounding): [[GREPCENT_TABLE]] [["","","52-Weeks Ended","","","52-Weeks Ended","","","52-Weeks Ended"],["","","December 27, 2025","","","December 28, 2024","","","December 30, 2023"],["Net sales","","","100","%","","","100","%","","","100","%"],["Cost of goods sold","","","41","%","","","41","%","","","43","%"],["Gross profit","","","59","%","","","59","%","","","57","%"],["Operating expenses:"],["Research and development","","","16","%","","","16","%","","","17","%"],["Selling, general and administrative","","","17","%","","","18","%","","","19","%"],["Total operating expenses","","","33","%","","","33","%","","","37","%"],["Operating income","","","26","%","","","25","%","","","21","%"],["Other income (expense), net","","","2","%","","","2","%","","","2","%"],["Income before income taxes","","","28","%","","","27","%","","","23","%"],["Income tax provision (benefit)","","","5","%","","","5","%","","","(2",")%"],["Net income","","","23","%","","","22","%","","","25","%"]] [[/GREPCENT_TABLE]] The table below sets forth the results of operations through operating income (loss) for each of our five reportable segments. Operating income (loss) represents net sales less costs of goods sold and op [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/GRMN/mda/fy2025/ All MD&A years: /company/GRMN/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/GRMN/mda/fy2024/): filed 2025-02-19; accession 0000950170-25-022760 (https://www.sec.gov/Archives/edgar/data/1121788/000095017025022760/grmn-20241228.htm) - [FY 2023 MD&A](/company/GRMN/mda/fy2023/): filed 2024-02-21; accession 0000950170-24-017559 (https://www.sec.gov/Archives/edgar/data/1121788/000095017024017559/grmn-20231230.htm) - [FY 2022 MD&A](/company/GRMN/mda/fy2022/): filed 2023-02-22; accession 0000950170-23-003566 (https://www.sec.gov/Archives/edgar/data/1121788/000095017023003566/grmn-20221231.htm) - [FY 2021 MD&A](/company/GRMN/mda/fy2021/): filed 2022-02-16; accession 0000950170-22-001303 (https://www.sec.gov/Archives/edgar/data/1121788/000095017022001303/grmn-20211225.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 3812 Search, Detection, Navigation, Guidance, Aeronautical Sys) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/GRMN.md · JSON record: /company/GRMN.json · verified financials: /company/GRMN/financials.json / /company/GRMN/financials.csv · machine TOC for the whole site: /llms.txt