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What changed in Garmin's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Garmin's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+337 added−313 removedSource: 10-K (2026-02-18) vs 10-K (2025-02-19)

Top changes in Garmin's 2025 10-K

337 paragraphs added · 313 removed · 282 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

77 edited+15 added−9 removed23 unchanged
Biggest changeGarmin utilizes renewable electricity where it is available to us under reasonable terms and conditions, including at our facilities in Olathe, Kansas. Garmin also continuously works to reduce waste and increase recycling and composting. Garmin’s operations are subject to various environmental laws, including laws addressing air and water pollution and management of hazardous substances and wastes.
Biggest changeCertain Garmin facilities, including its facilities in Olathe, Kansas (U.S.), utilize renewable electricity through power purchase agreements with utility providers or from on-site generation. Strategies to further reduce greenhouse gas emissions include increasing renewable electricity utilization where it 12 is available to us under reasonable terms and conditions. Garmin also continuously works to reduce waste and increase recycling and composting.
These solutions can be scaled for any size aircraft and rotorcraft, featuring communication and navigation, weather information, terrain and traffic awareness and avoidance, aircraft performance, and automated safety solutions. • Electronic Flight Displays and Instrumentation: Garmin flight display and instrument solutions can serve as primary or back-up systems, which also provide a wealth of valuable information in the cockpit, dramatically increasing situational awareness and capability. • Navigation and Communication Products: Garmin offers a wide range of integrated and stand-alone GPS navigation and very high frequency (VHF) radio communication products, with a variety of capabilities, available for all market segments. • Automatic Flight Control Systems and Safety-Enhancing Technologies: Garmin offers scalable flight control systems with unique integrated safety features for aircraft and rotorcraft.
These solutions can be scaled for any size aircraft and rotorcraft, featuring communication and navigation, automatic flight control systems, weather information, terrain and traffic awareness and avoidance, aircraft performance, and automated safety solutions. • Electronic Flight Displays and Instrumentation: Garmin flight display and instrument solutions can serve as primary or back-up systems, which also provide a wealth of valuable information in the cockpit, dramatically increasing situational awareness and capability. • Navigation and Communication Products: Garmin offers a wide range of integrated and stand-alone GPS navigation and very high frequency (VHF) radio communication products, with a variety of capabilities, available for all market segments. • Automatic Flight Control Systems and Safety-Enhancing Technologies: Garmin offers scalable flight control systems with unique integrated safety features for aircraft and rotorcraft.
Garmin Navionics Vision+ ™ and Navionics Platinum+ ™ charts are compatible with most major chartplotters and MFDs on the market.
Garmin Navionics Vision+ ™ and Garmin Navionics Platinum+ ™ charts are compatible with most major chartplotters and MFDs on the market.
Garmin also offers a full line of magnetron radars with up to 25kW of transmit power. • Instruments : Garmin offers NMEA 2000 and NMEA 0183 compliant instrument displays and sensors that show data from multiple remote sources on one screen. • VHF Communication Radios: Garmin offers a full line-up of marine VHF radios and Automatic Identification System (AIS) transceivers with the latest feature sets including integrated GPS receivers 8 for the communication needs of all types of mariners.
Garmin also offers a full line of magnetron radars with up to 25kW of transmit power. • Instruments : Garmin offers NMEA 2000 and NMEA 0183 compliant instrument displays and sensors that show data from multiple remote sources on one screen. • VHF Communication Radios: Garmin offers a full line-up of marine VHF radios and Automatic Identification System (AIS) transceivers with the latest feature sets including integrated GPS receivers for the communication needs of all types of mariners.
Item 1. Business Company Overview For more than 35 years, Garmin Ltd. and its subsidiaries (collectively, we, our, us, the Company or Garmin) have pioneered new products, many of which feature location technology such as Global Positioning System (GPS), and applications that are designed for people who live an active lifestyle.
Item 1. Business Company Overview For more than 35 years, Garmin Ltd. and its subsidiaries (collectively, we, our, us, the Company or Garmin) have pioneered new products, many of which feature location technology such as Global Positioning System (GPS), services and applications that are designed for people who live an active lifestyle.
Major features include the patented Auto Guidance+™ routing technology, satellite imagery, and 3D views . • Fishfinders: Garmin offers an advanced line of fishfinders, the Striker™ series, which incorporates GPS technology enabling Garmin Quickdraw™ Contours, and wireless features through the ActiveCaptain and StrikerCast mobile apps. • SONAR: Garmin offers the LiveScope™ sonar system producing high resolution, live sonar views showing the true action under water.
Major features include the patented Auto Guidance+™ routing technology, satellite imagery, and 3D views . • Fishfinders: Garmin offers an advanced line of fishfinders, the Striker™ series, which incorporates GPS technology enabling Garmin Quickdraw™ Contours, and wireless features through the ActiveCaptain and StrikerCast mobile apps. 8 • SONAR: Garmin offers the LiveScope™ sonar system producing high resolution, live sonar views showing the true action under water.
The Enduro™ series is for users who want additional battery and solar charging enhancements to extend battery life. The MARQ® series collection of watches is for users seeking a luxury smart tool watch with premium materials . 5 • inReach® and Garmin Response: Garmin offers several product lines that feature Garmin’s inReach capabilities.
The Enduro™ series is for users who want additional battery and solar charging enhancements to extend battery life. The MARQ® series collection of watches is for users seeking a luxury smart tool watch with premium materials . • inReach® and Garmin Response: Garmin offers several product lines that feature Garmin’s inReach capabilities.
We also offer an innovative Smart Rudder Bias system that can help the pilot maintain control of a twin-engine aircraft in the event of an engine failure. • Audio Control Systems: Garmin produces a broad array of cutting-edge audio systems, including panel-mount and remote-mounted units, incorporating features such as Bluetooth connectivity, voice command technology, and integrated intercoms. • Engine Indication Systems: Garmin offers a variety of stand-alone and integrated advanced engine indication systems for piston and turbine-powered aircraft with comprehensive data-logging capabilities as well as wireless data offloading, cloud storage and analysis capability through our flyGarmin.com online services portal. • Traffic Awareness and Avoidance Solutions: Garmin offers an array of traffic advisory and collision avoidance systems, including TAS and TCAS / ACAS solutions, with applications in all types of aircraft. • ADS-B and Transponders: Garmin offers a full lineup of ADS-B and transponder solutions, including ADS-B “Out” compliant solutions as well as ADS-B “In” and Bluetooth capable units that allow pilots to connect to their mobile device to display ADS-B traffic and weather.
Garmin also offers an innovative Smart Rudder Bias system that can help the pilot maintain control of a twin-engine aircraft in the event of an engine failure. • Audio Control Systems: Garmin produces a broad array of cutting-edge audio systems, including panel-mount and remote-mounted units, incorporating features such as Bluetooth connectivity, voice command technology, and integrated intercoms. 7 • Engine Indication Systems: Garmin offers a variety of stand-alone and integrated advanced engine indication systems for piston and turbine-powered aircraft with comprehensive data-logging capabilities as well as wireless data offloading, cloud storage and analysis capability through the flyGarmin.com online services portal. • Traffic Awareness and Avoidance Solutions: Garmin offers an array of traffic advisory and collision avoidance systems, including TAS and TCAS / ACAS solutions, with applications in all types of aircraft. • ADS-B and Transponders: Garmin offers a full lineup of ADS-B and transponder solutions, including ADS-B “Out” compliant solutions as well as ADS-B “In” and Bluetooth capable units that allow pilots to connect to their mobile device to display ADS-B traffic and weather.
These devices include Iridium’s global satellite communication technology which, when combined with an active service plan, offers two-way text messaging, photo and voice messaging, weather forecasts, and S.O.S. capabilities while anywhere in the world, depending on the model.
These devices include global satellite communication technology which, when combined with an active service plan, offers two-way text messaging, photo and voice messaging, weather forecasts, and S.O.S. capabilities anywhere in the world, depending on the model.
These S.O.S. capabilities are supported 24/7 by Garmin’s professionally trained associates at Garmin Response, our global emergency response coordination center. • Outdoor Handhelds and Satellite Communicators: Garmin offers devices under the Montana®, eTrex®, GPSMAP®, and inReach product lines.
These S.O.S. capabilities are supported 24/7 by Garmin’s professionally trained associates at Garmin Response, the Company’s global emergency response coordination center. • Outdoor Handhelds and Satellite Communicators: Garmin offers devices under the Montana®, eTrex®, GPSMAP®, and inReach product lines.
Connect IQ provides developers with an easy-to-use software development kit (SDK) to facilitate development efforts in creating watch faces, applications, widgets, and data fields. These third-party applications are available for download by Garmin users via their mobile phone or computer and run on their compatible Garmin wearable, bike computer, golf, or outdoor handheld devices.
Connect IQ provides developers with an easy-to-use software development kit (SDK) to facilitate development efforts in creating watch faces, applications, widgets, and data fields. These third-party applications are available for download by Garmin users via their mobile phone or computer and run on their compatible Garmin wearable, bike computer, or handheld devices for the golf, outdoor and marine markets.
Products Garmin offers a broad range of solutions across its reportable segments as outlined below. In general, Garmin believes that its products are known for their value, high performance, ease of use, innovation, and appealing design.
Products and Services Garmin offers a broad range of products and services across its reportable segments as outlined below. In general, Garmin believes that its products are known for their value, high performance, ease of use, innovation, and appealing design.
Garmin believes that its principal competitors for auto OEM infotainment solutions are Alpine Electronics, Aptiv, Bosch, Continental, Harman (Samsung), Panasonic, and Visteon. Research and Development Garmin’s product innovations are driven by its strong emphasis on research and development and the close partnership between Garmin’s engineering and manufacturing teams. Garmin’s products are created by its engineering and development staff.
Garmin believes that its principal competitors for auto OEM products are Alpine Electronics, Aptiv, Bosch, Continental, Harman (Samsung), LG, Panasonic, and Visteon. Research and Development Garmin’s product innovations are driven by its strong emphasis on research and development and the close partnership between Garmin’s engineering and manufacturing teams. Garmin’s products are created by its engineering and development staff.
Our Autopilots, and Autonomí™ safety-enhancing solutions cover a wide spectrum of aircraft, from super mid-size cabin business jets and helicopters to light general aviation aircraft.
Garmin Autopilots, and Autonomí™ safety-enhancing solutions cover a wide spectrum of aircraft, from super mid-size cabin business jets and helicopters to light general aviation aircraft.
Manufacturing and Operations Garmin believes one of its core technology competencies is its vertically integrated manufacturing capabilities at its facilities in Taiwan, the U.S., the Netherlands, Poland, and China.
Manufacturing and Operations Garmin believes one of its core competencies is its vertically integrated manufacturing capabilities at its facilities in Taiwan, the U.S., the Netherlands, the U.K., Poland, and China.
Garmin will continue to file and prosecute patent applications when appropriate to attempt to protect Garmin’s rights in its proprietary technologies. 11 There is no assurance that our current patents, or patents that we may later acquire, may successfully withstand any challenge, in whole or in part.
Garmin will continue to file and prosecute patent applications when appropriate to attempt to protect Garmin’s rights in its proprietary technologies. There is no assurance that Garmin’s current patents, or patents that Garmin may later acquire, may successfully withstand any challenge, in whole or in part.
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. Intellectual Property Our success and ability to compete is dependent in part on our proprietary technology.
The Company’s 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. Intellectual Property Garmin’s success and ability to compete is dependent, in part, on its proprietary technology.
We rely on a combination of patent, copyright, trademark and trade secret laws, as well as confidentiality agreements, to establish and protect our proprietary rights. In addition, Garmin often relies on licenses of intellectual property for use in its business.
Garmin relies on a combination of patent, copyright, trademark and trade secret laws, as well as confidentiality agreements, to establish and protect its proprietary rights. In addition, Garmin often relies on licenses of intellectual property for use in its business.
Garmin believes that its principal competitors for outdoor product lines are Apple, Casio, Coros, Dogtra, Globalstar, Infinition, Rand McNally, Samsung, Shearwater Research, SportDOG, Suunto, TAG Heuer, Tissot, TomTom, Trackman, Uneekor, Vista Outdoor, and Zoleo.
Garmin believes that its principal competitors for outdoor products are Apple, Casio, Coros, Dogtra, Globalstar, Infinition, Rand McNally, Samsung, Shearwater Research, SportDOG, Suunto, TAG Heuer, Tissot, TomTom, Trackman, Uneekor, Vista Outdoor, and Zoleo.
It is also possible that any patent issued to us may not provide us with any competitive advantages, or that the patents of others will preclude us from manufacturing and marketing certain products.
It is also possible that any patent issued to Garmin may not provide the Company with any competitive advantages, or that the patents of others will preclude Garmin from manufacturing and marketing certain products.
Garmin currently offers the following products, systems, and services to the global aviation market: • Integrated Flight Decks: Known for defining the integrated flight deck (IFD) space in general aviation and light business aviation applications, Garmin recently introduced its third-generation IFD offering to OEMs and retrofit IFD applications.
Garmin currently offers the following products, systems, and services to the global aviation market: • Integrated Flight Decks: Known for defining the integrated flight deck (IFD) space in general aviation and light business aviation applications, Garmin is delivering its third-generation IFD offering to OEMs and retrofit IFD applications.
We also invest significant resources in our talent development programs to provide employees with the training and education they need to help achieve their career goals, build relevant skills, and lead their organizations. Business Resource Groups provide opportunities for employees to connect, network, and become involved in community engagement initiatives.
Garmin also invests significant resources in talent development programs to provide employees with the training and education they need to help achieve their career goals, build relevant skills, and lead their organizations. Business Resource Groups provide opportunities for employees to connect, network, and become involved in community engagement initiatives.
The system features fully customizable graphics and user interface that can be controlled through Garmin’s marine multi-function displays and RV OEM products. • Trolling Motors: Garmin offers the Force ® Trolling Motor series, powerful, efficient trolling motors with built-in CHIRP and Ultra High-Definition ClearVü™ and SideVü™ sonar.
The system features fully customizable graphics and user interface that can be controlled through Garmin’s multi-function displays. 9 • Trolling Motors: Garmin offers the Force ® Trolling Motor series, powerful, efficient trolling motors with built-in CHIRP and Ultra High-Definition ClearVü™ and SideVü™ sonar.
These products are designed specifically for the marine, powersports, aftermarket automotive, RV, and home environments, offering premium sound quality and supporting many connectivity options for integrating with MFDs, smartphones, and Garmin wearables. • Digital Switching: Garmin offers digital switching products under the EmpirBus™ product line.
These products are designed specifically for the marine, powersports, aftermarket automotive, RV, and home environments, offering premium sound amplification, clarity, and supporting many connectivity options for integrating with MFDs, smartphones, and Garmin wearables. • Digital Switching: Garmin offers digital switching products under the EmpirBus™ product line for boats and RVs.
Our strategic aim in these educational programs is to educate and encourage local students of all backgrounds to pursue careers in the engineering field.
Garmin’s strategic aim in these educational programs is to educate and encourage local students of all backgrounds to pursue careers in the engineering field. 13
Sales of our consumer products are generally 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.
Sales of the Company’s consumer products are generally 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 the Company’s consumer products are also influenced by the timing of new product introductions.
The reference to Garmin’s website address does not constitute incorporation by reference of the information contained on this website, and such information should not be considered part of this report on Form 10-K or in any other report or document we file with the SEC, and any references to our website are intended to be inactive textual references only.
The reference to Garmin’s website address does not constitute incorporation by reference of the information contained on this website, and such information should not be considered part of this report on Form 10-K or in any other report or document the Company files with the SEC, and any references to the Company’s website are intended to be inactive textual references only.
The Garmin EmpirBus products provide power distribution and control solutions for marine and RV applications which enable advanced logic controls and automation to add smart electrical system features in a boat or RV.
The Garmin EmpirBus products provide power distribution and control solutions for marine and RV applications which enable advanced logic controls and automation to add smart electrical system features.
Garmin’s vertical integration model enables us to provide a variety of opportunities across many different professions including engineering, human resources, information technology, marketing, sales, and operations. The Company’s products are created by its engineering and development staff, which numbered approximately 6,000 people worldwide as of December 28, 2024.
Garmin’s vertical integration model enables it to provide a variety of opportunities across many different professions including engineering, human resources, information technology, marketing, sales, and operations. The Company’s products are created by its engineering and development staff, which numbered approximately 6,500 people worldwide as of December 27, 2025.
Garmin currently offers the following product categories within the Outdoor segment to consumers around the world: • Adventure Watches: Garmin adventure watches offer a wide range of features, including wrist-based biometrics, sports apps, solar charging, music storage capabilities, preloaded full-color purpose-built adventure mapping of topography, ski resorts, and golf courses, built-in LED flashlights, speakers, microphones, and Garmin Pay™, depending on the model.
Garmin currently offers the following product categories and related services within the Outdoor segment to consumers around the world: • Adventure Watches: Garmin adventure watches offer a wide range of features, including wrist-based biometrics, sports apps, triathlon and multisport profiles, solar charging, music storage capabilities, preloaded full-color purpose-built adventure mapping of topography, ski resorts, and golf courses, LTE and satellite network connectivity, built-in LED flashlights, speakers, microphones, and Garmin Pay™ contactless payment, depending on the model.
Garmin considers its principal avionics competitors to be Aspen Avionics, Avidyne, Dynon Avionics, ForeFlight / Jeppesen (Boeing), Genesys Aerosystems, Honeywell Aerospace & Defense, Innovative Solutions and Support Inc., Collins Aerospace (Raytheon), Safran, Thales, and Universal Avionics Systems Corporation. For marine products, Garmin believes that its principal competitors are Furuno, Johnson Outdoors, Navico (Brunswick), and Raymarine (Teledyne).
Garmin considers its principal aviation competitors to be Aspen Avionics, Avidyne, Dynon Avionics, Jeppesen ForeFlight, Genesys Aerosystems, Honeywell Aerospace & Defense, Innovative Aerosystems, Collins Aerospace (RTX), Safran, Thales, and Universal Avionics Systems Corporation. For marine products, Garmin believes that its principal competitors are Furuno, Johnson Outdoors, Navico 10 (Brunswick), and Raymarine (Teledyne).
Since the inception of its business, Garmin has delivered over 300 million products, which included more than 18 million products delivered during fiscal 2024.
Since the inception of its business, Garmin has delivered over 300 million products, which included more than 20 million products delivered during fiscal 2025.
Garmin also offers floating marine GPS handhelds with wireless data transfer between compatible units and preloaded cartography. Some handhelds contain built-in inReach ® satellite communication and support Connect IQ™ applications. • Sailing: Garmin has integrated many basic and advanced sailing features into our MFD and instrument systems.
Garmin also offers floating marine GPS handhelds with wireless data transfer between compatible units and preloaded cartography. Some handhelds contain built-in inReach ® satellite communication. • Sailing: Garmin has integrated many basic and advanced sailing features into the Company ’ s MFD and instrument systems.
Our ADS-B solutions also enable safety technologies like Runway Occupancy Awareness and CDTI-Assisted Visual Separation. • Weather Information and Avoidance Solutions: Garmin offers multiple weather solutions, including onboard Doppler digital radar products, along with satellite-based SiriusXM, ground-based ADS-B, as well as Garmin Connext® global satellite weather options. • Datalink and Connectivity: Garmin datalink and connectivity solutions allow pilots to download global weather data, communication via text/voice, as well as select mobile apps to transfer flight plans, manage database subscriptions, perform automatic database updates, monitor aircraft systems in real time 24/7, and stream weather and traffic data from installed avionics solutions. 7 • Portable GPS Navigators and Wearables: Garmin offers portable GPS navigators, smartwatches for pilots, satellite communicators, and portable traffic and weather solutions, providing pilots tools they can take with them from aircraft to aircraft. • Services: Garmin offers a variety of services products to the aviation market.
Garmin ADS-B solutions also enable safety technologies like Runway Occupancy Awareness and CDTI-Assisted Visual Separation. • Weather Information and Avoidance Solutions: Garmin offers multiple weather solutions, including onboard Doppler digital radar products, along with satellite-based SiriusXM, ground-based ADS-B, as well as Garmin Connext® global satellite weather options. • Datalink and Connectivity: Garmin datalink and connectivity solutions allow pilots to download global weather data, communication via text/voice, as well as select mobile apps to transfer flight plans, manage database subscriptions, perform automatic database updates, monitor aircraft systems in real time 24/7, and stream weather and traffic data from installed avionics solutions. • Portable GPS Navigators and Wearables: Garmin offers portable GPS navigators, smartwatches for pilots, satellite communicators, and portable traffic and weather solutions, providing pilots tools they can take with them from aircraft to aircraft. • Services: Garmin aviation services include the Garmin Pilot™ electronic flight bag tool, which is a multi-platform solution that helps pilots plan, file, fly, and log flights on both the web and mobile devices.
The offerings range from 4-inch portable and fix-mounted products to 27-inch fully integrated Glass Helm offerings with 4k resolution displays and include wireless connectivity to the ActiveCaptain® mobile app. • Cartography : Garmin is a leading supplier of cartography for the recreational marine market.
The offerings range from 4-inch portable and fix-mounted products to 27-inch fully integrated Glass Helm offerings with 4k resolution displays, ultra-wide formats and include wireless connectivity to the ActiveCaptain® mobile app. • Cartography : Garmin supplies cartography for the recreational marine market.
We support local community engagement initiatives where we have a business presence, and we provide opportunities for employees to give back to those communities. One such initiative is through active engagement in Science, Technology, Engineering, and Math (“STEM”) community outreach programs.
Garmin supports local community engagement initiatives where it has a business presence and provides opportunities for employees to give back to those communities. One such initiative is through active engagement in Science, Technology, Engineering, and Math (“STEM”) community outreach programs.
Garmin serves five primary markets: fitness, outdoor, aviation, marine, and auto OEM. We design, develop, manufacture, market, and distribute a diverse family of GPS-enabled products and other navigation, communications, sensor-based and information products for these markets, as well as products installed by original equipment manufacturers (OEMs) and for aftermarket applications.
Garmin serves five primary markets: fitness, outdoor, aviation, marine, and auto OEM. 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 currently offers the following product categories to the global auto market: • Domain Controllers: Garmin is a tier-one supplier of domain controllers, offering remote computing modules that control various systems throughout a vehicle including infotainment, instrumentation, key advanced driver-assistance systems (ADAS) functionality, and rear seat entertainment. • Infotainment Units: Garmin is a tier-one supplier of infotainment solutions, with offerings including centralized control and integrated multi-display platforms for premium audio and multimedia, navigation, cameras, smartphone links, customized voice recognition and personal assistants, and rear-seat entertainment instrument clusters. • Other: Garmin offers a collection of software, map database, camera, wearable, and other automotive solutions. 9 Sales and Marketing Garmin’s distribution strategy is to support a broad and diverse network of sales channels for our products while maintaining high quality standards to ensure end-user satisfaction.
Garmin currently offers the following product categories to the global auto market: • Domain Controllers: Garmin is a tier-one supplier of domain controllers, offering remote computing modules that control various systems throughout a vehicle including infotainment, instrumentation, key advanced driver-assistance systems (ADAS) functionality, and rear seat entertainment. • Infotainment Units: Garmin is a tier-one supplier of infotainment solutions, with offerings including centralized control and integrated multi-display platforms for premium audio and multimedia, navigation, cameras, smartphone links, customized voice recognition and personal assistants, and rear-seat entertainment instrument clusters. • Other: Garmin offers a collection of software, map database, camera, wearable, and other automotive solutions.
Aviation Garmin designs, manufactures, and markets a wide range of innovative aircraft avionics solutions to the broad and diverse aviation sector. Avionics are sold directly into aircraft OEM applications as well as through Garmin’s worldwide dealer network for retrofit installations on existing aircraft. Garmin has developed innovative products and technologies serving general aviation, business aviation, rotorcraft, and experimental/light sport markets.
Avionics are sold directly into aircraft OEM applications as well as through Garmin’s worldwide dealer network for retrofit installations on existing aircraft. Garmin has developed innovative products and technologies serving general aviation, business aviation, rotorcraft, and experimental/light sport markets.
As of December 28, 2024, Garmin has been issued over 1,970 patents throughout the world and holds more than 1,190 trademark registrations. The duration of patents varies in accordance with the provisions of applicable local law. We believe that our continued success depends on the intellectual skills of our employees and their ability to continue to innovate.
As of December 27, 2025, Garmin has been issued over 2,100 patents throughout the world and holds more than 1,290 trademark registrations. The duration of patents varies in accordance with the provisions of applicable local law. Garmin believes that its continued success depends on the intellectual skills of its employees and their ability to continue to innovate.
However, we mitigate this risk by holding safety stock, and we believe these potential disruptions would not disproportionately disadvantage us relative to our competitors due to our vertical integration strategy, which provides opportunities to quickly deploy new product designs. Seasonality Our net sales are subject to seasonal fluctuation.
However, Garmin mitigates this risk by leveraging multi-segment purchasing power and holding safety stock, and we believe these potential disruptions would not disproportionately disadvantage the Company relative to its competitors due to the Company’s vertical integration strategy, which provides opportunities to quickly deploy new product designs. Seasonality The Company’s net sales are subject to seasonal fluctuation.
Human Capital Successful execution of our strategy is dependent on attracting, developing, and retaining key employees and members of our management team. To facilitate talent attraction and retention, we provide opportunities for our employees to grow and develop in their careers, supported by generous compensation and benefits, and through programs that build connections between our employees and their communities.
Human Capital Successful execution of the Company’s strategy depends on attracting, developing, and retaining key employees and members of Garmin’s management team. To facilitate talent attraction and retention, Garmin provides opportunities for its employees to grow and develop in their careers, supported by generous compensation and benefits, and through programs that build connections among employees and their communities.
As of December 28, 2024, the Company had approximately 21,800 full and part-time employees worldwide, of whom approximately 7,700 were in the Americas region, 11,100 were in APAC (Asia Pacific and Australian Continent), and 3,000 were in EMEA (Europe, the Middle East, and Africa).
As of December 27, 2025, the Company had approximately 23,000 full and part-time employees worldwide, of whom approximately 8,100 were in the Americas region, 11,400 were in APAC (Asia Pacific and Australian Continent), and 3,500 were in EMEA (Europe, the Middle East, and Africa).
Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy aspects of our products or to obtain and use information that we regard as proprietary.
Despite Garmin’s efforts to protect its proprietary rights, unauthorized parties may attempt to copy aspects of its products or to obtain and use information that the Company regards as proprietary.
Depending on the model, features include wrist-based heart rate monitoring, wrist-based pulse oximeter, AMOLED displays, music storage capabilities, mapping capabilities, LTE Connectivity, solar charging, and Garmin Pay™ contactless payment. • Cycling Products: Garmin cycling products include cycling computers (with solar charging on select models), power meters, bike radars, cameras, smart lights, and speed and cadence sensors.
Depending on the model, features include wrist-based biometrics, sports apps, triathlon and multisport profiles, AMOLED displays, music storage capabilities, mapping capabilities, LTE Connectivity, solar charging, built-in LED flashlights, speakers, microphones, and Garmin Pay™ contactless payment. • Cycling Products: Garmin cycling products include cycling computers (with solar charging on select models), power meters, bike radars, cameras, smart lights, and speed and cadence sensors.
The Approach series includes watches, laser range finders, launch monitors, simulators, club sensors, and handhelds. Garmin maintains a comprehensive collection of over 43,000 golf course maps to provide useful information during real or simulated rounds. Wearable and handheld golf devices provide yardage distances to the front, back, and middle of the green.
Garmin maintains a comprehensive collection of over 43,000 golf course maps to provide useful information during real or simulated rounds. Wearable and handheld golf devices, and laser rangefinders provide on-course yardage distances to the front, back, and middle of the green. Launch monitors and simulators track swing metrics and provide users the ability to play virtual rounds of golf.
Sharing of these resources across product lines favorably affects Garmin’s costs to produce its range of products, with lower volume products realizing the economies of scale of higher volume products.
Sharing of these resources across product lines favorably affects Garmin’s costs to produce its range of products, with lower volume products realizing the economies of scale of higher volume products. The ownership and integration of its resources allows Garmin to optimize the design for manufacturing of its products, yielding improved cost.
Historically, compliance with environmental laws has not had a material impact on our profitability. We have processes to monitor environmental law changes and to evaluate the potential impact of such laws to our business, but the impact of future enactment of environmental laws cannot yet be fully determined and could be substantial.
Garmin has processes to monitor environmental law changes and to evaluate the potential impact of such laws to its business, but the impact of future enactment of environmental laws cannot yet be fully determined and could be substantial.
Litigation may be necessary in the future to enforce our intellectual property rights, to protect our trade secrets, to determine the validity and scope of the proprietary rights of others or to defend against claims of infringement or invalidity. Environmental Matters Garmin has a global environmental policy and is committed to protecting the environment throughout various aspects of our business.
Litigation may be necessary in the future to enforce the Company’s intellectual property rights, to protect Garmin trade secrets, to determine the validity and scope of the proprietary rights of others or to defend against claims of infringement or invalidity.
Our solutions are available for all aircraft categories and classes; from small piston and electric-powered general aviation aircraft to large business jet aircraft, as well as a wide-ranging variety of helicopters, including those serving critical public service and oil/gas missions. 6 Garmin also provides highly differentiated products and service solutions to other growth markets such as commercial air-carrier, military and defense, electric aircraft, and the Advanced Air Mobility / eVTOL space.
Garmin solutions are available for all aircraft categories and classes; from small piston and electric-powered general aviation aircraft to large business jet aircraft, as well as a wide-ranging variety of helicopters, including those serving critical public service and oil/gas missions.
By offering products such as Commercial Off-The-Shelf (COTS) and mission-optimized solutions to military and defense contractors/customers, and products tested and optimized for high duty cycle commercial aviation operations, Garmin is emerging as a strong competitor in these business arenas.
By offering products such as Commercial Off-The-Shelf (COTS) and mission-optimized solutions to military and defense contractors/customers, and products tested and optimized for high duty cycle commercial aviation operations, Garmin continues to expand its leadership and presence within these high-growth markets.
Devices range from basic waypoints navigators to advanced color touchscreen devices offering barometric altimeter, 3-axis compass, camera, preloaded maps, wi-fi and smartphone connectivity, two-way satellite communication using InReach technology, solar charging, and other features. • Golf Devices: Garmin golf devices are offered under the Approach® product line.
Device offerings range from basic waypoints navigators to advanced color touchscreen devices offering barometric altimeter, with features such as 3-axis compass, cameras, preloaded maps, wi-fi and smartphone connectivity, two-way satellite communication using inReach technology, and solar charging, depending on model.
Garmin’s automotive operations in Taiwan, China, Poland, and Olathe have achieved IATF 16949 certification, a quality standard for automotive suppliers. Garmin’s Olathe, Kansas and Salem, Oregon aviation operations in the U.S. have achieved certification to AS9100, a quality standard for the aviation industry.
Garmin’s Olathe, Kansas and Salem, Oregon (U.S.) aviation operations in the U.S. have achieved certification to AS9100, a quality standard for the aviation industry. Garmin has also implemented multiple health and safety management systems and achieved certification to the ISO 45001 standard for Health and Safety Management at facilities in the U.S., Taiwan, Poland, and China.
Garmin’s manufacturing staff, which numbered approximately 10,100 people worldwide as of December 28, 2024, includes manufacturing process engineers who work closely with Garmin’s design engineers to ensure manufacturability and manufacturing cost control for its products.
Garmin’s manufacturing staff, which numbered approximately 10,200 people worldwide as of December 27, 2025, includes manufacturing process engineers who work closely with Garmin’s design engineers to ensure manufacturability and manufacturing cost control for its products. Garmin offers a range of generous benefits programs to its employees that enable the attraction and retention of leading talent.
The Descent X50i large-format wearable dive computer provides additional functionality through a vibrant 3-inch touchscreen display. Garmin Descent transceivers allow users to monitor up to eight tanks when under water, viewing air pressure, depth, use rate and time remaining for multiple types of diving when paired with a compatible air-integrated Descent dive computer.
Garmin Descent transceivers allow users to monitor up to eight tanks when under water, viewing air pressure, depth, use rate and time remaining for multiple types of diving when paired with a compatible air-integrated Descent dive computer. Aviation Garmin designs, manufactures, and markets a wide range of innovative aircraft avionics solutions to the broad and diverse aviation sector.
Both the Drive series of full-featured traditional PNDs and the Garmin Dash Cam™ series of GPS-enabled dash cams serve a wide range of consumers. The dēzl™ ecosystem offers a broad range of products for professional truck drivers including headsets, electronic logging devices, and PNDs with over-the-road trucking features. The zūmo® series of PNDs is for users seeking motorcycle-specific features.
Products and solutions include personal navigation devices (PNDs), integrated and stand-alone dash cams, backup cameras, driving performance optimizers, rearview motorcycle radars, and premium trucking headsets. The dēzl™ ecosystem offers a broad range of products for professional truck drivers including headsets, electronic logging devices, and PNDs with over-the-road trucking features. The zūmo® series of PNDs is for users seeking motorcycle-specific features.
Garmin believes that its principal competitors for fitness products are Apple, Bryton, Coros, Elite, Fitbit (Google), Huawei, Oura, Polar, Samsung, SRAM, Suunto, Wahoo Fitness, Whoop, Xiaomi, Zepp Health, and Zwift.
Garmin believes that it generally competes favorably in each of these areas and as such, is generally a significant competitor in each of the major markets in which it operates. Garmin believes that its principal competitors for fitness products are Apple, Bryton, Coros, Elite, Google, Huawei, Oura, Polar, Samsung, SRAM, Suunto, Wahoo Fitness, Whoop, Xiaomi, Zepp Health, and Zwift.
Marine Garmin is a leading manufacturer of recreational marine electronics and offers a broad range of products. Garmin currently offers the following product categories within the Marine segment to consumers around the world: • Chartplotters and Multi-Function Displays (MFDs): Garmin offers numerous chartplotters/MFDs under the GPSMAP® and ECHOMAP™ product lines.
Garmin currently offers the following product categories and related services within the Marine segment to the global marine market: • Chartplotters and Multi-Function Displays (MFDs): Garmin offers numerous chartplotters/MFDs under the GPSMAP® and ECHOMAP™ product lines.
Garmin has implemented multiple environmental management systems and achieved certification to the ISO 14001 standard for Environmental Management at facilities in the U.S., U.K., Taiwan, Poland, and China. Garmin strives to reduce our environmental impact by increasing our environmental sustainability efforts. Garmin is committed to reducing greenhouse gas emissions through direct carbon emissions reduction and elimination strategies.
Garmin has also implemented energy management systems and achieved certification to the ISO 50001 standard for Energy Management at its manufacturing facilities in Taiwan. Garmin actively manages its environmental impact by continually assessing and reviewing its environmental sustainability efforts. Garmin reduces its greenhouse gas emissions through direct carbon emissions reduction and elimination strategies.
Many of Garmin's products are subject to laws relating to the chemical and material composition of our products and their energy efficiency. Garmin is also subject to extended producer responsibility laws and regulations requiring manufacturers to be responsible for collection, recovery, and recycling of wastes from certain electronic products.
Garmin is also subject to extended producer responsibility laws and regulations requiring manufacturers to be responsible for collection, recovery, and recycling of wastes from certain electronic products. Historically, compliance with environmental laws has not had a material impact on the Company’s profitability.
The ownership and integration of its resources allows Garmin to optimize the design for manufacturing of its products, yielding improved cost. 10 Quality: Garmin’s automation and advanced production processes provide in-service robustness and consistent reliability standards that enable Garmin to maintain strict process and quality control of the products manufactured, thereby improving the overall quality of our products.
Quality: Garmin’s automation and advanced production processes provide in-service robustness and consistent reliability standards that enable Garmin to maintain strict process and quality control of the products manufactured, thereby improving the overall quality of the Company’s products. Additionally, the immediate feedback throughout the manufacturing processes is shared with the development teams, providing integrated continuous improvement throughout design and supply chain.
Additionally, the immediate feedback throughout the manufacturing processes is shared with the development teams, providing integrated continuous improvement throughout design and supply chain. Garmin’s design, manufacturing, distribution, and service functions in its U.S., Taiwan, China, Netherlands, and U.K. facilities are certified to ISO 9001, an international quality standard developed by the International Organization for Standardization (ISO).
Garmin’s design, manufacturing, distribution, and service functions in its U.S., Taiwan, China, Netherlands, and U.K. facilities are certified to ISO 9001, an international quality standard developed by the International Organization for Standardization (ISO). Garmin’s automotive operations in Taiwan, China, Poland, and Olathe, Kansas (U.S.) have achieved IATF 16949 certification, a quality standard for automotive suppliers.
This integrated ownership provides inherent flexibility to enable faster time to market. Materials Garmin purchases components from a large number of qualified suppliers. Although many components essential to Garmin’s business are generally available from multiple sources, certain key components are currently obtained by the Company from single or limited sources, which subjects Garmin to supply and pricing risks.
Although many components essential to Garmin’s business are generally available from multiple sources, certain key components are currently obtained by the Company from single or limited sources, which subjects Garmin to supply and pricing risks. For these components, the Company has limited near-term flexibility to use other suppliers if a current vendor becomes unavailable or is unable to meet requirements.
Features of the smartwatch devices, depending on the series and model, include wrist-based heart rate monitoring, AMOLED displays, ECG app, Garmin Pay, music storage capabilities, and 24/7 health monitoring. • Scales and Monitors: Garmin offers a range of fitness accessories including chest strap heart rate monitors, smart scales, and blood pressure monitors. • Garmin Connect and Garmin Connect Mobile: Garmin Connect™ and Garmin Connect™ Mobile are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data.
Features of the smartwatch devices, depending on the series and model, include wrist-based heart rate monitoring, AMOLED displays, ECG app, Garmin Pay, music storage capabilities, and 24/7 health monitoring. • Scales and Monitors: Garmin offers a range of health and fitness accessories including chest strap heart rate monitors, smart scales, blood pressure monitors, and sleep monitors. • Sports Timing and Performance Analysis: Garmin, under the MYLAPS brand, offers sports timing and performance analysis solutions for professional timers, event organizers, clubs, racetracks, federations, and individual athletes. 5 Outdoor Garmin offers a broad range of products and services designed for use in outdoor activities.
Garmin believes the principal competitive factors impacting the market for its products are design, functionality, quality and reliability, customer service, brand, price, time-to-market and availability. Garmin believes that it generally competes favorably in each of these areas and as such, is generally a significant competitor in each of our major markets.
Competition Garmin operates in highly competitive markets, though competitive conditions vary among the diverse target markets and geographies. Garmin believes the principal competitive factors impacting the market for its products are design, functionality, quality and reliability, customer service, brand, price, time-to-market and availability.
In addition, users can share their accomplishments, create training groups and group challenges, and get feedback and encouragement from the Connect community. • Connect IQ: The Connect IQ™ application development platform enables third parties to create a variety of applications that run on a wide assortment of Garmin devices.
Garmin Connect+ offers premium features, including personalized insights and performance dashboards, to users on a subscription basis. The Connect IQ™ application development platform enables third parties to create a variety of applications that run on a wide assortment of Garmin devices.
Substantial noncompliance with applicable environmental laws could have a material adverse effect on our business. Capital expenditures for environmental controls are included in our normal capital budget. Historically, capital expenditures associated with environmental controls have not been material and compliance with environmental laws has not had a material impact on the Company’s competitive position.
Historically, capital expenditures associated with environmental controls have not been material, and compliance with environmental laws has not had a material impact on the Company’s competitive position. Many of Garmin's products are subject to laws relating to the chemical and material composition of the Company’s products and their energy efficiency.
Garmin currently offers the following product categories within the Fitness segment to consumers around the world: • Running and Multi-sport Watches: Garmin running and multi-sport watches are offered under the Forerunner® product series. The Forerunner series offers GPS-enabled watches with features unique to each model.
Fitness Garmin offers a broad range of products and services designed for use in health, wellness, and fitness activities. Garmin currently offers the following product categories and related services within the Fitness segment to consumers around the world: • Running: Garmin running watches are offered under the Forerunner® product series.
We believe our efforts in managing our workforce have been effective, as evidenced by a strong company culture and positive relations between the Company and our employees. 12 We offer a range of generous benefits programs to our employees that enable us to attract and retain leading talent.
Garmin believes its efforts in managing its workforce have been effective, as evidenced by a strong company culture and positive relations between the Company and its employees.
During 2024, the Company’s net sales through its direct distribution channels accounted for greater than 10% of total net sales. Marketing support is provided geographically from Garmin’s offices around the world. Competition We operate in highly competitive markets, though competitive conditions vary among our diverse target markets and geographies.
Garmin also sells its products and services directly through the Garmin online webshop (garmin.com), subscriptions for connected services, and Garmin retail stores. During 2025, the Company’s net sales through its direct distribution channels accounted for greater than 10% of total net sales. Marketing support is provided geographically from Garmin’s offices around the world.
For these components, we have limited near-term flexibility to use other suppliers if a current vendor becomes unavailable or is unable to meet our requirements. Extended disruptions at these suppliers could impact our ability to meet customer demand due to component shortages or increased lead times, or cause us to incur higher product costs.
Extended disruptions at these suppliers or global shortages of essential components, such as memory chips, could impact Garmin’s ability to meet customer demand due to component shortages or increased lead times, or cause Garmin to incur higher product costs.
The product line includes the Force Kraken with sizes from 48” to 90” shaft length and a smaller mounting footprint.
The product line includes the Force Kraken with various sizes from 48” up to 110” shaft length and a pivot-style mount, the Force Pro with 50” and 57” shaft length sizes and a scissor-style mount, and the Force Current kayak trolling motor.
The Garmin Catalyst™ is an industry-first racing coach and driving performance optimizer. • Sportsman and Dog Devices : Garmin offers sportsman devices under the Xero® product line, including the Xero® C1 Pro Chronograph, which can measure projectile speeds from 100 to 5,000 feet per second.
The Garmin Catalyst™ is an industry-first racing coach and driving performance optimizer. • Field : Garmin offers sportsman devices under the Xero® product line, including optics and sight products and a chronograph. Garmin offers a variety of dog tracking and training devices, including those under the Alpha®, PRO, BarkLimiter™, Delta®, and DriveTrack™ product lines.
Our 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. We also sell our products and services directly through our online webshop (garmin.com), subscriptions for connected services, and our own retail stores.
Sales and Distribution Garmin’s distribution strategy is to support a broad and diverse network of sales channels for Garmin products while maintaining high quality standards to ensure end-user satisfaction. 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 has also implemented multiple health and safety management systems and achieved certification to the ISO 45001 standard for Health and Safety Management at facilities in the U.S., Taiwan, Poland, and China. Time to Market: Garmin uses multi-disciplinary teams of design engineers, process engineers, and supply chain specialists to develop products, allowing them to quickly move from concept to manufacturing.
Time to Market: Garmin uses multi-disciplinary teams of design engineers, process engineers, and supply chain specialists to develop products, allowing them to quickly move from concept to manufacturing. This integrated ownership provides inherent flexibility to enable faster time to market. 11 Materials Garmin purchases components from a large number of qualified suppliers.
Business and commercial aviation customers also benefit from our FltPlan® safety management system, and our AeroData solutions consisting of runway analysis and performance data, weight and balance, obstacle clearance, load planning, and navigation database products. Garmin continues to provide industry-leading product support, and offers a wide selection of databases, training products, extended warranties, and subscription services for all aviation segments.
Garmin continues to provide industry-leading product support, and offers a wide selection of training products, extended warranties, and subscription services for all aviation markets. Marine Garmin offers a broad range of products and services designed for use in marine recreation applications.
On a subscription basis, certain Garmin products offer access to private satellite networks such as the Iridium satellite network, a synchronized constellation of 66 low Earth orbit (LEO) satellites offering global data communication coverage.
Certain Garmin products offer access to private satellite networks from third-party providers on a subscription basis. Subscriptions to these services and networks enable certain features such as communication, weather, and mapping content.
Removed
This discussion of Garmin should be read in conjunction with, and is qualified by reference to, “Management's Discussion and Analysis of Financial Condition and Results of Operations” under Item 7 herein and the information set forth in response to Item 101 of Regulation S-K in such Item 7 is incorporated herein by reference in partial response to this Item 1.
Added
The following description of Garmin’s business should be read in conjunction with Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and accompanying notes in Part II, Item 8, “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.
Removed
Iridium’s satellite constellation offers global coverage to enable reliable satellite-based communication. 4 Fitness Garmin offers a broad range of products designed for use in health, wellness, and fitness activities.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeUndiscovered vulnerabilities in our products could expose them to hackers or other unscrupulous third parties who develop and deploy viruses and other malicious software programs that could attack our products. Actual or perceived security vulnerabilities in our products could harm our reputation and lead some customers to return products, to reduce or delay future purchases, or use competing products.
Biggest changeOur products may contain undetected security vulnerabilities, which could result in damage to our reputation, lost revenue, diverted development resources, increased warranty claims, and litigation. Undiscovered vulnerabilities in our products could expose them to hackers or other unscrupulous third parties who develop and deploy viruses and other malicious software programs that could attack our products.
For example, individuals and groups have purchased and may in future purchase intellectual property assets for the purpose of asserting claims of infringement and attempting to extract settlements from us or our customers. The number of these claims has increased in recent years and may continue to increase in the future.
For example, individuals and groups have purchased and may in the future purchase intellectual property assets for the purpose of asserting claims of infringement and attempting to extract settlements from us or our customers. The number of these claims has increased in recent years and may continue to increase in the future.
Additional risks, including gross margin fluctuation, foreign currency fluctuations, product development challenges, impacts to our key personnel, and dependencies on third party suppliers, may be heightened as a result of a widespread public health emergency. If we were unable to manage these risks effectively, our business, financial condition, and results of operations could be materially adversely affected.
Additional risks, including gross margin fluctuations, foreign currency fluctuations, product development challenges, impacts to our key personnel, and dependencies on third party suppliers, may be heightened as a result of a widespread public health emergency. If we were unable to manage these risks effectively, our business, financial condition and results of operations could be materially adversely affected.
We have operations outside the United States that make up a significant portion of our total revenue, which can present challenges depending on economic and geopolitical conditions on both a global and regional scale. Adverse economic conditions, including higher interest rates, inflation, higher fuel prices, higher unemployment, or recession, could adversely affect demand for the Company's products and services.
We have operations outside the United States that make up a significant portion of our total revenue, which can present challenges depending on economic and geopolitical conditions on both a global and regional scale. Adverse economic conditions, including higher interest rates, inflation, higher fuel prices, higher unemployment, or recession, could adversely affect demand for our products and services.
Item 1A. Ri sk Factors The risks described below are not the only ones facing our company. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. If any of the following risks occur, our business, financial condition or operating results could be materially adversely affected.
Item 1A. Ri sk Factors The risks described below are not the only ones facing our company. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. If any of the following risks occur, our business, financial condition and results of operations could be materially adversely affected.
We are dependent on the availability and unimpaired use of allocated bands within the radio frequency spectrum; our products may be subject to harmful interference from new or modified spectrum uses. Our Global Positioning System (GPS) technology is dependent on the use of the Standard Positioning Service (SPS) provided by the U.S. Government’s GPS satellites.
We are dependent on the availability and unimpaired use of allocated bands within the radio frequency spectrum; our products may be subject to harmful interference from new or modified spectrum uses. Our GPS technology is dependent on the use of the Standard Positioning Service (SPS) provided by the U.S. Government’s GPS satellites.
Our failure to comply with such laws and regulations could materially adversely affect our reputation, business, financial condition and results of operations. Our business is subject to a variety of United States and international laws, regulations and other legal obligations regarding data protection. We collect, store, process, and use personal information and other user data.
Our failure to comply with such laws and regulations could materially adversely affect our business, financial condition and results of operations. Our business is subject to a variety of United States and international laws, regulations and other legal obligations regarding data privacy and protection. We collect, store, process, and use personal information and other user data.
This level of ownership may have a significant effect in delaying, deferring, or preventing a change in control of Garmin and may adversely affect the voting and other rights of other holders of our common shares. 24 The rights of our shareholders are governed by Swiss law.
This level of ownership may have the effect of delaying, deferring, or preventing a change in control of Garmin and may adversely affect the voting and other rights of other holders of our common shares. The rights of our shareholders are governed by Swiss law.
Economic and political conditions and uncertainty could adversely affect our revenue and profits. Our revenue and profits depend significantly on general economic conditions and the demand for products in the markets in which we compete.
Economic and geopolitical conditions and uncertainty could adversely affect our revenue and profits. Our revenue and profits depend significantly on general economic conditions and the demand for products in the markets in which we compete.
The Company and its global supply chain have experienced and are expected to continue to be exposed to information technology system failures and network disruptions including those caused by natural disasters, human error, accidents, power disruptions, telecommunications failures, acts of terrorism or war, computer viruses, physical or electronic break-ins, and ransomware or other cybersecurity incidents.
Our company, our global supply chain, and our global distribution network have experienced and are expected to continue to be exposed to information technology system failures and network disruptions including those caused by natural disasters, human error, accidents, power disruptions, telecommunications failures, acts of terrorism or war, computer viruses, physical or electronic break-ins, and ransomware or other cybersecurity incidents.
A variety of factors could cause the price of our shares to fluctuate, perhaps substantially, including but not limited to: • new products or product enhancements by us or our competitors; • general conditions in the worldwide economy, including fluctuations in inflation, interest rates and global currency exchange rates; • announcements of technological innovations; • product obsolescence and our ability to manage product transitions; • developments in our relationships with our customers and suppliers; • the availability, pricing and timeliness of delivery of components, such as flash memory and liquid crystal displays, used in our products; • quarterly fluctuations in our actual or anticipated operating results; • changes and proposed changes in applicable tax laws, tax rates, tariffs and duties; • developments in patents or other intellectual property rights and litigation; • announcements and rumors of developments related to our business, our competitors, our suppliers or the markets in which we compete; • research reports or opinions issued by securities analysts or brokerage houses related to Garmin, our competitors, our suppliers or our customers; • any significant acts of terrorism against the United States, Taiwan or significant markets where we sell our products; and • other factors as discussed in the previously listed risks.
A variety of factors could cause the price of our shares to fluctuate, perhaps substantially, including but not limited to: • new products or product enhancements by us or our competitors; • general conditions in the worldwide economy, including fluctuations in inflation, interest rates and global currency exchange rates; • announcements of technological innovations; • product obsolescence and our ability to manage product transitions; • developments in our relationships with our customers and suppliers; • the availability, pricing and timeliness of delivery of components, such as semiconductors, flash memory and liquid crystal displays, used in our products; • quarterly fluctuations in our actual or anticipated operating results; • changes and proposed changes in applicable tax laws, tax rates, tariffs and duties; • developments in patents or other intellectual property rights and litigation; • announcements and rumors of developments related to our business, our competitors, our suppliers or the markets in which we compete; • research reports or opinions issued by securities analysts or brokerage houses related to Garmin, our competitors, our suppliers or our customers; • any significant acts of terrorism in locations where we have significant operations or significant markets for our products; and • other factors as discussed in the previously listed risks.
Global climate change could also result in certain types of these natural disasters occurring more frequently or with more intense effects. For descriptions and locations of our principal properties, see Item 2, “Properties”. These events could also have an impact on our suppliers and affect our supply chain or our customers and affect the demand for our products.
Global climate change could also result in certain types of these natural disasters occurring more frequently or with greater intensity. For descriptions and locations of our principal properties, see Item 2, “Properties”. These events could also have an impact on our suppliers and affect our supply chain, or our customers and affect the demand for our products.
If our backup and recovery plans are not sufficient to minimize business disruption or if our insurance is not sufficient to recover the costs associated with these types of events, our financial results could be adversely affected.
If our backup and recovery plans are not sufficient to minimize business disruption or if our insurance is not sufficient to recover the costs associated with these types of events, our business, financial condition and results of operations could be materially adversely affected.
Global taxing standards continue to evolve as a result of the Organization for Economic Co-Operation and Development (OECD) recommendations aimed at preventing perceived base erosion and profit shifting (BEPS) by multinational corporations, including the establishment of a global minimum tax rate of 15%.
Global taxing standards continue to evolve as a result of the Organization for Economic Co-Operation and Development (OECD) recommendations aimed at preventing perceived base erosion and profit shifting (BEPS) by multinational corporations, including the establishment of a global minimum tax rate of 15% under the “Pillar Two” framework.
A material adverse impact on our consolidated financial statements could occur for the period in which the effect of an unfavorable final outcome becomes probable and reasonably estimable or in which we otherwise incur a loss in excess of our reserves and could harm our business, financial condition and results of operations.
A material adverse impact on our consolidated financial statements could occur for the period in which the effect of an unfavorable final outcome becomes probable and reasonably estimable or in which we otherwise incur a loss in excess of our reserves and could materially adversely affect our business, financial condition and results of operations.
Adverse outcomes in some or all of these claims may result in significant monetary damages or injunctive relief that could adversely affect our ability to conduct our business. Litigation and other claims are subject to inherent uncertainties and the outcomes can be difficult to predict.
We are subject to a variety of claims and lawsuits. Adverse outcomes in some or all of these claims may result in significant monetary damages or injunctive relief that could adversely affect our ability to conduct our business. Litigation and other claims are subject to inherent uncertainties and the outcomes can be difficult to predict.
As a business that operates worldwide, we are subject to complex and changing global laws and regulations, which exposes the Company to potential liabilities, increased costs and other adverse effects on our business.
As a business that operates worldwide, we are subject to complex and changing global laws and regulations, which exposes us to potential liabilities, increased costs and other adverse effects on our business.
Deviations from the "one-China" policy or other conflicts or disputes could lead to adverse changes in China-U.S. and China-Taiwan relations and could materially adversely affect our manufacturing operations and suppliers based in Taiwan, which could materially adversely affect our business, financial condition and results of operations and the market price and the liquidity of our shares.
Deviations from the "one-China" policy or other conflicts or disputes could lead to adverse changes in China-U.S. and China-Taiwan relations and could materially adversely affect our manufacturing operations and suppliers based in Taiwan, which could materially adversely affect our business, financial condition and results of operations.
Many countries in which Garmin operates have implemented, or are in the process of implementing, global minimum tax legislation. The implementation of global minimum tax and certain other tax legislation could have a material adverse impact on the Company’s future income tax provision, net income, or cash flows.
Many countries in which Garmin operates have implemented, or are in the process of implementing, global minimum tax legislation in accordance with Pillar Two. The implementation of global minimum tax and certain other tax legislation could have a material adverse impact on the Company’s future income tax provision, net income, or cash flows.
These licenses may not be available to us on terms that we can accept or may materially change the gross profits that we are able to obtain on our products. We may not succeed in adapting our products to new technologies as they emerge.
We may need to license new technologies to respond to technological change. These licenses may not be available to us on terms that we can accept or may materially change the gross profits that we are able to obtain on our products. We may not succeed in adapting our products to new technologies as they emerge.
To the extent that such cost reductions and new product introductions do not occur in a timely manner or our products do not achieve market acceptance, our business, financial condition and results of operations could be materially adversely affected. Our quarterly operating results are subject to fluctuations and seasonality. Our operating results are difficult to predict.
To the extent that cost reductions and new product introductions do not occur in a timely manner or our products do not achieve market acceptance, our business, financial condition and results of operations could be materially adversely affected. 24 Our operating results are subject to fluctuations and seasonality.
See Note 1 in the Notes to the Consolidated Financial Statements for more information on concentration of credit risk. 17 We may pursue strategic acquisitions, investments, strategic partnerships or other ventures, and our business could be materially harmed if we fail to successfully identify, evaluate, complete, and integrate such transactions.
See Note 1 – Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements for more information on concentration of credit risk. 18 We may pursue strategic acquisitions, investments, strategic partnerships or other ventures, and our business could be materially harmed if we fail to successfully identify, evaluate, complete, and integrate such transactions.
Many of our dealers and distributors also sell products offered by our competitors. If our competitors offer our dealers and distributors more favorable terms, those dealers and distributors may de-emphasize or decline to carry our products. In the future, we may not be able to retain or attract a sufficient number of qualified dealers and distributors.
If our competitors offer our dealers and distributors more favorable terms, those dealers and distributors may de-emphasize or decline to carry our products. In the future, we may not be able to retain or attract a sufficient number of qualified dealers and distributors.
Business Risks If we are not successful in the continued development, timely manufacture, and introduction of new products or product categories, overall demand for our products could decrease to the extent that lost sales and profits are not entirely offset.
Business Risks If we are not successful in the continued development, timely manufacture, and introduction of new products or product categories, overall demand for our products could decrease to the extent that total sales and profits decline.
Therefore, such inabilities or delays could have a material adverse effect on our business, financial condition and results of operations. In addition, we cannot assure that our certified products will not be decertified.
Therefore, such inabilities or delays could have a material adverse effect on our business, financial condition and results of operations. In addition, we cannot assure that our certified products will not be decertified. Any such decertification could materially adversely affect our business, financial condition and results of operations.
The United States' relations with Taiwan are governed by the 1979 Taiwan Relations Act, which signifies when the U.S. switched diplomatic recognition from Taiwan to the PRC, referred to as the "one-China" policy. China's relations with Taiwan may also be influenced by changes in relations between the U.S. and China.
United States–Taiwan relations are governed by the 1979 Taiwan Relations Act, which signifies when the U.S. switched diplomatic recognition from Taiwan to the PRC, referred to as the "one-China" policy. China's relations with Taiwan may also be influenced by changes in relations between the U.S. and China or other geopolitical conditions.
Management may not adequately reserve for a contingent liability, or we may suffer unforeseen liabilities, which could then impact the results of a financial period.
As a result of these uncertainties, management may not adequately reserve for a contingent liability, or we may suffer unforeseen liabilities, which could then impact the results of a financial period.
We may not successfully integrate business, operational, and financial activities such as internal controls, Sarbanes-Oxley Act of 2002 compliance, cyber security measures, the GDPR and other corporate governance and regulatory matters, operations, personnel or products related to acquisitions we may make in the future. If we fail to successfully integrate such transactions, our business could be materially harmed.
We may not successfully integrate business, operational, and financial activities such as internal controls, Sarbanes-Oxley Act of 2002 compliance, cyber security measures, the GDPR and other corporate governance and regulatory matters, operations, personnel or products related to acquisitions we may make in the future.
A shutdown of airspace could cause reduced sales of our general aviation products and delays in the shipment of our products manufactured in our Taiwan manufacturing facilities to our global distribution facilities, thereby adversely affecting our ability to supply new and existing products to our dealers and distributors.
A shutdown of airspace could cause reduced sales of our general aviation products and delays in the shipment of our products manufactured in our Taiwan manufacturing facilities to our global distribution facilities, which would affect our ability to supply new and existing products to our dealers and distributors.
Further, if production is increased rapidly, manufacturing quality could decline, which may also lower our margins and reduce customer satisfaction. • If forecasted demand does not develop, we could have excess inventories of finished products and components, which would use cash and could lead to write-offs of some or all of the excess inventories.
Further, if production is increased rapidly, manufacturing quality could decline, which may also lower our profit margins and reduce customer satisfaction. • If actual results are significantly lower than forecasted demand, we could have excess inventories of finished products and components, which would use cash and could lead to write-offs of some or all of the excess inventories.
Such claims could have a material adverse effect on our business, financial condition, and results of operations. From time to time, we receive communications alleging infringement of patents, trademarks or other intellectual property rights and we have been, and currently are, a defendant in lawsuits alleging patent infringement.
Such claims could materially adversely affect our business, financial condition and results of operations. 22 From time to time, we receive communications alleging infringement of patents, trademarks or other intellectual property rights and we have been, and currently are, a defendant in lawsuits alleging patent infringement.
To the extent that such interruptions have an effect on sales of our products, this could have a material adverse effect on our business, financial condition and results of operations. A shut down of airspace or imposition of restrictions on general aviation would harm our business.
To the extent that such interruptions have an effect on sales of our products, our business, financial condition and results of operations could be materially adversely affected. 21 A shut down of airspace or imposition of restrictions on general aviation would harm our business.
While there are regulations that prohibit the use of jamming and spoofing equipment, if GNSS signals used by our products are disrupted or manipulated it could limit or compromise the location-based features of our products. 18 Some of our products also use signals from Satellite Based Augmentation Systems (SBAS) that augment GPS, such as the U.S.
While there are regulations that prohibit the use of jamming and spoofing equipment, if GNSS signals used by our products are disrupted or manipulated it could limit or compromise the location-based features of our products which could materially adversely affect our business, financial condition and results of operations. 19 Some of our products also use signals from Satellite Based Augmentation Systems (SBAS) that augment GPS, such as the U.S.
We depend on third party suppliers and licensors, some of which are sole source, for technology and components used in our products. Our production and business would be seriously harmed if these suppliers or licensors are not able to meet our demand and alternative sources are not available, or if the costs of components rise.
Our production and business would be seriously harmed if these suppliers or licensors are not able to meet our demand and alternative sources are not available, or if the costs of components rise. We are dependent on third party suppliers for various components used in our current products.
Any curtailment of SBAS operating capability could result in decreased user capability for many of our aviation products, thereby impacting our markets. Some of our products also use satellite signals from Russia’s GLONASS, the European Union Galileo system, and the Chinese BDS.
Any curtailment of SBAS operating capability could result in decreased user capability for many of our aviation products, thereby impacting our markets, which could materially adversely affect our business, financial condition and results of operations. Some of our products also use satellite signals from Russia’s GLONASS, the European Union Galileo system, and the Chinese BDS.
Sales of many of our consumer products have been highest in our fourth fiscal quarter due to increased consumer spending patterns on electronic devices during the holiday season, and many marine products experience increased demand in the first and second quarters in advance of the summer boating season.
However, this can fluctuate based on the timing of new product launches. Sales of many of our consumer products have been highest in our fourth fiscal quarter due to increased consumer spending patterns on electronic devices during the holiday season, and many marine products experience increased demand in the first and second quarters in advance of the summer boating season.
As of December 28, 2024, we had $3,640 million of unappropriated capital contribution reserves available from which the Company may make dividend payments. When the capital contribution reserves are fully utilized, the Swiss federal withholding tax must be withheld from the gross dividend distribution and paid to the Swiss federal Tax Administration.
As of December 27, 2025, we had $2,807 million of unappropriated capital contribution reserves available from which we may make dividend payments. When the capital contribution reserves are fully utilized, the Swiss federal withholding tax must be withheld from the gross dividend distribution and paid to the Swiss federal Tax Administration.
Failure to do so can result, and in the past has resulted in recalls, product replacements or modifications, and may cause reputational harm, and significant warranty and other expenses, which could have a material adverse impact on our business, financial condition and results of operations.
Failure to do so can result, and in the past has resulted in recalls, product replacements or modifications, and may cause reputational harm, and significant warranty and other expenses, which could materially adversely affect our business, financial condition and results of operations.
We are dependent on third party suppliers for various components used in our current products. Some of the components that we procure from third party suppliers include semiconductors, liquid crystal displays, memory chips, batteries and microprocessors. The availability of high-quality components at reasonable cost is essential to the successful production and sale of our products.
Some of the components that we procure from third party suppliers include semiconductors, liquid crystal displays, memory chips, batteries and microprocessors. The availability of high-quality components at reasonable cost is essential to the successful production and sale of our products. Some components we use are from sole source suppliers.
Such measures could influence mobility and transportation trends, which could decrease the demand for certain of our products. If climate change has impacts on natural disasters, the regulatory environment, or societal pressures as discussed above, it could result in a change in demand for certain products in markets that we serve, including auto, aviation, and marine.
If climate change has impacts on natural disasters, the regulatory environment, or societal pressures as discussed above, it could result in a change in demand for certain products in markets that we serve, including auto, aviation, and marine.
Although we maintain cyber insurance coverage that, subject to policy terms and conditions and significant self-insured retentions, is designed to address certain aspects of cyber risks, such insurance coverage may be insufficient to cover all losses or all types of claims that may arise.
Although we maintain cyber insurance coverage that, subject to policy terms and conditions and significant self-insured retentions, is designed to address certain aspects of cyber risks, such insurance coverage may be insufficient to cover all losses or all types of claims that may arise, which could materially adversely affect our business, financial condition and results of operations.
Compliance with these laws and regulations is onerous and expensive, increasing the cost of conducting our global operations. We have implemented policies and procedures designed to ensure compliance with applicable global laws and regulations, but there can be no assurance that at all times we will be in compliance with all global regulations given their multitude, complexity and ever-changing nature.
We have implemented policies and procedures designed to ensure compliance with applicable global laws and regulations, but there can be no assurance that at all times we will be in compliance with all global regulations given their multitude, complexity and ever-changing nature.
In addition, financial difficulties experienced by our retailers and OEM customers have resulted, and could result in the future, in significant bad debt write-offs and additions to reserves in our receivables and could have an adverse effect on our results of operations. Our business is subject to disruptions and uncertainties caused by geopolitical instability, war or terrorism.
In addition, financial difficulties experienced by our retailers and OEM customers have resulted, and could result in the future, in significant bad debt write-offs and additions to reserves in our receivables and could have an adverse effect on our results of operations.
Geopolitical instability, acts of war or acts of terrorism could have a material adverse impact on our business, financial condition and results of operations.
Our business is subject to disruptions and uncertainties caused by geopolitical instability, war or terrorism. Geopolitical instability, acts of war or acts of terrorism could have a material adverse impact on our business, financial condition and results of operations.
If we are not successful in winning additional contracts, substantially leveraging our past and future investments, and implementing and maintaining efficient manufacturing processes, the auto OEM segment’s contributions to total company profits may be negatively impacted. We may incur substantial restructuring costs if we are unable to generate profits from auto OEM contracts.
If we are not successful in winning additional contracts, substantially leveraging our past and future investments, and implementing and maintaining efficient manufacturing processes, the auto OEM segment’s contributions may continue to negatively impact total company profits.
This or any other ITU or national reallocation of radio frequency spectrum, including frequency band segmentation or sharing of spectrum, or other modifications of the permitted uses of relevant frequency bands, may materially and adversely affect the utility and reliability of our products and could have significant negative impacts on our business and our customers.
This or any other ITU or national reallocation of radio frequency spectrum, including frequency band segmentation or sharing of spectrum, or other modifications of the permitted uses of relevant frequency bands, may affect the utility and reliability of our products, which could materially adversely affect our business, financial condition and results of operations.
Our officers and directors exert substantial influence over us. As of January 23, 2025, members of our Board of Directors and our executive officers, together with their respective immediate family members and entities that may be deemed affiliates of or related to such persons or entities, beneficially owned approximately 19% of our outstanding shares.
As of December 27, 2025, members of our Board of Directors and our executive officers, together with their respective immediate family members and entities that may be deemed affiliates of or related to such persons or entities, beneficially owned approximately 15% of our outstanding shares.
There is uncertainty as to our shareholders’ ability to enforce certain foreign civil liabilities in Switzerland and Taiwan. We are a Swiss company and a substantial portion of our assets are located outside the United States, particularly in Taiwan. As a result, it may be difficult to effect service of process within the United States upon us.
We are a Swiss company and a substantial portion of our assets are located outside the United States, particularly in Taiwan. As a result, it may be difficult to effect service of process within the United States upon us.
Our products and services, or those of our OEM customers in which our products are installed, could be affected by design and manufacturing defects. There can be no assurance we will be able to detect and fix all issues and defects in our products and services, and may have limited ability to respond to those impacting our OEM customers.
There can be no assurance we will be able to detect and fix all issues and defects in our products and services, and may have limited ability to respond to those impacting our OEM customers.
Such failures or disruptions can materially adversely affect our business, reputation, results of operations, and financial condition through, among other things, a disruption of internal operations, including order processing, invoicing, and manufacturing and distribution of products, and a loss of functionality of critical systems and online services.
Failures or disruptions of our internal operations, our systems, the systems of our supply chain partners, or the systems of our business partners, which can include, among other things, order processing, invoicing, and manufacturing and distribution of products, and a loss of functionality of critical systems and online services, could materially adversely affect our business, financial condition and results of operations.
The People’s Republic of China, also referred to as the PRC, asserts sovereignty over all of China, including Taiwan, certain other islands, and all of mainland China. The PRC government does not recognize the legitimacy of the Taiwan government.
Our principal manufacturing facilities for consumer products are located in Taiwan. The People’s Republic of China, also referred to as the PRC, asserts sovereignty over all of China, including Taiwan, certain other islands, and all of mainland China. The PRC government does not recognize the legitimacy of the Taiwan government.
Some components we use are from sole source suppliers. 14 We have experienced and may in the future experience shortages of certain components as well as delays in procuring certain components. In addition, a shortage in supply of components may result in an increase of the costs of procuring these components.
We have experienced and expect to in the future experience shortages of certain components, as well as delays in procuring certain components. In addition, a shortage in supply of components may result in an increase of the costs of procuring these components.
We have made and expect to continue making significant investments in the auto OEM segment, the associated cost of which may negatively impact total company profits if auto OEM segment revenue significantly declines. We have been awarded several tier-one and tier-two auto OEM supplier contracts.
We have made and may continue making significant investments in the auto OEM segment, the associated cost of which may negatively impact total company profits. We have been awarded several tier-one and tier-two auto OEM supplier contracts. To fulfill the associated program commitments, we have invested significantly in facilities, research and development, and other operating expenses.
Our future quarterly operating results may fluctuate significantly. If such operating results decline, the price of our shares could decline. As we have expanded our operations, our operating expenses, particularly our research and development and information technology costs, have increased as a percentage of our sales in some periods.
Our operating results are difficult to predict and our future operating results may fluctuate significantly. As we have expanded our operations, our operating expenses, particularly our research and development and information technology costs, have increased as a percentage of our sales in some periods.
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. 23 Risks Relating to Ownership of Our Shares The volatility of our share price could adversely affect investment in our common shares.
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.
The loss of the services of any of our senior level management, or other key employees, could harm our business. If we do not correctly anticipate demand for our products, we may not be able to secure sufficient quantities or cost-effective production of our products or we could have costly excess production or inventories.
If we do not correctly anticipate demand for our products, we may not be able to secure sufficient quantities or cost-effective production of our products or we could have costly excess production or inventories.
We may not be able to identify suitable acquisition, investment or strategic partnership candidates, or if we do identify suitable candidates in the future, we may not be able to complete those transactions on commercially favorable terms, or at all.
We may not be able to identify suitable acquisition, investment or strategic partnership candidates, or if we do identify suitable candidates in the future, we may not be able to complete those transactions on commercially favorable terms, or at all, which could materially adversely affect our business, financial condition and results of operations.
Such infringement claims could also cause us to incur substantial liabilities and to suspend or permanently cease the use of critical technologies or processes or the production or sale of major products. 21 We have claims and lawsuits against us that may result in adverse outcomes. We are subject to a variety of claims and lawsuits.
Such infringement claims could also cause us to incur substantial liabilities and to suspend or permanently cease the use of critical technologies or processes or the production or sale of certain products, which could materially adversely affect our business, financial condition and results of operations. We have claims and lawsuits against us that may result in adverse outcomes.
In addition, in recent years the stock market in general and the markets for shares of technology companies in particular, have experienced extreme price fluctuations which have often been unrelated to the operating performance of affected companies. Any such fluctuations in the future could adversely affect the market price of our common shares.
In addition, from time to time the stock market in general and the markets for shares of technology companies in particular, experience extreme price fluctuations which have often been unrelated to the operating performance of affected companies.
If revenues decrease and we continue to increase operating expenses, our operating results would be negatively affected. Historically, our revenues have been lower in the first quarter of each fiscal year as many of our devices are highly consumer-oriented, and consumer buying is traditionally lower in this quarter. However, this can fluctuate based on the timing of new product launches.
If revenues decrease and we maintain or continue to increase operating expenses, our business, financial condition and results of operations could be materially adversely affected. Historically, our revenues have been lower in the first quarter of each fiscal year as many of our devices are highly consumer-oriented, and consumer buying is traditionally lower in this quarter.
A reduction in the number of operating satellites may impair the current utility of GPS and the growth of current and additional market opportunities. Furthermore, as GPS satellites and ground control segment facilities are being modernized, software updates can cause problems. We depend on public access to open technical specifications in advance of GPS updates.
Furthermore, as GPS satellites and ground control segment facilities are being modernized, software updates can cause problems. We depend on public access to open technical specifications in advance of GPS updates. GPS is operated by the U.S.
If we fail to adjust our product and service offerings to respond to new opportunities driven by changes in regulation and/or consumer preferences, it could have an adverse effect on our financial results.
If we fail to adjust our product and service offerings to respond to new opportunities driven by changes in regulation and/or consumer preferences, our business, financial condition and results of operations could be materially adversely affected.
Under the General Data Protection Regulation in the European Union, for example, potential penalties can be as high as 4% of a company’s total global revenue. Some of our products are subject to governmental regulation or certification.
Many of these laws provide for significant penalties. Under the General Data Protection Regulation in the European Union, for example, potential penalties can be as high as 4% of a company’s total global revenue.
Lower than forecasted demand could also result in excess manufacturing capacity or reduced manufacturing efficiencies at our facilities, which could result in lower margins. Our products and services may be affected by design and manufacturing defects that could materially adversely affect our business, financial condition, and results of operations.
Lower than forecasted demand could also result in excess manufacturing capacity or reduced manufacturing efficiencies at our facilities, which could result in lower profit margins. These events, or others related to inaccurately anticipating demand, could materially adversely affect our business, financial condition and results of operations.
This authorization must be renewed at a shareholders’ meeting every year for it to continue to be available. Additionally, subject to specified exceptions, including the exceptions described in our articles of association, Swiss law grants preemptive rights to existing shareholders to subscribe for new issuances of shares and other securities.
For example, subject to specified exceptions, including the exceptions described in our articles of association, Swiss law grants preemptive rights to existing shareholders to subscribe for new issuances of shares and other securities.
The United States Tax Cuts and Jobs Act (the “2017 Act”) signed on December 22, 2017 may have changed the consequences to U.S. shareholders that own, or are considered to own, as a result of the attribution rules, ten percent or more of the voting power or value of the stock of a non-U.S. corporation (a 10% U.S. shareholder) under the U.S. federal income tax law applicable to owners of U.S. controlled foreign corporations (“CFCs”).
U.S. shareholders that own, or as a result of attribution rules are considered to own, ten percent or more of the voting power or value of the stock of a non-U.S. corporation (a “10% U.S. Shareholder”) may face adverse consequences as a result of U.S. federal income tax law applicable to owners of controlled foreign corporations (“CFCs”).
Many of our products rely on the Global Positioning System and other satellite systems. The Global Positioning System (GPS) is a satellite-based navigation and positioning system consisting of a constellation of orbiting satellites. The satellites and their ground control and monitoring stations are maintained and operated by the United States Department of Defense.
GPS is a satellite-based navigation and positioning system consisting of a constellation of orbiting satellites. The satellites and their ground control and monitoring stations are maintained and operated by the United States Department of Defense. The Department of Defense does not currently charge users for access to the satellite signals.
Our failure to compete successfully against current or future competitors could materially adversely affect our business, financial condition and results of operations. We may experience unique economic and political risks associated with companies that operate in Taiwan. Our principal manufacturing facilities for consumer products are located in Taiwan.
Increased competition could result in price reductions, fewer customer orders, reduced margins and loss of market share. Our failure to compete successfully against current or future competitors could materially adversely affect our business, financial condition and results of operations. 14 We may experience unique economic and political risks associated with companies that operate in Taiwan.
The Department of Defense does not currently charge users for access to the satellite signals. These satellites and their ground support systems are complex electronic systems subject to electronic and mechanical failures and possible sabotage. GPS satellites have a limited lifespan and are subject to damage by the hostile space environment in which they operate. The U.S.
These satellites and their ground support systems are complex electronic systems subject to electronic and mechanical failures and possible sabotage. GPS satellites have a limited lifespan and are subject to damage by the hostile space environment in which they operate. The U.S. Space Force and Missile Systems Center continue to launch new satellites to replace retired and aged satellites.
This may be the result without regard to whether 10% U.S. shareholders together own, directly or indirectly, more than fifty percent of the voting power or value of the Company as was the case under prior rules. Additional tax consequences to 10% U.S. shareholders of a CFC may result from other provisions of the 2017 Act.
Shareholders together own, directly or indirectly, more than fifty percent of the voting power or value of the Company. Additional tax consequences to 10% U.S. Shareholders of a CFC may result from other provisions of the 2017 Act. For example, the 2017 Act added Section 951A to the Internal Revenue Code, which requires a 10% U.S.
Garmin’s products sold in Europe are required to comply with relevant directives of the European Commission. A delay in receiving required certifications for new products, or enhancements to Garmin’s products, or losing certification for Garmin’s existing products could adversely affect our business, financial condition and results of operations.
A delay in receiving required certifications for new products, or enhancements to Garmin’s products, or losing certification for Garmin’s existing products could materially adversely affect our business, financial condition and results of operations. Financial Risks Our results of operations and financial condition are subject to fluctuations in foreign currency translation. The movement of foreign currencies relative to the U.S.
GPS is operated by the U.S. Government, which is currently committed to maintenance and improvement of GPS; however, if the policy were to change, and commercial access to GPS was no longer supported by the U.S.
Government, which is currently committed to maintenance and improvement of GPS; however, if the policy were to change, and commercial access to GPS was no longer supported by the U.S. Government, or if user fees or other restrictions were imposed, our business, financial condition and results of operations could be materially adversely affected.
Furthermore, even with appropriate training conducted in support of such measures, human errors and omissions may still occur resulting in system failures and/or disruptions to our information technology infrastructure. Therefore, the Company’s business continuity and disaster recovery planning, or those of others in our global supply chain, may not be able to sufficiently mitigate all threats.
Furthermore, even with appropriate training conducted in support of such measures, human errors and omissions may still occur resulting in system failures and/or disruptions to our information technology infrastructure.
Space Force and Missile Systems Center continue to launch new satellites to replace retired and aged satellites. Despite ongoing efforts to repair, maintain and replace non-operational satellites, if a significant number of satellites were to become inoperable, there could be a substantial delay before they are replaced with new satellites.
Despite ongoing efforts to repair, maintain and replace non-operational satellites, if a significant number of satellites were to become inoperable, there could be a substantial delay before they are replaced with new satellites. A reduction in the number of operating satellites may impair the current utility of GPS and the growth of current and additional market opportunities.
Because it is uncertain what laws and regulations will be enacted, we cannot predict the potential impact of such laws and regulations on our future consolidated financial condition, results of operations or cash flows. We rely on independent dealers and distributors to sell our products, and disruption to these channels would harm our business.
Because it is uncertain what laws and regulations will be enacted, we cannot predict the potential impact of such laws and regulations on our future consolidated financial condition, results of operations or cash flows. Enactment of additional laws and regulations directed at climate change policy could materially adversely affect our business, financial condition and results of operations.
Because we sell many of our products to independent dealers and distributors, we are subject to many risks, including risks related to their inventory levels and support for our products. If dealers and distributors attempt to reduce their levels of inventory or if they do not maintain sufficient levels to meet customer demand, our sales could be negatively impacted.
These distribution channel-related risks could materially adversely affect our business, financial condition and results of operations. Our sales could be negatively impacted if dealers and distributors attempt to reduce their levels of inventory or if they do not maintain sufficient levels to meet customer demand. Many of our dealers and distributors also sell products offered by our competitors.
Financial Risks Our results of operations and financial condition are subject to fluctuations in foreign currency translation. The movement of foreign currencies relative to the U.S. Dollar affects the U.S. Dollar value of our foreign currency-denominated sales. The weakening of foreign currencies relative to the U.S.
Dollar affects the U.S. Dollar value of our foreign currency-denominated sales. The weakening of foreign currencies relative to the U.S.
Those tariffs and duties are based on the classifications of those products, which are routinely subject to review by the customs authorities. We are unable to predict whether those authorities will change the determination of the classifications of any of our products. Any such changes could result in additional tariffs, duties, or other restrictions on the importation of our products.
Additionally, some tariffs and duties are based on the classifications of the goods imported, which are routinely subject to review by customs authorities. We are unable to predict whether those authorities will challenge the classifications of any of our imports.
However, there can be no assurance that we will be able to obtain any such yield improvements or cost reductions or introduce any such new products in the future.
However, there can be no assurance that we will be able to obtain any such yield improvements or cost reductions or introduce any such new products in the future. Additionally, costs of components, including memory chips, have fluctuated and may continue to in the future due to factors such as supply constraints or global shortages.
Accordingly, these shareholders may be able to determine the outcome of corporate actions requiring shareholder approval, such as mergers and acquisitions and shareholder proposals.
Accordingly, these shareholders, if acting together or with other shareholders owning a significant amount of our outstanding shares, may be able to significantly influence the outcome of corporate actions requiring shareholder approval, such as mergers and acquisitions and shareholder proposals.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeManagement’s Role Managing Risk and Monitoring Incidents Garmin's head of cybersecurity , who has over 30 years of relevant cybersecurity experience, oversees the Company’s cybersecurity risk management program and is responsible for assessing and managing the Company’s material risks from cybersecurity threats.
Biggest changeGarmin’s Chief Executive Officer and head of cybersecurity also have discussions with members of the Board of Directors on an ad hoc basis as appropriate if and when a specific cybersecurity risk arises. 28 Management’s Role Managing Risk and Monitoring Incidents Garmin’ s Vice President of Information Technology , who oversees the Company ’ s cybersecurity risk management program and has over 30 years of relevant cybersecurity experience, is responsible for assessing and managing the Company’s material risks from cybersecurity threats.
The results of related risk assessments are used to prioritize the risks based on their potential impact to the Company and to inform the necessary actions and the appropriate functions to be involved in responding to those risks. Garmin’s cybersecurity risk management processes are integrated into the Company’s overall risk management processes.
The results of related risk assessments are used to prioritize the risks based on their likelihood and potential impact to the Company and to inform the necessary actions and the appropriate functions to be involved in responding to those risks. Garmin’s cybersecurity risk management processes are integrated into the Company’s overall risk management processes.
If the cybersecurity team detects a potentially significant cybersecurity incident it is escalated promptly to the Company’s head of cybersecurity, who then activates the Company’s incident response plan and convenes the incident response team, which includes leaders of the Company’s Legal, Finance, Operations, Communications, Risk Assurance, and other departments and executive leadership as appropriate.
If the cybersecurity team detects a potentially significant cybersecurity incident it is escalated promptly to the Company’ s head of cybersecurity, who then activates the Company’s incident response plan and convenes the incident response team, which includes leaders of the Company’s legal, finance, operations, communications, risk assurance, and other departments and executive leadership as appropriate.
Management does not believe our business strategy, results of operations, or financial condition have been materially affected by risks from cybersecurity threats, but we cannot provide assurance that they will not be materially affected in the future by such risks.
Management does not believe our business strategy, results of operations, or financial condition have been materially affected by risks from cybersecurity threats, but the Company cannot provide assurance that they will not be materially affected in the future by such risks.
Risks Related to Third-party Service Providers Garmin operates a third-party risk management program, which is aligned to NIST principles, to oversee and identify material risks from cybersecurity threats, undertake appropriate remediation, and establish and maintain compensating controls when appropriate. We conduct cybersecurity assessments of third-party service providers that will process personal, confidential, or proprietary information.
Risks Related to Third-party Service Providers Garmin operates a third-party risk management program, which is aligned to NIST principles, to oversee and identify material risks from cybersecurity threats, undertake appropriate remediation, and establish and maintain compensating controls when appropriate. Garmin conducts cybersecurity assessments of third-party service providers that will process personal, confidential, or proprietary information.
The Chief Executive Officer will inform the Company’s Board of Directors of any material cybersecurity incidents. 27
The Chief Executive Officer will inform the Company’s Board of Directors of any material cybersecurity incidents.
Risks from Cybersecurity Threats While the Company has technology and processes in place designed to detect and respond to cybersecurity threats, we are continually at risk from the evolving cybersecurity threat landscape.
Risks from Cybersecurity Threats While the Company has technology and processes in place designed to detect and respond to cybersecurity threats, the Company is continually at risk from the evolving cybersecurity threat landscape.
Garmin’s head of cybersecurity regularly meets with the Company’s senior management, including the Chief Executive Officer, to discuss the Company’s cybersecurity practices, risks, risk mitigation strategies, and whether further investments in internal or external cybersecurity resources are warranted.
Garmin’s Vice President of Information Technology regularly meets with the Company’s senior management, including the Chief Executive Officer, to discuss the Company’s cybersecurity practices, risks, risk mitigation strategies, and whether further investments in internal or external cybersecurity resources are warranted.
Before proceeding with any such third-party service provider, we require them to remediate or mitigate any material findings from our cybersecurity assessment and to agree contractually to maintain acceptable cybersecurity practices throughout the duration of their service to Garmin and after for so long as they retain any personal, confidential, or proprietary information, and to promptly notify Garmin of any cybersecurity incidents that impact Garmin.
Before proceeding with any such third-party service provider, Garmin requires providers to remediate or mitigate any material findings from the Company ’s cybersecurity assessment and to agree contractually to maintain acceptable cybersecurity practices throughout the duration of their service to Garmin and after for so long as they retain any personal, confidential, or proprietary information, and to promptly notify Garmin of any cybersecurity incidents that impact Garmin.
The management of our information system platforms and the related cybersecurity is tightly integrated with Garmin's product development and technology management teams. Cybersecurity risks are identified, reported, and managed by the Company’s in-house cybersecurity experts as well as third-party providers of penetration test reporting, cyber-threat intelligence, and incident forensics services.
Garmin’s management of information system platforms and the related cybersecurity infrastructure is tightly integrated with the Company’ s product development and technology management teams. Cybersecurity risks are identified, reported, and managed by the Company’s in-house cybersecurity experts as well as third-party providers of penetration testing, cyber-threat intelligence, and incident forensics services.
Material Risk Assessment The Company evaluates material risks from cybersecurity threats in terms of the potential impact on technology, information, data, and business operations, taking into account applicable laws and regulations, and with a focus on protecting the confidentiality, integrity, and availability of information, data and systems.
Notable changes to the Company’s operating environment are scrutinized to ensure the confidentiality, integrity, and availability of the Company’s information systems. 27 Material Risk Assessment The Company evaluates material risks from cybersecurity threats in terms of the likelihood and potential impact on technology, information, data, and business operations, taking into account applicable laws and regulations, and with a focus on protecting the confidentiality, integrity, and availability of information, data and systems.
These processes occur during the procurement, development, integration, modification, operation, and maintenance of the Company’s information systems and the integration with or introduction, purchase, acquisition, or renewal of any third-party information systems and services. Notable changes to the Company’s operating environment are scrutinized to ensure the confidentiality, integrity, and availability of the Company's information systems.
These processes occur during the procurement, development, integration, modification, operation, and maintenance of the Company’s information systems and the integration with or introduction, purchase, acquisition, or renewal of any third-party information systems and services.
Additional assessments to evaluate residual risk are performed when there are changes to controls that have the potential to create a material risk.
Additional assessments to evaluate residual risk are performed when there are changes to controls that have the potential to create a material risk. Risk assessments also include appropriate considerations for regulatory and contractual requirements, and involve the Company’s legal, data privacy, finance, and risk assurance functions as applicable.
Risk assessments also include appropriate considerations for regulatory and contractual requirements, and involve the Company’s legal, data privacy, finance, and risk assurance functions as applicable. 26 Material Risk Management The Company continually analyzes and responds to material risks from cybersecurity threats in order to manage them to acceptable levels.
Material Risk Management The Company continually analyzes and responds to material risks from cybersecurity threats in order to manage them to acceptable levels.
Removed
Garmin’s Chief Executive Officer and head of cybersecurity also have discussions with members of the Board of Directors on an ad hoc basis as appropriate if and when a specific cybersecurity risk arises.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThese properties are considered principal properties due to the nature of the business activities carried out at each location. Garmin also owns and leases additional properties for office, design, distribution, service, manufacturing, retail, warehousing and other purposes throughout the U.S. and in various places outside the U.S.
Biggest changeThese properties are considered principal properties due to the nature of the business activities carried out at each location. Garmin also owns and leases additional properties for office space, manufacturing, warehousing and distribution, research and development, retail, service, and other purposes throughout the U.S. and in various places outside the U.S.
Item 2. P roperties Garmin and its subsidiaries own and lease physical properties around the world. Depending on location, the properties could be used for manufacturing, warehousing, research and development, office space, retail, or a combination of activities.
Item 2. P roperties Garmin and its subsidiaries own and lease physical properties around the world. Depending on location, the properties could be used for manufacturing, warehousing and distribution, research and development, office space, retail, service or a combination of activities.
Principal properties of Garmin include approximately 2,244,000 square feet of owned facilities located in Olathe, Kansas, approximately 255,000 square feet of owned and leased facilities located across various locations in the United Kingdom, approximately 319,000 square feet of leased facilities located in Wroclaw, Poland, and approximately 1,847,000 square feet of owned facilities located across various locations in Taiwan.
Principal properties of Garmin include approximately 2,244,000 square feet of owned facilities located in Olathe, Kansas (U.S.), approximately 255,000 square feet of owned and leased facilities located across various locations in the United Kingdom, approximately 319,000 square feet of leased facilities located in Wroclaw, Poland, and approximately 1,847,000 square feet of owned facilities located across various locations in Taiwan.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe Company settled or resolved certain matters during the fiscal year ended December 28, 2024 that did not individually or in the aggregate have a material impact on the Company’s financial condition or results of operations.
Biggest changeThe Company settled or resolved certain matters during the fiscal year ended December 27, 2025 that did not individually or in the aggregate have a material impact on the Company’s financial condition or results of operations.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

15 edited+0 added−1 removed2 unchanged
Biggest changeSince joining Garmin in August of 2006 as a Senior Staff Attorney, he has held various other positions, including Associate General Counsel-Corporate. Mr. Maxfield also serves as a director and officer of various Garmin subsidiaries. Danny J. Bartel has served as Vice President, Worldwide Sales of Garmin International, Inc. since October 2006.
Biggest changeMaxfield has served as Vice President and General Counsel of Garmin Ltd. since July 2024 and has also served as Secretary of Garmin Ltd. since August 2025. Since joining Garmin in August of 2006 as a Senior Staff Attorney, he has held various other positions, including Associate General Counsel-Corporate and Assistant Secretary. Mr.
Wang also serves as a director and officer of various other Garmin subsidiaries. 29 All executive officers are elected or appointed annually and hold office until their successors are chosen and qualify or until their removal or resignation.
Wang also serves as a director and officer of various other Garmin subsidiaries. All executive officers are elected or appointed annually and hold office until their successors are chosen and qualify or until their removal or resignation.
Kao is one of Garmin’s co-founders and previously served as Chairman from August 2004 to December 2012 and Co-Chairman from August 2000 to August 2004. He served as Chief Executive Officer from August 2002 to December 2012 and as Co-Chief Executive Officer from August 2000 to August 2002. 28 Clifton A.
Kao is one of Garmin’s co-founders and previously served as Chairman from August 2004 to December 2012 and Co-Chairman from August 2000 to August 2004. He served as Chief Executive Officer from August 2002 to December 2012 and as Co-Chief Executive Officer from August 2000 to August 2002. Clifton A.
There are no arrangements or understandings between the executive officers and any other person pursuant to which he or she was or is to be selected as an officer. There is no family relationship among any of the executive officers. 30 PART II
There are no arrangements or understandings between the executive officers and any other person pursuant to which he or she was or is to be selected as an officer. There is no family relationship among any of the executive officers. 31 PART II
Pemble also serves as a director and officer of various Garmin subsidiaries. Douglas G. Boessen has served as Chief Financial Officer and Treasurer of Garmin Ltd. since joining Garmin in July 2014. Mr. Boessen also serves as a director and officer of various Garmin subsidiaries. Patrick G. Desbois has served as co-Chief Operating Officer of Garmin Ltd. since July 2024.
Pemble also serves as a director and officer of various Garmin subsidiaries. Douglas G. Boessen has served as Chief Financial Officer and Treasurer of Garmin Ltd. since July 2014. Mr. Boessen also serves as a director and officer of various Garmin subsidiaries. Patrick G. Desbois has served as co-Chief Operating Officer of Garmin Ltd. since July 2024.
Wang Cheng-Wei has served as General Manager of Garmin Corporation, a principal subsidiary of Garmin Ltd., since April 2019. Since joining Garmin in July 1992, he has served in various other positions, including as a Supervisor, Manager, Director and Assistant General Manager of Garmin Corporation. Mr.
Straub also serves as a director and officer of various other Garmin subsidiaries. Wang Cheng-Wei has served as General Manager of Garmin Corporation, a principal subsidiary of Garmin Ltd., since April 2019. Since joining Garmin in July 1992, he has served in various other positions, including as a Supervisor, Manager, Director and Assistant General Manager of Garmin Corporation. Mr.
Biddlecombe has served as Managing Director, EMEA for Garmin (Europe) Ltd., a principal subsidiary of Garmin Ltd., since February 2011. He joined Garmin in February 1994 as General Manager of Garmin (Europe) Ltd. Mr. Biddlecombe also serves as a director and officer of various other Garmin subsidiaries. Edward J.
Maxfield also serves as a director and officer of various Garmin subsidiaries. Sean M. Biddlecombe has served as Managing Director, EMEA for Garmin (Europe) Ltd., a principal subsidiary of Garmin Ltd., since February 2011. He joined Garmin in February 1994 as General Manager of Garmin (Europe) Ltd. Mr.
Since joining Garmin in 2002 as a Software Engineer, he has held various leadership positions at the Company, including Vice President, Outdoor Segment of Garmin International, Inc. Mr. Trenkle also serves as a director and officer of various Garmin subsidiaries. Joshua H. Maxfield has served as Vice President, General Counsel and Assistant Secretary of Garmin Ltd. since July 2024.
Since joining Garmin in 2002 as a Software Engineer, he has held various leadership positions at the Company, including Vice President, Outdoor Segment of Garmin International, Inc. Mr. Trenkle also serves as a director and officer of various Garmin subsidiaries. Joshua H.
Since joining Garmin in March 1996, she has held the positions of Human Resources Specialist and Director, Human Resources. Matthew W. Munn has served as Executive Vice President, Managing Director – Auto OEM of Garmin International, Inc. since July 2024. He joined Garmin in May 2011 as Vice President, Managing Director – Auto OEM. Philip I.
Minard has served as Vice President, Human Resources of Garmin International, Inc. since July 2007. Since joining Garmin in March 1996, she has held the positions of Human Resources Specialist and Director, Human Resources. Matthew W. Munn has served as Executive Vice President, Managing Director – Auto OEM of Garmin International, Inc. since July 2024.
Item 4. Mine Sa fety Disclosure Not applicable. Information about our Executive Officers Garmin’s executive officers as of February 19, 2025 were as follows: Name Office Age Dr. Min H. Kao Executive Chairman 76 Clifton A. Pemble President and Chief Executive Officer 59 Douglas G. Boessen Chief Financial Officer and Treasurer 62 Patrick G.
Item 4. Mine Sa fety Disclosure Not applicable. 29 Information about our Executive Officers Garmin’s executive officers as of February 18, 2026 were as follows: Name Office Age Dr. Min H. Kao Executive Chairman 77 Clifton A. Pemble President and Chief Executive Officer 60 Douglas G. Boessen Chief Financial Officer and Treasurer 63 Patrick G.
Since rejoining Garmin in 2010, she has held the positions of Product Manager, Team Leader Marketing and Director Marketing. Ms. Lyman previously worked for Garmin as a Marketing Manager from 1996 to 1999. Laurie A. Minard has served as Vice President, Human Resources of Garmin International, Inc. since July 2007.
Lyman has served as Vice President, Global Consumer Sales and Marketing of Garmin International, Inc. since March 2025. Since rejoining Garmin in 2010, she has held the positions of Product Manager, Team Leader Marketing, Director Marketing, and Vice President, Global Consumer Marketing. Ms. Lyman previously worked for Garmin as a Marketing Manager from 1996 to 1999. 30 Laurie A.
Straub has served as Executive Vice President, Managing Director - Aviation of Garmin International, Inc. since February 2017. Since joining Garmin in July 1993 as a Software Engineer, he has held various other positions, including Director of Engineering and Software Engineering Manager. Mr. Straub also serves as a director and officer of various other Garmin subsidiaries.
He joined Garmin in May 2011 as Vice President, Managing Director – Auto OEM. Philip I. Straub has served as Executive Vice President, Managing Director - Aviation of Garmin International, Inc. since February 2017. Since joining Garmin in July 1993 as a Software Engineer, he has held various other positions, including Director of Engineering and Software Engineering Manager. Mr.
Minard Vice President, Human Resources 58 Matthew W. Munn Executive Vice President, Managing Director – Auto OEM 63 Philip I. Straub Executive Vice President, Managing Director – Aviation 54 Wang Cheng-Wei General Manager, Garmin Corporation 60 Dr. Min H. Kao has served as Executive Chairman of Garmin Ltd. since January 2013. Dr.
Munn Executive Vice President, Managing Director – Auto OEM 64 Philip I. Straub Executive Vice President, Managing Director – Aviation 55 Wang Cheng-Wei General Manager, Garmin Corporation 61 Dr. Min H. Kao has served as Executive Chairman of Garmin Ltd. since January 2013. Dr.
Desbois Co-Chief Operating Officer 56 Bradley C. Trenkle Co-Chief Operating Officer 45 Joshua H. Maxfield Vice President, General Counsel and Assistant Secretary 52 Danny J. Bartel Vice President, Global Consumer Sales 75 Sean M. Biddlecombe Managing Director, EMEA 60 Edward J. Link Vice President, Information Technology 62 Susan C. Lyman Vice President, Global Consumer Marketing 59 Laurie A.
Desbois Co-Chief Operating Officer 57 Bradley C. Trenkle Co-Chief Operating Officer 46 Joshua H. Maxfield Vice President, General Counsel and Secretary 53 Sean M. Biddlecombe Managing Director, EMEA 61 Edward J. Link Vice President, Information Technology 63 Susan C. Lyman Vice President, Global Consumer Sales and Marketing 60 Laurie A. Minard Vice President, Human Resources 59 Matthew W.
Link has served as Vice President, Information Technology of Garmin International, Inc. since July of 2007. He joined Garmin in December of 2006 as Director, Information Technology. Susan C. Lyman has served as Vice President, Global Consumer Marketing of Garmin International, Inc. since June 2016.
Biddlecombe also serves as a director and officer of various other Garmin subsidiaries. Edward J. Link has served as Vice President, Information Technology of Garmin International, Inc. since July of 2007. He joined Garmin in December of 2006 as Director, Information Technology. Susan C.
Removed
Since joining Garmin as a Sales Manager in November 1992, he has held various other positions, including Senior Director Worldwide Sales, Director Consumer Sales and Director International Marketing. Mr. Bartel also serves as a director and officer of various other Garmin subsidiaries. Sean M.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIssuer Purchases of Equity Securities Share repurchase activity during the 13-week period ended December 28, 2024, summarized on a trade-date basis, was as follows (in thousands, except per share amounts): Period Total Number of Shares Purchased (1) Average Price Paid Per Share (2) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program September 29, 2024 - October 26, 2024 112 $ 165.82 112 $ 251,610 October 27, 2024 - November 23, 2024 24 $ 189.96 24 $ 247,051 November 24, 2024 - December 28, 2024 46 $ 213.44 46 $ 237,233 Total 182 182 (1) The Board of Directors approved a share repurchase program on February 16, 2024 (the "2024 Program"), which was announced on February 21, 2024.
Biggest changeIssuer Purchases of Equity Securities Share repurchase activity during the 13-week period ended December 27, 2025, summarized on a trade-date basis, was as follows (in thousands, except per share amounts): Period Total Number of Shares Purchased (1) Average Price Paid Per Share (2) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (3) September 28, 2025 - October 25, 2025 50 $ 252.15 50 $ 94,297 October 26, 2025 - November 22, 2025 60 $ 197.63 60 $ 82,439 November 23, 2025 - December 27, 2025 134 $ 200.31 134 $ 55,698 Total 244 244 (1) The Board of Directors approved a share repurchase program on February 16, 2024 (the “2024 Program”), which was announced on February 21, 2024.
See Note 8 of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for additional information related to share repurchases . (2) Average price paid per share includes costs associated with the repurchases, except for the cost of any associated excise tax .
See Note 8 – Stockholders' Equity of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for additional information related to share repurchases . (2) Average price paid per share includes costs associated with the repurchases, except for the cost of any associated excise tax .
For additional information, see the risk factor in Part I, Item 1A, of this Annual Report on Form 10-K entitled "We have limited capital reserves from which to make distributions without subjecting our shareholders to Switzerland withholding tax." 31 Stock Performance Graph This performance graph shall not be deemed ‘‘filed’’ with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any of our filings under the Securities Act of 1933, as amended.
For additional information, see the risk factor in Part I, Item 1A, of this Annual Report on Form 10-K entitled “We have limited capital reserves from which to make distributions without subjecting our shareholders to Switzerland withholding tax.” Stock Performance Graph This performance graph shall not be deemed ‘‘filed’’ with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any of our filings under the Securities Act of 1933, as amended.
Item 5. Market for the Company’s Common Shares, Related Sha reholder Matters and Issuer Purchases of Equity Securities Since December 7, 2021, Garmin’s shares have traded on the New York Stock Exchange under the symbol "GRMN".
Item 5. Market for the Company’s Common Shares, Related Sha reholder Matters and Issuer Purchases of Equity Securities Since December 7, 2021, Garmin’s shares have traded on the New York Stock Exchange under the symbol “GRMN”.
We refer you to Item 12 of this report under the caption “Equity Compensation Plan Information” for certain equity plan information required to be disclosed by Item 201(d) of Regulation S-K.
Refer to Item 12 of this report under the caption “Equity Compensation Plan Information” for certain equity plan information required to be disclosed by Item 201(d) of Regulation S-K.
Dividends Future dividends on our common shares, if any, must be approved by our shareholders. In exercising their discretion to recommend to the shareholders that such dividends be approved, our Board of Directors will consider our financial condition, results of operations, cash requirements and surplus, statutory requirements of applicable law, contractual restrictions, and other factors that they may deem relevant.
In exercising their discretion to recommend to the shareholders that such dividends be approved, our Board of Directors will consider our financial condition, results of operations, cash requirements and surplus, statutory requirements of applicable law, contractual restrictions, and other factors that they may deem relevant.
Prior to December 7, 2021, Garmin's shares were traded on The Nasdaq Stock Market, LLC under the symbol “GRMN” since its initial public offering on December 8, 2000 (the “IPO”). As of January 31, 2025, there were 297 shareholders of record.
Prior to December 7, 2021, Garmin’s shares were traded on The Nasdaq Stock Market, LLC under the symbol “GRMN” since its initial public offering on December 8, 2000. As of January 30, 2026, there were 300 shareholders of record.
The 2024 Program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. The 2024 Program expires on December 26, 2026.
The 2026 Program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. 32 Dividends Future dividends on our common shares, if any, must be approved by our shareholders.
The graph tracks the performance of a $100 investment in our common shares and in each index (with the reinvestment of all dividends) from December 28, 2019 (“12/28/19”) to December 28, 2024 (“12/28/24”). 12/28/19 12/26/20 12/25/21 12/31/22 12/30/23 12/28/24 Garmin Ltd. 100.00 125.14 142.59 100.81 144.25 239.08 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 S&P 500 Consumer Discretionary 100.00 133.30 165.87 104.45 148.74 193.57 The share price performance included in this graph is not necessarily indicative of future share price performance.
The graph tracks the performance of a $100 investment in our common shares and in each index (with the reinvestment of all dividends) from December 26, 2020 (“12/26/20”) to December 27, 2025 (“12/27/25”). 12/26/20 12/25/21 12/31/22 12/30/23 12/28/24 12/27/25 Garmin Ltd. 100.00 113.95 80.56 115.27 191.05 190.56 S&P 500 100.00 128.71 105.40 133.10 166.40 196.16 S&P 500 Consumer Discretionary 100.00 124.43 78.35 111.58 145.21 153.99 The share price performance included in this graph is not necessarily indicative of future share price performance.
Added
The 2024 Program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. The 2024 Program, which had an initial expiration date of December 26, 2026, is scheduled to be earlier terminated on February 19, 2026 and replaced with a new share repurchase program effective beginning on February 20, 2026.
Added
(3) The Board of Directors approved a new share repurchase program on February 13, 2026 (the “2026 Program”), which was announced on February 18, 2026, to replace the 2024 Program.
Added
The 2026 Program, which will be effective beginning on February 20, 2026, is scheduled to expire on December 30, 2028 and a uthorizes the Company to purchase up to $500 million of its common shares.
Added
Share repurchases may be made in the open market or in privately negotiated transactions, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and volume of share repurchases are subject to market conditions, business conditions and applicable laws, and are at management’s discretion.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

51 edited+8 added−9 removed18 unchanged
Biggest changeFor each line item in the table below, the total of the reportable segments’ amounts equals the amount in the consolidated statements of income. 35 52-Weeks Ended December 28, 2024 Fitness Outdoor Aviation Marine Auto OEM Net sales $ 1,774,487 $ 1,961,990 $ 876,614 $ 1,073,192 $ 610,620 Cost of goods sold 742,480 655,585 220,105 479,065 503,113 Gross profit 1,032,007 1,306,405 656,509 594,127 107,507 Total operating expenses 549,335 603,675 445,142 358,117 146,292 Operating income (loss) $ 482,672 $ 702,730 $ 211,367 $ 236,010 $ (38,785 ) 52-Weeks Ended December 30, 2023 Fitness Outdoor Aviation Marine Auto OEM Net sales $ 1,344,637 $ 1,697,151 $ 846,329 $ 916,911 $ 423,224 Cost of goods sold 627,731 624,290 220,341 425,650 325,285 Gross profit 716,906 1,072,861 625,988 491,261 97,939 Total operating expenses 484,705 557,607 399,588 311,832 159,063 Operating income (loss) $ 232,201 $ 515,254 $ 226,400 $ 179,429 $ (61,124 ) 53-Weeks Ended December 31, 2022 Fitness Outdoor Aviation Marine Auto OEM Net sales $ 1,109,419 $ 1,770,275 $ 792,799 $ 903,983 $ 283,810 Cost of goods sold 557,002 670,867 219,736 412,526 193,380 Gross profit 552,417 1,099,408 573,063 491,457 90,430 Total operating expenses 447,679 526,127 359,877 276,153 169,094 Operating income (loss) $ 104,738 $ 573,281 $ 213,186 $ 215,304 $ (78,664 ) Net Sales Net Sales 52-Weeks Ended December 28, 2024 Year-over-Year Change 52-Weeks Ended December 30, 2023 Year-over-Year Change 53-Weeks Ended December 31, 2022 Fitness $ 1,774,487 32 % $ 1,344,637 21 % $ 1,109,419 Percentage of Total Net Sales 28 % 26 % 23 % Outdoor 1,961,990 16 % 1,697,151 (4 %) 1,770,275 Percentage of Total Net Sales 31 % 32 % 36 % Aviation 876,614 4 % 846,329 7 % 792,799 Percentage of Total Net Sales 14 % 16 % 16 % Marine 1,073,192 17 % 916,911 1 % 903,983 Percentage of Total Net Sales 17 % 18 % 19 % Auto OEM 610,620 44 % 423,224 49 % 283,810 Percentage of Total Net Sales 10 % 8 % 6 % Total $ 6,296,903 20 % $ 5,228,252 8 % $ 4,860,286 Net sales increased 20% in fiscal year 2024 when compared to the year-ago period.
Biggest changeFor each line item in the table below, the total of the reportable segments’ amounts equals the amount in the accompanying consolidated statements of income. 36 52-Weeks Ended December 27, 2025 Fitness Outdoor Aviation Marine Auto OEM Net sales $ 2,357,000 $ 2,054,061 $ 987,161 $ 1,182,615 $ 664,682 Cost of goods sold 954,415 702,831 245,654 532,708 553,608 Gross profit 1,402,585 1,351,230 741,507 649,907 111,074 Total operating expenses 676,704 660,878 484,280 398,657 159,708 Operating income (loss) $ 725,881 $ 690,352 $ 257,227 $ 251,250 $ (48,634 ) 52-Weeks Ended December 28, 2024 Fitness Outdoor Aviation Marine Auto OEM Net sales $ 1,774,487 $ 1,961,990 $ 876,614 $ 1,073,192 $ 610,620 Cost of goods sold 742,480 655,585 220,105 479,065 503,113 Gross profit 1,032,007 1,306,405 656,509 594,127 107,507 Total operating expenses 549,335 603,675 445,142 358,117 146,292 Operating income (loss) $ 482,672 $ 702,730 $ 211,367 $ 236,010 $ (38,785 ) 52-Weeks Ended December 30, 2023 Fitness Outdoor Aviation Marine Auto OEM Net sales $ 1,344,637 $ 1,697,151 $ 846,329 $ 916,911 $ 423,224 Cost of goods sold 627,731 624,290 220,341 425,650 325,285 Gross profit 716,906 1,072,861 625,988 491,261 97,939 Total operating expenses 484,705 557,607 399,588 311,832 159,063 Operating income (loss) $ 232,201 $ 515,254 $ 226,400 $ 179,429 $ (61,124 ) Net Sales Net Sales 52-Weeks Ended December 27, 2025 Year-over-Year Change 52-Weeks Ended December 28, 2024 Year-over-Year Change 52-Weeks Ended December 30, 2023 Fitness $ 2,357,000 33 % $ 1,774,487 32 % $ 1,344,637 Percentage of Total Net Sales 33 % 28 % 26 % Outdoor 2,054,061 5 % 1,961,990 16 % 1,697,151 Percentage of Total Net Sales 28 % 31 % 32 % Aviation 987,161 13 % 876,614 4 % 846,329 Percentage of Total Net Sales 14 % 14 % 16 % Marine 1,182,615 10 % 1,073,192 17 % 916,911 Percentage of Total Net Sales 16 % 17 % 18 % Auto OEM 664,682 9 % 610,620 44 % 423,224 Percentage of Total Net Sales 9 % 10 % 8 % Total $ 7,245,519 15 % $ 6,296,903 20 % $ 5,228,252 Net sales increased 15% in fiscal year 2025 when compared to the year-ago period.
Management invests idle or surplus cash in accordance with the investment policy, which has been approved by the Company’s Board of Directors. The investment policy’s primary objectives are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk.
Management invests idle or surplus cash in accordance with the Company’s investment policy, which has been approved by Garmin’s Board of Directors. The investment policy’s primary objectives are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk.
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. 34 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.
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.
Other Uses of Cash Net cash outlays for income taxes exceeded income tax expense in each of the 2024, 2023, and 2022 fiscal years, partially due to the provisions of the 2017 United States Tax Cuts and Jobs Act, which require us to capitalize certain research and development costs and amortize those costs on our U.S. tax returns over a period of five or fifteen years, depending on where the associated costs were incurred.
Other Uses of Cash Net cash outlays for income taxes exceeded income tax expense in each of the 2024 and 2023 fiscal years, partially due to the provisions of the 2017 United States Tax Cuts and Jobs Act, which required us to capitalize certain research and development costs and amortize those costs on our U.S. tax returns over a period of five or fifteen years, depending on where the associated costs were incurred.
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 systems and infrastructure 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.
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.
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 28, 2024 and December 30, 2023 and a year-to-year comparison of these two fiscal years.
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.
Due to the subjectivity inherent in transfer pricing associated with this intercompany transaction, we have obtained advanced pricing agreements with the relevant jurisdictions. Net Income As a result of the various factors noted above net income increased 9% to $1,411.4 million from $1,289.6 million in the prior year.
Due to the subjectivity inherent in transfer pricing associated with this intercompany transaction, we have obtained advanced pricing agreements with the relevant jurisdictions. Net Income As a result of the various factors noted above net income increased 18% to $1,663.9 million from $1,411.4 million in the prior year.
Global taxing standards continue to evolve as a result of the Organization for Economic Co-Operation and Development (OECD) recommendations aimed at preventing perceived base erosion and profit shifting (BEPS) by multinational corporations, including the establishment of a global minimum tax rate of 15%.
Global taxing standards continue to evolve as a result of the Organization for Economic Co-Operation and Development (OECD) recommendations aimed at preventing perceived base erosion and profit shifting (BEPS) by multinational corporations, including the establishment of a global minimum tax rate of 15% under the “Pillar Two” framework.
Garmin’s average interest rate returns on cash and investments during fiscal 2024 and 2023 were 3.3% and 2.7%, respectively. The fair value of our securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral, and in the credit performance of the underlying issuer, among other factors.
Garmin’s average interest rate returns on cash and investments during fiscal 2025 and 2024 were 3.3% and 3.3%, respectively. The fair value of our securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral, and in the credit performance of the underlying issuer, among other factors.
Discussion regarding our results of operations for the fiscal year ended December 31, 2022 and a year-to-year comparison between the fiscal years ended December 30, 2023 and December 31, 2022 can be found in Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 30, 2023.
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.
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): 52-Weeks Ended 52-Weeks Ended 53-Weeks Ended December 28, 2024 December 30, 2023 December 31, 2022 Net sales 100 % 100 % 100 % Cost of goods sold 41 % 43 % 42 % Gross profit 59 % 57 % 58 % Operating expenses: Research and development 16 % 17 % 17 % Selling, general and administrative 18 % 19 % 19 % Total operating expenses 33 % 37 % 37 % Operating income 25 % 21 % 21 % Other income (expense), net 2 % 2 % 1 % Income before income taxes 27 % 23 % 22 % Income tax provision (benefit) 5 % (2 )% 2 % Net income 22 % 25 % 20 % The table below sets forth our results of operations through operating income for each of our five reportable segments.
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): 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 % The table below sets forth the results of operations through operating income (loss) for each of our five reportable segments.
The increase was primarily due to an increase in cash received from customers primarily driven by higher net sales, partially offset by increases in cash paid for cost of goods sold and operating expenses in fiscal 2024 when compared to fiscal 2023. Cash used in investing activities totaled $393.3 million for fiscal 2024, compared to $333.0 million for fiscal 2023.
The increase was primarily due to an increase in cash received from customers primarily driven by higher net sales, partially offset by increases in cash paid for cost of goods sold and operating expenses in fiscal 2025 when compared to fiscal 2024. Cash used in investing activities totaled $645.2 million for fiscal 2025, compared to $393.3 million for fiscal 2024.
Unless otherwise indicated, dollar amounts set forth in the tables are in thousands, except per share data. Overview The Company is a leading worldwide provider of wireless devices, many of which feature Global Positioning System (GPS) navigation, and applications that are designed for people who live an active lifestyle.
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.
We recognize the tax benefits from an uncertain tax position only if payment of these 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 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.
Garmin is organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM. These operating segments 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.
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.
The majority of the Company’s consolidated foreign currency gain or loss is typically driven by the significant cash and marketable securities, receivables and payables held in a currency other than the functional currency at a given legal entity. The $20.6 million currency loss recognized in fiscal 2024 was primarily due to the U.S.
The majority of the Company’s consolidated foreign currency gain or loss is typically driven by the significant cash, receivables and payables held in a currency other than the functional currency at a given legal entity. The $7.8 million currency gain recognized in fiscal 2025 was primarily due to the U.S.
Results of Operations 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.
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.
We believe that our existing cash balances and cash flow from operations will be sufficient to meet our short- and long-term projected working capital needs, capital expenditures, and other cash requirements. Cash, Cash Equivalents, and Marketable Securities As of December 28, 2024, we had approximately $3.7 billion of cash, cash equivalents and marketable securities.
We believe that our existing cash balances and cash flow from operations will be sufficient to meet our short- and long-term projected working capital needs, capital expenditures, and other cash requirements. Cash, Cash Equivalents, and Marketable Securities As of December 27, 2025, we had approximately $4.1 billion of cash, cash equivalents and marketable securities.
See Note 4 in the Notes to the Consolidated Financial Statements for additional information regarding marketable securities. 39 Cash Flows Cash provided by operating activities totaled $1,432.5 million for fiscal 2024, compared to $1,376.3 million for fiscal 2023.
See Note 4 – Marketable Securities in the Notes to the Consolidated Financial Statements for additional information regarding marketable securities. 40 Cash Flows Cash provided by operating activities totaled $1,633.4 million for fiscal 2025, compared to $1,432.5 million for fiscal 2024.
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.
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.
Refer to Note 1 in the Notes to the Consolidated Financial Statements for our significant accounting policies related to our critical accounting estimates. 33 Unrecognized Income Tax Benefits We recognize liabilities associated with uncertain income tax positions, including those related to transfer pricing, based on our estimate of whether, and the extent to which, additional taxes will be due.
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 Taiwan Dollar is the functional currency of Garmin Corporation, the Euro is the functional currency of several subsidiaries, and the U.S. Dollar is the functional currency of Garmin (Europe) Ltd., although some transactions and balances are denominated in British Pounds. Other notable currency exposures include the Australian Dollar and Polish Zloty.
Dollar is the functional currency of Garmin (Europe) Ltd., although some transactions and balances are denominated in British Pounds. Other notable currency exposures include the Australian Dollar, Polish Zloty, and Swiss Franc.
Fiscal years 2024 and 2023 each contained 52 weeks, and fiscal year 2022 contained 53 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.
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.
Results for the 52-week and 53-week periods ended December 30, 2023 and December 31, 2022, respectively, have been recast to conform to current period presentation. This change had no effect on the Company’s consolidated operating or net income.
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.
Interest income increased primarily due to higher balances of cash and investments and higher yields on fixed-income securities. Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar.
Interest income increased primarily due to higher balances of cash and investments. Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar. The Taiwan Dollar is the functional currency of Garmin Corporation, the Euro is the functional currency of several subsidiaries, and the U.S.
Dollar weakening against the Polish Zloty and Euro, partially offset by the U.S. Dollar weakening at times during the year against the Taiwan Dollar. During this period, the U.S. Dollar weakened 12.3% against the Polish Zloty and 3.1% against the Euro, resulting in gains of $24.4 million and $8.8 million, respectively, partially offset by the U.S.
Dollar weakening against the Euro and Polish Zloty, partially offset by the U.S. Dollar weakening against the Swiss Franc and Taiwan Dollar. During this period, the U.S. Dollar weakened 12.9% against the Euro and 14.3% against the Polish Zloty, resulting in gains of $49.2 million and $8.1 million, respectively, partially offset by the U.S.
The remaining net currency loss of $1.7 million was related to the impacts of other currencies, each of which was individually immaterial. 38 Income Tax Provision (Benefit) 52-Weeks Ended December 28, 2024 52-Weeks Ended December 30, 2023 53-Weeks Ended December 31, 2022 Income before income taxes $ 1,695,401 $ 1,200,356 $ 1,064,974 Income tax provision (benefit) 283,965 (89,280 ) 91,389 Effective tax rate 17 % (7 )% 9 % The Company recorded income tax expense of $284.0 million for the fiscal year ended December 28, 2024.
The remaining net currency loss of $9.9 million was related to the impacts of other currencies, each of which was individually immaterial. 39 Income Tax Provision (Benefit) 52-Weeks Ended December 27, 2025 52-Weeks Ended December 28, 2024 52-Weeks Ended December 30, 2023 Income before income taxes $ 2,014,535 $ 1,695,401 $ 1,200,356 Income tax provision (benefit) 350,648 283,965 (89,280 ) Effective tax rate 17 % 17 % (7 %) The Company recorded income tax expense of $350.6 million, an effective tax rate of 17.4%, for the fiscal year ended December 27, 2025.
Selling, general and administrative expense increased 10% in absolute dollars and decreased 170 basis points as a percent of revenue when compared to the year-ago period.
Selling, general and administrative expense increased 13% in absolute dollars and remained relatively flat as a percent of revenue when compared to the year-ago period.
As of December 28, 2024, the Company had inventory purchase obligations of $891.9 million, with $731.9 million payable within 12 months. Other Purchase Obligations The Company’s other purchase obligations primarily consist of noncancelable commitments for indirect purchases in connection with conducting our business.
The Company’s inventory purchase obligations are primarily noncancelable commitments. As of December 27, 2025, the Company had inventory purchase obligations of $1,030.6 million, with $801.7 million payable within 12 months. Other Purchase Obligations The Company’s other purchase obligations primarily consist of noncancelable commitments for indirect purchases in connection with conducting our business.
Accounting Terms and Characteristics Net Sales Our net sales are primarily generated through sales to our retail partners, 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 of the Notes to 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.
Operating Expense Operating Expense 52-Weeks Ended December 28, 2024 Year-over-Year Change 52-Weeks Ended December 30, 2023 Year-over-Year Change 53-Weeks Ended December 31, 2022 Research and development expense $ 993,601 10 % $ 904,696 8 % $ 834,927 Percentage of Total Net Sales 16 % 17 % 17 % Selling, general, and administrative expenses 1,108,960 10 % 1,008,099 7 % 944,003 Percentage of Total Net Sales 18 % 19 % 19 % Total $ 2,102,561 10 % $ 1,912,795 8 % $ 1,778,930 Percentage of Total Net Sales 33 % 37 % 37 % Total operating expense increased 10% in absolute dollars and decreased 320 basis points as a percent of revenue in fiscal year 2024 compared to fiscal year 2023.
Operating Expense Operating Expense 52-Weeks Ended December 27, 2025 Year-over-Year Change 52-Weeks Ended December 28, 2024 Year-over-Year Change 52-Weeks Ended December 30, 2023 Research and development expense $ 1,126,231 13 % $ 993,601 10 % $ 904,696 Percentage of Total Net Sales 16 % 16 % 17 % Selling, general, and administrative expenses 1,253,996 13 % 1,108,960 10 % 1,008,099 Percentage of Total Net Sales 17 % 18 % 19 % Total $ 2,380,227 13 % $ 2,102,561 10 % $ 1,912,795 Percentage of Total Net Sales 33 % 33 % 37 % Total operating expense increased 13% in absolute dollars and was relatively flat as a percent of revenue in fiscal year 2025 compared to fiscal year 2024.
Auto OEM revenue increased primarily due to increased shipments of domain controllers. 36 Gross Profit Gross Profit 52-Weeks Ended December 28, 2024 Year-over-Year Change 52-Weeks Ended December 30, 2023 Year-over-Year Change 53-Weeks Ended December 31, 2022 Fitness $ 1,032,007 44 % $ 716,906 30 % $ 552,417 Percentage of Segment Net Sales 58 % 53 % 50 % Outdoor 1,306,405 22 % 1,072,861 (2 %) 1,099,408 Percentage of Segment Net Sales 67 % 63 % 62 % Aviation 656,509 5 % 625,988 9 % 573,063 Percentage of Segment Net Sales 75 % 74 % 72 % Marine 594,127 21 % 491,261 0 % 491,457 Percentage of Segment Net Sales 55 % 54 % 54 % Auto OEM 107,507 10 % 97,939 8 % 90,430 Percentage of Segment Net Sales 18 % 23 % 32 % Total $ 3,696,555 23 % $ 3,004,955 7 % $ 2,806,775 Percentage of Total Net Sales 59 % 57 % 58 % Gross profit dollars in fiscal year 2024 increased 23%, primarily due to the increase in net sales compared to the year-ago period as described above.
Auto OEM revenue increased primarily due to sales growth in domain controllers. 37 Gross Profit Gross Profit 52-Weeks Ended December 27, 2025 Year-over-Year Change 52-Weeks Ended December 28, 2024 Year-over-Year Change 52-Weeks Ended December 30, 2023 Fitness $ 1,402,585 36 % $ 1,032,007 44 % $ 716,906 Percentage of Segment Net Sales 60 % 58 % 53 % Outdoor 1,351,230 3 % 1,306,405 22 % 1,072,861 Percentage of Segment Net Sales 66 % 67 % 63 % Aviation 741,507 13 % 656,509 5 % 625,988 Percentage of Segment Net Sales 75 % 75 % 74 % Marine 649,907 9 % 594,127 21 % 491,261 Percentage of Segment Net Sales 55 % 55 % 54 % Auto OEM 111,074 3 % 107,507 10 % 97,939 Percentage of Segment Net Sales 17 % 18 % 23 % Total $ 4,256,303 15 % $ 3,696,555 23 % $ 3,004,955 Percentage of Total Net Sales 59 % 59 % 57 % Gross profit dollars in fiscal year 2025 increased 15%, primarily due to the increase in net sales compared to the year-ago period as described above.
The absolute dollar increase was primarily attributable to increased personnel-related expenses and information technology costs. 37 Operating Income Operating Income (Loss) 52-Weeks Ended December 28, 2024 Year-over-Year Change 52-Weeks Ended December 30, 2023 Year-over-Year Change 53-Weeks Ended December 31, 2022 Fitness $ 482,672 108 % $ 232,201 122 % $ 104,738 Percentage of Segment Net Sales 27 % 17 % 9 % Outdoor 702,730 36 % 515,254 (10 %) 573,281 Percentage of Segment Net Sales 36 % 30 % 32 % Aviation 211,367 (7 %) 226,400 6 % 213,186 Percentage of Segment Net Sales 24 % 27 % 27 % Marine 236,010 32 % 179,429 (17 %) 215,304 Percentage of Segment Net Sales 22 % 20 % 24 % Auto OEM (38,785 ) NM (61,124 ) NM (78,664 ) Percentage of Segment Net Sales (6 %) (14 %) (28 %) Total $ 1,593,994 46 % $ 1,092,160 6 % $ 1,027,845 Percentage of Total Net Sales 25 % 21 % 21 % NM - Represents that the percentage change is not meaningful.
The absolute dollar increase was primarily due to higher personnel-related expenses and advertising. 38 Operating Income Operating Income (Loss) 52-Weeks Ended December 27, 2025 Year-over-Year Change 52-Weeks Ended December 28, 2024 Year-over-Year Change 52-Weeks Ended December 30, 2023 Fitness $ 725,881 50 % $ 482,672 108 % $ 232,201 Percentage of Segment Net Sales 31 % 27 % 17 % Outdoor 690,352 (2 %) 702,730 36 % 515,254 Percentage of Segment Net Sales 34 % 36 % 30 % Aviation 257,227 22 % 211,367 (7 %) 226,400 Percentage of Segment Net Sales 26 % 24 % 27 % Marine 251,250 6 % 236,010 32 % 179,429 Percentage of Segment Net Sales 21 % 22 % 20 % Auto OEM (48,634 ) NM (38,785 ) NM (61,124 ) Percentage of Segment Net Sales (7 %) (6 %) (14 %) Total $ 1,876,076 18 % $ 1,593,994 46 % $ 1,092,160 Percentage of Total Net Sales 26 % 25 % 21 % NM - Represents that the percentage change is not meaningful.
Dollar strengthening 6.5% against the Taiwan Dollar, resulting in a gain of $36.4 million. The remaining net currency loss of $9.9 million was related to the impacts of other currencies, each of which was individually immaterial. The $26.4 million currency gain recognized in fiscal 2023 was primarily due to the U.S.
Dollar weakening 14.1% against the Swiss Franc and 4.6% against the Taiwan Dollar, resulting in losses of $36.9 million and $16.8 million, respectively. The remaining net currency gain of $4.2 million was related to the impacts of other currencies, each of which was individually immaterial. The $20.6 million currency loss recognized in fiscal 2024 was primarily due to the U.S.
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.
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.
The Company’s CODM primarily uses operating income as the measure of profit or loss to assess segment performance and allocate resources. Operating income represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed to each segment.
Operating income (loss) represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed to each segment.
Other Income (Expense) Other Income (Expense) 52-Weeks Ended December 28, 2024 52-Weeks Ended December 30, 2023 53-Weeks Ended December 31, 2022 Interest income $ 113,520 $ 77,302 $ 40,826 Foreign currency (losses) gains (20,599 ) 26,434 (11,274 ) Other income 8,486 4,460 7,577 Total $ 101,407 $ 108,196 $ 37,129 The average interest rate returns on cash and investments during the 52-weeks ended December 28, 2024 and December 30, 2023 were 3.3% and 2.7%, respectively.
Other Income (Expense) Other Income (Expense) 52-Weeks Ended December 27, 2025 52-Weeks Ended December 28, 2024 52-Weeks Ended December 30, 2023 Interest income $ 128,874 $ 113,520 $ 77,302 Foreign currency gains (losses) 7,847 (20,599 ) 26,434 Other income 1,738 8,486 4,460 Total $ 138,459 $ 101,407 $ 108,196 The average interest rate return on cash and investments during the 52-weeks ended December 27, 2025 was 3.3%, and remained relatively flat compared to 3.3% during the 52-weeks ended December 28, 2024.
Cost of Goods Sold and Gross Profit Raw material costs are our most significant component of cost of goods sold. Our existing practice of performing the design and manufacture 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.
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.
As of December 28, 2024, the Company had other purchase obligations of $380.1 million, with $188.3 million payable within 12 months.
As of December 27, 2025, the Company had other purchase obligations of $526.0 million, with $276.0 million payable within 12 months.
As of December 28, 2024, the Company had fixed lease payment obligations of $195.4 million, with $36.6 million payable within 12 months. Inventory Purchase Obligations The Company obtains various raw materials and components for its products from a variety of third party suppliers. The Company’s inventory purchase obligations are primarily noncancelable.
Leased real estate properties are typically used for office space, distribution, data centers, and retail. As of December 27, 2025, the Company had fixed lease payment obligations of $235.5 million, with $43.5 million payable within 12 months. Inventory Purchase Obligations The Company obtains various raw materials and components for its products from a variety of third party suppliers.
Research and development expense increased 10% in absolute dollars and decreased 150 basis points as a percent of revenue compared to the year-ago period. The absolute dollar increase was primarily due to higher engineering personnel costs.
Operating expense, as a percent of segment net sales, was relatively flat in the marine and auto OEM segments when compared to the year-ago period. Research and development expense increased 13% in absolute dollars and remained relatively flat as a percent of revenue compared to the year-ago period. The absolute dollar increase was primarily due to higher engineering personnel-related expenses.
As a result, we do not believe backlog information is material to the understanding of our business. Net sales are subject to seasonal fluctuation.
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.
This was partially offset by an increase in dividends paid and an increase in purchases of treasury stock related to equity awards in fiscal 2024 compared to fiscal 2023. Uses of Cash Operating Leases The Company has lease arrangements for certain real estate properties, vehicles, and equipment. Leased properties are typically used for office space, distribution, and retail.
This increase was primarily due to higher purchases of treasury shares under the share repurchase plan, higher cash dividend payments, and an increase in the purchase of treasury shares related to equity awards in fiscal 2025 compared to fiscal 2024. Uses of Cash Operating Leases The Company has lease arrangements for certain real estate properties, vehicles, and equipment.
Primarily as a result of these provisions, we expect net cash outlays for income taxes to again exceed income tax expense in fiscal 2025.
Due to the timing of tax payments, we expect net cash outlays for income taxes in fiscal 2026 to exceed income tax expense in fiscal 2026, and to increase as compared to fiscal 2025. 41
Gross margin remained relatively flat within the aviation segment. The auto OEM gross margin decrease of 550 basis points was primarily attributable to unfavorable product mix.
Consolidated gross margin was flat when compared to the year-ago period. The fitness gross margin increase of 130 basis points compared to the year-ago period was primarily attributable favorable product mix. Gross margin remained relatively flat within the outdoor, aviation, marine, and auto OEM segments when compared to the year-ago period.
The increase in operating income as a percent of revenue was due to increased sales, increased gross margin as a percent of revenue, and lower operating expenses as a percent of revenue, as described above. The improved performance in fitness, outdoor, marine, and auto OEM was partially offset by a decrease in aviation.
Total operating income increased 18% in absolute dollars and remained relatively flat as a percent of revenue in fiscal year 2025 compared to fiscal year 2024. The improved operating income dollar performance in fitness, aviation, and marine was partially offset by decreases in outdoor and auto OEM.
Cash used in financing activities totaled $626.9 million for fiscal 2024, compared to $636.5 million for fiscal 2023. This decrease was primarily due to lower purchases of treasury shares under the share repurchase plan in fiscal 2024 compared to fiscal 2023.
The increase was primarily due to an increase in cash used for acquisitions and an increase in purchases of property and equipment in fiscal 2025 compared to fiscal 2024. Cash used in financing activities totaled $844.1 million for fiscal 2025, compared to $626.9 million for fiscal 2024.
Total unit sales increased approximately 15% to 18.6 million units in 2024 from 16.2 million units in 2023. Outdoor revenue represented the largest portion of our revenue mix at 31% in 2024, compared to 32% in 2023. The increase in fitness revenue was driven by sales growth across all product categories, led by strong demand for wearables.
Fitness revenue was the largest portion of our revenue mix at 33% in 2025, while outdoor was the largest portion of our revenue mix in 2024 at 31%. The increase in fitness revenue was primarily driven by strong demand for wearables. Outdoor revenue increased primarily due to sales growth in adventure watches.
Dollar weakening at times during the year against the Taiwan Dollar, resulting in a net loss of $5.1 million.
Dollar strengthening 6.5% against the Taiwan Dollar, resulting in a gain of $36.4 million.
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 other locations.
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.
Outdoor revenue increased primarily due to sales growth in adventure watches. Aviation revenue increased primarily due to growth in OEM product categories. The increase in marine revenue was primarily driven by contributions from the Company's acquisition of JL Audio.
The increase in aviation revenue was driven by sales growth in OEM and aftermarket product categories. The increase in marine revenue was driven by sales growth across multiple product categories, led by chartplotters.
Removed
We aim to achieve a quick turnaround on orders we receive from our retail, dealer, and distributor customers.
Added
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.
Removed
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 market pricing and the mix of modes of transportation we utilize.
Added
Total unit sales increased approximately 11% to 20.7 million units in 2025 from 18.6 million units in 2024. The increase in net sales differs from the increase in total unit sales primarily due to shifts in segment and product mix.
Removed
Consolidated gross margin increased 120 basis points when compared to the year-ago period due to higher margins within certain segments, partially offset by unfavorable segment mix. The fitness, outdoor, and marine gross margin increases of 480 basis points, 340 basis points, and 180 basis points, respectively, were primarily attributable to lower costs of goods and favorable product mix.
Added
Operating expense, as a percent of segment net sales, decreased in the fitness and aviation segments by 220 basis points and 170 basis points, respectively, when compared to the year-ago period due to increased sales and greater leverage of expenses.
Removed
Total operating income increased 46% in absolute dollars and increased 440 basis points as a percent of revenue in fiscal year 2024 compared to fiscal year 2023.
Added
Operating expense, as a percent of segment net sales, increased in the outdoor segment by 140 basis points over the year-ago period, as the year-over-year increase of operating expense was greater than that of net sales.
Removed
Auto OEM experienced an operating loss in fiscal year 2024, and we expect auto OEM to experience an operating loss in 2025.
Added
The Company recorded income tax expense of $284.0 million, an effective tax rate of 16.7%, for the fiscal year ended December 28, 2024.
Removed
The Company recorded income tax benefit of $89.3 million for the fiscal year ended December 30, 2023, which included income tax benefit of $181.4 million recognized by the Company in the fourth quarter of 2023 related to the revaluation of Switzerland deferred tax assets and income tax benefit of $12.1 million recognized in the fourth quarter of 2023 related to auto OEM manufacturing tax incentives in Poland.
Added
The increase in effective tax rate when compared to the year-ago period was primarily driven by the U.S. tax legislation enacted in 2025, which, among other things, changed capitalization requirements of certain research and development costs, resulting in a decrease of certain U.S. tax deductions and credits.
Removed
The increase in our effective tax rate in 2024 as compared to 2023 and 2022 is primarily due to the increase in the combined Switzerland statutory tax rate, while our effective tax rate in 2023 also benefited from the discrete impacts noted above.
Added
Certain provisions of the U.S. tax legislation enacted in 2025 become effective in 2026, which the Company anticipates will increase certain U.S. tax deductions and result in a lower effective tax rate in 2026 as compared to 2025.
Removed
The increase was primarily due to an increase in net purchases of marketable securities in fiscal 2024 compared to net redemptions of marketable securities in fiscal 2023. This was partially offset by a decrease in cash used for acquisitions in fiscal 2024 compared to fiscal 2023.
Added
Net cash outlays for income taxes were less than income tax expense in 2025, partially due to the provisions included in the U.S. tax legislation enacted in 2025 which, among other things, changed capitalization requirements of certain research and development costs.
Removed
Cash paid for taxes is also expected to increase in 2025 as compared to 2024, primarily due to the payment of taxes in arrears related to the intercompany transaction to migrate ownership of certain intellectual property from Switzerland to the United States. 40

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

8 edited+0 added−0 removed10 unchanged
Biggest changeDollar strengthened 5.5% against the Euro, and 4.1% against the Polish Zloty, and 8.9% against the Australian Dollar, resulting in losses of $27.1 million, $11.3 million and $8.7 million, respectively, partially offset by the U.S. Dollar strengthening 6.5% against the Taiwan Dollar, resulting in a gain of $36.4 million.
Biggest changeDollar weakened 12.9% against the Euro and 14.3% against the Polish Zloty, resulting in gains of $49.2 million and $8.1 million, respectively, partially offset by the U.S. Dollar weakening 14.1% against the Swiss Franc and 4.6% against the Taiwan Dollar, resulting in losses of $36.9 million and $16.8 million, respectively.
The Company does not intend to sell securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell such investments before recovery of their amortized costs bases, which may be maturity.
The Company does not intend to sell securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell such investments before recovery of their amortized costs bases, which may be at maturity.
As of December 28, 2024 and December 30, 2023, the Company had not recognized an allowance for credit losses on any securities in an unrealized loss position. We assessed the Company’s exposure to interest rate risk by performing a sensitivity analysis of a parallel shift in the yield curve and the corresponding impact to the Company’s portfolio of marketable securities.
As of December 27, 2025 and December 28, 2024, the Company had not recognized an allowance for credit losses on any securities in an unrealized loss position. We assessed the Company’s exposure to interest rate risk by performing a sensitivity analysis of a parallel shift in the yield curve and the corresponding impact to the Company’s portfolio of marketable securities.
Based on balance sheet positions as of December 28, 2024 and December 30, 2023, the hypothetical and reasonably possible 100 basis point increases in interest rates across all securities would have resulted in declines in portfolio fair market value of approximately $30 million and $25 million at December 28, 2024 and December 30, 2023, respectively.
Based on balance sheet positions as of December 27, 2025 and December 28, 2024, the hypothetical and reasonably possible 100 basis point increases in interest rates across all securities would have resulted in declines in portfolio fair market value of approximately $41 million and $30 million at December 27, 2025 and December 28, 2024, respectively.
Such losses would only be realized if the Company sold the investments prior to maturity. 42
Such losses would only be realized if the Company sold the investments prior to maturity. 43
Based on monetary assets and liabilities denominated in currencies other than respective functional currencies as of December 28, 2024 and December 30, 2023, hypothetical and reasonably possible adverse changes of 10% for the Taiwan Dollar, Euro, Polish Zloty, Japanese Yen, and Australian Dollar would have resulted in an adverse impact on income before income taxes of approximately $100 million and $102 million, respectively. 41 Interest Rate Risk We have no outstanding long-term debt as of December 28, 2024 and otherwise have no meaningful debt-related interest rate risk.
Based on monetary assets and liabilities denominated in currencies other than respective functional currencies as of December 27, 2025 and December 28, 2024, hypothetical and reasonably possible adverse changes of 10% for the Taiwan Dollar, Euro, Polish Zloty, and Australian Dollar would have resulted in an adverse impact on income before income taxes of approximately $135 million and $100 million, respectively. 42 Interest Rate Risk We have no outstanding long-term debt as of December 27, 2025 and otherwise have no meaningful debt-related interest rate risk.
The remaining net currency loss of $9.9 million was related to the impacts of other currencies, each of which was individually immaterial. These and other currency moves during fiscal year 2024 also resulted in a currency translation adjustment of $105.4 million within accumulated other comprehensive income (loss).
The remaining net currency gain of $4.2 million was related to the impacts of other currencies, each of which was individually immaterial. These and other currency moves during fiscal year 2025 also resulted in a currency translation adjustment of $136.0 million within accumulated other comprehensive income (loss).
During fiscal year 2024, the Company incurred a net foreign currency loss of $20.6 million. The U.S. Dollar strengthened against the Euro, Polish Zloty and Australian Dollar, partially offset by the U.S. Dollar strengthening against the Taiwan Dollar. During fiscal 2024, the U.S.
During fiscal year 2025, the Company incurred a net foreign currency gain of $7.8 million. The U.S. Dollar weakened against the Euro and Polish Zloty, partially offset by the U.S. Dollar weakening against the Swiss Franc and Taiwan Dollar. During fiscal 2025, the U.S.