Motorola Solutions, Inc.
For the period ended Jun 28, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2025 · Filed Aug 7, 2025
MSI$514.51-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-29; filed 2025-05-01.
0000068505-25-000024
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-28; filed 2025-08-07.
0000068505-25-000040
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 125 previous paragraphs and 180 current paragraphs.
49 unchanged; 58 reworded; 64 added; 17 removed; 1 previous and 9 current paragraphs rearranged.
Tables are not compared: 14 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (64)
Current report
Subsequent to the quarter end, with the acquisition of Silvus Technologies Holdings Inc. (“Silvus”), we will now report net sales from our principal product lines by combining the former LMR Communications and newly acquired Silvus under the new technology name Mission Critical Networks (MCN).
Current report
Second Quarter Financial Results
Current report
•Net sales were $2.8 billion in the second quarter of 2025 compared to $2.6 billion in the second quarter of 2024.
Current report
•Operating earnings were $692 million in the second quarter of 2025 compared to $644 million in the second quarter of 2024.
Current report
On May 27, 2025, we entered into a purchase and sale agreement with Silvus Technologies Group LLC ("Seller") to acquire Silvus Technologies Holdings Inc. (“Silvus”), which subsequent to the quarter end closed on August 6, 2025, for $4.4 billion in upfront consideration, comprising $4.38 billion in cash, subject to customary adjustments for cash, net working capital, transaction expenses and indebtedness, and $20 million in restricted stock to certain employee equity holders. Additionally, under the terms of the transaction, the Seller will have the potential to earn earnout consideration following the achievement of certain financial targets of up to $150 million for the annual period from July 5, 2026 through July 3, 2027 and up to $450 million for the annual period from July 4, 2027 through July 1, 2028 (with the potential to earn a catch-up earnout consideration based on performance in the annual period from July 4, 2027 through July 1, 2028 if the maximum earnout for the annual period from July 5, 2026 through July 3, 2027 is not earned). The earnout consideration, if any, will be made in shares of common stock. Silvus designs and develops software-defined high-speed mobile ad-hoc network (MANET) technology that enables highly secure data, video and voice communications without the need for fixed infrastructure. This acquisition brings mobile ad-hoc network expertise and new applications to the Company's public safety and enterprise portfolio. This business will be part of both the Products and Systems Integration segment and the Software and Services segment.
Current report
Net sales increased $137 million, or 5%, in the second quarter of 2025 compared to the second quarter of 2024. The $142 million, or 15%, increase in net sales within the Software and Services segment was driven by an increase of 15% in the North America region and an increase of 13% in the International region. The $5 million decrease in net sales within the Products and Systems Integration segment was driven by a decrease of $11 million, or 3%, in the International region, partially offset by a $6 million increase in the North America region. Net sales includes:
Current report
•an increase in the Software and Services segment, inclusive of $39 million of revenue from acquisitions, driven by an increase in LMR services, Video and Command Center;
Current report
•inclusive of $9 million from favorable currency rates.
Current report
•a 6% increase in the North America region, inclusive of revenue from acquisitions, driven by an increase in Video, LMR and Command Center; and
Current report
The Products and Systems Integration segment was flat driven by the following:
Current report
•$2 million, or 1%, growth in Video, driven by the North America region, partially offset by the International region; and
Current report
•inclusive of $4 million from favorable currency rates.
Current report
The 15% increase in the Software and Services segment was driven by the following:
Current report
•inclusive of $5 million from favorable currency rates.
Current report
•a 0.3% increase in gross margin as a percentage of net sales in the Products and Systems Integration segment, primarily driven by lower direct material costs, despite higher tariffs.
Current report
SG&A expenses increased 5% in the second quarter of 2025 compared to the second quarter of 2024 primarily driven by:
Current report
•a $13 million, or 4%, increase in Products and Systems Integration SG&A expenses primarily due to higher employee incentive costs, including share based compensation and investments in video; and
Current report
•a $7 million, or 8%, increase in Software and Services SG&A expenses primarily due to higher expenses associated with acquired businesses.
Current report
SG&A expenses were 16.3% of net sales in the second quarter of 2025 compared to 16.4% of net sales in the second quarter of 2024.
Current report
R&D expenditures increased $11 million, or 5%, in the second quarter of 2025 compared to the second quarter of 2024 primarily driven by higher employee incentive costs, including investments in video and share based compensation, and higher expenses associated with acquired businesses. R&D expenditures were 8.4% of net sales in both the second quarter of 2025 and in the second quarter of 2024.
Current report
Other charges decreased $5 million in the second quarter of 2025 compared to the second quarter of 2024. The decrease was primarily driven by:
Current report
•$2 million of acquisition related transaction fees in the second quarter of 2025 compared to $4 million of acquisition related transaction fees in the second quarter of 2024; partially offset by
Current report
•$39 million of intangible amortization expense in the second quarter of 2025 compared to $36 million of intangible amortization expense in the second quarter of 2024; and
Current report
•a $16 million decrease in the Products and Systems Integration segment, primarily driven by decreased sales, higher employee incentive costs, including share based compensation and investments in video, and higher intangible amortization expenses, partially offset by lower direct material costs, despite higher tariffs, and a gain on the Hytera litigation for amounts recovered through legal proceedings due to the theft of our trade secrets.
Current report
The $14 million decrease in Interest expense, net in the second quarter of 2025 compared to the second quarter of 2024 was primarily driven by interest accruals related to audits with tax authorities in foreign jurisdictions in 2024.
Current report
•an $18 million gain on fair value adjustments to equity investments in the second quarter of 2025 compared to a $11 million loss on fair value adjustments to equity investments in the second quarter of 2024; and
Current report
•an $11 million loss on assessments of uncertain tax positions in the second quarter of 2024 that did not occur in the second quarter of 2025; partially offset by
Current report
•a $42 million loss on foreign currency in the second quarter of 2025 compared to a $3 million gain on foreign currency in the second quarter of 2024.
Current report
Income tax expense increased by $30 million in the second quarter of 2025 compared to the second quarter of 2024, resulting in an effective tax rate of 24%. Our effective tax rate for the three months ended June 28, 2025 of 24% was higher than the effective tax rate for the three months ended June 29, 2024 of 23%, primarily due to tax benefits recognized upon settlement of audits with taxing authorities in foreign jurisdictions in 2024 and lower excess tax benefits of share-based compensation in 2025.
Current report
Subsequent to quarter end, on July 4, 2025, the "One Big Beautiful Bill Act" was enacted into law and included tax cut extensions and modifications to the international tax framework and corporate income tax deductions. We are currently evaluating the potential effects of these changes on our financial statements, inclusive of our income tax provision, income tax payable, and deferred tax asset balances. We will recognize the effects of this legislation in accordance with the enactment and effective dates of the applicable provisions.
Current report
Results of Operations—Six months ended June 28, 2025 compared to Six months ended June 29, 2024
Current report
Net Sales
Current report
The Products and Systems Integration segment's net sales represented 60% of our net sales in the first half of 2025 and 63% in the first half of 2024. Net sales from the Software and Services segment represented 40% of our net sales in the first half of 2025 and 37% in the first half of 2024.
Current report
•inclusive of $17 million from unfavorable currency rates.
Current report
Regional results include:
Current report
Products and Systems Integration
Current report
The 2% increase in the Products and Systems Integration segment was driven by the following:
Current report
Software and Services
Current report
•$91 million, or 26% growth in Video, inclusive of revenue from acquisitions, driven by both the North America and International regions;
Current report
•$91 million, or 8% growth in LMR services, driven by both the North America and International regions;
Showing the first 40 of 64 passages. Open the source sections for the rest.
Removed paragraphs (17)
Previous report
First Quarter Financial Results
Previous report
•Net sales were $2.5 billion in the first quarter of 2025 compared to $2.4 billion in the first quarter of 2024.
Previous report
•Operating earnings were $582 million in the first quarter of 2025 compared to $519 million in the first quarter of 2024.
Previous report
U.K. Home Office Update
Previous report
Beginning August 1, 2023, the United Kingdom's Competition and Markets Authority ("CMA") imposed a legal order which implemented a prospective price control ("the Charge Control") on Airwave, our private mobile radio communications network that provides mission-critical voice and data communications to emergency services and other agencies in Great Britain. Our appeal of the implementation of the Charge Control to the United Kingdom's Court of Appeal was unsuccessful and we have no further right to appeal to the United Kingdom Courts. Since August 1, 2023, revenue under the Airwave contract has been, and will continue to be, recognized in accordance with the Charge Control.
Previous report
In 2024, we received a notice of contract extension (the “Deferred National Shutdown Notice”) from the Home Office of the United Kingdom (the "Home Office"). The Deferred National Shutdown Notice extends the “national shutdown target date” of the Airwave service from December 31, 2026 to December 31, 2029, at the Charge Control rates and is fully reflected in our reported backlog. In 2024, we filed proceedings with the U.K. High Court challenging the decision of the Home Office to issue the Deferred National Shutdown Notice as being in breach of applicable U.K. procurement and public law. During the first quarter of 2025, these proceedings were discontinued.
Previous report
On December 12, 2024, a proposed class representative filed a claim with the Competition Appeal Tribunal ("CAT") to bring collective proceedings against us, alleging that users of Airwave services during the period January 1, 2020 through July 31, 2023 suffered financial harm as a result of the pricing in effect during such time (the "Collective Proceeding"). The initial stage of the Collective Proceeding will involve potential "Certification" of the claim by the CAT, which we expect to be heard in September 2025.
Previous report
•inclusive of $25 million from unfavorable currency rates.
Previous report
The 4% increase in the Products and Systems Integration segment was driven by the following:
Previous report
•inclusive of $14 million from unfavorable currency rates.
Previous report
The 9% increase in the Software and Services segment was driven by the following:
Previous report
SG&A expenses increased 10% in the first quarter of 2025 compared to the first quarter of 2024 primarily driven by:
Previous report
SG&A expenses were 17.2% of net sales in the first quarter of 2025 compared to 16.6% of net sales in the first quarter of 2024.
Previous report
R&D expenditures were 9.2% of net sales in each of the first quarter of 2025 compared to 9.1% of net sales in the first quarter of 2024.
Previous report
Other Charges
Previous report
•$20 million of foreign currency losses in the first quarter of 2025 compared to $1 million of foreign currency gains in the first quarter of 2024.
Previous report
As of March 29, 2025, $252 million of 7.5% debentures due 2025, which mature in May 2025, and $70 million of 6.5% debentures due 2025, which mature in September 2025, were classified within the Current portion of long-term debt within the Company's Condensed Consolidated Balance Sheets, as the debentures mature within the next twelve months.
Reworded paragraphs (58)
Previous wording
This commentary should be read in conjunction with the condensed consolidated financial statements and related notes thereto of Motorola Solutions, Inc. (“Motorola Solutions,” the “Company,” “we,” “our,” or “us”) for the three months ended March 29, 2025 and March 30, 2024, as well as our consolidated financial statements and related notes thereto and management’s discussion and analysis of financial condition and results of operations in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "Form 10-K").
Current wording
This commentary should be read in conjunction with the condensed consolidated financial statements and related notes thereto of Motorola Solutions, Inc. (“Motorola Solutions,” the “Company,” “we,” “our,” or “us”) for the three and six months ended June 28, 2025 and June 29, 2024, as well as our consolidated financial statements and related notes thereto and management’s discussion and analysis of financial condition and results of operations in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "Form 10-K").
Previous wording
Statements in this Quarterly Report on Form 10-Q for the quarter ended March 29, 2025 (this “Form 10-Q”) which are not historical in nature are forward-looking statements within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “aims,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this Form 10-Q. Some of these risks and uncertainties include, but are not limited to, those discussed in Part I, Item 1A “Risk Factors” of the Form 10-K, and those described elsewhere in our other SEC filings. Forward-looking statements include, but are not limited to, statements included in: (1) “Management's Discussion and Analysis of Financial Condition and Results of Operations,” about: (a) the impact of global tariffs and volatility in the global supply chain and our expected ability to mitigate increased costs related thereto (b) the impact on our business of the United Kingdom's Competition and Markets Authority's prospective price control regarding Airwave; (c) our expectations regarding the Airwave collective proceeding claim with the Competition Appeal Tribunal; (d) the impact of acquisitions and other investments on our business; (e) the impact of existing and future laws, regulations, international treaties and industry standards relating to climate change and other environmental and social impacts on our business; (f) market growth, demand, spending and resulting opportunities; (g) industry growth and demand, including opportunities resulting from such growth, (h) expected impacts to operating leverage; (i) the growth of sales opportunities in our Products and Systems Integration and Software and Services segments; (j) the return of capital to shareholders through dividends and/or repurchasing shares; (k) the impact and success of our business strategy and portfolio; (l) future payments, charges, and use of accruals associated with our reorganization of business programs and employee separation costs; (m) future exit costs related to our exit of the Emergency Services Network ("ESN") contract with the Home Office of the United Kingdom; (n) our ability and cost to repatriate funds; (o) the liquidity of our investments; (p) our ability and cost to access the capital markets; (q) our ability to borrow and the amount available under our credit facilities; (r) adequacy of internal resources to fund expected working capital, capital …
Excerpt shortened here; the source contains the full paragraph.
Current wording
Statements in this Quarterly Report on Form 10-Q for the quarter ended June 28, 2025 (this “Form 10-Q”) which are not historical in nature are forward-looking statements within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “aims,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this Form 10-Q. Some of these risks and uncertainties include, but are not limited to, those discussed in Part I, Item 1A “Risk Factors” of the Form 10-K, and those described elsewhere in our other SEC filings. Forward-looking statements include, but are not limited to, statements included in: (1) “Management's Discussion and Analysis of Financial Condition and Results of Operations,” about: (a) the impact of global tariffs and volatility in the global supply chain and our expected ability to mitigate increased costs related thereto; (b) the impact of acquisitions and other investments on our business; (c) the impact of existing and future laws, regulations, international treaties and industry standards relating to climate change and other environmental and social impacts on our business; (d) market growth, demand, spending and resulting opportunities; (e) industry growth and demand, including opportunities resulting from such growth; (f) expected impacts to operating leverage; (g) the growth of sales opportunities in our Products and Systems Integration and Software and Services segments; (h) the return of capital to shareholders through dividends and/or repurchasing shares; (i) the impact and success of our business strategy and portfolio; (j) future payments, charges, and use of accruals associated with our reorganization of business programs and employee separation costs; (k) our ability and cost to repatriate funds; (l) the liquidity of our investments; (m) our ability and cost to access the capital markets; (n) our ability to borrow and the amount available under our credit facilities; (o) adequacy of internal resources to fund expected working capital, capital expenditure and cash requirements; (p) expected payments pursuant to commitments under agreements and other obligations in the short-term and long-term; (q) the ability to meet minimum purchase obligations (r) the impact of contractual damage claims exceeding the underlying contract value; (s) our ability to sell accounts receivable and the terms and amounts of such sales; (t) th…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
•Net earnings attributable to Motorola Solutions, Inc. was $430 million, or $2.53 per diluted common share, in the first quarter of 2025, compared to a net loss of $39 million, or $(0.23) per diluted common share, in the first quarter of 2024.
Current wording
•Net earnings attributable to Motorola Solutions, Inc. was $513 million, or $3.04 per diluted common share, in the second quarter of 2025, compared to $443 million, or $2.60 per diluted common share, in the second quarter of 2024.
Previous wording
•Operating cash flow increased $128 million to $510 million in the first quarter of 2025 compared to $382 million in the first quarter of 2024.
Current wording
•Operating cash flow increased $221 million to $783 million in the first half of 2025 compared to $562 million in the first half of 2024.
Previous wording
•We repurchased $325 million of common stock and paid $182 million in dividends in the first quarter of 2025.
Current wording
•We repurchased $543 million of common stock and paid $364 million in dividends in the first half of 2025.
Previous wording
Beginning in February 2025, the United States implemented significant global tariffs on imports, contributing to a global trade landscape subject to changing import/export regulations, tariffs, trade barriers and trade disputes. As a result, we see growing volatility and uncertainty around the global supply chain.
Current wording
The current global tariff environment is complex and evolving. In early 2025, the United States initiated a series of trade actions which imposed new tariffs and increased existing tariffs on goods imported from various countries, contributing to a global trade landscape subject to evolving tariffs, import/export regulations, trade barriers and trade disputes. As a result, we continue to observe elevated volatility and uncertainty around the global supply chain.
Previous wording
The results of operations for the first quarter of 2025 are not necessarily indicative of the operating results to be expected for the full year. Historically, we have experienced higher revenues in the fourth quarter as compared to the rest of the quarters of our fiscal year as a result of the purchasing patterns of our customers.
Current wording
The results of operations for the second quarter of 2025 are not necessarily indicative of the operating results to be expected for the full year. Historically, we have experienced higher revenues in the fourth quarter as compared to the rest of the quarters of our fiscal year as a result of the purchasing patterns of our customers.
Previous wording
The Products and Systems Integration segment’s net sales represented 61% of our net sales in the first quarter of 2025 and 62% in the first quarter of 2024. The Software and Services segment’s net sales represented 39% of our net sales in the first quarter of 2025 and 38% in the first quarter of 2024.
Current wording
The Products and Systems Integration segment’s net sales represented 60% of our net sales in the second quarter of 2025 and 63% in the second quarter of 2024. The Software and Services segment’s net sales represented 40% of our net sales in the second quarter of 2025 and 37% in the second quarter of 2024.
Previous wording
•an increase in the Products and Systems Integration segment, driven by an increase in LMR, partially offset by a decrease in Video; and
Current wording
•the Products and Systems Integration segment was flat, driven by a decrease in LMR, partially offset by an increase in Video; and
Previous wording
•$4 million, or 2%, decrease in Video, driven by the International and North America regions; and
Current wording
•$7 million, or 1%, decrease in LMR, driven by both the the International and North America regions; partially offset by
Previous wording
•$19 million, or 3%, growth in LMR services, driven by the North America and International regions;
Current wording
•$71 million, or 12%, growth in LMR services, driven by the North America and International regions;
Previous wording
•$47 million, or 29%, growth in Video, inclusive of revenue from acquisitions, driven by the North America and International regions; and
Current wording
•$45 million, or 25%, growth in Video, inclusive of revenue from acquisitions, driven by the North America and International regions;
Previous wording
Gross margin was 51.4% of net sales in the first quarter of 2025 compared to 49.9% in the first quarter of 2024. The primary drivers of this increase in gross margin as a percentage of net sales were:
Current wording
Gross margin was 51.1% of net sales in the second quarter of 2025 compared to 51.0% in the second quarter of 2024. The primary drivers of this increase in gross margin as a percentage of net sales were:
Previous wording
•a 0.9% decrease in gross margin as a percentage of net sales in the Software and Services segment, inclusive of acquisitions, primarily driven by acquisitions and unfavorable mix.
Current wording
•a 0.4% increase in gross margin as a percentage of net sales in the Software and Services segment, inclusive of acquisitions, primarily driven by higher sales partially offset by acquisitions; and
Previous wording
•$10 million of gains on the Hytera litigation for the amounts recovered through legal proceedings due to theft of our trade secrets in the first quarter of 2025 that did not occur in the first quarter of 2024; and
Current wording
•$10 million of gains on the Hytera litigation for the amounts recovered through legal proceedings due to theft of our trade secrets in the second quarter of 2025 that did not occur in the second quarter of 2024; and
Previous wording
•$12 million of reorganization of business expenses in the first quarter of 2025 compared to $7 million of reorganization of business expenses in the first quarter of 2024.
Current wording
•$8 million of reorganization of business expenses in the second quarter of 2025 compared to $4 million of reorganization of business expenses in the second quarter of 2024.
Previous wording
Operating earnings increased $63 million, or 12%, in the first quarter of 2025 compared to the first quarter of 2024. The increase in Operating earnings was due to:
Current wording
Operating earnings increased $48 million, or 7%, in the second quarter of 2025 compared to the second quarter of 2024. The increase in Operating earnings was due to:
Previous wording
•a $21 million increase in the Software and Services segment, primarily driven by higher sales, partially offset by higher expenses associated with acquired businesses and higher employee incentive costs.
Current wording
•a $64 million increase in the Software and Services segment, primarily driven by higher sales and improved operating leverage, partially offset by higher expenses associated with acquired businesses and higher employee incentive costs, including investments in video and share based compensation; partially offset by
Previous wording
The $581 million increase in Other, net in the first quarter of 2025 compared to the first quarter of 2024 was primarily driven by:
Current wording
The $38 million increase in Other, net in the second quarter of 2025 compared to the second quarter of 2024 was primarily driven by:
Previous wording
•$13 million gain on derivatives in the first quarter of 2025 compared to a $10 million loss on derivatives in the first quarter of 2024; partially offset by
Current wording
•a $34 million gain on derivatives in the second quarter of 2025 compared to a $5 million loss on derivatives in the second quarter of 2024;
Previous wording
Net sales increased $139 million, or 6%, in the first quarter of 2025 compared to the first quarter of 2024. The $83 million, or 9% increase in net sales within the Software and Services segment was driven by an increase of 10% in the North America region and an increase of 7% in the International region. The $56 million, or 4%, increase in net sales within the Products and Systems Integration segment was driven by an increase of 9% in the North America region, partially offset by a decrease of 10% in the International region. Net sales includes:
Current wording
Net sales increased $276 million, or 6%, in the first half of 2025 compared to the first half of 2024. The $226 million, or 12%, increase in net sales within the Software and Services segment was driven by an increase of 13% in the North America region, and an increase of 10% in the International region. The $50 million, or 2%, increase in net sales within the Products and Systems Integration segment was driven by an increase of 4% in the North America region, partially offset by a decrease of 6% in the International region. Net sales includes:
Previous wording
•an increase in the Software and Services segment, inclusive of $32 million of revenue from acquisitions, driven by an increase in Video, LMR services and Command Center;
Current wording
•an increase in Software and Services, inclusive of $71 million of revenue from acquisitions, driven by an increase in Video, LMR services and Command Center;
Previous wording
•a 9% increase in the North America region, inclusive of revenue from acquisitions, driven by an increase in LMR, Video and Command Center; partially offset by
Current wording
•a 7% increase in the North America region, inclusive of revenue from acquisitions, driven by an increase in LMR, Video and Command Center; and
Previous wording
•a 3% decrease in the International region, inclusive of revenue from acquisitions, driven by a decrease in LMR partially offset by an increase in Command Center and Video.
Current wording
•the International region was flat, inclusive of revenue from acquisitions, driven by an increase in Command Center and Video, partially offset by LMR.
Previous wording
•$60 million, or 5%, growth in LMR, driven by the North America region, partially offset by the International region; partially offset by
Current wording
•$51 million, or 2% growth in LMR, driven by the North America region, partially offset by the International region; partially offset by
Previous wording
•$17 million, or 10%, growth in Command Center, inclusive of revenue from acquisitions, driven by the North America and International regions; and
Current wording
•$44 million, or 12% growth in Command Center, inclusive of revenue from acquisitions, driven by both the North America and International regions; and
Previous wording
•a 3.2% increase in gross margin as a percentage of net sales in the Products and Systems Integration segment, primarily driven by higher sales, favorable mix and lower direct material costs; partially offset by
Current wording
•a 1.6% increase in gross margin as a percentage of net sales in the Products and Systems Integration segment, primarily driven by favorable mix and lower direct material costs, despite higher tariffs; partially offset by
Previous wording
R&D expenditures increased 7% in the first quarter of 2025 compared to the first quarter of 2024 primarily driven by:
Current wording
SG&A expenses increased 7% in the first half of 2025 compared to the first half of 2024 primarily driven by:
Previous wording
•a $30 million, or 10%, increase in Products and Systems Integration SG&A expenses primarily due to higher expenses related to legal matters, including Hytera related legal expenses, and higher employee incentive costs, including share based compensation; and
Current wording
•a $42 million, or 6%, increase in Products and Systems Integration SG&A expenses primarily due to higher employee incentive costs, including share based compensation and investments in video, and higher expenses related to legal matters, including Hytera related legal expenses; and
Previous wording
•a $9 million, or 10%, increase in Software and Services SG&A expenses primarily due to higher expenses associated with acquired businesses and higher employee incentive costs.
Current wording
•a $17 million, or 10%, increase in Software and Services SG&A expenses primarily due to higher expenses associated with acquired businesses.
Previous wording
•a $10 million, or 12%, increase in Software and Services R&D expenditures primarily due to higher employee incentive costs, including share based compensation, and higher expenses associated with acquired businesses.
Current wording
•an $18 million, or 11%, increase in Software and Services R&D expenditures primarily due to higher employee incentive costs, including investments in video and share based compensation, and higher expenses associated with acquired businesses; and
Previous wording
•a $5 million, or 4%, increase in Products and Systems Integration R&D expenditures primarily due to higher employee incentive costs; and
Current wording
•a $9 million, or 3%, increase in Products and Systems Integration R&D expenditures primarily due to higher employee incentive costs, including investments in video.
Previous wording
Other charges decreased by $9 million in the first quarter of 2025 compared to the first quarter of 2024. The decrease was primarily driven by:
Current wording
Other charges decreased by $15 million in the first half of 2025 compared to the first half of 2024. The decrease was driven primarily by:
Previous wording
•$3 million of operating lease asset impairments in the first quarter of 2024 that did not occur in the first quarter of 2025; partially offset by
Current wording
•$4 million of operating lease asset impairments in the first half of 2024 that did not occur in the first half of 2025; partially offset by
Previous wording
•a $42 million increase in the Products and Systems Integration segment, primarily driven by higher sales, favorable change in year-over-year mix and lower direct material costs, partially offset by higher expenses related to legal matters, including Hytera related expenses, and higher employee incentive costs, including share-based compensation; and
Current wording
•a $26 million increase in the Products and Systems Integration segment, primarily driven by higher sales, a gain on the Hytera litigation for amounts recovered through legal proceedings due to the theft of our trade secrets, favorable mix, and lower direct material costs, despite higher tariffs, partially offset by higher employee incentive costs, including share based compensation and investments in video, higher expenses related to legal matters, including Hytera related legal expenses, and increased intangible amortization expenses.
Previous wording
The $7 million increase in Interest expense, net in the first quarter of 2025 compared to the first quarter of 2024 was primarily driven by higher interest rates on outstanding debt.
Current wording
The $7 million decrease in Interest expense, net in the first half of 2025 compared to the first half of 2024 was primarily driven by interest accruals related to audits with tax authorities in foreign jurisdictions in 2024.
Previous wording
•$585 million loss from the extinguishment of 1.75% senior convertible notes issued to Silver Lake Partners ("Silver Lake Convertible Debt") in the first quarter of 2024; and
Current wording
•a $585 million loss from the extinguishment of the $1.0 billion of 1.75% senior convertible notes issued to Silver Lake Partners and scheduled to mature in September 2024 (the "Silver Lake Convertible Debt") which was recognized in the first half of 2024;
Previous wording
Income tax expense increased by $167 million in the first quarter of 2025 compared to the first quarter of 2024, resulting in an effective tax rate of 21%. Our effective tax rate for the three months ended March 29, 2025 of 21% was lower than the effective tax rate for the three months ended March 30, 2024 of 58%, primarily due to the non-tax deductible loss on the extinguishment of the Silver Lake Convertible Debt in 2024, partially offset by the tax benefit recognized upon the Company's decision to implement a business initiative in 2024 which allowed for additional utilization of foreign tax credit carryforwards and a higher foreign derived intangible income deduction on its 2023 U.S. tax return.
Current wording
Income tax expense increased by $197 million in the first half of 2025 compared to the first half of 2024, resulting in an effective tax rate of 23%. Our effective tax rate of 23% for the six months ended June 28, 2025 was higher than the effective tax rate for the six months ended June 29, 2024 of 17%, primarily due to the tax benefit recognized upon the Company's decision to implement a business initiative in 2024 which allowed for additional utilization of foreign tax credit carryforwards and a higher foreign derived intangible income deduction on its 2023 U.S. tax return and tax benefits recognized upon settlement of audits with taxing authorities in foreign jurisdictions in 2024, offset by the non-tax deductible loss on the extinguishment of Silver Lake Convertible Debt in 2024.
Previous wording
During the first quarter of 2025, we recorded net reorganization of business charges of $17 million, consisting of $12 million of charges in Other charges and $5 million of charges in Cost of sales in our Condensed Consolidated Statements of Operations. Included in the $17 million were charges of $19 million related to employee separation costs, partially offset by $2 million of reversals for employee separation accruals that are no longer needed.
Current wording
During the second quarter of 2025, we recorded net reorganization of business charges of $14 million, consisting of $8 million of charges in Other charges and $6 million of charges in Cost of sales in our Condensed Consolidated Statements of Operations. Included in the $14 million were charges of $13 million related to employee separation costs and $1 million related to exit costs.
Previous wording
During the first quarter of 2024, we recorded net reorganization of business charges of $10 million, including $7 million of charges recorded in Other charges and $3 million of charges in Costs of sales in our Condensed Consolidated Statements of Operations. Included in the $10 million were charges of $12 million related to employee separation costs, partially offset by $2 million of reversals for employee separation accruals no longer needed.
Current wording
During the second quarter of 2024, we recorded net reorganization of business charges of $4 million, including $4 million of charges recorded in Other charges in our Condensed Consolidated Statements of Operations. Included in the $4 million were charges of $10 million related to employee separation costs, partially offset by $2 million of reversals for employee separation accruals and $4 million of reversals for exit costs that are no longer needed.
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Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
•a 4% increase in the International region, inclusive of revenue from acquisitions, driven by an increase in LMR.
Current report — wording carried from elsewhere
•$26 million, or 12%, growth in Command Center, inclusive of revenue from acquisitions, driven by the North America region; and
Current report — wording carried from elsewhere
•an increase in the Products and Systems Integration segment, driven by an increase in LMR; and
Current report — wording carried from elsewhere
•$1 million decrease in Video, driven by the International region, partially offset by North America region; and
Current report — wording carried from elsewhere
The 12% increase in the Software and Services segment was driven by the following:
Current report — wording carried from elsewhere
•a 0.2% decrease in gross margin as a percentage of net sales in the Software and Services segment, inclusive of acquisitions, driven by higher expenses associated with acquired businesses.
Current report — wording carried from elsewhere
Selling, General and Administrative ("SG&A") Expenses
Current report — wording carried from elsewhere
Research and Development ("R&D") Expenditures
Current report — wording carried from elsewhere
•$20 million of gains on the Hytera litigation for the amounts recovered through legal proceedings due to theft of our trade secrets in the first half of 2025 that did not occur in the first half of 2024; and
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
We have a $2.25 billion syndicated, unsecured revolving credit facility scheduled to mature in March 2026 (the "2021 Motorola Solutions Credit Agreement"). The 2021 Motorola Solutions Credit Agreement includes a letter of credit sub-limit and fronting commitments of $450 million. Borrowings under the facility bear interest at the prime rate plus the applicable margin, or at a spread above the Secured Overnight Financing Rate (SOFR), at our option. An annual facility fee is payable on the undrawn amount of the credit line. The interest rate and facility fee are subject to adjustment if our credit rating changes. We must comply with certain customary covenants including a maximum leverage ratio, as defined in the 2021 Motorola Solutions Credit Agreement. We were in compliance with our financial covenants as of March 29, 2025.