How does Garmin (GRMN) make money?

Garmin (GRMN) primarily makes money through Fitness, which accounts for 32.5% of total revenue. For TTM through Q4 2025, Garmin generated $7.25B in total revenue with a net profit margin of 23%.

What is Garmin (GRMN) gross profit margin?

Garmin (GRMN) reported a gross profit margin of 58.7% for TTM through Q4 2025, equivalent to $4.26B in gross profit. This means Garmin retains 58.7% of each revenue unit after direct costs of production.

What is Garmin (GRMN) operating profit margin?

Garmin (GRMN) reported an operating profit margin of 25.9% for TTM through Q4 2025, equivalent to $1.88B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Garmin (GRMN) net profit margin?

Garmin (GRMN) reported a net profit margin of 23% for TTM through Q4 2025, equivalent to $1.66B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Garmin (GRMN) invest in R&D?

Garmin (GRMN) invested $1.13B in research and development in TTM through Q4 2025 (15.5% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does Garmin (GRMN) spend on capital expenditures?

Garmin (GRMN) spent $270.45M on capital expenditures in TTM through Q4 2025 (3.7% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Garmin (GRMN) free cash flow?

Garmin (GRMN) generated $1.36B in free cash flow for TTM through Q4 2025 (18.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Garmin (GRMN) effective tax rate?

Garmin (GRMN) had an effective tax rate of 17.4% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

How Garmin (GRMN) Makes Money: A Visual Guide

Garmin (GRMN) generated $7.25B in revenue, earning $1.66B in net profit (23% margin). Its largest revenue source is Fitness (32.5% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Garmin (GRMN) Income Statement Flow — TTM through Q4 2025

Calculated from the four most recent reported quarters, ending December 27, 2025 (reported February 18, 2026).

Frequently asked questions

How does Garmin (GRMN) make money?: Garmin (GRMN) primarily makes money through Fitness, which accounts for 32.5% of total revenue. For TTM through Q4 2025, Garmin generated $7.25B in total revenue with a net profit margin of 23%.
What is Garmin (GRMN) gross profit margin?: Garmin (GRMN) reported a gross profit margin of 58.7% for TTM through Q4 2025, equivalent to $4.26B in gross profit. This means Garmin retains 58.7% of each revenue unit after direct costs of production.
What is Garmin (GRMN) operating profit margin?: Garmin (GRMN) reported an operating profit margin of 25.9% for TTM through Q4 2025, equivalent to $1.88B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Garmin (GRMN) net profit margin?: Garmin (GRMN) reported a net profit margin of 23% for TTM through Q4 2025, equivalent to $1.66B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Garmin (GRMN) invest in R&D?: Garmin (GRMN) invested $1.13B in research and development in TTM through Q4 2025 (15.5% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Garmin (GRMN) spend on capital expenditures?: Garmin (GRMN) spent $270.45M on capital expenditures in TTM through Q4 2025 (3.7% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Garmin (GRMN) free cash flow?: Garmin (GRMN) generated $1.36B in free cash flow for TTM through Q4 2025 (18.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Garmin (GRMN) effective tax rate?: Garmin (GRMN) had an effective tax rate of 17.4% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q4 2025.