Resideo Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Resideo (NYSE:REZI) reported preliminary Q1 2026 results with net revenue of $1.91 billion, up 8% year-over-year and above its outlook range. Total gross margin was 28.8%, down 10 bps.
Net income was $38 million versus $6 million a year ago, and Adjusted EBITDA rose 28% to $215 million. GAAP diluted EPS was $0.17, while Adjusted EPS was $0.65, up 3% and above guidance.
P&S revenue grew 9% with 41.8% gross margin; ADI revenue grew 8%. Operating cash flow was an outflow of $145 million, and debt totaled $3.23 billion. Resideo reaffirmed its full-year 2026 outlook and issued Q2 2026 guidance, including net revenue of $1.916–$1.940 billion and Adjusted EPS of $0.71–$0.75.
Positive
- Net revenue up 8% year-over-year to $1.912 billion, above outlook range
- Net income increased to $38 million from $6 million in Q1 2025
- Adjusted EBITDA rose 28% year-over-year to $215 million
- GAAP diluted EPS improved to $0.17 from a $0.02 loss
- Adjusted EPS grew to $0.65, up 3% and above outlook range
- P&S revenue up 9% to $706 million; Adjusted EBITDA up 12% to $177 million
- ADI net revenue up 8% to $1.206 billion, with 12% e-commerce growth
- Company reaffirmed full-year 2026 outlook and initiated Q2 2026 guidance
Negative
- Total company gross margin declined 10 basis points to 28.8% year-over-year
- Income from operations fell to $102 million from $136 million in Q1 2025
- Net cash used in operating activities increased to $145 million from $65 million
- ADI gross margin decreased 40 basis points to 21.2%
- ADI Adjusted EBITDA declined 8% to $66 million, margin down to 5.5%
- Interest expense rose to $47 million from $25 million year-over-year
- Operating expenses increased due to $24 million business separation costs and higher R&D and SG&A
News Market Reaction – REZI
In the May 13 session, REZI declined 17.91%, reflecting a significant negative market reaction. Argus tracked a trough of -14.4% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. Trading volume was elevated at 2.9x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 24 | FY 2025 earnings | Positive | +14.4% | Record 2025 revenue and Adjusted EBITDA with 2026 outlook initiation. |
| Nov 05 | Q3 2025 earnings | Positive | -23.8% | Strong Q3 growth but large Honeywell-related operating cash outflow. |
| Aug 05 | Q2 2025 earnings | Positive | +8.8% | Record Q2 revenue, higher Adjusted EBITDA, and raised 2025 outlook. |
| May 06 | Q1 2025 earnings | Positive | +8.9% | Strong revenue growth, margin expansion, and Adjusted EPS above outlook. |
| Feb 20 | FY 2024 earnings | Positive | -9.2% | FY 2024 growth with record cash flow and higher Adjusted EBITDA. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have produced volatile but mixed reactions: several strong rallies and two notable sell‑offs, with an average move near flat, indicating that market responses to results can be unpredictable.
Across the last five earnings-related events from Feb 2025 through Feb 2026, Resideo repeatedly reported record revenue and Adjusted EBITDA, often raising or reaffirming outlooks. Price reactions ranged from a +14.39% jump on FY 2025 results to a -23.75% drop after Q3 2025 despite strong operational metrics and Honeywell-related cash flows. This Q1 2026 release continues the pattern of revenue growth and solid margins, alongside ongoing balance sheet and business-structure changes that have previously influenced trading.
Key Terms
non-GAAP financial measures financial
Adjusted EBITDA financial
Adjusted EPS financial
stock-based compensation expense financial
Indemnification Agreement regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Net revenue of
$1.91 billion 8% year-over-year and above the high-end of outlook range; P&S up9% and ADI up8% - Total company gross margin of
28.8% ; 12 consecutive quarters of year-over-year gross margin expansion achieved at P&S - Net income of
$38 million $6 million $215 million 28% year-over-year and above the high-end of outlook range - GAAP diluted EPS of
$0.17 $0.65 3% year-over-year and above the high-end of outlook range
First Quarter 2026 Financial Highlights
- Net revenue of
$1,912 million 8% compared to$1,770 million - Total company gross margin of
28.8% , down 10 basis points year-over-year - Net income of
$38 million $6 million - Adjusted EBITDA(1) of
$215 million 28% compared to$168 million - Diluted EPS of
$0.17 $0.65 $0.02 $0.63 - Reported cash used by operating activities was
$145 million $65 million
Management Remarks
"Our first quarter results reflect the continued strong operational execution of both businesses in a dynamic macro-economic environment, resulting in results that exceeded the high end of our outlook range for all financial metrics," said Jay Geldmacher, Resideo's President and CEO.
"I am very pleased with the focus, discipline, and leadership demonstrated by the P&S and ADI teams. The team's operational performance, along with the achievement of key business separation milestones, builds momentum and conviction for each company as we approach completion of the ADI spin-off later this year."
(1) | This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934. Resideo management believes the use of such non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Adjusted Cash Provided by Operations, assists investors in understanding the ongoing operating performance of Resideo by presenting the financial results between periods on a more comparable basis. See reconciliations of | ||||
Products and Solutions First Quarter 2026 Highlights
- Net revenue of
$706 million 9% compared to 2025 - Gross margin of
41.8% , up 40 basis points compared to 2025 - Income from operations of
$128 million $136 million - Adjusted EBITDA(1) of
$177 million 25.1% of revenue, compared to$158 million 24.3% of revenue in 2025
P&S delivered net revenue of
Gross margin was
ADI Global Distribution First Quarter 2026 Highlights
- Net revenue of
$1,206 million 8% compared to 2025 - Gross margin of
21.2% , down 40 basis points compared to 2025 - Income from operations of
$34 million $34 million - Adjusted EBITDA(1) of
$66 million 5.5% of revenue, compared to$72 million 6.4% of revenue in 2025
ADI first quarter 2026 net revenue of
Gross margin was
Cash Flow and Liquidity
Net cash used by operating activities was
Outlook
The Company re-affirms its full year 2026 outlook and initiates its outlook for the second quarter 2026.
($ in millions, except per share data) | Q2 2026 | 2026 |
Net revenue | ||
Non-GAAP Adjusted EBITDA(1) | ||
Non-GAAP Adjusted Earnings Per Share(1) |
Conference Call and Webcast Details
Resideo will hold a conference call with investors on May 12, 2026, at 5:00 p.m. ET. The webcast can be accessed at https://investor.resideo.com, where the webcast link and related materials will be posted before the call. A replay of the webcast will be available following the presentation.
About Resideo
Resideo is a leading manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. We are a leader in the home heating, ventilation, and air conditioning controls markets, smoke and carbon monoxide detection home safety and fire suppression products markets, and security products markets. Our solutions and services can be found in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually. For more information about Resideo and our trusted, well-established brands including First Alert, Honeywell Home, BRK, Control4, and others, visit www.resideo.com.
Contacts: | ||
Investors: | Media: | |
Christopher T. Lee | Garrett Terry | |
Global Head of Strategic Finance | Corporate Communications Manager | |
Forward-Looking Statements
This release and the related conference call contain "forward-looking statements." All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of the Company to differ materially from such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the second quarter 2026 and full year 2026, (2) our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint, (3) the amount of our obligations and nature of our contractual restrictions pursuant to, and disputes that have or may hereafter arise under the agreements we entered into with Honeywell in connection with the spin-off of Resideo from Honeywell, (4) the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (5) risks and uncertainties relating to tariffs that have been or may be imposed by
Use of Non-GAAP Measures
This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934 and in accordance with Regulation G thereunder. Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with
We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with
Table 1: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||
Three Months Ended | |||
(in millions, except per share data) | April 4, 2026 | March 29, 2025 | |
Net revenue | $ 1,912 | $ 1,770 | |
Cost of goods sold | 1,361 | 1,259 | |
Gross profit | 551 | 511 | |
Operating expenses: | |||
Research and development expenses | 48 | 35 | |
Selling, general and administrative expenses | 340 | 306 | |
Intangible asset amortization | 31 | 30 | |
Restructuring expenses | 6 | 4 | |
Business separation costs | 24 | — | |
Total operating expenses | 449 | 375 | |
Income from operations | 102 | 136 | |
Indemnification Agreement expense (1) | — | 90 | |
Other expense (income), net | — | 6 | |
Interest expense, net | 47 | 25 | |
Net income before taxes | 55 | 15 | |
Provision for income taxes | 17 | 9 | |
Net income | 38 | 6 | |
Less: preferred stock dividends | 9 | 9 | |
Less: undistributed income allocated to preferred stockholders | 3 | — | |
Net income (loss) available to common stockholders | $ 26 | $ (3) | |
Earnings (loss) per common share: | |||
Basic | $ 0.17 | $ (0.02) | |
Diluted | $ 0.17 | $ (0.02) | |
Weighted average common shares outstanding: | |||
Basic | 151 | 148 | |
Diluted | 155 | 148 | |
(1) | Represents the expense incurred pursuant to the Indemnification Agreement, which, prior to its termination, had an annual cash payment cap of |
Three Months Ended | |||
(in millions) | April 4, 2026 | March 29, 2025 | |
Accrual for Indemnification Agreement liabilities deemed probable and reasonably | $ — | $ 90 | |
Cash payments made to Honeywell prior to the third quarter of 2025 | — | (35) | |
Indemnification Agreement non-GAAP adjustment | $ — | $ 55 | |
Table 2: CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||
(in millions, except par value) | April 4, 2026 | December 31, 2025 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 438 | $ 661 | |
Accounts receivable, net | 1,114 | 1,073 | |
Inventories, net | 1,357 | 1,354 | |
Other current assets | 265 | 270 | |
Total current assets | 3,174 | 3,358 | |
Property, plant and equipment, net | 444 | 447 | |
Goodwill | 3,096 | 3,100 | |
Intangible assets, net | 1,069 | 1,091 | |
Other assets | 424 | 437 | |
Total assets | $ 8,207 | $ 8,433 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 1,015 | $ 1,131 | |
Accrued liabilities | 516 | 624 | |
Total current liabilities | 1,531 | 1,755 | |
Long-term debt | 3,165 | 3,167 | |
Other liabilities | 589 | 594 | |
Total liabilities | 5,285 | 5,516 | |
Stockholders' equity: | |||
Preferred stock, | 482 | 482 | |
Common stock, | — | — | |
Additional paid-in capital | 2,410 | 2,391 | |
Retained earnings | 374 | 345 | |
Accumulated other comprehensive loss | (168) | (157) | |
Treasury stock at cost | (176) | (144) | |
Total stockholders' equity | 2,922 | 2,917 | |
Total liabilities and stockholders' equity | $ 8,207 | $ 8,433 | |
Table 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||
Three Months Ended | |||
(in millions) | April 4, 2026 | March 29, 2025 | |
Cash Flows From Operating Activities: | |||
Net income | $ 38 | $ 6 | |
Adjustments to reconcile net income to net cash in operating activities: | |||
Depreciation and amortization | 51 | 47 | |
Restructuring expenses | 6 | 4 | |
Stock-based compensation expense | 14 | 15 | |
Other, net | — | 6 | |
Changes in assets and liabilities: | |||
Accounts receivable, net | (42) | (13) | |
Inventories, net | (6) | 17 | |
Other current assets | 6 | 9 | |
Accounts payable | (106) | (101) | |
Accrued liabilities | (114) | (112) | |
Non-current obligations payable under the Indemnification Agreement | — | 54 | |
Other, net | 8 | 3 | |
Net cash used in operating activities | (145) | (65) | |
Cash Flows From Investing Activities: | |||
Capital expenditures | (36) | (31) | |
Net cash used in investing activities | (36) | (31) | |
Cash Flows From Financing Activities: | |||
Repayments of long-term debt | (5) | — | |
Acquisition of treasury stock to cover stock award tax withholding | (32) | (15) | |
Preferred stock dividend payments | (9) | (9) | |
Other financing activities, net | 4 | 2 | |
Net cash used in financing activities | (42) | (22) | |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 1 | 3 | |
Net decrease in cash, cash equivalents and restricted cash | (222) | (115) | |
Cash, cash equivalents and restricted cash at beginning of period | 662 | 693 | |
Cash, cash equivalents and restricted cash at end of period | $ 440 | $ 578 | |
Table 4: SUMMARY OF FINANCIAL RESULTS (UNAUDITED) | |||||||
Q1 2026 | |||||||
(in millions) | Products | ADI Global | Corporate | Total | |||
Net revenue | $ 706 | $ 1,206 | $ — | $ 1,912 | |||
Cost of goods sold | 411 | 950 | — | 1,361 | |||
Gross profit | 295 | 256 | — | 551 | |||
Research and development expenses | 36 | 12 | — | 48 | |||
Selling, general and administrative expenses | 119 | 186 | 35 | 340 | |||
Intangible asset amortization | 6 | 24 | 1 | 31 | |||
Restructuring expenses | 6 | — | — | 6 | |||
Business separation costs | — | — | 24 | 24 | |||
Income (loss) from operations | $ 128 | $ 34 | $ (60) | $ 102 | |||
Q1 2025 | |||||||
(in millions) | Products | ADI Global | Corporate | Total | |||
Net revenue | $ 649 | $ 1,121 | $ — | $ 1,770 | |||
Cost of goods sold | 380 | 879 | — | 1,259 | |||
Gross profit | 269 | 242 | — | 511 | |||
Research and development expenses | 27 | 8 | — | 35 | |||
Selling, general and administrative expenses | 101 | 173 | 32 | 306 | |||
Intangible asset amortization | 6 | 23 | 1 | 30 | |||
Restructuring expenses | (1) | 4 | 1 | 4 | |||
Income (loss) from operations | $ 136 | $ 34 | $ (34) | $ 136 | |||
Q1 2026 % change compared with prior period | |||||||
Products | ADI Global | Corporate | Total | ||||
Net revenue | 9 % | 8 % | N/A | 8 % | |||
Cost of goods sold | 8 % | 8 % | N/A | 8 % | |||
Gross profit | 10 % | 6 % | N/A | 8 % | |||
Research and development expenses | 33 % | 50 % | N/A | 37 % | |||
Selling, general and administrative expenses | 18 % | 8 % | 9 % | 11 % | |||
Intangible asset amortization | — % | 4 % | — % | 3 % | |||
Income (loss) from operations | (6) % | — % | 76 % | (25) % | |||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | |||
ADJUSTED DILUTED EARNINGS PER SHARE AND NET INCOME (LOSS) COMPARISON | |||
(Unaudited) | |||
RESIDEO TECHNOLOGIES, INC. | |||
Three Months Ended | |||
(in millions, except per share data) | April 4, 2026 | March 29, 2025 | |
GAAP Net income | $ 38 | $ 6 | |
Less: preferred stock dividends | 9 | 9 | |
Less: undistributed income allocated to preferred stockholders | 3 | — | |
GAAP Net income (loss) available to common stockholders | 26 | (3) | |
Indemnification Agreement non-GAAP adjustment (1) | — | 55 | |
Intangible asset amortization | 31 | 30 | |
Business separation costs | 24 | — | |
Litigation settlement | 18 | — | |
Stock-based compensation expense | 14 | 15 | |
Restructuring expenses | 6 | 4 | |
Undistributed income allocated to preferred stockholders | 3 | — | |
Other (2) | 1 | 7 | |
Tax effect of applicable non-GAAP adjustments (3) | (22) | (14) | |
Non-GAAP Adjusted net income | $ 101 | $ 94 | |
Three Months Ended | |||
April 4, 2026 | March 29, 2025 | ||
GAAP Net income (loss) available to common shareholders per diluted | $ 0.17 | $ (0.02) | |
Indemnification Agreement non-GAAP adjustment (1) | — | 0.37 | |
Intangible asset amortization | 0.20 | 0.20 | |
Business separation costs | 0.15 | — | |
Litigation settlement | 0.12 | — | |
Stock-based compensation expense | 0.09 | 0.10 | |
Restructuring expenses | 0.04 | 0.03 | |
Undistributed income allocated to preferred stockholders | 0.02 | — | |
Other (2) | — | 0.05 | |
Tax effect of applicable non-GAAP adjustments (3) | (0.14) | (0.10) | |
Non-GAAP Adjusted diluted earnings per share | $ 0.65 | $ 0.63 | |
(1) | Refer to the Unaudited Consolidated Statements of Operations herein. |
(2) | Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transaction loss (income), acquisition and miscellaneous other non-recurring, non-operating income and losses. |
(3) | We calculate the tax effect of relevant non-GAAP adjustments by applying a flat statutory tax rate of |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | |||
ADJUSTED EBITDA AND NET INCOME COMPARISON | |||
(Unaudited) | |||
RESIDEO TECHNOLOGIES, INC. | |||
Three Months Ended | |||
(in millions) | April 4, 2026 | March 29, 2025 | |
Net revenue | $ 1,912 | $ 1,770 | |
GAAP Net income | $ 38 | $ 6 | |
GAAP Net income as a % of net revenue | 2.0 % | 0.3 % | |
Provision for income taxes | 17 | 9 | |
GAAP Net income before taxes | 55 | 15 | |
Indemnification Agreement non-GAAP adjustment (1) | — | 55 | |
Depreciation and amortization | 51 | 47 | |
Interest expense, net | 47 | 25 | |
Business separation costs | 24 | — | |
Litigation settlement | 18 | — | |
Stock-based compensation expense | 14 | 15 | |
Restructuring expenses | 6 | 4 | |
Other (2) | — | 7 | |
Non-GAAP Adjusted EBITDA | $ 215 | $ 168 | |
Non-GAAP Adjusted EBITDA as a % of net revenue | 11.2 % | 9.5 % | |
(1) | Refer to the Unaudited Consolidated Statements of Operations herein. |
(2) | Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transaction loss (income), acquisition and miscellaneous other non-recurring, non-operating income and losses. |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | |||
(Unaudited) | |||
PRODUCTS AND SOLUTIONS SEGMENT | |||
Three Months Ended | |||
(in millions) | April 4, 2026 | March 29, 2025 | |
Net revenue | $ 706 | $ 649 | |
GAAP Income from operations | $ 128 | $ 136 | |
GAAP Income from operations as a % of net revenue | 18.1 % | 21.0 % | |
Litigation settlement | 18 | — | |
Restructuring expenses | 6 | (1) | |
Stock-based compensation expense | 5 | 5 | |
Other (1) | $ (1) | $ (1) | |
Non-GAAP Adjusted Income from Operations | $ 156 | $ 140 | |
Depreciation and amortization | 21 | 18 | |
Non-GAAP Adjusted EBITDA | $ 177 | $ 158 | |
Non-GAAP Adjusted EBITDA as a % of net revenue | 25.1 % | 24.3 % | |
(1) | Other includes other miscellaneous adjustments. |
ADI GLOBAL DISTRIBUTION SEGMENT | |||
Three Months Ended | |||
(in millions) | April 4, 2026 | March 29, 2025 | |
Net revenue | $ 1,206 | $ 1,121 | |
GAAP Income from operations | $ 34 | $ 34 | |
GAAP Income from operations as a % of net revenue | 2.8 % | 3.0 % | |
Stock-based compensation expense | 4 | 4 | |
Restructuring expense | — | 4 | |
Other (1) | (1) | 2 | |
Non-GAAP Adjusted Income from Operations | $ 37 | $ 44 | |
Depreciation and amortization | 29 | 28 | |
Non-GAAP Adjusted EBITDA | $ 66 | $ 72 | |
Non-GAAP Adjusted EBITDA as a % of net revenue | 5.5 % | 6.4 % | |
(1) | Other includes other miscellaneous adjustments and acquisition costs. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/resideo-announces-first-quarter-2026-financial-results-302770036.html
SOURCE Resideo Technologies, Inc.