Resideo Announces Fourth Quarter and Full Year 2025 Financial Results and Initiates 2026 Outlook
Rhea-AI Summary
Resideo (NYSE: REZI) reported record full year 2025 net revenue of $7.47 billion, up 11% year-over-year, and record high Adjusted EBITDA of $833 million, up 20%.
GAAP net loss was $527 million driven by a one-time payment to Honeywell; Q4 revenue was $1.895 billion. The company provided 2026 outlook ranges for revenue, Adjusted EBITDA, and Adjusted EPS.
Positive
- Record net revenue of $7.47B, +11% year-over-year
- Record Adjusted EBITDA of $833M, +20% year-over-year
- Q4 net revenue above outlook at $1.895B
- Full year Adjusted EPS of $2.68, above outlook high-end
- Gross margin expansion to 29.4% for full year
Negative
- GAAP net loss of $527M due to termination payment
- One-time $1.59B payment to Honeywell affecting cash flow
- Net cash used by operating activities of $1,137M in 2025
- Total outstanding debt of $3.23B at December 31, 2025
News Market Reaction – REZI
On the day this news was published, REZI gained 14.39%, reflecting a significant positive market reaction. Argus tracked a peak move of +8.7% during that session. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $808M to the company's valuation, bringing the market cap to $6.42B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
REZI fell 5.77%, while key industrial/wholesale peers like MSM, SITE, CNM, WCC and POOL were down a milder 1–3%. Scanner data flagged only one peer in momentum, suggesting REZI’s move was more stock-specific, though directionally consistent with a softer group tape.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Positive | -0.9% | Record Q3 revenue, margins and net income alongside strong Adjusted EBITDA. |
| Aug 05 | Q2 2025 earnings | Positive | +8.8% | Record revenue and Adjusted EBITDA despite one-time indemnification-driven net loss. |
| May 06 | Q1 2025 earnings | Positive | +8.9% | Strong revenue growth, margin expansion and Adjusted EBITDA above outlook. |
| Feb 20 | FY 2024 results | Positive | -9.2% | FY 2024 growth and record cash flow with ADI strength and Snap One integration. |
| Nov 07 | Q3 2024 earnings | Positive | +10.4% | Strong revenue and Adjusted EBITDA with ADI growth and solid P&S margins. |
Earnings releases have generally been received positively, but there are notable instances where strong fundamentals coincided with negative price reactions.
Across the last five earnings-related releases since Nov 2024, Resideo repeatedly reported revenue growth, margin expansion, and rising Adjusted EBITDA, including record figures in multiple quarters and the resolution of the Honeywell indemnification obligations. Market reactions were mixed: Q1 and Q2 2025 earnings saw solid gains, while FY 2024 results and Q3 2025 produced modest declines despite strong operating metrics. Today’s full-year 2025 report, with record revenue and EBITDA but a GAAP net loss tied to the indemnification termination, fits this pattern of complex, sometimes counterintuitive responses.
Historical Comparison
In the past year, five earnings releases saw an average move of about 3.6%. Today’s -5.77% reaction to record 2025 results and 2026 guidance is a larger-than-typical downside swing versus prior earnings days.
Earnings updates since late 2024 show a progression of rising revenue, margin expansion, and growing Adjusted EBITDA, alongside resolving Honeywell indemnification obligations. The latest release continues this trend with record full-year 2025 revenue and Adjusted EBITDA plus an initial 2026 outlook, extending the multi-quarter pattern of scaling operations while absorbing one-time indemnification costs.
Market Pulse Summary
The stock surged +14.4% in the session following this news. A strong positive reaction would have aligned with Resideo’s pattern of favorable responses to several recent earnings beats, where record revenue and margin expansion were highlighted. However, investors have also focused on GAAP impacts from Honeywell-related payments in prior quarters. Any sustained advance would need to digest the mix of record 2025 Adjusted EBITDA, the new 2026 outlook, and the company’s leverage and cash-flow trajectory.
Key Terms
adjusted ebitda financial
adjusted eps financial
non-gaap financial measures financial
form 10-k regulatory
forward-looking statements regulatory
regulation g regulatory
AI-generated analysis. Not financial advice.
- Record high full year 2025 net revenue of
$7.47 billion 11% year-over-year; ADI Global Distribution ("ADI") and Products & Solutions ("P&S") grew net revenue14% and5% year-over-year, respectively - Full year 2025 net loss of
$527 million $116 million $833 million 20% year-over-year and above the high-end of outlook range - Fourth quarter net revenue of
$1.89 5 billion2% year-over-year and above the high-end of outlook range; on an organic basis, P&S up5% and ADI down1% - Total company fourth quarter gross margin of
29.6% , up 110 basis points year-over-year; year-over-year margin expansion achieved at both P&S (eleven consecutive quarters) and at ADI (seven consecutive quarters) - Fourth quarter net income of
$136 million $23 million $226 million 21% year-over-year, and above the high-end of outlook range
Fourth Quarter 2025 Financial Highlights
- Net revenue of
$1,895 million 2% compared to$1,858 million - Total company gross margin of
29.6% , up 110 basis points year-over-year - Net income of
$136 million $23 million - Adjusted EBITDA(1) of
$226 million 21% compared to$187 million - Diluted EPS of
$0.73 $0.50 $0.08 $0.59 - Reported cash provided by operating activities of
$299 million
Full Year 2025 Financial Highlights
- Record high net revenue of
$7,472 million 11% compared to$6,761 million - Total company gross margin of
29.4% , up 130 basis points year-over-year - On a GAAP basis, net loss of
$527 million $116 million $409 million 20% compared to$341 million - Record high Adjusted EBITDA(1) of
$833 million 20% compared to$693 million - Diluted loss per share of
$3.77 $2.68 $0.61 $2.29 - Cash used in operating activities of
$1,137 million $453 million $1,590 million
(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 | ||
Management Remarks
"In the fourth quarter, Resideo delivered strong results that either exceeded or were at the high end of our outlook range. In 2025, Resideo exceeded the high-end of our outlook range for all of our key financial metrics and achieved record highs in net revenue, Adjusted EBITDA and Adjusted EPS," said Jay Geldmacher, Resideo's President and CEO.
"The Products and Solutions and ADI teams delivered outstanding results in 2025 by demonstrating resilience and operational excellence throughout a very dynamic year. These are part of our core values that will drive future standalone success for each company post business separation."
Products and Solutions Fourth Quarter 2025 Highlights
- Net revenue of
$712 million 6% compared to 2024 - Fourth quarter gross margin of
41.0% , up 20 basis points compared to 2024 - Income from operations of
$137 million $133 million - Adjusted EBITDA(1) of
$166 million 23.3% of revenue, compared to$157 million 23.5% of revenue in 2024
P&S delivered net revenue of
Fourth quarter 2025 gross margin was
ADI Global Distribution Fourth Quarter 2025 Highlights
- Net revenue of
$1,183 million 1% when compared to 2024 - Gross margin of
22.7% , up 110 basis points compared to 2024 - Income from operations of
$51 million $48 million - Adjusted EBITDA(1) of
$88 million 7.4% of revenue, compared to$91 million 7.7% of revenue in 2024
ADI fourth quarter 2025 net revenue of
Gross margin was
Cash Flow and Liquidity
Net cash provided by operating activities was
Net cash used by operating activities was
Outlook
The following table summarizes the Company's current first quarter 2026 and full year 2026 outlook.
($ in millions, except per share data) | Q1 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 February 24, 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 Investor Relations | 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 first 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 our spin-off, (4) risks related to our recently completed acquisitions, including Snap One, and our ability to achieve the targeted amount of annual cost synergies and successfully integrate the acquired operations (including successfully driving category growth in connected offerings), (5) the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (6) 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: SUMMARY OF FINANCIAL RESULTS (UNAUDITED) | ||||||||||||||||
Q4 2025 | Full Year 2025 | |||||||||||||||
(in millions) | Products | ADI Global | Corporate | Total | Products | ADI Global | Corporate | Total | ||||||||
Net revenue | $ 712 | $ 1,183 | $ — | $ 1,895 | $ 2,688 | $ 4,784 | $ — | $ 7,472 | ||||||||
Cost of goods sold | 420 | 915 | — | 1,335 | 1,557 | 3,719 | — | 5,276 | ||||||||
Gross profit | 292 | 268 | — | 560 | 1,131 | 1,065 | — | 2,196 | ||||||||
Research and development | 36 | 11 | — | 47 | 128 | 39 | — | 167 | ||||||||
Selling, general and | 108 | 179 | 34 | 321 | 417 | 712 | 137 | 1,266 | ||||||||
Intangible asset amortization | 7 | 24 | — | 31 | 26 | 94 | 2 | 122 | ||||||||
Restructuring, impairment and | 4 | 3 | — | 7 | 5 | 8 | 3 | 16 | ||||||||
Business separation costs | — | — | 14 | 14 | — | — | 18 | 18 | ||||||||
Income (loss) from operations | $ 137 | $ 51 | $ (48) | $ 140 | $ 555 | $ 212 | $ (160) | $ 607 | ||||||||
Q4 2024 | Full Year 2024 | |||||||||||||||
(in millions) | Products | ADI Global | Corporate | Total | Products | ADI Global | Corporate | Total | ||||||||
Net revenue | $ 669 | $ 1,189 | $ — | $ 1,858 | $ 2,564 | $ 4,197 | $ — | $ 6,761 | ||||||||
Cost of goods sold | 396 | 932 | — | 1,328 | 1,514 | 3,346 | — | 4,860 | ||||||||
Gross profit | 273 | 257 | — | 530 | 1,050 | 851 | — | 1,901 | ||||||||
Research and development | 25 | 17 | — | 42 | 94 | 17 | — | 111 | ||||||||
Selling, general and | 109 | 169 | 32 | 310 | 416 | 566 | 156 | 1,138 | ||||||||
Intangible asset amortization | 5 | 23 | 1 | 29 | 23 | 54 | 3 | 80 | ||||||||
Restructuring, impairment and | 1 | — | 4 | 5 | 14 | 19 | 19 | 52 | ||||||||
Income (loss) from operations | $ 133 | $ 48 | $ (37) | $ 144 | $ 503 | $ 195 | $ (178) | $ 520 | ||||||||
Q4 2025 % change compared with prior | Full Year 2025 % change compared | ||||||||||||||
Products | ADI Global | Corporate | Total | Products | ADI Global | Corporate | Total | ||||||||
Net revenue | 6 % | (1) % | N/A | 2 % | 5 % | 14 % | N/A | 11 % | |||||||
Cost of goods sold | 6 % | (2) % | N/A | 1 % | 3 % | 11 % | N/A | 9 % | |||||||
Gross profit | 7 % | 4 % | N/A | 6 % | 8 % | 25 % | N/A | 16 % | |||||||
Research and development | 44 % | (35) % | N/A | 12 % | 36 % | 129 % | N/A | 50 % | |||||||
Selling, general and | (1) % | 6 % | 6 % | 4 % | — % | 26 % | (12) % | 11 % | |||||||
Intangible asset amortization | 40 % | 4 % | (100) % | 7 % | 13 % | 74 % | (33) % | 53 % | |||||||
Restructuring, impairment and | 300 % | N/A | (100) % | 40 % | (64) % | (58) % | (84) % | (69) % | |||||||
Business separation costs | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||
Income (loss) from operations | 3 % | 6 % | 30 % | (3) % | 10 % | 9 % | (10) % | 17 % | |||||||
Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
(in millions, except per share data) | December 31, | December 31, | December 31, | December 31, | |||
Net revenue | $ 1,895 | $ 1,858 | $ 7,472 | $ 6,761 | |||
Cost of goods sold | 1,335 | 1,328 | 5,276 | 4,860 | |||
Gross profit | 560 | 530 | 2,196 | 1,901 | |||
Operating expenses: | |||||||
Research and development expenses | 47 | 42 | 167 | 111 | |||
Selling, general and administrative expenses | 321 | 310 | 1,266 | 1,138 | |||
Intangible asset amortization | 31 | 29 | 122 | 80 | |||
Restructuring, impairment and extinguishment costs | 7 | 5 | 16 | 52 | |||
Business separation costs | 14 | — | 18 | — | |||
Total operating expenses | 420 | 386 | 1,589 | 1,381 | |||
Income from operations | 140 | 144 | 607 | 520 | |||
Indemnification Agreement expense (1) | — | 76 | 972 | 211 | |||
Other expense (income), net | (65) | (3) | (43) | 7 | |||
Interest expense, net | 49 | 26 | 135 | 81 | |||
Net income (loss) before taxes | 156 | 45 | (457) | 221 | |||
Provision for income taxes | 20 | 22 | 70 | 105 | |||
Net income (loss) | 136 | 23 | (527) | 116 | |||
Less: preferred stock dividends | 9 | 9 | 35 | 19 | |||
Less: undistributed income allocated to preferred stockholders | 14 | 2 | — | 6 | |||
Net income (loss) available to common stockholders | $ 113 | $ 12 | $ (562) | $ 91 | |||
Earnings (loss) per common share: | |||||||
Basic | $ 0.75 | $ 0.08 | $ (3.77) | $ 0.62 | |||
Diluted | $ 0.73 | $ 0.08 | $ (3.77) | $ 0.61 | |||
Weighted average common shares outstanding: | |||||||
Basic | 150 | 147 | 149 | 146 | |||
Diluted | 155 | 150 | 149 | 149 | |||
(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 | Twelve Months Ended | ||||||
(in millions) | December 31, | December 31, | December 31, | December 31, | |||
Accrual for Indemnification Agreement liabilities deemed probable and reasonably estimable | $ — | $ 76 | $ 972 | $ 211 | |||
Cash payments made to Honeywell prior to the third quarter of 2025 | — | (35) | (70) | (140) | |||
Indemnification Agreement non-GAAP adjustment | $ — | $ 41 | $ 902 | $ 71 | |||
Table 3: CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||
(in millions, except par value) | December 31, | December 31, | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 661 | $ 692 | |
Accounts receivable, net | 1,073 | 1,023 | |
Inventories, net | 1,354 | 1,237 | |
Other current assets | 270 | 220 | |
Total current assets | 3,358 | 3,172 | |
Property, plant and equipment, net | 447 | 410 | |
Goodwill | 3,100 | 3,072 | |
Intangible assets, net | 1,091 | 1,176 | |
Other assets | 437 | 369 | |
Total assets | $ 8,433 | $ 8,199 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 1,131 | $ 1,073 | |
Accrued liabilities | 624 | 717 | |
Total current liabilities | 1,755 | 1,790 | |
Long-term debt | 3,167 | 1,983 | |
Non-current obligations payable under the Indemnification Agreement | — | 583 | |
Other liabilities | 594 | 534 | |
Total liabilities | 5,516 | 4,890 | |
Stockholders' equity | |||
Preferred stock, | 482 | 482 | |
Common stock, | — | — | |
Additional paid-in capital | 2,391 | 2,315 | |
Retained earnings | 345 | 907 | |
Accumulated other comprehensive income (loss) | (157) | (284) | |
Treasury stock at cost | (144) | (111) | |
Total stockholders' equity | 2,917 | 3,309 | |
Total liabilities and stockholders' equity | $ 8,433 | $ 8,199 | |
Table 4: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
(in millions) | December 31, | December 31, | December 31, | December 31, | |||
Cash Flows From Operating Activities: | |||||||
Net income (loss) | $ 136 | $ 23 | $ (527) | $ 116 | |||
Adjustments to reconcile net income (loss) to net cash in operating activities: | |||||||
Depreciation and amortization | 50 | 46 | 195 | 144 | |||
Restructuring, impairment and extinguishment costs | 7 | 5 | 16 | 52 | |||
Stock-based compensation expense | 14 | 15 | 57 | 59 | |||
Other, net | (35) | (29) | (36) | (24) | |||
Changes in assets and liabilities, net of acquired companies: | |||||||
Accounts receivable, net | 72 | 61 | (29) | (18) | |||
Inventories, net | (25) | (58) | (92) | (71) | |||
Other current assets | (19) | (20) | (54) | (5) | |||
Accounts payable | 88 | 65 | 30 | 127 | |||
Accrued liabilities | 30 | 69 | (107) | 4 | |||
Non-current obligations payable under the Indemnification Agreement | — | 41 | (583) | 71 | |||
Other, net | (19) | (15) | (7) | (11) | |||
Net cash provided by (used in) operating activities | 299 | 203 | (1,137) | 444 | |||
Cash Flows From Investing Activities: | |||||||
Acquisitions, net of cash acquired | — | (3) | — | (1,337) | |||
Capital expenditures | (37) | (22) | (116) | (80) | |||
Proceeds from sale of business | 77 | — | 77 | — | |||
Other investing activities, net | — | 2 | — | 8 | |||
Net cash used in investing activities | 40 | (23) | (39) | (1,409) | |||
Cash Flows From Financing Activities: | |||||||
Proceeds from issuance of long-term debt, net | — | — | 1,198 | 1,176 | |||
Proceeds from issuance of preferred stock, net of issuance costs | — | — | — | 482 | |||
Preferred stock dividend payments | (9) | (12) | (35) | (12) | |||
Acquisition of treasury stock to cover stock award tax withholding | (6) | (3) | (29) | (17) | |||
Repayments of long-term debt | (6) | (3) | (9) | (605) | |||
Common stock repurchases | — | — | — | (1) | |||
Other financing activities, net | (10) | 6 | 3 | 8 | |||
Net cash provided by (used in) financing activities | (31) | (12) | 1,128 | 1,031 | |||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 8 | (7) | 17 | (10) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 316 | 161 | (31) | 56 | |||
Cash, cash equivalents and restricted cash at beginning of period | 346 | 532 | 693 | 637 | |||
Cash, cash equivalents and restricted cash at end of period | $ 662 | $ 693 | $ 662 | $ 693 | |||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | |||||||
ADJUSTED DILUTED EARNINGS PER SHARE AND NET INCOME (LOSS) COMPARISON | |||||||
(Unaudited) | |||||||
RESIDEO TECHNOLOGIES, INC. | |||||||
Three Months Ended | Twelve Months Ended | ||||||
(in millions, except per share data) | December | December | December | December | |||
GAAP Net income (loss) | $ 136 | $ 23 | $ (527) | $ 116 | |||
Less: preferred stock dividends | 9 | 9 | 35 | 19 | |||
Less: undistributed income allocated to preferred stockholders | 14 | 2 | — | 6 | |||
GAAP Net income (loss) available to common stockholders | 113 | 12 | (562) | 91 | |||
Indemnification Agreement non-GAAP adjustment (1) | — | 41 | 902 | 71 | |||
Intangible asset amortization | 31 | 29 | 122 | 80 | |||
Undistributed income allocated to preferred stockholders | 14 | 2 | — | 6 | |||
Stock-based compensation expense | 14 | 15 | 57 | 59 | |||
Business separation costs | 14 | — | 18 | — | |||
Restructuring, impairment and extinguishment costs | 7 | 5 | 16 | 52 | |||
Acquisition and integration costs | 1 | 8 | 9 | 45 | |||
One-time tax impact of Indemnification Agreement | (57) | — | (72) | — | |||
Gain on sale of business, net of taxes | (38) | — | (38) | — | |||
Other (2) | (8) | 1 | 15 | 20 | |||
Tax effect of applicable non-GAAP adjustments (3) | (13) | (24) | (58) | (83) | |||
Non-GAAP Adjusted net income | $ 78 | $ 89 | $ 409 | $ 341 | |||
Three Months Ended | Twelve Months Ended | ||||||
December | December | December | December | ||||
GAAP Net income (loss) per diluted common share | $ 0.73 | $ 0.08 | $ (3.77) | $ 0.61 | |||
Indemnification Agreement non-GAAP adjustment (1) | — | 0.27 | 5.90 | 0.48 | |||
Intangible asset amortization | 0.20 | 0.19 | 0.80 | 0.54 | |||
Undistributed income allocated to preferred stockholders | 0.09 | 0.01 | — | 0.04 | |||
Stock-based compensation expense | 0.09 | 0.10 | 0.37 | 0.40 | |||
Business separation costs | 0.09 | — | 0.12 | — | |||
Restructuring, impairment and extinguishment costs | 0.05 | 0.03 | 0.10 | 0.35 | |||
Acquisition and integration costs | 0.01 | 0.05 | 0.06 | 0.30 | |||
Impact of incremental dilutive shares | — | — | 0.10 | — | |||
One-time tax impact of Indemnification Agreement | (0.37) | — | (0.47) | — | |||
Gain on sale of business, net of taxes | (0.25) | — | (0.25) | — | |||
Other (2) | (0.05) | 0.02 | 0.10 | 0.13 | |||
Tax effect of applicable non-GAAP adjustments (3) | (0.09) | (0.16) | (0.38) | (0.56) | |||
Non-GAAP Adjusted diluted earnings per share | $ 0.50 | $ 0.59 | $ 2.68 | $ 2.29 | |||
(1) | Refer to the Unaudited Consolidated Statements of Operations herein. |
(2) | For 2025 periods, other includes foreign exchange transaction (gains)/losses, net periodic pension costs excluding service costs, discrete tax effects of non-recurring transactions, Tax Matters Agreement gain, and miscellaneous other non-recurring, non-operating income and losses. For 2024 periods, other includes an inventory step-up related to the Snap One acquisition, litigations settlements, net periodic benefit costs, excluding service costs, gain on sale of investments, Tax Matters Agreement gain, and foreign exchange transaction (gains)/losses. |
(3) | In calculating the tax effect of relevant non-GAAP adjustments, we applied a flat statutory tax rate of |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | |||||||
ADJUSTED EBITDA AND NET INCOME (LOSS) COMPARISON | |||||||
(Unaudited) | |||||||
RESIDEO TECHNOLOGIES, INC. | |||||||
Three Months Ended | Twelve Months Ended | ||||||
(in millions) | December | December | December | December | |||
Net revenue | $ 1,895 | $ 1,858 | $ 7,472 | $ 6,761 | |||
GAAP Net income (loss) | $ 136 | $ 23 | $ (527) | $ 116 | |||
GAAP Net income (loss) as a % of net revenue | 7.2 % | 1.2 % | (7.1) % | 1.7 % | |||
Provision for income taxes | 20 | 22 | 70 | 105 | |||
GAAP Net income (loss) before taxes | 156 | 45 | (457) | 221 | |||
Indemnification Agreement non-GAAP adjustment (1) | — | 41 | 902 | 71 | |||
Depreciation and amortization | 50 | 46 | 195 | 144 | |||
Interest expense, net | 49 | 26 | 135 | 81 | |||
Stock-based compensation expense | 14 | 15 | 57 | 59 | |||
Acquisition and integration costs | 1 | 8 | 9 | 45 | |||
Business separation costs | 14 | — | 18 | — | |||
Restructuring, impairment and extinguishment costs | 7 | 5 | 16 | 52 | |||
Gain on sale of business | (52) | — | (52) | — | |||
Other (2) | (13) | 1 | 10 | 20 | |||
Non-GAAP Adjusted EBITDA | $ 226 | $ 187 | $ 833 | $ 693 | |||
Non-GAAP Adjusted EBITDA as a % of net revenue | 11.9 % | 10.1 % | 11.1 % | 10.2 % | |||
(1) | Refer to the Unaudited Consolidated Statements of Operations herein. |
(2) | For 2025 periods, other includes foreign exchange transaction (gains)/losses, net periodic pension costs excluding service costs, Tax Matters Agreement gain, and miscellaneous other non-recurring, non-operating income and losses. For 2024 periods, other includes an inventory step-up related to the Snap One acquisition, litigations settlements, net periodic benefit costs, excluding service costs, gain on sale of investments, Tax Matters Agreement gain, and foreign exchange transaction (gains)/losses. |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | |||||||
(Unaudited) | |||||||
PRODUCTS AND SOLUTIONS SEGMENT | |||||||
Three Months Ended | Twelve Months Ended | ||||||
(in millions) | December 31, | December 31, | December 31, | December 31, | |||
Net revenue | $ 712 | $ 669 | $ 2,688 | $ 2,564 | |||
GAAP Income from operations | $ 137 | $ 133 | $ 555 | $ 503 | |||
GAAP Income from operations as a % of net revenue | 19.2 % | 19.9 % | 20.6 % | 19.6 % | |||
Stock-based compensation expense | 5 | 4 | 19 | 19 | |||
Restructuring expenses | 4 | 1 | 5 | 14 | |||
Other (1) | — | 2 | — | 7 | |||
Non-GAAP Adjusted Income from Operations | $ 146 | $ 140 | $ 579 | $ 543 | |||
Depreciation and amortization | 20 | 17 | 77 | 68 | |||
Non-GAAP Adjusted EBITDA | $ 166 | $ 157 | $ 656 | $ 611 | |||
Non-GAAP Adjusted EBITDA as a % of net revenue | 23.3 % | 23.5 % | 24.4 % | 23.8 % | |||
(1) | For 2024 periods, other includes litigation settlements. |
ADI GLOBAL DISTRIBUTION SEGMENT | |||||||
Three Months Ended | Twelve Months Ended | ||||||
(in millions) | December 31, | December 31, | December 31, | December 31, | |||
Net revenue | $ 1,183 | $ 1,189 | $ 4,784 | $ 4,197 | |||
GAAP Income from operations | $ 51 | $ 48 | $ 212 | $ 195 | |||
GAAP Income from operations as a % of net revenue | 4.3 % | 4.0 % | 4.4 % | 4.6 % | |||
Stock-based compensation expense | 4 | 5 | 18 | 13 | |||
Acquisition and integration costs | 1 | 6 | 8 | 12 | |||
Restructuring expenses | 3 | — | 8 | 19 | |||
Other (1) | — | 5 | — | 11 | |||
Non-GAAP Adjusted Income from Operations | $ 59 | $ 64 | $ 246 | $ 250 | |||
Depreciation and amortization | 29 | 27 | 113 | 68 | |||
Non-GAAP Adjusted EBITDA | $ 88 | $ 91 | $ 359 | $ 318 | |||
Non-GAAP Adjusted EBITDA as a % of net revenue | 7.4 % | 7.7 % | 7.5 % | 7.6 % | |||
(1) | For 2024 periods, other includes inventory adjustment related to the Snap One acquisition and litigation settlements. |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | |||
ADJUSTED CASH PROVIDED BY OPERATIONS | |||
(Unaudited) | |||
RESIDEO TECHNOLOGIES, INC. | |||
(in millions) | Three Months Ended | Twelve Months | |
Net cash provided by (used in) operating activities | $ 299 | $ (1,137) | |
One-time payment to terminate the Indemnification Agreement | — | 1,590 | |
Non-GAAP adjusted cash provided by operations | $ 299 | $ 453 | |
View original content to download multimedia:https://www.prnewswire.com/news-releases/resideo-announces-fourth-quarter-and-full-year-2025-financial-results-and-initiates-2026-outlook-302696175.html
SOURCE Resideo Technologies, Inc.
FAQ
What were Resideo's (REZI) full year 2025 net revenue and growth rate?
Why did Resideo (REZI) report a GAAP net loss of $527 million in 2025?
What is Resideo's (REZI) 2026 revenue and Adjusted EBITDA guidance?
How did Resideo's (REZI) segments perform in Q4 2025?
What was Resideo's (REZI) cash and debt position at year-end 2025?
