Resideo Announces Sale of Grid Services Demand Response Business to EnergyHub

Rhea-AI Summary

Resideo (NYSE: ALRM) announced on Dec. 2, 2025 the sale of its Grid Services demand response business to EnergyHub.

The divestiture shifts Resideo's focus to its core residential controls and sensing products for professional contractors and integrators, while preserving Resideo's ability to control in-home energy loads through integrations with third-party demand response platforms. EnergyHub's platform serves 120+ utilities covering more than 55 million customers. The terms were not disclosed, Resideo said the sale has no material impact on its 2025 financial outlook provided Nov. 5, 2025, and proceeds will be used for general corporate purposes aligned with existing capital allocation priorities.

News Market Reaction

+2.55%

1 alert

+2.55% News Effect

On the day this news was published, REZI gained 2.55%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Utility partners: more than 120 utilities End customers served: more than 55 million customers Total revenue: $256,400 +5 more

8 metrics

Utility partners more than 120 utilities EnergyHub platform reach noted in Resideo Grid Services sale release

End customers served more than 55 million customers Utilities served by EnergyHub platform in Grid Services transaction context

Total revenue $256,400 Q3 2025 total revenue from 10-Q

SaaS and license revenue $175,372 Q3 2025 SaaS and license revenue from 10-Q

Hardware and other revenue $81,028 Q3 2025 hardware and other revenue from 10-Q

Operating income $37,021 Q3 2025 operating income from 10-Q

Net income $35,338 Q3 2025 net income attributable to common stockholders from 10-Q

Cash and cash equivalents $1,066,583 Balance as of Sep 30, 2025 from 10-Q

Market Reality Check

Price: $36.38 Vol: Volume 337,718 is below 2...

normal vol

$36.38 Last Close

Volume Volume 337,718 is below 20-day average of 426,056 (relative volume 0.79x). normal

Technical Price 52.77 is trading below 200-day MA at 54.68 and 23.66% under the 52-week high.

Peers on Argus

ALRM was up 0.72% while peers were mixed: ASAN +1.45%, NATL +2.38%, RNG +0.19%, ...

ALRM was up 0.72% while peers were mixed: ASAN +1.45%, NATL +2.38%, RNG +0.19%, AGYS -1.72%, WRD -0.89%. Moves appear stock-specific rather than a unified sector rotation.

Common Catalyst Peer news skewed toward earnings and product launches (e.g., ASAN results, AGYS POS approval), distinct from ALRM’s grid-services divestiture narrative.

Historical Context

5 past events · Latest: Dec 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Product launch	Positive	+0.4%	Introduced low-cost Video Intercom Mobile Directory for multi-tenant buildings.
Dec 08	Product award	Positive	+0.4%	SDS Outdoor gunshot detection system won threat detection award with high accuracy.
Dec 04	Strategic partnership	Positive	-0.6%	Partnered with Everon to deliver unified commercial security platform.
Dec 02	Acquisition news	Positive	+1.1%	EnergyHub announced acquisition of Resideo Grid Services to expand DERMS and VPP reach.
Dec 02	Business divestiture	Neutral	+1.1%	Resideo detailed sale of Grid Services with no material impact on 2025 outlook.

Pattern Detected

Recent company news around partnerships, product launches and the EnergyHub–Resideo grid deal generally coincided with modest positive price reactions, with one partnership headline seeing a small divergence-driven decline.

Recent Company History

Over the past weeks, ALRM highlighted several strategic and product developments. On Dec 2, 2025, EnergyHub’s acquisition of Resideo Grid Services and the related Resideo divestiture both saw a +1.09% price reaction. Subsequent partnership and product announcements, including the Everon security solution and new gunshot detection and video intercom offerings, produced small moves between roughly -0.58% and +0.36%, suggesting generally modest but mostly constructive trading responses to news.

Market Pulse Summary

This announcement detailed the sale of Resideo’s Grid Services demand response business to EnergyHub...

Analysis

This announcement detailed the sale of Resideo’s Grid Services demand response business to EnergyHub, with Resideo indicating it expects no material impact on its 2025 financial outlook. The move refocuses on core residential controls while still enabling in-home load management through third-party platforms. In the broader context of ALRM-related grid and partnership news, investors may monitor future disclosures on integration progress and how recurring revenue and profitability trends evolve.

Key Terms

demand response, grid-edge flexibility, distributed energy resource management system (DERMS), distributed energy resources (DERs)

4 terms

demand response technical

"sold its Grid Services demand response business, that primarily caters to utility clients"

Demand response is a program or market mechanism where electricity users are paid or incentivized to reduce or shift their power use when the grid is stressed or prices are high, similar to turning down nonessential appliances during a heat wave to ease a traffic jam. It matters to investors because it can lower peak energy costs, affect utility revenues and market prices, and create opportunities for companies that provide the software, equipment, or services that enable those load changes.

grid-edge flexibility technical

"to EnergyHub, a leading provider of grid-edge flexibility solutions"

The ability of devices and systems located at the edge of the electricity network — such as rooftop solar, batteries, electric vehicles, smart thermostats and local controllers — to change when, how much, and in what direction they use or provide power. It matters to investors because this flexibility can lower grid costs, avoid expensive upgrades, create new revenue streams (services sold to grid operators), and make energy assets more resilient and valuable, similar to neighborhood water tanks that can be filled or emptied to smooth pressure and avoid costly mains upgrades.

distributed energy resource management system (DERMS) technical

"from a single Edge Distributed Energy Resource Management System (DERMS)"

A distributed energy resource management system (DERMS) is a software and control platform that monitors, coordinates and optimizes many small energy sources and flexible loads—like rooftop solar, batteries, electric vehicle chargers and smart thermostats—so they work together with the broader power grid. Investors care because a DERMS can increase grid reliability, lower operating costs, unlock new revenue streams (for example by selling flexibility or delaying expensive upgrades), and change the value and earning potential of energy assets much like an air-traffic controller makes many flights run more smoothly.

distributed energy resources (DERs) technical

"offer our utility clients a broader ecosystem of DERs and leverage our winning platforms"

Distributed energy resources (DERs) are small-scale electricity producers and storage systems—like rooftop solar panels, home batteries, small wind turbines, and smart thermostats—located close to where power is used. They matter to investors because DERs can reduce a utility’s need for large central plants, create new revenue streams from local generation and grid services, and shift demand patterns much like adding many backyard gardens changes a city’s food supply dynamics, affecting valuations and regulatory risk for energy companies.

AI-generated analysis. Not financial advice.

SCOTTSDALE, Ariz., Dec. 2, 2025 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential end-markets, today announced that it sold its Grid Services demand response business, that primarily caters to utility clients, to EnergyHub, a leading provider of grid-edge flexibility solutions. This divestiture will enable Resideo to better focus on its core strategy to be a leader in residential controls and sensing products serving its professional contractor and integrator customer base. After the transaction, Resideo will continue to be able to control and maintain energy loads in the home through integrations between its thermostats and other products and third-party demand response platforms.

EnergyHub's platform is trusted by more than 120 utilities, which collectively serve more than 55 million customers. The acquisition of Resideo Grid Services scales EnergyHub's ability to help utilities manage connected devices including thermostats, electric vehicles, and batteries from a single Edge Distributed Energy Resource Management System (DERMS), supporting reliable, affordable service for every utility customer.

Dave Oberholzer, General Manager at Resideo Grid Services, said, "I am extremely proud of the innovation, customer partnerships, and strong reputation our Grid Services team has built. By joining forces with EnergyHub, we will be able to offer our utility clients a broader ecosystem of DERs and leverage our winning platforms and talented team to accelerate the transition to a carbon-free grid."

The terms of the transaction were not disclosed. This divestiture has no material impact on Resideo's 2025 financial outlook that was provided on November 5, 2025.

Resideo intends to use the proceeds from the sale for general corporate purposes in accordance with its previously stated capital allocation priorities.

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. 

About Resideo Grid Services
Resideo Grid Services is a leader in demand response aggregation and program management, helping utilities and energy retailers manage grid demand with precision and efficiency. Since 2012, our team has been providing innovative solutions to reduce peak demand, optimize load flexibility, and support utility programs nationwide. Resideo currently manages or participates in nearly 300 U.S. utility demand management programs and engages in six wholesale energy markets.

The Honeywell Home trademark is used under a long-term license from Honeywell International Inc. As such, Honeywell cannot validate or deny the claims made in this release.

About EnergyHub
EnergyHub is the leading grid-edge DERMS provider. Utilities rely on EnergyHub's DERMS platform to manage all distributed energy resources to serve grid and market objectives. EnergyHub works with over 120 utilities in North America to manage more than 2.5 GW of dispatchable flexible capacity. We empower utilities and their customers to create a clean, distributed energy future. EnergyHub is a subsidiary of Alarm.com (NASDAQ: ALRM). For more information, visit www.energyhub.com.

Media Contact:
Sarah Reckard, Global Communications Leader
sarah.reckard@resideo.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/resideo-announces-sale-of-grid-services-demand-response-business-to-energyhub-302630797.html

SOURCE Resideo Technologies, Inc.

FAQ

What did Resideo (ALRM) announce on Dec. 2, 2025 about Grid Services?

Resideo announced the sale of its Grid Services demand response business to EnergyHub on Dec. 2, 2025.

How will the sale of Grid Services affect Resideo's business focus (ALRM)?

Resideo said the divestiture lets it concentrate on core residential controls and sensing products for professional contractors and integrators.

Did Resideo (ALRM) disclose the sale price or transaction terms for Grid Services?

No, the terms of the transaction were not disclosed.

Will the Grid Services sale change Resideo's 2025 financial outlook (ALRM)?

Resideo stated the divestiture has no material impact on its 2025 financial outlook provided Nov. 5, 2025.

What will EnergyHub gain from acquiring Resideo Grid Services?

EnergyHub will scale its ability to help utilities manage thermostats, electric vehicles, and batteries from a single DERMS and expands reach to its utility customers.

How does Resideo plan to use proceeds from the Grid Services sale (ALRM)?

Resideo intends to use the proceeds for general corporate purposes in line with its stated capital allocation priorities.