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ADI Global Distribution Inc. (ADIG) posts record Q2 revenue and unveils 2026 outlook

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

ADI Global Distribution Inc. reported second quarter 2026 net revenue of $1,286 million, a record level and up 1% year-over-year, helped by security, professional audio-visual and data communications, partially offset by weaker residential audio-visual demand. Average daily sales grew 2% with one fewer selling day. Gross margin improved to 22.7% from 22.2%, aided by about $20 million of tariff refunds, offset by pricing, mix and higher freight fuel costs.

Net income was $6 million versus a net loss of $283 million a year earlier, while income from operations fell to $25 million from $57 million as selling, general and administrative expenses rose to $206 million and transaction and restructuring costs increased. Adjusted EBITDA declined 9% to $86 million, or 6.7% of net revenue. For the first half of 2026, net revenue was $2,492 million and net cash used in operating activities was $76 million.

Following completion of its spin-off from Resideo, ADI’s liquidity consists of approximately $150 million of cash and a $500 million undrawn revolving credit facility. Management initiated a 2026 outlook with net revenue of $4,950–$5,000 million and Non-GAAP Adjusted Standalone EBITDA (estimate) of $275–$295 million, and plans to use cash flow to reduce leverage while funding organic growth and tuck-in acquisitions.

Positive

  • Returned to profitability with Q2 2026 net income of $6 million compared to a $283 million net loss in Q2 2025, reflecting the absence of prior-year Indemnification Agreement expense.
  • Record quarterly net revenue of $1,286 million, with 2% year-over-year average daily sales growth despite one fewer selling day.
  • Gross margin expanded to 22.7% from 22.2%, supported by approximately $20 million of tariff refunds.
  • Debt position improved as long-term debt decreased to $988 million from $1,185 million at December 31, 2025.
  • Company introduced 2026 outlook targeting net revenue of $4,950–$5,000 million and Non-GAAP Adjusted Standalone EBITDA (estimate) of $275–$295 million, providing visibility into expected standalone performance.
  • Post spin-off liquidity is significant, with approximately $150 million of cash and a $500 million undrawn revolving credit facility.

Negative

  • Operating performance softened: income from operations fell to $25 million from $57 million (down 56%), and Adjusted EBITDA declined 9% to $86 million with margin down to 6.7% from 7.4%.
  • Operating cash flow turned negative, with net cash used in operating activities of $76 million for the first half of 2026 compared to $32 million provided in the first half of 2025.
  • Operating costs increased: selling, general and administrative expenses rose to $206 million from $190 million, while transaction-related expenses increased to $18 million and restructuring expenses to $7 million in Q2 2026.
  • First-half 2026 Adjusted Standalone EBITDA (estimate) declined to $136 million from $148 million in the prior-year period, with estimated standalone margin falling to 5.5% from 6.2%.

Filing Explained

ADI now trades independently, but its reported quarter and July 4 balance sheet predate the August 3 separation.

The Form 8-K reports that ADI completed its separation from Resideo on August 3, 2026 and began trading independently on the NYSE on August 4, 2026; the company is now a standalone public issuer.

The reported quarter ended July 4, 2026, before the separation, and the historical results were operated through Resideo and prepared on a carve-out accounting basis rather than as a standalone company.

ADI’s standalone Adjusted EBITDA outlook is a non-GAAP estimate that subtracts estimated recurring costs of operating independently; the release does not provide a reconciliation of the forecast range to a U.S. GAAP measure.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net revenue Q2 2026 $1,286 million Second quarter 2026 net revenue, up 1% year-over-year
Net income Q2 2026 $6 million Second quarter 2026 net income versus $283 million net loss in Q2 2025
Adjusted EBITDA Q2 2026 $86 million Second quarter 2026 Adjusted EBITDA compared to $95 million in Q2 2025
Gross margin Q2 2026 22.7% Second quarter 2026 gross margin, up from 22.2% in Q2 2025
Operating cash flow H1 2026 $(76) million Net cash used in operating activities for the six months ended July 4, 2026
Long-term debt $988 million Long-term debt at July 4, 2026 versus $1,185 million at December 31, 2025
2026 net revenue outlook $4,950–$5,000 million Full year 2026 net revenue outlook as a standalone company
2026 Adjusted Standalone EBITDA outlook $275–$295 million Full year 2026 Non-GAAP Adjusted Standalone EBITDA (estimate) outlook
carve-out accounting basis financial
"historical financial information presented in this release was derived from Resideo’s accounting records and is presented on a carve-out accounting basis"
Accounting records that isolate the financial results and position of a specific division or business unit from its parent company, prepared as if that unit were a separate company but often using the parent’s books, policies and allocated costs. Investors use this to see the standalone economics of a carved-out business—like looking at one slice of a pie that keeps some shared ingredients—while knowing the numbers may include allocations and may not match the unit’s independent accounting if it operated on its own.
Adjusted EBITDA financial
"The Company defines Adjusted EBITDA as net income excluding income taxes, depreciation and amortization, interest income and expense"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted Standalone EBITDA (estimate) financial
"The Company defines Adjusted Standalone EBITDA (estimate) as Adjusted EBITDA less estimated recurring and ongoing costs"
Indemnification Agreement expense financial
"Represents the allocated portion of the expense related to the Honeywell Indemnification Agreement"
tuck-in acquisitions financial
"pursue value-accretive tuck-in acquisitions"
A tuck-in acquisition is a small company purchase that is quickly folded into the buyer’s existing operations, like adding a single app to a phone rather than replacing the whole device. Investors care because these deals can boost revenue or add useful capabilities with lower cost and disruption than a big takeover, potentially improving profit per share, but they still carry integration and financing risks that can affect returns.
non-GAAP financial measures financial
"This press release includes certain “non-GAAP financial measures” as defined under the Securities Exchange Act"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Net revenue Q2 2026 $1,286 million Up 1% year-over-year
Net income (loss) Q2 2026 $6 million Improved from $(283) million in Q2 2025
Adjusted EBITDA Q2 2026 $86 million Down from $95 million in Q2 2025
Net cash from operating activities H1 2026 $(76) million Down from $32 million provided in H1 2025
Guidance

For full year 2026, the company expects net revenue of $4,950–$5,000 million and Non-GAAP Adjusted Standalone EBITDA (estimate) of $275–$295 million, with second-half 2026 net revenue of $2,458–$2,508 million and Adjusted Standalone EBITDA (estimate) of $139–$159 million.

FAQ

How did ADI Global Distribution Inc. (ADIG) perform in Q2 2026?
ADI reported record Q2 2026 net revenue of $1,286 million, up 1% year-over-year, with net income of $6 million versus a $283 million loss in Q2 2025. Adjusted EBITDA was $86 million, or 6.7% of net revenue, down from $95 million a year earlier.

What margins did ADIG report for the second quarter of 2026?
Gross margin in Q2 2026 was 22.7%, up from 22.2% in Q2 2025, helped by about $20 million of tariff refunds. Adjusted EBITDA margin was 6.7%, compared with 7.4% a year earlier, reflecting higher operating and transaction-related costs.

What 2026 outlook did ADIG provide in this 8-K filing?
For 2026, ADI expects net revenue of $4,950–$5,000 million and Non-GAAP Adjusted Standalone EBITDA (estimate) of $275–$295 million. The second-half 2026 outlook includes net revenue of $2,458–$2,508 million and Adjusted Standalone EBITDA (estimate) of $139–$159 million.

What is ADIG’s liquidity position after the spin-off from Resideo?
Upon completion of the spin-off, ADI’s liquidity consists of approximately $150 million of cash and a $500 million undrawn revolving credit facility. The company expects consistent cash flow and plans to reduce leverage while funding organic growth and tuck-in acquisitions.

How did ADIG’s cash flow and debt levels change in the first half of 2026?
For the first half of 2026, ADI reported net cash used in operating activities of $76 million versus $32 million provided in the prior-year period. Long-term debt decreased to $988 million at July 4, 2026 from $1,185 million at December 31, 2025.

What non-GAAP measures does ADIG highlight and why?
ADI emphasizes Adjusted EBITDA and Adjusted Standalone EBITDA (estimate), which exclude items such as stock-based compensation, Indemnification Agreement expense, restructuring and transaction costs. Management believes these measures help investors understand ongoing operating performance and trends across periods.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Understanding 8-K Material Events →
false000210513900021051392026-08-132026-08-13
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 13, 2026
ADI Global Distribution Inc.
(Exact name of registrant as specified in its charter)
Delaware
001-43281
41-3033245
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
275 Broadhollow Rd, Suite 400
Melville, New York 11747
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (631) 692-1000
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol:
Name of Each Exchange on Which Registered:
Common Stock, $0.001 Par Value
ADIG
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act
of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. ☐
Item 2.02.            Results of Operations and Financial Condition.
On August 13, 2026, ADI Global Distribution Inc. (the "Company") issued a press release announcing its results
for the quarter ended July 4, 2026, which is furnished herewith as Exhibit 99.1. The information furnished pursuant to this
Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of
1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be
incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
Item 9.01.            Financial Statements and Exhibits.
(d)Exhibits.
99.1
Press Release of ADI Global Distribution Inc., dated August 13, 2026
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 13, 2026
ADI GLOBAL DISTRIBUTION INC.
By:
/s/ Jeannine J. Lane
Name:
Jeannine J. Lane
Title:
Executive Vice President, General Counsel,
Corporate Secretary and Chief Compliance Officer
Exhibit 99.1
adi_logoxblue.jpg
ADI Announces Second Quarter 2026 Financial Results
•Completed spin-off from Resideo; commenced trading on the NYSE on August 4, 2026
•Record net revenue of $1,286 million; Commercial security growth returns to mid-single digits
•Average daily sales growth of 2% year-over-year
•Gross margin of 22.7%; up 50 basis points year-over-year
•Net income of $6 million, compared to net loss of $283 million in the second quarter of 2025; Adjusted EBITDA
of $86 million, or 6.7% of net revenue, compared to $95 million or 7.4% of net revenue in the second quarter of
2025
•Initiates ADI's standalone 2026 outlook
MELVILLE, New York, August 13, 2026 – ADI Global Distribution Inc. ("ADI") (NYSE: ADIG), a leading global
specialty distributor of low-voltage products, today announced financial results for its second quarter 2026 ended July 4,
2026.
ADI operated as part of Resideo Technologies, Inc. ("Resideo") for the entire second quarter of 2026 and prior to the spin-
off on August 3, 2026, and the historical financial information presented in this release was derived from Resideo’s
accounting records and is presented on a carve-out accounting basis.
ADI second quarter 2026 net revenue was a record $1,286 million, up 1% year-over-year, and reflects average daily sales
growth of 2% year-over-year and one fewer sales day in the current quarter. Net revenue growth was driven by the
security, professional audio-visual, and data communications categories, partially offset by the residential audio-visual
category due primarily to a continued soft U.S. residential housing market.
Gross margin was 22.7% in second quarter 2026, compared to 22.2% in second quarter 2025 and was favorably impacted
by the receipt of tariff refunds of approximately $20 million, partially offset by unfavorable price and mix shift and higher
fuel costs for freight. Research and development expenses increased $2 million due primarily to investments supporting
new product launches that are intended to drive future growth. Selling, general and administrative expenses were up $16
million to $206 million driven primarily by higher employee and facility costs. Income from operations of $25 million in
second quarter 2026 decreased 56% from $57 million in second quarter 2025. Adjusted EBITDA decreased 9% to $86
million in second quarter 2026 compared to $95 million in second quarter 2025.
Management Remarks
“Our second quarter results, which included record quarterly revenue, reflect the strength of our business and our team's
continued execution in a dynamic operating environment,” said Rob Aarnes, ADI's President and CEO.
“As we begin our next chapter as an independent public company, we are operating from a position of strength and focused
on converting our recent investments into greater operating efficiency, expanding profitability and increased cash
generation. With leading market positions, a differentiated omnichannel model and multiple avenues for above-market
growth, we believe ADI is well positioned for the opportunities ahead.”
Balance Sheet and Capital Allocation
Upon completion of the Spin-Off, ADI's liquidity consists of approximately $150 million of cash and a $500 million
undrawn revolving credit facility. ADI expects to generate consistent cash flow, benefiting from its capital-efficient
business model. The company intends to use its cash flow to reduce leverage over time while maintaining the financial
flexibility to invest in organic growth and pursue value-accretive tuck-in acquisitions.
Outlook
The Company is initiating its 2026 standalone outlook for the second half and full year, as follows.
($ in millions)
First Half 2026 (1)
Second Half 2026 (1)
Full Year 2026
Net revenue
$2,492
$2,458 - 2,508
$4,950 - $5,000
Non-GAAP Adjusted Standalone EBITDA
(Estimate)
$136
$139 - $159
$275 - $295
(1) First half 2026 represents results for the six months ended July 4, 2026, as presented below. Second half 2026 represents
outlook for the six months ended December 31, 2026.
Conference Call and Webcast Details
ADI will hold a conference call with investors on August 13, 2026, at 8:30 a.m. ET. The webcast can be accessed at https://
investor.adiglobal.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 ADI
ADI is a global specialty distributor of professionally installed low-voltage products serving commercial and residential
markets through an omnichannel go-to-market platform. Within North America, ADI is a market-leading distributor in the
professionally installed security, fire/life safety and residential audio-visual product categories. We offer over 500,000
products from more than 1,000 suppliers across key specialty low-voltage categories with strong proximity to our
customers with a large network of store locations.
Contacts:
Investors:
Hunter Blankenbaker
Senior Director of Investor Relations
Investorrelations@adiglobal.com
Media:
Adrienne Zimoulis
Senior Director of Communications
Adrienne.Zimoulis@adiglobal.com
Forward-Looking Statements
This press 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 ADI 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 half of
2026 and full year 2026, cash flow expectations and proposed use of cash, and goal to reduce leverage (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
Resideo in connection with the spin-off of ADI from Resideo, (4) the ability of ADI to drive increased customer value,
profitability, cash generation, and financial returns and enhance strategic and operational capabilities, (5) risks and
uncertainties relating to tariffs that have been or may be imposed by the United States and other governments, (6) risks
related to our completed separation from Resideo and that we may experience operational or other disruptions as a result of
the separation, and (7) the other risks described under the headings “Risk Factors” and “Cautionary Statement Concerning
Forward-Looking Statements” in our Registration Statement on Form 10, as amended, and other periodic filings we make
from time to time with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future
performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-
looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or
circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such
forward-looking statements.
Non-GAAP Financial Measures
This press release includes certain “non-GAAP financial measures” as defined under the Securities Exchange Act of 1934.
Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing
operating performance of ADI 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 U.S.
GAAP. Readers should also consider the limitations associated with these non-GAAP financial measures, including the
potential lack of comparability of these measures from one company to another.
The Company uses non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S.
GAAP. These include Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Standalone EBITDA (estimate) and
Adjusted Standalone EBITDA margin (estimate).
Below are definitions and reconciliations of certain non-GAAP financial measures to the most directly comparable
financial measures calculated and presented in accordance with U.S. GAAP. Management believes that, when considered
together with reported amounts, these measures are useful to investors and management in understanding our ongoing
operations and in the analysis of ongoing operating trends. Management believes these non-GAAP financial measures
provide investors with a meaningful measure of its performance period to period, align the measures to how management
evaluates performance internally, and make it easier for investors to compare our performance to peers. These measures
should be considered in addition to, and not as replacements for, the most directly comparable U.S. GAAP measure.
The Company defines Adjusted EBITDA as net income excluding income taxes, depreciation and amortization, interest
income and expense, stock-based compensation expense, Indemnification Agreement expense, restructuring expense,
transaction related expenses, and other expense and certain other items that are otherwise of an unusual or non-recurring
nature (including but not limited to impairment charges, litigation and insurance settlements, and gains and losses on
disposal of assets). The Company defines Adjusted EBITDA Margin as Adjusted EBITDA divided by Net revenue.
The Company defines Adjusted Standalone EBITDA (estimate) as Adjusted EBITDA less estimated recurring and ongoing
costs required to operate as a new independent public company. The Company defines Adjusted Standalone EBITDA
Margin (estimate) as Adjusted Standalone EBITDA (estimate) divided by Net revenue.
We believe these measures are useful to investors as they provide greater transparency with respect to supplemental
information used by management in its financial and operational decision making, as well as understanding ongoing
operating trends.
A reconciliation of the forecasted range for Adjusted EBITDA and Adjusted Standalone EBITDA (estimate) for the second
half of 2026 and for the full year 2026 are not included in this release due to the number of variables in the projected range
and because we are currently unable to quantify accurately without unreasonable efforts certain amounts that would be
required to be included in the U.S. GAAP measure or the individual adjustments for such reconciliation. In addition, we
believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors.
ADI GLOBAL DISTRIBUTION INC.
CONDENSED COMBINED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
Six Months Ended
(in millions)
July 4, 2026
June 28, 2025
July 4, 2026
June 28, 2025
Net revenue
$1,286
$1,277
$2,492
$2,398
Cost of goods sold
994
994
1,944
1,873
Gross profit
292
283
548
525
Operating expenses:
Selling, general and administrative expenses
206
190
405
371
Research and development expenses
11
9
23
17
Intangible asset amortization
25
23
49
46
Transaction related expenses
18
3
26
4
Restructuring expenses
7
1
7
5
Total operating expenses
267
226
510
443
Income from operations
25
57
38
82
Indemnification Agreement expense
–
331
–
364
Other expense (income), net
2
(2)
2
(2)
Interest expense
16
4
33
12
Interest income
(1)
(2)
(3)
(4)
Income (loss) before taxes
8
(274)
6
(288)
Provision for income taxes
2
9
1
10
Net income (loss)
$6
$(283)
$5
$(298)
ADI GLOBAL DISTRIBUTION INC.
CONDENSED COMBINED BALANCE SHEETS
(UNAUDITED)
(in millions)
July 4, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$131
$124
Restricted cash
400
–
Accounts receivable, net
751
659
Inventories, net
1,057
1,036
Due from related parties - current
14
–
Other current assets
169
154
Total current assets
2,522
1,973
Property, plant and equipment, net
109
107
Goodwill
1,063
1,066
Intangible assets, net
706
744
Operating lease right-of-use assets
223
236
Due from related parties - non-current
–
13
Other assets
16
13
Total assets
$4,639
$4,152
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$695
$717
Accrued liabilities
168
175
Current portion of operating lease liabilities
38
37
Due to related parties - current
1
68
Total current liabilities
902
997
Long-term debt
988
1,185
Non-current portion of operating lease liabilities
198
209
Deferred tax liabilities
60
60
Due to related parties - non-current
20
–
Other liabilities
16
17
Total liabilities
2,184
2,468
Equity:
Net parent investment
2,505
1,726
Accumulated other comprehensive loss, net
(50)
(42)
Total equity
2,455
1,684
Total liabilities and equity
$4,639
$4,152
ADI GLOBAL DISTRIBUTION INC.
CONDENSED COMBINED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
(in millions)
July 4, 2026
June 28, 2025
Cash Flows From Operating Activities:
Net income (loss)
$5
$(298)
Adjustments to reconcile net income to net cash in operating activities:
Depreciation and amortization
59
57
Restructuring expenses
7
5
Stock-based compensation expense
12
12
Operating lease right-of-use-asset amortization
20
17
Other, net
4
1
Changes in assets and liabilities:
Accounts receivable, net
(96)
(95)
Inventories, net
(24)
6
Other current assets
(15)
(10)
Accounts payable
(18)
36
Accrued liabilities
(8)
(18)
Lease liabilities
(17)
(17)
Obligations payable under the Indemnification Agreement
–
337
Other, net
(5)
(1)
Net cash (used in) provided by operating activities
(76)
32
Cash Flows From Investing Activities:
Capital expenditures
(26)
(21)
Related party loan activity, net
13
(1)
Other investing activities, net
1
–
Net cash used in investing activities
(12)
(22)
Cash Flows From Financing Activities:
Proceeds from issuance of long-term debt
400
–
Net transfers from (to) parent
147
(35)
Proceeds from loans due to related parties
17
–
Net (decrease) increase in due to related parties related to cash pooling
arrangements
(65)
5
Other financing activities, net
(1)
–
Net cash provided by (used in) financing activities
498
(30)
Effect of exchange rate changes on cash and cash equivalents
(3)
7
Net increase (decrease) in cash, cash equivalents and restricted cash
407
(13)
Cash, cash equivalents and restricted cash at beginning of period
124
137
Cash, cash equivalents and restricted cash at end of period
$531
$124
NON-GAAP RECONCILIATIONS
ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN,  ADJUSTED STANDALONE EBITDA (ESTIMATE)
AND ADJUSTED STANDALONE EBITDA MARGIN (ESTIMATE)
(Unaudited)
Three Months Ended
Six Months Ended
(in millions)
July 4, 2026
June 28, 2025
July 4, 2026
June 28, 2025
Net income (loss)
$6
$(283)
$5
$(298)
Income taxes
2
9
1
10
Depreciation and amortization
30
28
59
57
Interest expense
16
4
33
12
Interest income
(1)
(2)
(3)
(4)
Indemnification Agreement expense (1)
–
331
–
364
Stock-based compensation expense (2)
6
6
12
12
Restructuring expenses (3)
7
1
7
5
Transaction related expenses (4)
18
3
26
4
Other adjustments (5)
2
(2)
2
(2)
Adjusted EBITDA
$86
$95
$142
$160
Estimated incremental recurring expenses (6)
(2)
(6)
(6)
(12)
Standalone Adjusted EBITDA (estimate)
$84
$89
$136
$148
Net revenue
$1,286
$1,277
$2,492
$2,398
Adjusted EBITDA Margin
6.7%
7.4%
5.7%
6.7%
Adjusted Standalone EBITDA Margin
(estimate)
6.5%
7.0%
5.5%
6.2%
(1)Represents the allocated portion of the expense related to the Honeywell Indemnification Agreement.
(2)Represents non-cash compensation expenses recognized for stock-based compensation arrangements.
(3)Consists of non-recurring charges associated with restructuring initiatives.
(4)For the three and six months ended July 4, 2026, represents $18 million and $26 million of transaction costs related to
the Spin-Off. For the three and six months ended June 28, 2025, represents $3 million and $4 million of Snap One
integration costs.
(5)Represents amounts included in Other expense (income), net reported on the Unaudited Condensed Combined Statement
of Operations.
(6)Represents estimated costs above allocated corporate expenses we expect to incur within certain corporate functions
including finance, IT, legal  and  human resources.

Source: View Original Filing on SEC EDGAR

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