[8-K] RESIDEO TECHNOLOGIES, INC. Reports Material Event
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Resideo Technologies reported strong preliminary results for the first quarter ended April 4, 2026. Net revenue reached $1.912 billion, up 8% from $1.770 billion a year earlier, with Products & Solutions up 9% and ADI Global Distribution up 8%.
Net income climbed to $38 million from $6 million, while non-GAAP Adjusted EBITDA rose 28% to $215 million, lifting margin to 11.2%. GAAP diluted EPS was $0.17, and Adjusted EPS was $0.65, slightly above $0.63 in the prior year and above the high end of the company’s outlook.
Products & Solutions delivered $706 million of revenue with a 41.8% gross margin and Adjusted EBITDA of $177 million, or 25.1% of revenue. ADI posted $1.206 billion of revenue and Adjusted EBITDA of $66 million. Operating cash flow was a use of $145 million, driven by business separation activities, higher cash interest, and working capital. At April 4, 2026, Resideo held $438 million of cash and cash equivalents and $3.23 billion of total outstanding debt, and it reaffirmed its full-year 2026 outlook while initiating Q2 2026 guidance.
Positive
- None.
Negative
- None.
Insights
Solid top-line and profit growth, but weaker cash flow and mixed segment trends.
Resideo delivered 8% revenue growth to $1.912 billion and expanded non-GAAP profitability. $215 million of Adjusted EBITDA, up 28%, lifted margin to 11.2%, while GAAP EPS improved from a small loss to $0.17. Adjusted EPS of $0.65 modestly exceeded the prior year and the high end of guidance.
Performance was uneven by segment. Products & Solutions posted 9% revenue growth, 41.8% gross margin, and Adjusted EBITDA of $177 million, or 25.1% of revenue, showing operating leverage despite a one-time litigation settlement and restructuring. ADI Global Distribution grew revenue 8% to $1.206 billion, but Adjusted EBITDA fell to $66 million and margin slipped to 5.5% on higher freight costs and mix pressure.
Cash generation weakened, with net cash used in operating activities of $145 million versus $65 million used a year earlier, reflecting business separation costs, higher interest, and working capital swings. Leverage remains notable with total outstanding debt of $3.23 billion at April 4, 2026. Management reaffirmed full-year 2026 guidance and set Q2 2026 targets, including non-GAAP Adjusted EBITDA of $216–$230 million and Adjusted EPS of $0.71–$0.75, signaling confidence around the planned ADI spin-off later in 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
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.
Key Figures
Net revenue: $1.912 billion
Net income: $38 million
Adjusted EBITDA: $215 million
+5 more
8 metrics
Net revenue
$1.912 billion
Q1 2026, up 8% from $1.770 billion in Q1 2025
Net income
$38 million
Q1 2026, compared to $6 million in Q1 2025
Adjusted EBITDA
$215 million
Q1 2026, up 28% from $168 million in Q1 2025
Adjusted EPS
$0.65
Q1 2026, versus $0.63 in Q1 2025 and above outlook high end
Net cash used in operating activities
$145 million
Q1 2026, versus $65 million used in Q1 2025
Cash and cash equivalents
$438 million
Balance at April 4, 2026
Total outstanding debt
$3.23 billion
Balance at April 4, 2026
P&S Adjusted EBITDA margin
25.1%
Products & Solutions Q1 2026 Adjusted EBITDA as % of revenue
Key Terms
Adjusted EBITDA, non-GAAP financial measures, business separation costs, Indemnification Agreement, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA(1) of $215 million, up 28% year-over-year and above the high-end of outlook range"
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.
non-GAAP financial measures financial
"This press release includes certain “non-GAAP financial measures” as defined under the Securities Exchange Act of 1934"
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.
business separation costs financial
"Business separation costs | 24 | | | —"
Indemnification Agreement financial
"Represents the expense incurred pursuant to the Indemnification Agreement, which, prior to its termination, had an annual cash payment cap"
An indemnification agreement is a contract in which one party promises to cover losses, costs, or legal claims that another party might face, acting like a tailored safety net or private insurance policy. For investors, it matters because such agreements shift potential financial risk away from a company or its officers and onto the indemnifier, which can affect a company’s future liabilities, cash flow and how risky the investment appears during deal-making or litigation.
spin-off financial
"as we approach completion of the ADI spin-off later this year"
A spin-off happens when a company creates a new, independent business by separating part of itself, like splitting off a division into its own company. This often happens so the new company can focus better on its own goals or attract different investors. It matters because it can lead to more growth opportunities and clearer focus for both companies.
Earnings Snapshot
Net revenue: $1.912 billion · Guidance included
Q1 2026
Net revenue
$1.912 billion
+8% YoY
Net income
$38 million
up from $6 million YoY
Adjusted EBITDA
$215 million
+28% YoY
Adjusted EPS
$0.65
vs $0.63 YoY
Guidance
Q2 2026: net revenue $1.916–$1.940 billion, non-GAAP Adjusted EBITDA $216–$230 million, non-GAAP Adjusted EPS $0.71–$0.75; full year 2026: net revenue $7.8–$7.9 billion, non-GAAP Adjusted EBITDA $935–$985 million, non-GAAP Adjusted EPS $3.00–$3.20.
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): May 12, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (480 ) 573-5340
(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: | ||||||||||||
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 May 12, 2026 , the Company issued a press release announcing its first quarter 2026 earnings, which is furnished herewith as Exhibit 99. The information furnished pursuant to this Item 2.02, including Exhibit 99, 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 | Resideo Technologies, Inc. Earnings Press Release dated May 12, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
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: May 12, 2026 | RESIDEO TECHNOLOGIES, INC. | ||||||||||
| By: | /s/ Jeannine J. Lane | ||||||||||
| Name: | Jeannine J. Lane | ||||||||||
| Title: | Executive Vice President, General Counsel and Corporate Secretary | ||||||||||
Exhibit 99
Resideo Announces First Quarter 2026 Financial Results
•Net revenue of $1.91 billion, up 8% year-over-year and above the high-end of outlook range; P&S up 9% and ADI up 8%
•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, compared to net income of $6 million in first quarter of 2025; Adjusted EBITDA(1) of $215 million, up 28% year-over-year and above the high-end of outlook range
•GAAP diluted EPS of $0.17; Adjusted EPS(1) of $0.65, up 3% year-over-year and above the high-end of outlook range
SCOTTSDALE, Ariz., May 12, 2026 – Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets, today announced preliminary financial results for the first quarter ended April 4, 2026.
First Quarter 2026 Financial Highlights
•Net revenue of $1,912 million, up 8% compared to $1,770 million in first quarter 2025, and above the high-end of outlook range
•Total company gross margin of 28.8%, down 10 basis points year-over-year
•Net income of $38 million, compared to net income of $6 million in first quarter 2025
•Adjusted EBITDA(1) of $215 million, up 28% compared to $168 million in first quarter 2025, and above the high-end of outlook range
•Diluted EPS of $0.17 and Adjusted EPS(1) of $0.65 compared to diluted loss per share of $0.02 and Adjusted EPS(1) of $0.63 in the first quarter 2025; first quarter 2026 Adjusted EPS(1) was above the high-end of outlook range
•Reported cash used by operating activities was $145 million compared to cash used by operating activities of $65 million in first quarter 2025
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 U.S. GAAP results to adjusted results in the accompanying tables.
Products and Solutions First Quarter 2026 Highlights
•Net revenue of $706 million, up 9% compared to 2025
•Gross margin of 41.8%, up 40 basis points compared to 2025
•Income from operations of $128 million, compared to $136 million in 2025
•Adjusted EBITDA(1) of $177 million, or 25.1% of revenue, compared to $158 million, or 24.3% of revenue in 2025
P&S delivered net revenue of $706 million in the first quarter 2026, up 9% compared to first quarter 2025, including a favorable impact of approximately 200 basis points from foreign currency. Revenue grew year-over-year across substantially all our sales channels and product families. Revenue growth was driven by a combination of price realization, primarily in our OEM and security channels, and by customer demand for our new products, primarily in our retail and electrical distribution channels.
Gross margin was 41.8%, compared to 41.4% in first quarter 2025 due primarily to the continued achievement of structural operating efficiencies. Research and development expenses increased $9 million due primarily to investments supporting new product launches to drive future growth. Selling, general and administrative expenses were up $18 million driven primarily by a one-time litigation settlement. Restructuring expenses increased $7 million as we strategically optimize our global manufacturing footprint. Income from operations of $128 million in first quarter 2026 was down from $136 million in first quarter 2025 due primarily to the one-time litigation settlement and restructuring expenses. Adjusted EBITDA(1) grew 12% year-over-year to $177 million compared to $158 million in 2025.
ADI Global Distribution First Quarter 2026 Highlights
•Net revenue of $1,206 million, up 8% compared to 2025
•Gross margin of 21.2%, down 40 basis points compared to 2025
•Income from operations of $34 million, compared to $34 million in 2025
•Adjusted EBITDA(1) of $66 million, or 5.5% of revenue, compared to $72 million or 6.4% of revenue in 2025
ADI first quarter 2026 net revenue of $1,206 million was up 8% year-over-year, and reflects average daily sales growth of 1% year-over-year and four extra sales days in the current quarter. Both growth metrics include an approximate 1% favorable impact from foreign currency. Net revenue growth was driven by demand in 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 market. E-commerce revenue grew 12% year-over-year, driven primarily by greater customer adoption. Exclusive Brands revenue also grew 7% year-over-year driven by positive momentum for our new products.
Gross margin was 21.2%, compared to 21.6% in first quarter 2025 due primarily to higher fuel costs for freight and unfavorable product sales mix. Research and development expenses increased $4 million due primarily to investments supporting new product launches that are intended to drive future growth. Selling, general and administrative were up $13 million driven primarily by higher variable costs during the four extra sales days. Income from operations of $34 million in first quarter 2026 was consistent with first quarter 2025 results. Adjusted EBITDA(1) decreased 8% to $66 million compared to $72 million in 2025.
Cash Flow and Liquidity
Net cash used by operating activities was $145 million in first quarter 2026, compared to cash used in operating activities of $65 million in first quarter 2025. The decrease was primarily driven by business separation activities, higher cash interest paid, and working capital dynamics. At April 4, 2026, Resideo had cash and cash equivalents of $438 million and total outstanding debt of $3.23 billion.
Outlook
The Company re-affirms its full year 2026 outlook and initiates its outlook for the second quarter 2026.
| ($ in millions, except per share data) | Q2 2026 | 2026 | ||||||
| Net revenue | $1,916 - $1,940 | $7,800 - $7,900 | ||||||
Non-GAAP Adjusted EBITDA(1) | $216 - $230 | $935 - $985 | ||||||
Non-GAAP Adjusted Earnings Per Share(1) | $0.71 - $0.75 | $3.00 - $3.20 | ||||||
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 | |||||||
| investorrelations@resideo.com | garrett.terry@resideo.com | |||||||
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 the United States and other governments, (6) risks related to our anticipated separation of Resideo Technologies’ Products & Solutions and ADI Global Distribution businesses into two independent publicly traded companies, including the timing thereof and that we may experience operational or other disruptions as a result of the separation and the planning therefor, and (7) the other risks described under the headings “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2025 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.
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 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.
We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with U.S. GAAP at the end of this release. A reconciliation of the forecasted range for Adjusted EBITDA and Adjusted Earnings Per Share for the second quarter 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. However, for the second quarter of 2026 and full year 2026 respectively, we anticipate the following expenses in our GAAP to non-GAAP reconciliation: depreciation and amortization of $53 million and $212 million, interest expense, net of $46 million and $181 million, and stock-based compensation expense of $14 million and $58 million.
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 $140 million. The following table summarizes information concerning the Indemnification Agreement:
| Three Months Ended | |||||||||||
| (in millions) | April 4, 2026 | March 29, 2025 | |||||||||
| Accrual for Indemnification Agreement liabilities deemed probable and reasonably estimable | $ | — | $ | 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, $0.001 par value: 100 shares authorized, 0.5 shares issued and outstanding, and $500 liquidation preference at April 4, 2026 and December 31, 2025 | 482 | 482 | |||||||||
Common stock, $0.001 par value: 700 shares authorized, 160 and 151 shares issued and outstanding at April 4, 2026, respectively, and 158 and 150 shares issued and outstanding at December 31, 2025, respectively | — | — | |||||||||
| 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 and Solutions | ADI Global Distribution | Corporate | Total Company | |||||||||||||||||||
| 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 and Solutions | ADI Global Distribution | Corporate | Total Company | |||||||||||||||||||
| 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 and Solutions | ADI Global Distribution | Corporate | Total Company | ||||||||||||||||||||
| 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 common share | $ | 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 25% for all non-deductible and taxable adjustments.
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.