Resideo Technologies Inc (REZI)
NYSE:REZI
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Resideo Technologies
(NYSE:REZI)
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Rating:56Neutral
Price Target:
$36.00
▼(-8.23% Downside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weakened financial quality in the latest year (losses, higher leverage, and sharply negative cash flow). Technical trends are supportive and the latest earnings call provided constructive 2026 guidance and operational momentum, but valuation is less supportive due to the negative P/E and lack of dividend yield.
Positive Factors
Re-accelerating revenue and improving gross margin
Sustained top-line growth with concurrent gross-margin improvement points to stronger product mix and pricing power. Over the next 2–6 months this supports operating leverage as sales scale, making margin expansion a durable driver of improved operating profitability if cost trends remain controlled.
Negative Factors
Severely negative operating and free cash flow in 2025
A sharp shift to large negative OCF and FCF is a structural risk: it strains liquidity, elevates refinancing and execution risk, and constrains capital allocation. Absent sustained cash-flow recovery, the company may need external financing or cost actions that limit strategic flexibility over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Re-accelerating revenue and improving gross margin
Sustained top-line growth with concurrent gross-margin improvement points to stronger product mix and pricing power. Over the next 2–6 months this supports operating leverage as sales scale, making margin expansion a durable driver of improved operating profitability if cost trends remain controlled.
Read all positive factors
Resideo Technologies (REZI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.02B
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)9.7
Beta (1Y)1.70
Revenue Growth15.45%
EPS Growth-488.24%
CountryUS
Employees14,600
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.50
Shares Outstanding151,247,100
10 Day Avg. Volume945,555
30 Day Avg. Volume1,088,749
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.79
Price to Sales (P/S)0.70
P/FCF Ratio-4.18
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit3.84
Enterprise Value/Ebitda-66.98
Forecast
1Y Price Target
$49.00Price Target Upside24.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.93
Revenue Forecast (FY)$7.74B
Resideo Technologies Business Overview & Revenue Model
Company Description
Resideo Technologies, Inc. develops, manufactures, and sells comfort, residential thermal, and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments...
How the Company Makes Money
Resideo makes money mainly by (1) selling products it manufactures or sources under its brands and (2) earning revenue through its distribution operations. Product revenue is generated from shipments of home comfort and control, security, and safe...
Resideo Technologies Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows the profit made after deducting the cost of goods sold for each business segment. This highlights the profitability of different parts of the company and can indicate where the company is most competitive.
Shows the profit made after deducting the cost of goods sold for each business segment. This highlights the profitability of different parts of the company and can indicate where the company is most competitive.
Data provided by:
The Fly
The FlyResideo Technologies Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented a majority of positive operational and financial developments: record annual revenue and profitability, sustained gross margin expansion across both segments, completion of ADI's ERP implementation, and earlier-than-expected realization of Snap One synergies. These positives were balanced against some near-term challenges — modest ADI revenue softness driven by video surveillance, ERP- and investment-related SG&A pressure on ADI EBITDA in the quarter, HVAC channel softness in P&S, a quarterly EPS decline driven by higher interest expense, and macro/tariff/housing uncertainties. Management provided a constructive 2026 outlook while flagging separation-related cash uncertainty.Positive Updates
Record Annual Financial Performance
Full-year 2025 net revenue of approximately $7.5 billion, up 11% year-over-year; adjusted EBITDA of $833 million, up 20% year-over-year; adjusted EPS of $2.68, up 17% year-over-year; adjusted cash provided by operations of $453 million, up 2% year-over-year.
Negative Updates
ADI Quarterly Revenue Pressure and Category Weakness
ADI reported a small year-over-year decline in Q4 net revenue and average daily sales (down ~50 basis points reported) driven primarily by a decline in the video surveillance category, which has a multi-month sales cycle and temporarily depressed results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Financial Performance
Full-year 2025 net revenue of approximately $7.5 billion, up 11% year-over-year; adjusted EBITDA of $833 million, up 20% year-over-year; adjusted EPS of $2.68, up 17% year-over-year; adjusted cash provided by operations of $453 million, up 2% year-over-year.
Read all positive updates
Company Guidance
Resideo's 2026 guidance calls for full-year net revenue of $7.8–$7.9 billion, adjusted EBITDA of $935–$985 million, and diluted EPS of $3.00–$3.20; first-quarter 2026 guidance is net revenue $1.866–$1.890 billion, adjusted EBITDA $193–$207 million, and diluted EPS $0.58–$0.62. Management expects both ADI and Products & Solutions to grow year‑over‑year (with ADI growing faster), modest total‑company gross‑margin expansion (P&S > ADI), R&D roughly flat as a percent of revenue versus H2 2025, slightly stronger second‑half seasonality, guidance set at 12/31/2025 FX rates, and that 2026 operating cash flow excluding separation payments will be similar to 2025 (they are not giving a full‑year cash‑flow outlook because of separation timing). For context, Resideo closed 2025 with ~ $7.5 billion revenue (+11% y/y), adjusted EBITDA $833 million (+20%), adjusted EPS $2.68 (+17%), adjusted cash from operations $453 million (+2%), Q4 revenue $1.895 billion (+2% y/y), Q4 adjusted EBITDA $226 million (+21% y/y), Q4 adjusted EPS $0.50 (vs. $0.59 prior), Q4 gross margin 29.6% (+110 bps), and realized ~$75 million of Snap One synergies in 2025; notable one‑time effects included a $35 million benefit from indemnification termination and roughly $20 million higher interest expense.Resideo Technologies Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
46
Neutral
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.47B | 6.76B | 6.24B | 6.37B | 5.85B |
| Gross Profit | 2.20B | 1.90B | 1.70B | 1.77B | 1.58B |
| EBITDA | -127.00M | 446.00M | 476.00M | 566.00M | 488.00M |
| Net Income | -527.00M | 116.00M | 210.00M | 283.00M | 242.00M |
Balance Sheet | |||||
| Total Assets | 8.43B | 8.20B | 6.64B | 6.39B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 661.00M | 692.00M | 636.00M | 326.00M | 775.00M |
| Total Debt | 3.17B | 2.03B | 1.45B | 1.45B | 1.26B |
| Total Liabilities | 5.52B | 4.89B | 3.90B | 3.86B | 3.60B |
| Stockholders Equity | 2.92B | 3.31B | 2.75B | 2.53B | 2.25B |
Cash Flow | |||||
| Free Cash Flow | -1.25B | 364.00M | 335.00M | 67.00M | 252.00M |
| Operating Cash Flow | -1.14B | 444.00M | 440.00M | 152.00M | 315.00M |
| Investing Cash Flow | -39.00M | -1.41B | -44.00M | -764.00M | -65.00M |
| Financing Cash Flow | 1.13B | 1.03B | -64.00M | 170.00M | 20.00M |
Resideo Technologies Technical Analysis
Positive
39.23
Price Trends
35.87
Positive
35.45
Positive
34.77
Positive
Market Momentum
1.05
Negative
65.28
Neutral
90.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REZI, the sentiment is Positive. The current price of 39.23 is above the 20-day moving average (MA) of 35.68, above the 50-day MA of 35.87, and above the 200-day MA of 34.77, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 65.28 is Neutral, neither overbought nor oversold. The STOCH value of 90.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REZI.
Resideo Technologies Risk Analysis
Resideo Technologies disclosed 30 risk factors in its most recent earnings report. Resideo Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Resideo Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.58B | 27.53 | 27.45% | 1.29% | -2.28% | -9.94% | |
72 Outperform | $6.43B | 22.52 | 21.82% | 1.30% | 3.31% | 2.58% | |
71 Outperform | $3.91B | 21.28 | 16.60% | 1.23% | 11.20% | 0.71% | |
70 Outperform | $5.72B | 10.53 | 16.19% | 2.73% | 4.77% | -22.78% | |
69 Neutral | $1.55B | 97.67 | 12.47% | ― | -2.83% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $6.02B | 9.68 | -18.10% | ― | 15.45% | -488.24% |
* Industrials Sector Average
REZI
Resideo Technologies
39.23
23.46
148.76%
BRC
Brady
82.40
15.73
23.59%
MSA
MSA Safety
165.17
22.87
16.07%
NSSC
Napco Security Technologies
44.69
23.33
109.17%
ADT
Adt
7.09
-0.56
-7.31%
ARLO
Arlo Technologies
14.82
5.61
60.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.