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Resideo Technologies Inc (REZI)
NYSE:REZI
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Resideo Technologies
(NYSE:REZI)
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Rating:56Neutral
Price Target:
$42.00
▲(12.72% Upside)
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
Revenue Re-acceleration
Record 2025 revenue (~$7.5B, +11% YoY) reflects durable end-market demand across Products & Solutions and ADI. Sustained top-line growth builds scale for recurring subscription revenue, supports cross-sell and upsell, and strengthens the base needed for lasting margin recovery and cash conversion.
Gross Margin Expansion
Company-wide gross-margin expansion (to ~29.4% in 2025) and P&S delivering very high margins reflect favorable price/mix, exclusive brands and new-product mix. Consistent margin improvement across quarters indicates structural pricing power and higher margin dollars per unit, supporting longer-term profitability when costs stabilize.
Synergy & Operational Gains
Early realization of ~$75M Snap One synergies and ADI's ERP completion signal strong execution on integration and digitization. Faster synergy capture and operational stabilization can permanently lower run-rate costs, improve distribution efficiency, and materially support sustainable margin expansion over the next 18–24 months.
Negative Factors
Increased Leverage
Material leverage increase to debt-to-equity ~1.09 and ~$3.17B of debt reduces financial flexibility and raises refinancing and interest-rate sensitivity. With equity contracted and returns turned negative, higher leverage constrains strategic options and elevates funding risk until cash flow and profitability normalize.
Severe Cash Burn
A sharp reversal to deeply negative operating and free cash flow in 2025 reverses prior multi-year cash generation. Persistent cash burn forces reliance on external financing, complicates the planned separation, and limits the company's ability to invest or return capital until working-capital and operating performance are restored.
Earnings Collapse
Despite revenue growth, the swing to a large net loss and negative margins shows structural pressure from higher interest, separation and integration costs, and SG&A. Continued weak profitability undermines internal funding, increases sensitivity to macro shocks, and delays achievement of a stable, self-funded growth profile.
Resideo Technologies (REZI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.64B
Dividend YieldN/A
Average Volume (3M)1.42M
Price to Earnings (P/E)9.7
Beta (1Y)1.67
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. Volume1,515,972
30 Day Avg. Volume1,418,695
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 Cap1.43
Enterprise Value/Revenue1.08
Enterprise Value/Gross Profit3.68
Enterprise Value/Ebitda-64.16
Forecast
1Y Price Target
$49.00Price Target Upside31.51% 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 DescriptionResideo 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, Products & Solutions, and ADI Global Distribution. It offers temperature and humidity control, thermal water, and air solutions; and security panels, sensors, peripherals, wires and cables, communication devices, video cameras, awareness solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand. In addition, the company distributes security products comprising video, intrusion, and access control products; and smart home, fire, power, audio, ProAV, networking, communication, wire and cable, enterprise connectivity, and structured wiring products to contractors that service non-residential and residential end-users. It sells its products through a network of distributors, original equipment manufacturers, and service providers, as well as retail and online channels. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.
How the Company Makes MoneyResideo generates revenue through several key streams, primarily from the sale of its products and solutions in the residential sector. The company benefits from a recurring revenue model through subscription services related to its connected home devices, where customers pay for ongoing monitoring and maintenance. Additionally, Resideo partners with various distributors and service providers, allowing it to expand its market reach and enhance product offerings. The integration of hardware and software solutions also creates opportunities for upselling and cross-selling, further bolstering its earnings.
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.Q4-2025 Updates
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.
Strong Quarterly Results Exceed Guidance
Fourth quarter total net revenue of $1.895 billion, up 2% year-over-year (including a 1% favorable currency impact); quarter adjusted EBITDA of $226 million, up 21% year-over-year and above the high end of the outlook range; Q4 gross margin 29.6%, up 110 basis points year-over-year.
Products & Solutions Growth and Margin Expansion
Products & Solutions organic net revenue grew 4% in 2025; Q4 P&S net revenue grew 6% year-over-year (about 1% currency benefit). P&S gross margin expanded 110 basis points year-over-year for the full year and Q4 gross margin was 41%, up 20 basis points — marking the 11th consecutive quarter of year-over-year gross margin expansion.
New Product Introductions Driving Momentum
Ten major new product introductions in 2025 (examples: First Alert SC5 connected smoke & CO detector and Honeywell Home ElitePRO Thermostat) with positive customer reception and building demand momentum into 2026.
ADI Operational Stabilization and Digitization Gains
ADI completed its ERP implementation and achieved operational stabilization; ADI organic net revenue grew 3% in 2025 with organic average daily sales growth of 4%. E-commerce net revenue and average daily sales grew 3% year-over-year, and exclusive brands revenue increased 2% while contributing more gross margin dollars.
Gross Margin Expansion at ADI
ADI Q4 gross margin of 22.7%, up 110 basis points year-over-year and the seventh consecutive quarter of year-over-year gross margin expansion, driven primarily by favorable price and mix.
Snap One Synergy Execution
Achieved approximately $75 million of Snap One synergies in 2025 — realized 18 months sooner than originally planned — with additional synergy opportunities targeted over the next 18–24 months.
2026 Financial Outlook
Full-year 2026 guidance: net revenue $7.8B–$7.9B, adjusted EBITDA $935M–$985M, diluted EPS $3.00–$3.20. First quarter 2026 guidance: net revenue $1.866B–$1.890B, adjusted EBITDA $193M–$207M, EPS $0.58–$0.62.
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.
ADI Adjusted EBITDA Pressure in Quarter
ADI's increased gross profit dollars were largely offset by SG&A costs tied to completing the ERP implementation and ongoing investments in real estate and digital, resulting in a small decline in ADI adjusted EBITDA year-over-year in the quarter.
HVAC Channel Softness Impacting P&S
Products & Solutions experienced a low- to mid-single-digit revenue decline in the HVAC channel in Q4, attributed to a soft residential HVAC market and distributor inventory adjustments (though signs of normalization were noted).
EPS Decline in the Quarter
Q4 adjusted EPS was $0.50, down from $0.59 in the prior-year period; primary driver of the decrease was approximately $20 million of higher interest expense related to incremental debt incurred to terminate the Honeywell indemnification agreement (partially offset by a $35 million benefit from the termination).
Macro and Policy Uncertainty
Management emphasized a cautious global macro outlook (tariff uncertainty, geopolitical risks) and limited U.S. residential housing growth expectations for 2026; these uncertainties informed a conservative 2026 outlook and assumptions on tariffs and market activity.
Cash From Operations Outlook Uncertain Due to Separation
Company did not provide a 2026 cash provided by operations outlook because separation-related costs and timing are uncertain; this introduces near-term cash planning variability related to the anticipated business separation in H2 2026.
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
Despite re-accelerating revenue growth and modest gross-margin improvement, the latest year shows a sharp deterioration in quality of earnings: a swing to a large net loss, materially higher leverage (debt-to-equity ~1.09), and a significant decline in cash generation with 2025 operating and free cash flow turning deeply negative. These factors elevate funding and execution risk until profitability and cash conversion normalize.Income Statement
Revenue growth re-accelerated in 2025 (up ~50% YoY), and gross margin improved to ~29.4% (from ~28.1% in 2024), signaling better top-line momentum and mix/price. However, profitability deteriorated sharply: net income swung to a large loss in 2025 (net margin ~-7.1%) versus modest profitability in 2021–2024, and EBITDA margin remained only mid-single to high-single digits (~8.1% in 2025). Overall, strong sales growth is being outweighed by the 2025 earnings collapse and weaker consistency of bottom-line performance.52
Neutral
Balance Sheet
Leverage increased materially: debt-to-equity rose to ~1.09 in 2025 from ~0.61 in 2024 as total debt jumped to ~$3.17B while equity declined. Returns also turned negative in 2025 (return on equity ~-18%), reversing the positive profile seen in 2021–2024. Asset base grew (total assets ~$8.43B), but the combination of higher leverage and negative earnings raises balance-sheet risk and reduces financial flexibility.46
Neutral
Cash Flow
Cash generation weakened significantly in 2025: operating cash flow fell to about -$1.14B and free cash flow to about -$1.25B, versus positive operating and free cash flow in each of 2020–2024. The decline in free cash flow (growth ~-6.07 in 2025) suggests a major working-capital or operating reset and/or elevated cash needs. Despite prior-year stability, the most recent year’s cash burn is a clear negative and heightens near-term funding and execution risk.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
37.26
Price Trends
36.27
Positive
36.41
Positive
32.64
Positive
Market Momentum
0.63
Negative
51.72
Neutral
38.27
Neutral
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 37.26 is above the 20-day moving average (MA) of 36.81, above the 50-day MA of 36.27, and above the 200-day MA of 32.64, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 38.27 is Neutral, 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 31 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 | $4.28B | 21.28 | 16.78% | 1.23% | 11.20% | 0.71% | |
78 Outperform | $1.55B | 27.53 | 26.42% | 1.29% | -2.28% | -9.94% | |
72 Outperform | $7.47B | 22.52 | 22.22% | 1.30% | 3.31% | 2.58% | |
71 Outperform | $1.61B | 97.67 | 13.05% | ― | -2.83% | ― | |
70 Outperform | $5.62B | 10.53 | 15.84% | 2.73% | 4.77% | -22.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $5.64B | 9.68 | -16.93% | ― | 15.45% | -488.24% |
* Industrials Sector Average
REZI
Resideo Technologies
37.26
18.82
102.06%
BRC
Brady
91.63
22.61
32.77%
MSA
MSA Safety
192.73
35.15
22.31%
NSSC
Napco Security Technologies
43.57
19.63
81.98%
ADT
Adt
6.84
-0.65
-8.70%
ARLO
Arlo Technologies
15.04
2.76
22.48%
Resideo Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
Resideo Updates CEO Transition and Incentive Compensation Terms
Neutral
Jan 7, 2026
On January 6, 2026, Resideo Technologies’ Compensation and Human Capital Management Committee amended a 2024 transition agreement with President and CEO Jay Geldmacher, originally disclosed in November 2024, which was designed to support a smooth leadership transition around his planned retirement. Following the company’s July 30, 2025 announcement that Geldmacher’s retirement would take effect upon completion of the separation of Resideo’s ADI Global Distribution business, the amendment clarifies his eligibility for 2026 annual incentive compensation, providing pro-rated, target-level incentive pay if the CEO transition occurs before December 31, 2026 and full-year, performance-based incentive pay if it occurs on or after that date, while leaving all other terms of the original agreement unchanged.
The most recent analyst rating on (REZI) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Resideo Technologies stock, see the REZI Stock Forecast page.
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.