REZI earnings analysis
What we found in REZI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Resideo delivered a solid Q2, with $1.981 billion of revenue, 30.0% gross margin, and $0.83 of EPS, representing year-over-year improvement and a significant consensus beat. However, the completed ADI spin-off removes a business that contributed 64% of six-month revenue while substantially all pre-existing indebtedness remains with Resideo, creating a materially higher standalone leverage and execution profile. Management’s standalone outlook calls for 2026 revenue of $2.900-$2.950 billion and Adjusted EBITDA of $605-$625 million, but there is no directly comparable prior standalone outlook.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew year over year and sequentially
- Revenue was $1.981 billion, up approximately $41 million, or 2.1%, from $1.940 billion in Q2 2025, and up approximately $71 million, or 3.7%, from $1.910 billion in Q1 2026.
- Record gross margin and strong EBITDA
- Gross margin reached a record 30.0%, approximately 70 basis points above 29.3% in Q2 2025. The filing’s reported quarter also included $249 million of Adjusted EBITDA.
- EPS materially exceeded consensus
- Reported EPS was $0.83 versus a consensus estimate of $0.66, a $0.17, or 25.8%, beat. EPS also improved from $(5.59) in Q2 2025 and $0.17 in Q1 2026.
- ADI separation completed
- The ADI Global Distribution spin-off was completed on August 3, 2026. Before the spin-off, ADI represented 64% of consolidated revenue for the six months ended July 4, 2026.
- Partial interest-rate protection
- Interest-rate hedges covered $140 million of debt at a fixed weighted-average rate of 2.23%, limiting exposure on that portion of borrowings.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Spin-off increases standalone leverage
- ADI contributed 64% of consolidated revenue and 27% of consolidated income from operations for the six months ended July 4, 2026. After the August 3, 2026 spin-off, Resideo no longer receives ADI’s revenue, earnings, and cash-flow contribution, while substantially all pre-existing indebtedness remains with Resideo.
- Execution risk from transition agreements
- Resideo and ADIG entered multiple separation and transition agreements, including a transition services agreement. Resideo may rely on ADIG for certain services for a limited period and is also obligated to provide services to ADIG, potentially increasing costs or diverting management resources.
- Material interest-rate sensitivity
- A 100-basis-point increase in interest rates would affect annual interest expense by approximately $22 million as of July 4, 2026. Only $140 million of variable-rate debt was covered by interest-rate swaps, leaving additional exposure to higher rates.
- Tariff and component-cost volatility
- The company identifies steel, aluminum, copper, brass, gold, silver, nickel, semiconductors, memory, connectors, and printed circuit boards as exposed inputs. Commodity-based tariffs and export restrictions on critical materials, including rare earth minerals, may increase volatility, and Resideo may not be fully compensated for cost increases.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.83
- Gross margin
- 30.0%
- Segment
- ADI Global Distribution: contributed 64% of consolidated revenue for the six months ended July 4, 2026, and 27% of consolidated income from operations.
- Segment
- Resideo standalone businesses: revenue and segment-level growth details were not disclosed in the provided filing extract.
What they said about what is next.
The company provided a standalone outlook following the ADI spin-off: 2026 revenue of $2.900-$2.950 billion, Q3 revenue of $705-$730 million, and 2026 Adjusted EBITDA of $605-$625 million. No directly comparable prior standalone outlook was provided.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 12, 2026
- Resideo Technologies reported strong Q1 2026 results with revenues of $1.91 billion, marking an 8.0% increase year-over-year. The company achieved a diluted EPS of $0.17, up from a loss of $0.02 in the same quarter of…
- 10-K · February 24, 2026
- Resideo Technologies, Inc. reported a net revenue of $7.47 billion for 2025, reflecting a 10.5% increase from the previous year. However, the company faced significant operating losses, resulting in a diluted EPS of…
- 10-Q · November 5, 2025
- Resideo Technologies, Inc. reported Q3 2025 results with net revenue of $1.86 billion, a 2.0% increase from Q3 2024, and a significant improvement in EPS to $0.85 from $0.07 a year ago, suggesting positive operational…
- 10-Q · August 5, 2025
- Resideo Technologies, Inc. reported Q2 2025 revenue of $1.94 billion, reflecting a strong 22.3% increase from the prior year. However, the company suffered a significant EPS loss of $5.59, contrasting with a positive…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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