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…
Earnings analysis · 10-Q
REZI earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- 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 stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.