Resideo Technologies 2025 Q1 Earnings Mixed Performance as Net Income Declines 86%
Daily EarningsWednesday, May 7, 2025 1:35 am ET
54min readResideo Technologies, Inc. reported its fiscal 2025 Q1 earnings on May 6th, 2025. The company posted a 19.1% increase in revenue, totaling $1.77 billion, surpassing analyst expectations of $1.72 billion. However, the firm experienced a significant decline in net income, falling to $6 million from $43 million a year ago. Resideo reaffirmed its guidance for 2025, projecting a full-year revenue between $7.285 billion and $7.485 billion, maintaining its non-GAAP Adjusted EBITDA forecast at $725 million to $805 million and non-GAAP Adjusted EPS between $2.23 and $2.47.
Revenue
Resideo Technologies saw its total revenue increase by 19.1% to $1.77 billion in Q1 2025 compared to $1.49 billion in Q1 2024.
Earnings/Net Income
Resideo Technologies reported a loss of $0.02 per share in Q1 2025, contrasting with a profit of $0.29 per share in Q1 2024, which marks a 106.9% negative change. The company's net income declined sharply to $6 million from $43 million in the previous year, indicating a challenging quarter.
Price Action
The stock price of Resideo Technologies edged up 0.92% during the latest trading day and climbed 4.74% during the most recent full trading week. Month-to-date, the stock has increased by 6.33%.
Post-Earnings Price Action Review
Over the past five years, investing in Resideo Technologies (REZI) shares after a quarterly revenue drop and holding for 30 days has proven to be a lucrative strategy. This approach delivered an impressive overall return of 98.61%, exceeding the benchmark return of 83.12% by 15.49%. Despite some risk and moderate returns indicated by a maximum drawdown of -14.97% and a Sharpe ratio of 0.83, the strategy's 14.89% CAGR and 15.49% excess return underscore its effectiveness in generating returns. The strategy capitalized on the company's ability to rebound after revenue declines, demonstrating resilience and providing investors with a reliable method for profiting during this period.
CEO Commentary
"Resideo had a strong first quarter, reporting results at or above the high-end of the range for all of our key financial metrics. The ADI and Products and Solutions teams continued their excellent operational execution, with both segments generating organic net revenue growth, continued gross margin expansion, and healthy Adjusted EBITDA growth. Looking ahead, we see profitable growth opportunities for both business segments even amid the current, volatile macro-economic environment. Products and Solutions continues to expand gross margins and launch new products that the market wants. In summary, we are executing against our playbook and we believe Resideo will be able to essentially mitigate the cost impact of any tariffs." — Jay Geldmacher, President and CEO
Guidance
For Q2 2025, Resideo anticipates net revenue between $1.805 billion and $1.855 billion, with non-GAAP Adjusted EBITDA expected to range from $175 million to $195 million. The company projects non-GAAP Adjusted Earnings Per Share (EPS) between $0.51 and $0.61. For the full year 2025, the revenue outlook is set between $7.285 billion and $7.485 billion, with non-GAAP Adjusted EBITDA forecasted at $725 million to $805 million and non-GAAP Adjusted EPS projected between $2.23 and $2.47.
Additional News
Resideo Technologies is progressing well with the integration of Snap One into its ADI segment, achieving synergies ahead of plan. The company announced its participation in a key industry event on May 5, 2025, showcasing its continued leadership in technology-driven sensing and controls products. Additionally, Resideo maintained its quarterly dividend payment to preferred stockholders, reflecting confidence in its cash flow and liquidity, despite the challenging earnings report. The firm is focused on driving long-term profitable growth and value creation amid a volatile macro-economic environment, leveraging its strategic acquisitions and product innovations.
Revenue
Resideo Technologies saw its total revenue increase by 19.1% to $1.77 billion in Q1 2025 compared to $1.49 billion in Q1 2024.
Earnings/Net Income
Resideo Technologies reported a loss of $0.02 per share in Q1 2025, contrasting with a profit of $0.29 per share in Q1 2024, which marks a 106.9% negative change. The company's net income declined sharply to $6 million from $43 million in the previous year, indicating a challenging quarter.
Price Action
The stock price of Resideo Technologies edged up 0.92% during the latest trading day and climbed 4.74% during the most recent full trading week. Month-to-date, the stock has increased by 6.33%.
Post-Earnings Price Action Review
Over the past five years, investing in Resideo Technologies (REZI) shares after a quarterly revenue drop and holding for 30 days has proven to be a lucrative strategy. This approach delivered an impressive overall return of 98.61%, exceeding the benchmark return of 83.12% by 15.49%. Despite some risk and moderate returns indicated by a maximum drawdown of -14.97% and a Sharpe ratio of 0.83, the strategy's 14.89% CAGR and 15.49% excess return underscore its effectiveness in generating returns. The strategy capitalized on the company's ability to rebound after revenue declines, demonstrating resilience and providing investors with a reliable method for profiting during this period.
CEO Commentary
"Resideo had a strong first quarter, reporting results at or above the high-end of the range for all of our key financial metrics. The ADI and Products and Solutions teams continued their excellent operational execution, with both segments generating organic net revenue growth, continued gross margin expansion, and healthy Adjusted EBITDA growth. Looking ahead, we see profitable growth opportunities for both business segments even amid the current, volatile macro-economic environment. Products and Solutions continues to expand gross margins and launch new products that the market wants. In summary, we are executing against our playbook and we believe Resideo will be able to essentially mitigate the cost impact of any tariffs." — Jay Geldmacher, President and CEO
Guidance
For Q2 2025, Resideo anticipates net revenue between $1.805 billion and $1.855 billion, with non-GAAP Adjusted EBITDA expected to range from $175 million to $195 million. The company projects non-GAAP Adjusted Earnings Per Share (EPS) between $0.51 and $0.61. For the full year 2025, the revenue outlook is set between $7.285 billion and $7.485 billion, with non-GAAP Adjusted EBITDA forecasted at $725 million to $805 million and non-GAAP Adjusted EPS projected between $2.23 and $2.47.
Additional News
Resideo Technologies is progressing well with the integration of Snap One into its ADI segment, achieving synergies ahead of plan. The company announced its participation in a key industry event on May 5, 2025, showcasing its continued leadership in technology-driven sensing and controls products. Additionally, Resideo maintained its quarterly dividend payment to preferred stockholders, reflecting confidence in its cash flow and liquidity, despite the challenging earnings report. The firm is focused on driving long-term profitable growth and value creation amid a volatile macro-economic environment, leveraging its strategic acquisitions and product innovations.
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