Cash flow generation remains highly unstable, highlighted by a massive $1.8 billion working capital outflow in 2025Q3 and a negative OCF/NI ratio of -3.82 in 2026Q1.
| Cash from Operations | -1.22B | -1.14B | 444M | 440M | 152M | 315M | 244M | 23M | 462M | 37M | 151M |
| Operating CF Margin % | - | -15.22% | 6.57% | 7.05% | 2.39% | 5.39% | 4.81% | 0.46% | 9.57% | 0.82% | 3.39% |
| Operating CF Growth % | -1127.1% | -356.08% | 0.91% | 189.47% | -51.75% | 29.1% | 960.87% | -95.02% | 1148.65% | -75.5% | - |
| Net Income | -495M | -527M | 116M | 210M | 283M | 242M | 37M | 36M | 405M | -394M | 177M |
| Depreciation & Amortization | 199M | 195M | 144M | 98M | 94M | 88M | 87M | 80M | 66M | 67M | 64M |
| Stock-Based Compensation | 42M | 57M | 59M | 44M | 50M | 39M | 29M | 25M | 20M | 16M | 13M |
| Deferred Taxes | 0 | 0 | -31M | -28M | -3M | 6M | 22M | -25M | -323M | 297M | -4M |
| Other Non-Cash Items | 653M | -20M | 59M | 28M | 41M | 44M | 21M | 24M | 18M | 25M | 21M |
| Working Capital Changes | -953M | -842M | 97M | 88M | -313M | -104M | 49M | -117M | 276M | 26M | -120M |
| Change in Receivables | -58M | -29M | -18M | 19M | -72M | -30M | -27M | 7M | -62M | -31M | -106M |
| Change in Inventory | -115M | -92M | -71M | 32M | -122M | -73M | 19M | -44M | -172M | -17M | -49M |
| Change in Payables | 25M | 30M | 127M | 18M | -43M | -42M | -1M | -38M | 231M | 11M | 61M |
| Cash from Investing | -44M | -39M | -1.41B | -44M | -764M | -65M | -103M | -112M | -74M | -51M | -191M |
| Capital Expenditures | -121M | -116M | -80M | -105M | -85M | -63M | -70M | -95M | -81M | -49M | -71M |
| CapEx % of Revenue | 1.59% | 1.55% | 1.18% | 1.68% | 1.33% | 1.08% | 1.38% | 1.9% | 1.68% | 1.08% | 1.59% |
| Acquisitions | 77M | 0 | -1.34B | 70M | -665M | -11M | -35M | -17M | 0 | 0 | -120M |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 77M | 8M | -9M | -14M | 9M | 2M | 0 | 7M | -2M | 0 |
| Cash from Financing | 1.11B | 1.13B | 1.03B | -64M | 170M | 20M | 253M | -53M | -167M | 21M | 4M |
| Debt Issued (Net) | 1.18B | 1.19B | 571M | -12M | 184M | 23M | -22M | -22M | 1.2B | 0 | 0 |
| Equity Issued (Net) | -46M | -29M | 481M | -41M | 0 | 0 | 279M | 0 | 39M | 19M | 1M |
| Dividends Paid | -35M | -35M | -12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -46M | -29M | -1M | -41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 5M | 3M | -9M | -11M | -14M | -3M | -4M | -31M | -1.4B | 2M | 3M |
| Net Change in Cash | -138M | -31M | 56M | 310M | -453M | 262M | 395M | -143M | 209M | 9M | 47M |
| Free Cash Flow | -1.34B | -1.25B | 364M | 335M | 67M | 252M | 174M | -72M | 381M | -12M | 80M |
| FCF Margin % | -17.57% | -16.77% | 5.38% | 5.37% | 1.05% | 4.31% | 3.43% | -1.44% | 7.89% | -0.27% | 1.8% |
| FCF Growth % | -566.2% | -444.23% | 8.66% | 400% | -73.41% | 44.83% | 341.67% | -118.9% | 3275% | -115% | - |
| FCF per Share | -8.63 | -8.41 | 2.44 | 2.26 | 0.45 | 1.70 | 1.38 | -0.58 | 3.11 | -0.10 | 0.65 |
| FCF Conversion (FCF/Net Income) | 2.70x | 2.16x | 3.83x | 2.10x | 0.54x | 1.30x | 6.59x | 0.64x | 1.14x | -0.09x | 0.85x |
| Interest Paid | 14M | 0 | 78M | 80M | 54M | 39M | 57M | 72M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 162M | 123M | 159M | 107M | 32M | 86M | 28M | 261M | 136M |
Legacy environmental liability drag
As reported in recent financial statements, Resideo's cash conversion is highly erratic, with the OCF/NI ratio swinging from a negative 10.83 in 2025Q1 to a positive 8.83 in 2024Q4, highlighting a fundamental disconnect between accounting net income and the actual cash generated by core operations.
The extreme variance in the relationship between net income and operating cash flow suggests that non-cash charges and significant working capital swings frequently distort the company's reported profitability. Investors should monitor these fluctuations closely, as they indicate that headline earnings may not be a reliable proxy for the company's underlying cash-generating capacity.
Based on the provided cash flow data, Resideo's free cash flow trajectory remains highly unstable, evidenced by a massive $1.6 billion outflow in 2025Q3 followed by a $262 million inflow in 2025Q4, reflecting the company's sensitivity to large, non-recurring cash events and cyclical demand shifts.
The inconsistency in free cash flow generation suggests that the company's ability to self-fund operations is frequently interrupted by external factors or lumpy capital requirements. This erratic performance makes it difficult to establish a sustainable baseline for valuation, warranting a cautious approach to long-term cash flow forecasting.
According to historical cash flow filings, working capital changes have been the primary driver of cash flow volatility, including a massive $1.8 billion outflow in 2025Q3, which suggests that the company's inventory and receivables management is highly susceptible to sudden shifts in channel demand and supply chain dynamics.
The dramatic swings in working capital indicate that Resideo's cash cycle is not yet optimized, likely due to the complexities of managing both a manufacturing segment and a high-volume distribution network. Such volatility implies that the company may face recurring liquidity pressure during periods of inventory destocking or unexpected supply chain disruptions.
As indicated by the company's recent cash flow statements, capital deployment is heavily influenced by legacy obligations and acquisition activity, with net acquisition outflows reaching $1.3 billion in 2024Q2, which appears to limit the company's flexibility to return capital to shareholders through consistent dividends or buybacks.
The reliance on debt-funded acquisitions to drive growth, coupled with the persistent drag of environmental indemnity payments, suggests a constrained capital allocation strategy. Investors should monitor whether these strategic investments can eventually generate sufficient returns to offset the ongoing cash outflows required to manage the company's legacy liability profile.
Quick answers to the most common questions about buying REZI stock.
Resideo Technologies, Inc. (REZI) generated $-1137.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Resideo Technologies, Inc. (REZI) reported negative free cash flow of $1.25B in 2025, indicating capital requirements exceeded cash from operations.
Resideo Technologies, Inc. (REZI) spent $116.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Resideo Technologies, Inc. (REZI) returned $35.0M to shareholders via cash dividends and spent $29.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.