Free cash flow rebounded to $119M in 2026Q2 from -$1.6B in 2025Q3, but cumulative operating cash flow of -$1.1B over ten quarters and working capital swings of -$1.8B to +$957M highlight cash flow volatility.
Resideo Technologies, Inc. (REZI) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | -1.27B | -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 % | -1270.49% | -356.08% | 0.91% | 189.47% | -51.75% | 29.1% | 960.87% | -95.02% | 1148.65% | -75.5% | - |
| Net Income | 427M | -527M | 116M | 210M | 283M | 242M | 37M | 36M | 405M | -394M | 177M |
| Depreciation & Amortization | 200M | 195M | 144M | 98M | 94M | 88M | 86M | 80M | 66M | 67M | 64M |
| Stock-Based Compensation | 55M | 57M | 59M | 44M | 50M | 39M | 29M | 25M | 20M | 16M | 13M |
| Deferred Taxes | 43M | 0 | -31M | -28M | -3M | 6M | 22M | -25M | -323M | 297M | -4M |
| Other Non-Cash Items | 657M | -20M | 59M | 28M | 41M | 44M | 21M | 24M | 18M | 25M | 21M |
| Working Capital Changes | -1.99B | -842M | 97M | 88M | -313M | -104M | 49M | -117M | 276M | 26M | -120M |
| Change in Receivables | -93M | -29M | -18M | 19M | -72M | -30M | -27M | 7M | -62M | -31M | -106M |
| Change in Inventory | -141M | -92M | -71M | 32M | -122M | -73M | 19M | -44M | -172M | -17M | -49M |
| Change in Payables | 14M | 30M | 127M | 18M | -43M | -42M | -1M | -38M | 231M | 11M | 61M |
| Cash from Investing | -43M | -39M | -1.41B | -44M | -764M | -65M | -103M | -112M | -74M | -51M | -191M |
| Capital Expenditures | -130M | -116M | -80M | -105M | -85M | -63M | -70M | -95M | -81M | -49M | -71M |
| CapEx % of Revenue | 1.7% | 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 | 10M | 77M | 8M | -9M | -14M | 9M | 2M | 0 | 7M | -2M | 0 |
| Cash from Financing | 1.5B | 1.13B | 1.03B | -64M | 170M | 20M | 253M | -53M | -167M | 21M | 4M |
| Debt Issued (Net) | 1.58B | 1.19B | 571M | -12M | 184M | 23M | -22M | -22M | 1.2B | 0 | 0 |
| Equity Issued (Net) | -45M | -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 | -45M | -29M | -1M | -41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1M | 3M | -9M | -11M | -14M | -3M | -4M | -31M | -1.4B | 2M | 3M |
| Net Change in Cash | 196M | -31M | 56M | 310M | -453M | 262M | 395M | -143M | 209M | 9M | 47M |
| Free Cash Flow | -1.4B | -1.25B | 364M | 335M | 67M | 252M | 174M | -72M | 381M | -12M | 80M |
| FCF Margin % | -18.28% | -16.77% | 5.38% | 5.37% | 1.05% | 4.31% | 3.43% | -1.44% | 7.89% | -0.27% | 1.8% |
| FCF Growth % | -458.72% | -444.23% | 8.66% | 400% | -73.41% | 44.83% | 341.67% | -118.9% | 3275% | -115% | - |
| FCF per Share | -9.08 | -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) | -3.28x | 2.16x | 3.83x | 2.10x | 0.54x | 1.30x | 6.59x | 0.64x | 1.14x | -0.09x | 0.85x |
| Interest Paid | 58M | 136M | 78M | 80M | 54M | 39M | 57M | 72M | 0 | 0 | 0 |
| Taxes Paid | 19M | 0 | 162M | 123M | 159M | 107M | 32M | 86M | 28M | 261M | 136M |
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.
Key Metrics
Top Statement Risk
Housing market sensitivity
Metrics are mathematically derived from official filings.
Cash Conversion Distorted by Impairments
Operating cash flow swung from -$1.6B in 2025Q3 to $148M in 2026Q2, per reported figures, with OCF/NI at 1.53, suggesting earnings quality is heavily influenced by non-cash charges.
The negative net income in 2025Q2 and the massive working capital swings in 2025Q3 indicate that reported earnings are not a reliable proxy for cash generation. The OCF/NI ratio of 1.53 in 2026Q2 appears to reflect the absence of the prior impairment, but the volatility in working capital changes, such as the $957M swing in 2025Q2, suggests that cash conversion is unstable and may be driven by timing of payables and receivables rather than operational efficiency.
FCF Recovery After Severe Volatility
Free cash flow rebounded to $119M in 2026Q2 from -$1.6B in 2025Q3, as reported, with FCF margin at 6.0%, indicating a return to positive territory but still below the 13.8% seen in 2025Q4.
The FCF trajectory shows a sharp recovery from the impairment-driven trough, but the 2026Q2 FCF margin of 6.0% is below the 9.7% and 13.8% recorded in 2024Q4 and 2025Q4, respectively. This suggests that while the company has stabilized, it has not yet regained the cash generation efficiency of prior quarters, possibly due to ongoing working capital needs or increased capex. Investors should monitor whether FCF can sustain above the 10% level, which would indicate a healthier cash profile.
Capital Intensity Remains Modest
Capital expenditures averaged around 1.5% of revenue over the last ten quarters, per financial statements, indicating a low capital intensity business that requires minimal reinvestment to maintain operations.
CapEx/Revenue has remained consistently below 2%, even as revenue grew, suggesting that Resideo's asset base is not capital-intensive. This low capital intensity implies that most of the operating cash flow can be directed to other uses, such as debt reduction or acquisitions. However, the recent Snap One acquisition may increase future capex needs, but the current data does not yet reflect that.
Working Capital Swings Signal Channel Dynamics
Working capital changes ranged from -$1.8B to +$957M across the last ten quarters, as reported, indicating significant volatility likely tied to inventory and receivables management in the distribution segment.
The extreme swings in working capital, particularly the -$1.8B in 2025Q3 and +$957M in 2025Q2, suggest that the ADI distribution business is subject to large inventory and receivable fluctuations. These swings may reflect channel destocking or restocking cycles, which can distort quarterly cash flow. The positive $254M in 2026Q2 indicates a release of working capital, but the inconsistency makes it difficult to assess the underlying efficiency of the company's cash conversion cycle.
Capital Deployment Focused on Acquisitions
Cash used for acquisitions totaled $1.3B in 2024Q2 and $77M in 2025Q4, per reported figures, while dividends and buybacks remained modest, indicating a strategy of growth through M&A rather than shareholder returns.
The significant cash outflows for acquisitions, particularly the $1.3B in 2024Q2, suggest that management is prioritizing inorganic growth, likely to expand the ADI distribution network or enhance the product portfolio. In contrast, dividends and buybacks have been minimal, with dividends around $8-12M per quarter and buybacks often negative (indicating net issuance). This deployment strategy may strain the balance sheet if acquisitions are debt-funded, but the low capex requirements provide some flexibility.
Cumulative Earnings vs Cash Gap
Over the last ten quarters, cumulative net income was -$276M while operating cash flow was -$1.1B, as per reported data, indicating a persistent gap that may be driven by non-cash charges and working capital outflows.
The cumulative divergence between net income and operating cash flow is stark, with operating cash flow significantly lower than net income. This suggests that earnings are not translating into cash, possibly due to large working capital investments or non-cash items like impairments. The $1.8B working capital outflow in 2025Q3 is a major contributor, and investors should question whether the company can convert its earnings into cash in the future, especially if the housing market remains weak.
What Could Invalidate the Base Case
The recent EPS beat of $0.83 versus $0.52 estimate, as reported, may not be sustainable if housing market weakness persists, potentially pressuring revenue growth and margins.
The cash flow statement obscures the impact of the Honeywell indemnity payments, which are not separately disclosed but may be embedded in operating cash flows, potentially overstating the true cash generation available to shareholders. Additionally, the negative net margin in 2025Q2 suggests possible non-cash impairments that could recur, and the reliance on working capital swings for cash flow may not be repeatable. Investors should monitor the sustainability of the recent cash flow recovery and the potential for further acquisition-related cash outflows.