Operating margins remain constrained between 6.9% and 9.6% over the last ten quarters, suggesting that fixed SG&A costs limit the scalability of the company's 8.0% revenue growth observed in 2026Q1.
| Sales/Revenue | 7.61B | 7.47B | 6.76B | 6.24B | 6.37B | 5.85B | 5.07B | 4.99B | 4.83B | 4.52B | 4.46B |
| Revenue Growth % | 8.08% | 10.52% | 8.31% | -2.01% | 8.96% | 15.28% | 1.66% | 3.34% | 6.82% | 1.44% | - |
| Cost of Goods Sold | 5.5B | 5.4B | 4.86B | 4.55B | 4.6B | 4.26B | 3.76B | 3.71B | 3.4B | 3.2B | 3.09B |
| COGS % of Revenue | - | 72.24% | 71.88% | 72.83% | 72.28% | 72.9% | 74.11% | 74.4% | 70.48% | 70.88% | 69.36% |
| Gross Profit | 2.11B | 2.07B | 1.9B | 1.7B | 1.77B | 1.58B | 1.31B | 1.28B | 1.43B | 1.32B | 1.36B |
| Gross Margin % | 27.75% | 27.76% | 28.12% | 27.17% | 27.72% | 27.1% | 25.89% | 25.6% | 29.52% | 29.12% | 30.64% |
| Gross Profit Growth % | - | 9.1% | 12.09% | -3.96% | 11.49% | 20.64% | 2.82% | -10.39% | 8.28% | -3.59% | - |
| Operating Expenses | 1.48B | 1.43B | 1.38B | 1.15B | 1.16B | 1.02B | 1B | 1.02B | 932M | 871M | 1.36B |
| OpEx % of Revenue | - | 19.18% | 20.43% | 18.41% | 18.13% | 17.53% | 19.76% | 20.43% | 19.31% | 19.27% | 30.64% |
| Selling, General & Admin | 1.3B | 1.27B | 1.14B | 960M | 974M | 909M | 925M | 932M | 932M | 871M | 870M |
| SG&A % of Revenue | - | 16.94% | 16.83% | 15.38% | 15.29% | 15.55% | 18.24% | 18.68% | 19.31% | 19.27% | 19.53% |
| Research & Development | 180M | 167M | 111M | 109M | 111M | 86M | 77M | 87M | 0 | 0 | 0 |
| R&D % of Revenue | - | 2.23% | 1.64% | 1.75% | 1.74% | 1.47% | 1.52% | 1.74% | - | - | - |
| Other Operating Expenses | 0 | 0 | 132M | 80M | 70M | 30M | 0 | 0 | 0 | 0 | 495M |
| Operating Income | 629M | 641M | 520M | 547M | 611M | 559M | 311M | 258M | 493M | 445M | 495M |
| Operating Margin % | 8.26% | 8.58% | 7.69% | 8.76% | 9.59% | 9.56% | 6.13% | 5.17% | 10.21% | 9.85% | 11.11% |
| Operating Income Growth % | - | 23.27% | -4.94% | -10.47% | 9.3% | 79.74% | 20.54% | -47.67% | 10.79% | -10.1% | - |
| EBITDA | 828M | 836M | 664M | 645M | 705M | 647M | 397M | 338M | 559M | 512M | 559M |
| EBITDA Margin % | 10.87% | 11.19% | 9.82% | 10.33% | 11.07% | 11.07% | 7.83% | 6.78% | 11.58% | 11.33% | 12.55% |
| EBITDA Growth % | 18.45% | 25.9% | 2.95% | -8.51% | 8.96% | 62.97% | 17.46% | -39.53% | 9.18% | -8.41% | - |
| D&A (Non-Cash Add-back) | 199M | 195M | 144M | 98M | 94M | 88M | 86M | 80M | 66M | 67M | 64M |
| EBIT | 629M | 641M | 302M | 378M | 472M | 400M | 164M | 140M | 124M | 166M | 495M |
| Net Interest Income | -158M | -137M | -81M | -65M | -54M | -47M | -63M | -69M | -20M | 0 | -3M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 158M | 137M | 81M | 65M | 54M | 47M | 63M | 69M | 20M | 0 | 3M |
| Other Income/Expense | -1.05B | -1.1B | -299M | -234M | -193M | -206M | -210M | -187M | -389M | -279M | -185M |
| Pretax Income | -417M | -457M | 221M | 313M | 418M | 353M | 101M | 71M | 104M | 166M | 310M |
| Pretax Margin % | -5.48% | -6.12% | 3.27% | 5.01% | 6.56% | 6.04% | 1.99% | 1.42% | 2.15% | 3.67% | 6.96% |
| Income Tax | 78M | 70M | 105M | 103M | 135M | 111M | 64M | 35M | -301M | 560M | 133M |
| Effective Tax Rate % | -18.71% | -15.32% | 47.51% | 32.91% | 32.3% | 31.44% | 63.37% | 49.3% | -289.42% | 337.35% | 42.9% |
| Net Income | -495M | -527M | 116M | 210M | 283M | 242M | 37M | 36M | 405M | -394M | 177M |
| Net Margin % | -6.5% | -7.05% | 1.72% | 3.36% | 4.44% | 4.14% | 0.73% | 0.72% | 8.39% | -8.72% | 3.97% |
| Net Income Growth % | -726.58% | -554.31% | -44.76% | -25.8% | 16.94% | 554.05% | 2.78% | -91.11% | 202.79% | -322.6% | - |
| Net Income (Continuing) | -495M | -527M | 116M | 210M | 283M | 242M | 37M | 36M | 405M | -394M | 177M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.19 | -3.77 | 0.61 | 1.42 | 1.90 | 1.63 | 0.29 | 0.29 | 3.30 | -3.19 | 1.43 |
| EPS Growth % | -1205.62% | -718.03% | -57.04% | -25.26% | 16.56% | 462.07% | 0% | -91.21% | 203.45% | -323.08% | - |
| EPS (Basic) | - | -3.77 | 0.62 | 1.43 | 1.94 | 1.68 | 0.30 | 0.29 | 3.31 | -3.22 | 1.43 |
| Diluted Shares Outstanding | 155M | 149M | 149M | 148M | 149M | 148.45M | 126.32M | 123.24M | 122.62M | 123.45M | 123.45M |
| Basic Shares Outstanding | 151M | 149M | 146M | 147M | 146M | 144.04M | 125.35M | 122.72M | 122.5M | 122.36M | 122.92M |
| Dividend Payout Ratio | - | - | 10.34% | - | - | - | - | - | - | - | - |
Legacy environmental liability drag
As reported in recent financial filings, Resideo's revenue growth has exhibited significant volatility, shifting from a 22.3% expansion in 2025Q2 to a more modest 8.0% increase by 2026Q1, reflecting the company's sensitivity to housing turnover and the broader residential repair and maintenance cycle.
The deceleration in top-line growth suggests that the initial post-acquisition tailwinds from strategic moves like the Snap One integration may be normalizing. Investors should monitor whether the current 8% growth rate represents a sustainable baseline or if further softening in existing home sales will continue to pressure volume.
Based on the provided income statement data, Resideo's gross margin has remained tightly range-bound between 26.9% and 28.7% over the last ten quarters, indicating a structural ceiling likely driven by the high-volume, lower-margin nature of the ADI Global Distribution business model.
This lack of margin expansion suggests that the company's efforts to pivot toward higher-margin software and proprietary hardware have yet to meaningfully shift the consolidated profile. The consistency of these margins implies that pricing power remains limited by the competitive landscape of the professional contractor distribution channel.
According to the company's historical income statements, operating margins have struggled to scale, fluctuating between 6.9% and 9.6% despite significant revenue fluctuations, which suggests that SG&A expenses are largely fixed and scale inefficiently relative to the company's top-line performance.
The inability to drive meaningful operating leverage during periods of revenue growth points to a high-cost infrastructure requirement, particularly within the ADI branch network. This cost structure warrants investigation into whether management can achieve greater efficiency without compromising the service levels required by their core contractor base.
As evidenced by the sharp net income swing to a $825 million loss in 2025Q2, Resideo's bottom-line quality is frequently obscured by non-operating charges, making it difficult for investors to gauge the underlying earnings power of the core business through standard EPS metrics alone.
The significant discrepancy between operating income and net income suggests that legacy liabilities and potential impairment charges continue to create noise in the reported results. Analysts should focus on adjusted EBITDA and cash flow metrics to strip away these non-recurring items and assess true operational health.
While the ADI distribution network is often cited as a defensive moat, the income statement data suggests that this segment's reliance on high-volume, low-margin transactions leaves the company vulnerable to margin compression if competitive pricing intensifies or if contractor demand for inventory destocking persists.
Short-sellers may focus on the potential for the Honeywell indemnity payments to continue acting as a persistent drag on free cash flow, limiting the company's ability to reinvest in higher-margin software initiatives. The reliance on external housing market triggers remains a fundamental risk that could lead to further earnings disappointment.
Quick answers to the most common questions about buying REZI stock.
For fiscal year 2025, Resideo Technologies, Inc. (REZI) reported total revenue of $7.47B. This represents a 67.7% increase compared to $4.46B in 2016.
Resideo Technologies, Inc. (REZI) reported a net loss of $527.0M for the fiscal year ending 2025.
Resideo Technologies, Inc. (REZI) reported an operating income of $641.0M, resulting in an operating profit margin of 8.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Resideo Technologies, Inc. (REZI) generated $2.07B in gross profit for the year, representing a gross profit margin of 27.8%. This demonstrates the company's core pricing power and production efficiency.