Resideo Technologies (REZI) Q3 2025 Earnings
How Did REZI Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +1.90%.
Did REZI Beat Earnings? Q3 2025 Results
Yes. Resideo Technologies reported Q3 2025 earnings of $0.89 a share on Nov 5, 2025, beating the $0.69 consensus estimate by 29.0%. Revenue was $1.9B against a $1.9B estimate.
Resideo Technologies posted a record-setting third quarter in 2025, delivering adjusted EPS of $0.89 against a consensus estimate of $0.69, a beat of 28.99%, even as revenue of $1.86 billion came in just 0.75% below expectations and grew 2.0% year over year. The standout profitability reflected a record Q3 gross margin of 29.8% and net income of $156.00 million, with both the ADI Global Distribution and Products & Solutions segments contributing equally to top-line growth. The quarter's defining event, however, was a $1.59 billion one-time payment to Honeywell in August to terminate a longstanding indemnification agreement, a move that weighed heavily on reported cash flows but eliminates a significant long-term financial obligation. Despite the operational strength, shares fell sharply after the company's forward guidance underwhelmed investors; Resideo guided Q4 revenue to $1.85 billion to $1.89 billion and full-year 2025 revenue to $7.43 billion to $7.47 billion, with adjusted EPS of $2.57 to $2.67, as a planned corporate separation into two independent public companies remains on track for the second half of 2026.
- Record high Q3 gross margin of 29.8%, up 110 basis points year-over-year
- P&S achieved ten consecutive quarters of year-over-year margin expansion
- ADI achieved six consecutive quarters of year-over-year margin expansion
- Price realization and customer demand for new products drove P&S revenue growth
- Cross-selling of Snap One Exclusive Brands across broader ADI customer base improved margins
- E-commerce revenue at ADI grew 3% year-over-year
- Efficient utilization of manufacturing facilities drove P&S gross margin expansion
- ADI Exclusive Brands revenue grew 3% year-over-year
“Resideo delivered another strong quarter driven by solid execution, demonstrating the healthy operating fundamentals of our business. In the third quarter, we achieved record-high gross margins, earnings per share, and Adjusted EBITDA, all of which were enabled by continued organic net revenue growth and margin expansion by both the ADI and P&S business segments.”
Resideo Technologies CEO, on the earnings call
What Was Resideo Technologies's Outlook in Q3 2025?
For Q4 2025, Resideo expects net revenue of $1,853–$1,893 million, Non-GAAP Adjusted EBITDA of $211–$225 million, and Non-GAAP Adjusted EPS of $0.42–$0.52. For full year 2025, the company expects net revenue of $7,430–$7,470 million, Non-GAAP Adjusted EBITDA of $818–$832 million, Non-GAAP Adjusted EPS of $2.57–$2.67, and Non-GAAP Adjusted Cash Provided by Operations of $410–$450 million (excluding the one-time $1,590 million Honeywell Indemnification Agreement termination payment). The anticipated separation of P&S and ADI into two independent publicly traded companies is expected to be completed in the second half of 2026.
REZI YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.9B | $1.8B | +2.0% |
| Gross Profit | $556.0M | $524.0M | +6.1% |
| Operating Income | $154.0M | $126.0M | +22.2% |
| Net Income | $156.0M | $20.0M | +680.0% |
REZI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.