Resideo Technologies Reports 22.3% Revenue Growth but $825 Million Net Loss in Q2 2025

Resideo Technologies, Inc. reported significant financial results for the second quarter of 2025, with net revenue reaching $1.943 billion, a 22.3% increase from $1.589 billion in the same period last year. The company's gross profit also rose to $569 million, reflecting a gross margin of 29.3%, up from 28.1% in the prior year. However, the company recorded a net loss of $825 million, compared to a net income of $30 million in the second quarter of 2024, primarily due to a substantial $882 million expense related to the termination of an indemnification agreement with Honeywell.

The increase in revenue was largely attributed to the acquisition of Snap One, which contributed $218 million, alongside $64 million from favorable pricing and mix, and $63 million from higher sales volume. For the first half of 2025, total revenue was $3.713 billion, a 20.7% increase from $3.075 billion in the same period of 2024. The company’s operating income for the quarter was $177 million, or 9.1% of revenue, compared to $122 million, or 7.7% of revenue, in the previous year.

In terms of operational developments, Resideo's acquisition of Snap One, completed in June 2024, has been a key strategic move, enhancing its product offerings in smart living solutions. The company has also initiated a spin-off of its ADI Global Distribution segment, which is expected to be tax-free for shareholders. This segment accounted for 65% of Resideo's revenue and 34% of its operating income in the first half of 2025, indicating its significant contribution to the overall business.

The company’s balance sheet showed total assets of $8.515 billion as of June 28, 2025, up from $8.199 billion at the end of 2024. Current liabilities increased significantly to $3.382 billion, primarily due to the indemnification agreement expense. Resideo's cash and cash equivalents stood at $753 million, reflecting a $61 million increase from the previous year. The company has indicated that it plans to use proceeds from newly raised debt financing to fulfill its obligations under the termination agreement with Honeywell.

Looking ahead, Resideo anticipates a challenging macroeconomic environment but expects to achieve low double-digit revenue growth for the remainder of 2025. The company is closely monitoring market conditions, including potential impacts from tariffs and inflation, and is prepared to adjust its operations accordingly. The successful execution of the spin-off and the management of its debt obligations will be critical as Resideo navigates these dynamics in the coming months.