Resideo Technologies Reports 19.1% Revenue Growth but Net Loss in Q1 2025

Resideo Technologies, Inc. reported a significant increase in financial performance for the first quarter of 2025, with net revenue reaching $1.77 billion, a 19.1% rise from $1.49 billion in the same period last year. The company attributed this growth primarily to $227 million in revenue from its recent acquisition of Snap One Holdings Corp., alongside a $51 million increase in sales volume and $20 million from favorable pricing and product mix. However, the company faced a $13 million negative impact from unfavorable foreign currency exchange rates. Gross profit also improved, totaling $511 million, which represents a 27.8% increase year-over-year, resulting in a gross profit margin of 28.9%, up from 26.9% in the prior year.

Despite the revenue growth, Resideo reported a net loss of $3 million for the quarter, compared to a net income of $43 million in the first quarter of 2024. This decline was influenced by a substantial increase in operating expenses, which rose to $375 million from $272 million, driven by higher selling, general, and administrative expenses, as well as increased intangible asset amortization related to the Snap One acquisition. The company’s income from operations increased slightly to $136 million, but the overall profitability was impacted by a significant rise in other expenses, including a $54 million increase related to the Reimbursement Agreement with Honeywell.

Operationally, Resideo's Products and Solutions segment generated $649 million in revenue, a 4.7% increase from the previous year, while the ADI Global Distribution segment saw a more substantial growth of 29.4%, reaching $1.12 billion, largely due to the Snap One acquisition. The company reported a total employee headcount of approximately 5,000, reflecting its ongoing commitment to expanding its workforce in line with its growth strategy. The integration of Snap One is expected to enhance Resideo's market position in smart home technology, with the company emphasizing its focus on innovation and product development.

Looking ahead, Resideo anticipates navigating a dynamic global macroeconomic environment, with plans to mitigate potential cost impacts from tariffs, particularly on products imported from China. The company reaffirmed its revenue outlook for 2025, projecting low-to-mid single-digit growth year-over-year. Resideo's management remains focused on executing its strategic initiatives, including optimizing its cost structure and enhancing operational efficiencies, to position the company for long-term growth amidst ongoing market uncertainties.