Resideo Technologies, Inc. (REZI)
NYSEIndustrialsIndustrial - DistributionSnapshot 2026-09-09
$18.88-3.87%
Close 2026-09-09 · 1-day change
NYSEIndustrialsIndustrial - DistributionSnapshot 2026-09-09
Broken: Primary pillar broken — Sustain revenue growth near $7.85 billion in 2026: FY26 revenue guidance $2.93B vs $7.85B target.
Resideo plans to finish spinning off its ADI business by August 2026. Revenue grew 8% year-over-year to $1.91 billion in 2026-Q1. Adjusted EBITDA rose 28% to $215 million in 2026-Q1. These show the company is improving its business and profits.
Cash flow from operations is weak and volatile, with negative $145 million in 2026-Q1. Operating income fell from $136 million to $102 million year-over-year. The company faces a tough sector and volatile management. These could hurt recovery.
The price is about 14% below our fair value near $39. Analysts expect about 4% revenue growth. Our view sees some risk in cash flow and profit recovery.
Breaks if: Cash flow remains negative over next 4 quarters
Breaks if: Adjusted EBITDA falls below $168 million in 2026-Q1
Breaks if: Annual revenue falls below $7.47 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with elements of a durable compounder. The company has shown some recovery in financial performance, but its management quality remains volatile, creating uncertainty in its long-term trajectory.
The market currently prices REZI as relatively cheap compared to its peers, reflecting a low expectations gap. However, the valuation is justified given the company's fragile earnings quality and the elevated risks it faces.
Management is on track with key priorities, including the completion of a spin-off and targets for revenue growth and margin expansion. However, the recent financial performance has been neutral, and there is a near-term risk of missing earnings expectations, which has occurred in recent quarters.
The long-term thesis hinges on the performance of sector bellwethers like GWW, FAST, and FERG. If these companies continue to perform well, it could provide a favorable backdrop for REZI, but any negative guidance from them could lead to further challenges.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company reported a cautious second-half outlook, lowering revenue expectations. However, it also achieved a Q2 earnings beat, which supports the read. Concerns about rising input costs and weakness in a key OEM customer add to the uncertainty.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Spin-off delayed beyond August 2026
Overall, REZI's path forward is mixed, with some positive developments but significant risks ahead. Not investment advice.