Executive Summary

Q4 2024 revenue was $1.86B, up 21% YoY and above the high end of company guidance; Adjusted EBITDA was $187M (+26% YoY) and at the high end, while Adjusted EPS was $0.59 and GAAP EPS $0.08, with GAAP pressured by the Honeywell Reimbursement Agreement accrual and preferred dividends .
Products & Solutions (P&S) posted its seventh straight quarter of YoY gross margin expansion; Q4 P&S gross margin was 40.8% (+130 bps YoY), while ADI lifted total revenue 39% YoY (reported) on Snap One plus 9% organic growth, with e-commerce +22% and Exclusive Brands +34% YoY .
FY24 operating cash flow reached a record $444M; FY24 revenue ($6.76B), Adj. EBITDA ($693M) and Adj. EPS ($2.29) all exceeded the high end of outlook; the company initiated 2025 guidance (revenue $7.285–$7.485B, Adj. EBITDA $725–$805M, Adj. EPS $2.23–$2.47) and targets 100–150 bps gross margin expansion in 2025 .
Snap One integration is ahead of plan with ~$17M run-rate synergies achieved in 2024 (40% above expectation); management flagged tariff uncertainty but outlined a mitigation playbook (pricing, commercial, and supply chain levers) as a watch item and potential stock catalyst alongside synergy acceleration and margin expansion in 2025 .

What Went Well and What Went Wrong

What Went Well

Structural margin improvement at P&S: Q4 gross margin was 40.8%, the seventh consecutive quarter of YoY expansion; P&S Adj. EBITDA margin reached 23.5% in Q4 (+70 bps YoY) .
ADI growth engines: Organic revenue +9% YoY; e-commerce +22% YoY, Exclusive Brands +34% YoY (legacy ADI), both mix-accretive to margins; Snap One integration contributed to higher reported growth .
Synergies ahead of plan and strong cash generation: ~$17M Snap One run-rate synergies achieved in 2024 vs plan; FY24 operating cash flow was $444M (record) .

Management quotes:

“Resideo finished 2024 in a strong position, exceeding the high-end of the range for all four of our key financial metrics.” — CEO Jay Geldmacher .
“E-commerce is structurally accretive… we enhanced on-site search with a leading AI product discovery technology and saw an almost immediate improvement in conversion rates.” — ADI President Rob Aarnes .
“We achieved approximately $17 million of run rate synergies in 2024, approximately 40% higher than expected.” — CEO Jay Geldmacher .

What Went Wrong

GAAP EPS compression: GAAP EPS fell to $0.08 in Q4 (from $0.56 in Q4’23) driven by a $76M Reimbursement Agreement expense ($41M non-cash accrual increase), plus preferred dividends, which reduced income available to common .
Security channel softness: P&S organic net revenue declined ~1% YoY in Q4 excluding FX and divestiture, with security softness offsetting HVAC, OEM, and retail strength .
Pricing competition at ADI: While mix improved, a competitive pricing environment and commercial project mix were headwinds to ADI margin in Q4; management continues to lean on Exclusive Brands and e-commerce to offset .

Financial Results

Quarterly trajectory (sequential comparison)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Revenue ($B)	$1.589	$1.828	$1.858
Adjusted EBITDA ($M)	$175	$190	$187
Adjusted EPS ($)	$0.62	$0.58	$0.59
GAAP EPS ($)	$0.19	$0.07	$0.08

Q4 year-over-year

Metric	Q4 2023	Q4 2024	YoY Δ
Net Revenue ($B)	$1.537	$1.858	+21%
Adjusted EBITDA ($M)	$149	$187	+26%
Adjusted EPS ($)	$0.64	$0.59	-$0.05
GAAP EPS ($)	$0.56	$0.08	-$0.48

Segment breakdown (Q4 2024 vs Q4 2023)

Segment	Net Revenue ($M) Q4’23	Net Revenue ($M) Q4’24	Income from Ops ($M) Q4’23	Income from Ops ($M) Q4’24	Adj. EBITDA ($M) Q4’23	Adj. EBITDA ($M) Q4’24
Products & Solutions	683	669	132	133	156	157
ADI Global Distribution	854	1,189	51	48	58	91
Total Company	1,537	1,858	147	144	149	187

KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
P&S Gross Margin (%)	41.3%	42.2%	40.8%
ADI e-commerce revenue growth YoY	+6% (ex-Snap)	+18% (ex-Snap)	+22%
ADI Exclusive Brands growth YoY	+18% (ex-Snap)	+32%	+34% (legacy ADI)
Snap One run-rate synergies (cumulative)	Targeting ~$12M FY24	“Well on track” to $75M exit-2026	~$17M achieved FY24

Notes: Total company Q4 gross margin was 28.5% (+100 bps YoY) .

Non-GAAP adjustments materially impacting Q4 GAAP vs non-GAAP: Reimbursement Agreement accrual increase ($41M non-cash), intangible amortization, stock comp, restructuring, acquisition/integration, and related tax effects .

Guidance Changes

Metric	Period	Previous Guidance	Current/Actual	Change
Net Revenue ($B)	Q4 2024	$1.815–$1.855	$1.858	Beat high end
Adj. EBITDA ($M)	Q4 2024	$170–$185	$187	Beat high end
Adjusted EPS ($)	Q4 2024	$0.51–$0.61	$0.59	In range (upper half)
Net Revenue ($B)	FY 2024	$6.720–$6.760	$6.761	Slightly above high end
Adj. EBITDA ($M)	FY 2024	$672–$687	$693	Above high end
Adjusted EPS ($)	FY 2024	$2.18–$2.28	$2.29	Above high end
Cash from Ops ($M)	FY 2024	≥$375	$444	Above

Initiated 2025 Guidance:

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenue ($B)	Q1 2025	N/A	$1.720–$1.770	New
Adj. EBITDA ($M)	Q1 2025	N/A	$150–$170	New
Adjusted EPS ($)	Q1 2025	N/A	$0.27–$0.33	New
Net Revenue ($B)	FY 2025	N/A	$7.285–$7.485	New
Adj. EBITDA ($M)	FY 2025	N/A	$725–$805	New
Adjusted EPS ($)	FY 2025	N/A	$2.23–$2.47	New
Cash from Ops ($M)	FY 2025	N/A	$345–$405	New

Management also guided 2025 total gross margin expansion of 100–150 bps vs 2024 and reaffirmed “at least $75M” run-rate synergies exiting year 3 of Snap One integration .

Earnings Call Themes & Trends

Topic	Q2 2024 (Prev)	Q3 2024 (Prev)	Q4 2024 (Current)	Trend
AI/Tech enablement	ADI to integrate AI search on e-comm; launches in H2’24	AI search/live UX improvements; best daily sales average	AI product discovery rolled out; immediate conversion uplift	Building as a margin-accretive digital lever
Supply chain/tariffs	Supply chain cost tailwinds at P&S; channel inventories normalize NA; EMEA headwinds	EMEA still weak; SG&A onetime items at P&S	Tariff risk flagged; detailed mitigation (pricing, commercial, ops/Supply Chain)	Watch item w/ defined playbook
Product performance/NPI	P&S pipeline refresh (thermostat, security) H2’24/2025	Focus Pro thermostat launch; record retail safety sales	Focus Pro traction; new VISTA security; matter-enabled thermostat announced at CES	Sustained cadence; margin accretive
Regional trends	NA stabilization; EMEA slowdown (Energy)	EMEA remains challenging	OEM EMEA double-digit growth in Q4; broader EMEA mixed	Mixed but improving pockets
Distribution mix	ADI ex-Snap: e-comm +6%, Exclusive +18%	e-comm +18%, Exclusive +32%	e-comm +22%, Exclusive +34% (legacy ADI)	Mix shift accretive
Snap One integration	Closed mid-June; targeting $12M synergies FY24, $75M exit-2026	On track; culture/leadership alignment	~$17M run-rate synergies achieved FY24; ERP/pricing capabilities emphasized	Ahead of plan
Honeywell Reimbursement	Ongoing expense; $90 YTD at Q2	$135 YTD at Q3	$211 FY; Q4 accrual increase $41 non-cash	Continues to pressure GAAP EPS

Management Commentary

“Organic net revenue growth in both segments, continued gross margin expansion, healthy Adjusted EBITDA growth, and record operating cash generation” — CEO Jay Geldmacher .
“E-commerce is structurally accretive… AI product discovery improved conversion… Exclusive Brands up 34% YoY; ~80 new products launched in the quarter” — ADI President Rob Aarnes .
“Seventh consecutive quarter of year-over-year gross margin expansion… gross margin 40.8% in Q4; strong reception to Focus Pro thermostats and new VISTA security” — P&S President Tom Surran .
“We achieved approximately $17 million of run rate synergies in 2024, ~40% higher than expected” — CEO Jay Geldmacher .
“Forecast 100–150 bps expansion in total company gross margin in 2025” — CFO Mike Carlet .

Q&A Highlights

Tariff preparedness: Proactive customer outreach; potential price actions, commercial levers (including inventory buy-ahead), and short-/long-term supply chain moves; competitive exposure varies by geography (some competitors in China/Mexico) .
ADI margin drivers: Competitive pricing peaked in Q4; mix headwinds from large commercial projects; focus on raising mix of e-commerce and Exclusive Brands; ERP to enhance pricing discipline .
Snap One synergies: $17M run-rate in 6.5 months post close driven primarily by cost; leadership integrated 50/50 across layers to accelerate synergy capture; reiterated “≥$75M” run-rate exiting year 3 .
Demand outlook: ADI backlog, bid pipeline at record levels, supporting cautious optimism for 2025; Control4 roadmap upgrades (X4) to support growth; cross-selling Snap proprietary lines through broader ADI base .
ADT impact better than feared: 2024 ADT security hardware decline smaller than expected; 2025 headwind also “better than previously communicated” .

Estimates Context

Wall Street consensus from S&P Global (EPS and revenue) was unavailable at the time of request due to an SPGI daily request limit; as a result, we cannot quantify beat/miss versus consensus for Q4 2024. The company did, however, exceed the high end of its own Q4 and FY24 outlook ranges across revenue and Adjusted EBITDA, and delivered Adjusted EPS above the FY24 range .

Key Takeaways for Investors

Quality of beat: Q4 revenue and Adjusted EBITDA exceeded high-end guidance; GAAP EPS masked by non-cash Honeywell Reimbursement accrual and preferred dividends; underlying cash generation remains strong (FY24 $444M) .
Margin trajectory: P&S structural margin initiatives continue to flow through; management targets 100–150 bps total company gross margin expansion in 2025, a key driver for EPS/FCF leverage .
Synergy upside: ~$17M run-rate synergies in 2024 (ahead of plan) and “≥$75M” by exit year 3 remain catalysts; cross-selling Snap’s proprietary portfolio into ADI and scaling Exclusive Brands are mix-accretive levers .
Digital acceleration: ADI’s e-commerce strength and AI search enhancements provide ongoing margin accretion and conversion gains, supporting profitable growth despite competitive pricing .
Risk watch: Tariff uncertainty in 2025 and pricing competition at ADI remain watch items; company has a defined mitigation playbook and expects gross margin expansion nonetheless .
2025 setup: Guide implies both segments grow with back-half weighting; Snap One integration and P&S NPI cadence (thermostats, security) underpin revenue/margin expansion narrative .
Balance sheet/cash: Year-end cash $692M and total debt ~$2.02B; ongoing strong cash generation supports deleveraging and integration investments .

Sources: Q4 2024 press release and 8-K 2.02 ; Q4 2024 earnings call transcript ; Q3 2024 press release and call ; Q2 2024 press release and call .

RESIDEO TECHNOLOGIES, INC. (REZI)·Q4 2024 Earnings Summary