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Resideo Announces Third Quarter 2024 Financial Results

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Net revenue growth of 18% year-over-year; mid-single-digit organic revenue growth at both ADI and Products and SolutionsProducts and Solutions gross margin of 42.2%, sixth consecutive quarter of year-over-year improvementNet income available to common stockholders of $11 million; adjusted EBITDA of $190 million, above the high end of outlook rangeStrong demand for the refreshed Honeywell Home Focus Pro™ thermostat portfolio, first in a cadence of new product introductions

SCOTTSDALE, Ariz., Nov. 7, 2024 /PRNewswire/ — Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer and distributor of technology-driven products and solutions that provide home comfort and smart living, security, life safety and energy efficiency to consumers and businesses, today announced financial results for the third quarter ended September 28, 2024.

Third Quarter 2024 Financial Highlights

Net revenue was $1.83 billion, up 18% compared to $1.55 billion in the third quarter 2023Net income available to common stockholders was $11 million, compared to $21 million in the third quarter 2023Adjusted EBITDA (1) was $190 million, compared to $147 million in the third quarter 2023Fully diluted EPS was $0.07 and $0.14 and Adjusted EPS (1) was $0.58 and $0.55 for the third quarter 2024 and third quarter 2023, respectively

Management Remarks

“We delivered strong results in the third quarter with organic sales growth at both Products and Solutions and ADI in addition to consolidated Adjusted EBITDA again coming in ahead of our outlook,” commented Jay Geldmacher, Resideo’s President and CEO. “Products and Solutions continued to drive gross margin accretion, reflecting structural cost improvements. ADI also returned to organic revenue growth driven by improved demand across commercial categories and continued e-commerce expansion. The integration of Snap One is progressing well with the teams focused on cross-selling opportunities and cost reduction actions.”

“We are excited by the meaningful new product introductions that have begun to rollout at Products and Solutions. This is highlighted by refreshes of our thermostat offering and security solutions aimed at larger residential and small and medium business opportunities. At ADI, improving demand trends in key categories and cross-selling opportunities with a greater customer and product portfolio create significant benefits moving forward. Overall, we expect the positive business momentum to continue as we close out 2024 and look to 2025.”

(1) This press release includes certain “non-GAAP financial measures” as defined under the Securities Exchange Act of 1934. Resideo management believes the use of such non-GAAP financial measures, specifically Adjusted EBITDA and Adjusted EPS, assists investors in understanding the ongoing operating performance of Resideo by presenting the financial results between periods on a more comparable basis. See reconciliations of U.S. GAAP results to adjusted results in the accompanying tables.

Products and Solutions Third Quarter 2024 Highlights

Net revenue was $645 million, down 1% compared to the third quarter 2023 and up 4% excluding the impact of the Genesis divestitureGross margin was 42.2%, up 350 basis points compared to the third quarter 2023Income from operations was $128 million, compared to $94 million in the third quarter 2023Adjusted EBITDA was $157 million, or 24.3% of revenue, compared to $140 million, or 21.4% of revenue, in the third quarter 2023

Products and Solutions delivered net revenue of $645 million in the third quarter 2024, down 1% compared to third quarter 2023 and up 4% excluding the impact of the Genesis divestiture. Pricing trends remained positive across substantially all product categories compared with third quarter 2023. Organic revenue growth was partially offset by continued slower activity in the EMEA region and declines in Security product sales. During the quarter, Products and Solutions began taking orders for its programmable and connected thermostat line, the Honeywell Home Focus Pro, targeted at the entry tier of the professional market, in-line with its ongoing focus to introduce a regular cadence of new products and drive future innovation in key categories.

Gross margin for the quarter was 42.2%, compared to 38.7% in the third quarter 2023, reflecting improving manufacturing cost efficiency and pricing strength. Selling, general and administrative expenses were up $7 million and research and development expenses declined $5 million compared to 2023. Expense management was again strong in the quarter, and, combined with the strong gross margin expansion, helped drive operating profit of $128 million or 19.8% of revenue, up from $94 million or 14.4% of revenue in third quarter 2023. Adjusted EBITDA grew 12% year-over-year in the third quarter 2024 to $157 million, with Adjusted EBITDA margin up 300 basis points to 24.3%.

ADI Global Distribution Third Quarter 2024 Highlights

Net revenue was $1,183 million, up 31% compared to the third quarter 2023 and up 4% excluding the impact of the Snap One acquisitionGross margin was 21.3%, up 300 basis points compared to the third quarter 2023Income from operations was $36 million, compared to $52 million in the third quarter 2023Adjusted EBITDA was $92 million, or 7.8% of revenue, compared to $69 million, or 7.7% of revenue, in the third quarter 2023

ADI third quarter 2024 net revenue of $1,183 million increased $283 million compared to third quarter 2023, driven by the inclusion of $251 million of Snap One revenue and organic growth of $32 million, or 4%. ADI delivered year-over-year growth in all key commercial categories including Fire, Video Surveillance, professional Audio Visual, and Datacom. This was partially offset by year-over-year declines in residential Intrusion and residential Audio Visual. The e-commerce channel, excluding Snap One, grew 18% in third quarter 2024 compared to the prior year period. Exclusive brand sales grew 32% year-over-year, reflecting the inclusion of Snap One proprietary products and strong underlying growth.

Gross margin for the quarter was 21.3%, up 300 basis points compared to third quarter of 2023. The increase was driven by the inclusion of higher margin Snap One sales, partially offset by reduced inflationary pricing benefits. Selling, general and administrative and research and development expenses were $177 million in 2024, up $76 million compared to prior period including $73 million of Snap One expenses. Operating profit of $36 million for third quarter 2024 decreased 31% from $52 million in third quarter 2023. Adjusted EBITDA increased to $92 million in third quarter 2024 from $69 million in third quarter 2023.

Cash Flow and Liquidity

Net cash provided by operating activities was $147 million in third quarter 2024 compared to $60 million in the third quarter 2023. The increase was primarily driven by improved working capital dynamics and cash earnings. At September 28, 2024, Resideo had cash and cash equivalents of $531 million and total outstanding debt of $1.99 billion.

Outlook

The following table summarizes the Company’s current fourth quarter 2024 and updated full year 2024 outlook.

($ in millions, except per share data)

Q4 2024

2024

Net revenue

$1,815 – $1,855

$6,720 – $6,760

Non-GAAP Adjusted EBITDA

$170 – $185

$672 – $687

Non-GAAP Adjusted Earnings per share

$0.51 – $0.61

$2.18 – $2.28

Full Year Cash Provided by Operating Activities

 At least $375

Conference Call and Webcast Details

Resideo will hold a conference call with investors on November 7, 2024, at 5:00 p.m. ET. An audio webcast of the call will be accessible at https://investor.resideo.com, where related materials will be posted before the call. A replay of the webcast will be available following the presentation. To join the conference call, please dial 888-660-6357 (U.S. toll-free) or 1-929-201-6127 (international), with the conference title “Resideo Third Quarter 2024 Earnings” or the conference ID: 7301399.

About Resideo 

Resideo is a leading manufacturer and developer of technology-driven sensing and controls products that provide critical comfort, energy, smoke and carbon monoxide detection home safety products and security solutions to homes globally. We are also a leading wholesale distributor of low-voltage security products including access control, fire detection, fire suppression, security, and video products, and participate significantly in the broader related markets of, communications, data communications, networking, power, residential and professional audio-visual solutions, smart home, and wire and cable. Our global footprint serves both commercial and residential end markets. For more information about Resideo, please visit www.resideo.com.

Contacts:

Investors:

Media:

Jason Willey

Garrett Terry

Vice President, Investor Relations

Corporate Communications Manager

investorrelations@resideo.com

garrett.terry@resideo.com

Forward-Looking Statements
This release contains “forward-looking statements.” All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of the Company to differ materially from such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the fourth quarter 2024 and full year 2024, (2) our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint (3),  the amount of our obligations and nature of our contractual restrictions pursuant to, and disputes that have or may hereafter arise under the agreements we entered into with Honeywell in connection with our spin-off,  (4) risks related to our recently completed acquisitions including our ability to achieve the targeted amount of annual cost synergies and successfully integrate the acquired operations (including successfully driving category growth in connected offerings), (5) the ability of Snap One and/or Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (6) the ability of Snap One and/or Resideo to achieve the targeted amount of synergies described in this press release, (7) the accretive nature of the transaction to Resideo’s non-GAAP EPS in the first full year of ownership and the growth and margin profile of the combined businesses, (8)  the ability to integrate the Snap One business into Resideo and realize the anticipated strategic benefits of the transaction, including the anticipated operational and strategic benefits of the transaction, and (9) the other risks described under the headings “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2023 and other periodic filings we make from time to time with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward looking statements.

Use of Non-GAAP Measures
This press release includes certain “non-GAAP financial measures” as defined under the Securities Exchange Act of 1934 and in accordance with Regulation G. Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting the financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with U.S. GAAP.

We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with U.S. GAAP at the end of this release. A reconciliation of the forecasted range for Adjusted EBITDA and Adjusted Net Income per diluted common share for the fourth quarter of 2024 and for the fiscal period ending December 31, 2024 are not included in this release due to the number of variables in the projected range and because we are currently unable to quantify accurately certain amounts that would be required to be included in the U.S. GAAP measure or the individual adjustments for such reconciliation. In addition, we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors.

Table 1: SUMMARY OF FINANCIAL RESULTS (UNAUDITED) 

Q3 2024 (1)

YTD 2024 (1)

(in millions)

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Net revenue

$      645

$    1,183

$        —

$   1,828

$   1,895

$    3,008

$       —

$   4,903

Cost of goods sold

373

931

—

1,304

1,118

2,414

—

3,532

Gross profit

272

252

—

524

777

594

—

1,371

Research and development expenses

23

—

—

23

69

—

—

69

Selling, general and administrative expenses

107

177

33

317

307

397

124

828

Intangible asset amortization

6

22

1

29

18

31

2

51

Restructuring, impairment and extinguishment costs, net (2)

8

17

4

29

13

19

15

47

Income (loss) from operations

$      128

$         36

$      (38)

$      126

$      370

$        147

$   (141)

$      376

Q3 2023 (1)

YTD 2023 (1)

(in millions)

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Net revenue

$      654

$       900

$        —

$   1,554

$   1,989

$    2,716

$        —

$   4,705

Cost of goods sold

401

735

1

1,137

1,227

2,202

3

3,432

Gross profit (loss)

253

165

(1)

417

762

514

(3)

1,273

Research and development expenses

28

—

—

28

82

—

2

84

Selling, general and administrative expenses

100

101

32

233

322

307

90

719

Intangible asset amortization

6

2

1

9

17

8

3

28

Restructuring and impairment expenses

25

10

3

38

27

12

3

42

Income (loss) from operations

$         94

$         52

$      (37)

$      109

$      314

$       187

$    (101)

$      400

Q3 2024 % change compared with prior period

YTD 2024 % change compared with prior period

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Net revenue

(1) %

31 %

N/A

18 %

(5) %

11 %

N/A

4 %

Cost of goods sold

(7) %

27 %

N/A

15 %

(9) %

10 %

N/A

3 %

Gross profit

8 %

53 %

N/A

26 %

2 %

16 %

N/A

8 %

Research and development expenses

(18) %

N/A

N/A

(18) %

(16) %

N/A

N/A

(18) %

Selling, general and administrative expenses

7 %

75 %

3 %

36 %

(5) %

29 %

38 %

15 %

Intangible asset amortization

— %

1000 %

— %

222 %

6 %

288 %

(33) %

82 %

Restructuring, impairment and extinguishment costs, net

(68) %

70 %

33 %

(24) %

(52) %

58 %

400 %

12 %

Income (loss) from operations

36 %

(31) %

3 %

16 %

18 %

(21) %

40 %

(6) %

(1)

On January 1, 2024, certain corporate functions were decentralized into the operating segments aligning with the business strategy. Functional expenses related to information technology, finance, tax, business development, and research and development are now recorded within the Products and Solutions and ADI Global Distribution segments. For the three and nine months ended September 30, 2023, $13 million and $38 million of corporate expenses have been reclassified into the Products and Solutions while $8 million and $24 million of corporate expenses have been reclassified into the ADI Global Distribution segments, respectively, decreasing reported Income from Operations to conform to the current year presentation.

(2)

Includes $1 million and $7 million of debt extinguishment expense for corporate for the three and nine months ended September 28, 2024.

Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended

Nine Months Ended

(in millions, except per share data)

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

Net revenue

$               1,828

$                1,554

$                4,903

$               4,705

Cost of goods sold

1,304

1,137

3,532

3,432

Gross profit

524

417

1,371

1,273

Operating expenses:

Research and development expenses

23

28

69

84

Selling, general and administrative expenses

317

233

828

719

Intangible asset amortization

29

9

51

28

Restructuring, impairment and extinguishment costs, net

29

38

47

42

Total operating expenses

398

308

995

873

Income from operations

126

109

376

400

Reimbursement Agreement expense (1)

45

43

135

128

Other expenses, net

10

13

10

10

Interest expense, net

27

16

55

50

Income before taxes

44

37

176

212

Provision for income taxes

24

16

83

84

Net income

$                     20

$                     21

$                      93

$                  128

Less: preferred stock dividends

8

—

10

—

Less: undistributed income allocated to preferred stockholders

1

—

4

—

Net income available to common stockholders

$                     11

$                     21

$                      79

$                  128

Earnings per common share:

Basic

$                 0.07

$                  0.14

$                   0.54

$                 0.87

Diluted

$                 0.07

$                  0.14

$                   0.53

$                 0.86

Weighted average common shares outstanding:

Basic

147

147

146

147

Diluted

149

148

149

149

(1)

Represents the expense incurred pursuant to the Reimbursement Agreement, which has an annual cash payment cap of $140 million. The following table summarizes information concerning the Reimbursement Agreement:

 

Three Months Ended

Nine Months Ended

(in millions)

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

Accrual for Reimbursement Agreement liabilities deemed

probable and reasonably estimable

$                     45

$                     43

$                   135

$                   128

Cash payments made to Honeywell

(35)

(35)

(105)

(105)

Accrual increase, non-cash component in period

$                     10

$                       8

$                     30

$                     23

Table 3: CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions, except par value)

September 28,
2024

December 31,
2023

ASSETS

Current assets:

Cash and cash equivalents

$                    531

$                    636

Accounts receivable, net

1,103

973

Inventories, net

1,197

941

Other current assets

206

193

Total current assets

3,037

2,743

Property, plant and equipment, net

423

390

Goodwill

3,119

2,705

Intangible assets, net

1,197

461

Other assets

359

346

Total assets

$                8,135

$                6,645

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                1,021

$                    905

Current portion of long-term debt

6

12

Accrued liabilities

645

608

Total current liabilities

1,672

1,525

Long-term debt

1,983

1,396

Obligations payable under Indemnification Agreements

635

609

Other liabilities

491

366

Total liabilities

4,781

3,896

Stockholders’ equity

Preferred stock, $0.001 par value: 100 shares authorized, 0.5 shares issued and

outstanding at September 28, 2024 and no shares issued and outstanding at

December 31, 2023, respectively

482

—

Common stock, $0.001 par value: 700 shares authorized, 153 and 147 shares

issued and outstanding at September 28, 2024, respectively, and 151 and 145

shares issued and outstanding at December 31, 2023, respectively 

—

—

Additional paid-in capital

2,294

2,226

Retained earnings

893

810

Accumulated other comprehensive loss, net

(207)

(194)

Treasury stock at cost

(108)

(93)

Total stockholders’ equity

3,354

2,749

Total liabilities and stockholders’ equity

$                8,135

$                6,645

Table 4: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended

Nine Months Ended

(in millions)

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

Cash Flows From Operating Activities:

Net income

$                      20

$                       21

$                      93

$                    128

Adjustments to reconcile net income to net cash in operating activities:

Depreciation and amortization

46

22

98

71

Restructuring, impairment and extinguishment costs, net

29

38

47

42

Stock-based compensation expense

15

11

44

36

Other, net

6

—

5

2

Changes in assets and liabilities, net of acquired companies:

Accounts receivable, net

(22)

26

(79)

(9)

Inventories, net

(9)

11

(13)

(4)

Other current assets

6

(8)

15

(5)

Accounts payable

31

(58)

62

(14)

Accrued liabilities

13

(20)

(65)

(114)

Other, net

12

17

34

44

Net cash provided by operating activities

147

60

241

177

Cash Flows From Investing Activities:

Acquisitions, net of cash acquired

—

(10)

(1,334)

(16)

Capital expenditures

(22)

(25)

(58)

(74)

Other investing activities, net

—

—

6

—

Net cash used in investing activities

(22)

(35)

(1,386)

(90)

Cash Flows From Financing Activities:

Proceeds from issuance of long-term debt, net

594

—

1,176

—

Proceeds from issuance of preferred stock, net of issuance costs

—

—

482

—

Repayments of long-term debt

(596)

(3)

(602)

(9)

Common stock repurchases

—

(28)

(1)

(28)

Other financing activities, net

(7)

2

(12)

(10)

Net cash provided by (used in) financing activities

(9)

(29)

1,043

(47)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

2

(9)

(3)

1

Net (decrease) increase in cash, cash equivalents and restricted cash

118

(13)

(105)

41

Cash, cash equivalents and restricted cash at beginning of period

414

383

637

329

Cash, cash equivalents and restricted cash at end of period

$                    532

$                    370

$                    532

$                    370

 

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

ADJUSTED NET INCOME PER DILUTED COMMON SHARE AND

NET INCOME COMPARISON

(Unaudited)

 

RESIDEO TECHNOLOGIES, INC.

Three Months Ended

Nine Months Ended

(in millions, except per share data)

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

GAAP Net income

$                     20

$                    21

$                     93

$                   128

Less: preferred stock dividends

8

—

10

—

Less: undistributed income allocated to preferred stockholders

1

—

4

—

GAAP Net income available to common stockholders

11

21

79

128

Restructuring, impairment and extinguishment costs, net

29

38

47

42

Intangible asset amortization

29

9

51

28

Stock-based compensation expense

15

11

44

36

Reimbursement Agreement accrual increase, non-cash component (1)

10

8

30

23

Acquisition and integration costs

3

1

37

1

Other (2)

16

14

17

5

Tax effect of applicable non-GAAP adjustments (3)

(26)

(21)

(56)

(34)

Non-GAAP Adjusted net income available to common stockholders

$                     87

$                    81

$                   249

$                   229

Three Months Ended

Nine Months Ended

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

GAAP Net income per diluted common share

$                 0.07

$                 0.14

$                  0.53

$                  0.86

Restructuring, impairment and extinguishment costs, net

0.19

0.26

0.32

0.28

Intangible asset amortization

0.19

0.06

0.34

0.19

Stock-based compensation expense

0.10

0.07

0.30

0.24

Reimbursement Agreement accrual increase, non-cash component (1)

0.07

0.05

0.20

0.15

Acquisition and integration costs

0.02

0.01

0.25

0.01

Other (2)

0.11

0.10

0.11

0.03

Tax effect of applicable non-GAAP adjustments (3)

(0.17)

(0.14)

(0.38)

(0.22)

Non-GAAP Adjusted net income per diluted common share

$                 0.58

$                 0.55

$                  1.67

$                  1.54

(1)

Refer to the Unaudited Consolidated Statements of Operations herein.

(2)

For 2023 periods, other includes Tax Matters Agreement gain, foreign exchange transaction loss (income), and pension costs. For 2024 periods, other includes loss on sale of assets, foreign exchange transaction loss (income), gain on sale of investments, litigation settlements, and an inventory step-up related to the Snap One acquisition.

(3)

We calculated the tax effect of non-GAAP adjustments by applying a flat statutory tax rate of 25% for the three months ended September 28, 2024 and September 30, 2023.

 

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

ADJUSTED EBITDA AND NET INCOME COMPARISON

(Unaudited)

 

RESIDEO TECHNOLOGIES, INC.

Three Months Ended

Nine Months Ended

(in millions)

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

Net revenue

$              1,828

$            1,554

$            4,903

$            4,705

GAAP Net income

$                   20

$                 21

$                 93

$               128

GAAP Net income as a % of net revenue

1.1 %

1.4 %

1.9 %

2.7 %

Provision for income taxes

24

16

83

84

GAAP Income before taxes

44

37

176

212

Depreciation and amortization

46

22

98

71

Restructuring, impairment and extinguishment costs, net

29

38

47

42

Interest expense, net

27

16

55

50

Stock-based compensation expense

15

11

44

36

Reimbursement Agreement accrual increase, non-cash component (1)

10

8

30

23

Acquisition and integration costs

3

1

37

1

Other (2)

16

14

17

5

Non-GAAP Adjusted EBITDA

$                 190

$               147

$               504

$               440

Non-GAAP Adjusted EBITDA as a % of net revenue

10.4 %

9.5 %

10.3 %

9.4 %

(1)

Refer to the Unaudited Consolidated Statements of Operations herein.

(2)

For 2023 periods, other includes Tax Matters Agreement gain, foreign exchange transaction loss (income), and pension costs. For 2024 periods, other includes loss on sale of assets, foreign exchange transaction loss (income), gain on sale of investments, litigation settlements, and an inventory step-up adjustment related to the Snap One acquisition.

 

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(Unaudited)

 

PRODUCTS AND SOLUTIONS SEGMENT

Three Months Ended

Nine Months Ended

(in millions)

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

Net revenue

$               645

$               654

$           1,895

$           1,989

GAAP Income from operations

$               128

$                 94

$               370

$               314

GAAP Income from operations as a % of net revenue

19.8 %

14.4 %

19.5 %

15.8 %

Restructuring and impairment expense

8

25

13

30

Stock-based compensation expense

5

4

15

13

Other (1)

—

1

4

1

Non-GAAP Adjusted Income from Operations

$               141

$               124

$               402

$               358

Depreciation and amortization

16

16

51

51

Non-GAAP Adjusted EBITDA

$               157

$               140

$               453

$               409

Non-GAAP Adjusted EBITDA as a % of net revenue

24.3 %

21.4 %

23.9 %

20.6 %

(1)

Other includes litigation settlements and acquisition costs.

 

ADI GLOBAL DISTRIBUTION SEGMENT

Three Months Ended

Nine Months Ended

(in millions)

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

Net revenue

$           1,183

$               900

$           3,008

$           2,716

GAAP Income from operations

$                 36

$                 52

$               147

$               187

GAAP Income from operations as a % of net revenue

3.0 %

5.8 %

4.9 %

6.9 %

Restructuring and impairment expense

17

10

19

17

Stock-based compensation expense

4

2

9

5

Acquisition and integration costs

2

—

6

—

Other (1)

5

—

5

—

Non-GAAP Adjusted Income from Operations

$                 64

$                 64

$               186

$               209

Depreciation and amortization

28

5

41

13

Non-GAAP Adjusted EBITDA

$                 92

$                 69

$               227

$               222

Non-GAAP Adjusted EBITDA as a % of net revenue

7.8 %

7.7 %

7.5 %

8.2 %

(1)

Other includes inventory adjustment related to the Snap One acquisition.

 

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SOURCE Resideo Technologies, Inc.

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TransPerfect Legal Recognizes Its 2026 Pro Bono Partners

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Key Takeaways

Translation and interpretation services for partner firm Fenwick and legal aid organizations.Helps immigrants, asylum seekers, and other vulnerable populations access the US legal system.Language support remains critical to ensuring equal access to justice.

NEW YORK, Oct. 26, 2026
/PRNewswire/ — TransPerfect Legal, the global leader in legal technology, AI, and advisory services, today announced that in honor of the 2026 National Celebration of Pro Bono, it is recognizing the legal aid organizations and partner firms it has supported this year with translation and interpretation services. These partnerships extend legal access to immigrants, asylum seekers, and other vulnerable populations who depend on accurate language support to navigate the US legal system.

The National Celebration of Pro Bono, sponsored by the American Bar Association October 25–31, brings attention to the importance of pro bono legal services and honors the lawyers and organizations working to expand access to justice.

This year, TransPerfect provided translation and interpretation services at reduced rates to Fenwick in support of the following pro bono efforts:

Fenwick — Immigration clinics and mattersCommunity Legal Services in East Palo Alto (CLSEPA) — U Visa Project with attorneys (full-scope work); passport and asylum clinicsCo-Counsel NYC — Naturalization clinicsImmigration Institute of the Bay Area (IIBA) — Naturalization clinicsLawyers’ Committee for Civil Rights of the San Francisco Bay Area (LCCRSF) — Asylum clinicsNew York Legal Assistance Group (NYLAG) — Asylum, naturalization, and TPS clinicsTahirih Justice Center — Immigration intake and U visa clinics

The need for pro bono legal support remains significant. The Pro Bono Declaration of the Americas states that “members of the legal profession have a responsibility to provide pro bono legal services”—a responsibility the Declaration links to the profession’s broader role in society and its commitment to a fair and equitable legal system.

“Access to justice depends on access to language,” said Eric Elting, Regional Director. “When someone can’t understand the proceeding that will decide their asylum claim or their immigration status, the legal system isn’t actually open to them. That’s the gap our pro bono partners work to close every day, and we’re proud to support that work.”

TransPerfect President and Co-CEO Phil Shawe commented, “Since our humble beginnings in NYC, we are proud to have performed pro bono legal work, including work to eliminate language barriers in legal processes. These efforts continue to this day.”

About TransPerfect Legal
TransPerfect Legal is the global leader in legal technology, AI, and advisory services for Am Law 200 and Global 100 law firms as well as corporate legal departments. With offices in more than 150 cities worldwide, solutions include forensic technology and consulting, eDiscovery and early data assessment, managed review and legal staffing, language services, deposition and trial support, and paper discovery, all offered alongside the Reef Technology ecosystem, TransPerfect Legal’s suite of proprietary applications that address the needs of legal and regulatory practitioners around the world. For more information, please visit www.transperfectlegal.com.

About TransPerfect
TransPerfect is the world’s largest provider of language and AI solutions for global business. From offices in over 150 cities on six continents, TransPerfect offers a full range of services in 200+ languages to clients worldwide. More than 6,000 global organizations employ TransPerfect’s GlobalLink® technology to simplify the management of multilingual content. With an unparalleled commitment to quality and client service, TransPerfect is fully ISO 9001 and ISO 17100 certified. TransPerfect has global headquarters in New York, with regional headquarters in London and Hong Kong. For more information, please visit our website at www.transperfect.com.

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SOURCE TransPerfect

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Forum Edge AI Announces $94.4 Million Definitive AI Cloud Services Compute Agreement with Fireworks

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PALM BEACH, Fla., Oct. 26, 2026 /PRNewswire/ — Forum Markets, Incorporated (“Forum” or “the Company”) (Nasdaq: FRMM), an innovator in sourcing and operating cash-generating assets in AI infrastructure, commercial aerospace and AI-powered consumer finance, today announced that Forum Edge AI LLC (“Forum Edge”), the Company’s joint venture with Edge Node Inc., has entered into a definitive agreement with Fireworks, the specialized intelligence platform, for a 36-month reservation of Nvidia B300 GPU capacity at its existing, powered data center facility in Dallas.

The agreement carries a combined total contract value of approximately $94.4 million, reflecting GPU capacity and associated CPU management node fees payable over the 36-month term. Fireworks has provided a substantial prepayment deposit, which will be credited against fees due across the term.

The GPUs are expected to be deployed at Forum Edge’s Dallas data center in late December or early January. The Dallas facility is one of the sites included in Forum’s initial AI infrastructure investment and features existing permits, power access and physical infrastructure.

“This agreement is an important proof point for our AI infrastructure strategy and reflects our focus on bringing revenue generating GPUs to market quickly in a modular manner,” said McAndrew Rudisill, chairman and chief executive officer of Forum Markets, Incorporated. “We have a strong partnership with Fireworks and are excited about our growth trajectory as we scale our AI infrastructure business. This is the first finalized contract Forum Edge is executing against and the first of several exciting partnerships we expect to deploy into our unique footprint.”

Fireworks provides inference, training, and routing that help enterprises deploy and scale generative AI applications in production. The company was most recently valued at approximately $17.5 billion, with backers including Nvidia, Atreides Management, Index Ventures and TCV. Fireworks’ scale and the caliber of its financial backers reflect the type of high-quality counterparty Forum has identified in its off-take partnerships.

Hosted AI, Inc., through its AI commercialization network/mesh and platform, facilitated the relationship between Forum Edge AI and Fireworks.

The agreement represents Forum Edge’s first contracted customer commitment and supports Forum’s broader strategy of deploying disciplined, risk-adjusted capital into cash-generating AI infrastructure assets.

About Forum Markets, Incorporated

Forum Markets, Incorporated (Nasdaq: FRMM) is an innovative company that sources and structures cash-generating assets with attractive risk-adjusted returns in aerospace, AI, and AI-powered consumer finance. The company draws on proprietary origination pipelines and strategic co-investment partnerships to scale its portfolio and generate durable operating income. Forum integrates traditional asset management principles with hands-on operational execution as it builds a new framework for how real-world assets are owned, managed, and monetized. For more information, please visit forum-markets.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance and growth of the Company; the ability of the Company to execute its plans, the assets to be held by the Company, the Company’s current and anticipated yield strategies, and future performance. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company’s control, and actual results may differ materially. Applicable risks and uncertainties include, among others, the risk that the proposed transactions described herein may not be completed in a timely manner or at all, including the risk that the parties do not execute definitive documentation for the joint venture or any individual project; the risk that anticipated site capacity, power availability, permitting, equipment delivery or customer contracts are delayed or not obtained; the risk that equipment financing is not available on the terms or in the amounts assumed, or at all; risks relating to the Company’s recently completed offering, including dilution to existing stockholders and the risk that the net proceeds are insufficient to fund the initial projects as contemplated or are applied to uses other than those described herein; risks associated with the Company’s guarantee obligations in support of project-level financing; failure to realize the anticipated benefits of the stock repurchase program, previously announced private placements, sale of convertible notes, and related transactions, including the Company’s ability to achieve profitable operations; the Company’s ability to repurchase shares of common stock, the timing thereof, purchase price thereof, and the fact that repurchases may not be undertaken under the stock repurchase program; fluctuations in the market price of ETH that will impact the Company’s accounting and financial reporting; government regulation of tokenized securities; risks relating to the treatment of assets for U.S. and foreign tax purposes; changes in securities laws or regulations; changes in business, market, financial, political and regulatory conditions; risks relating to the Company’s OTC transaction, including the Company’s ability to repay such facility, covenants associated therewith and security interests associated therewith; risks relating to the Company’s previously announced ATM offering, including potential downward pressure on the Company’s stock price associated therewith; risks relating to the Company’s operations and businesses; risks related to increased competition in the industries in which the Company does and will operate; risks relating to significant legal, commercial, regulatory and technical uncertainty regarding digital assets generally; expectations with respect to future performance, growth and anticipated acquisitions; potential litigation involving the Company; global economic conditions; geopolitical events and regulatory changes; access to additional financing, and the potential lack of such financing; and the Company’s ability to raise funding in the future and the terms of such funding, including dilution caused thereby, as well as those risks and uncertainties identified and those identified under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as the supplemental risk factors and other information the Company has or may file with the SEC, including those disclosed under Item 8.01 of the Current Reports on Form 8-K filed by the Company with the SEC. Readers are cautioned not to place undue reliance on these statements. Investors should also be aware that under U.S. generally accepted accounting principles (GAAP), certain crypto assets must be measured at fair value, with changes recognized in net income for each reporting period. These fair value adjustments may cause significant fluctuations in the Company’s balance sheet and income statement from period-to-period. In addition, for certain crypto assets, including ETH, which the Company holds as collateral against a loan, impairment charges may be required to be reported in net income if the market price of such assets falls below the cost basis at which those assets are carried on the balance sheet. Readers are encouraged to read the Company’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update any forward-looking statements except as required by law. The Company’s business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

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SOURCE Forum Markets, Incorporated

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Perhaps Agency Expands Network Relationships for Emerging Brands

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Perhaps Agency’s new FuseTwo partnership and AvantLink certification give emerging brands broader access to networks, partnerships and expertise as rising paid-media costs push advertisers toward new acquisition channels.

LAS VEGAS, Oct. 26, 2026 /PRNewswire-PRWeb/ — Perhaps Agency, a full-funnel partner marketing agency specializing in affiliate and influencer marketing, announced the continued expansion of its strategic relationships with networks across the partner marketing industry, including FuseTwo, a recently launched partner marketing platform, and AvantLink, an affiliate marketing platform. These relationships give Perhaps Agency’s clients broader access to networks, technology and partnership opportunities as emerging brands seek growth channels beyond paid media.

“Every network relationship we add gives our clients another route to find the right partners. Our partnerships with FuseTwo and AvantLink build on that, and we’ll keep expanding our list of strategic partners that serve emerging brands.” — Jen Root, Managing Director, Perhaps

Rising costs across paid social and search have pushed many brands to look for acquisition channels they can scale without expanding an internal team or committing to a large retainer. Partner marketing is one route: it brings affiliate, influencer, creator and media partnerships together in one performance-based program. For growing brands, the right network relationships can determine whether an affiliate or influencer program gets off the ground. Perhaps builds and maintains those relationships on its clients’ behalf, while strengthening its ability to identify strategic opportunities and connect brands with the partners that support their growth.

Perhaps Agency’s partnership with FuseTwo, a partner marketing platform built for growing brands, offers Perhaps clients additional opportunities, resources and expertise. These brands gain access to the FuseTwo platform, which brings affiliate, influencer, creator and media partners into a single system with unified attribution. FuseTwo’s cookieless affiliate attribution and tracking, real-time reporting and AI-assisted automation give the Perhaps team faster data across every program the agency manages, supporting publisher recruitment and partner program optimization.

This approach pairs human expertise with accelerated technology. The Perhaps team, with more than two decades of combined partner marketing experience, continues to make the strategic calls, while the FuseTwo platform speeds up the analysis behind them.

As part of the partnership, Perhaps Agency is able to offer certain promotional features through the Perhaps + FuseTwo Growth Launch Offer, available to brands that register with FuseTwo through Perhaps. The features include FuseTwo covering a brand’s first month of Perhaps partner marketing management services, including strategy, recruitment and hands-on support, and Perhaps covering the brand’s FuseTwo platform setup fee. FuseTwo also offers qualifying migrating advertisers 0% transaction fees when they bring a qualifying group of active publishers to the platform. Subsequent management services are subject to the applicable service agreement, and additional terms and eligibility requirements may apply.

Beyond its partnership with FuseTwo, Perhaps is now an AvantLink Certified Agency Partner, demonstrating the company’s expertise and commitment to building network relationships for clients. AvantLink, an affiliate marketing platform, offers an agency certification program for agencies within its ecosystem. The program validates practical expertise in affiliate strategy, partner management, attribution and technology capabilities.

The certification signifies three areas: credibility, capability and visibility. Credibility reflects demonstrated knowledge of affiliate marketing strategy and program management. Capability reflects an understanding of partner relationships, attribution models, reporting and optimization. Visibility reflects opportunities for agency recommendations, preferred partner listings and co-marketing collaboration.

For Perhaps Agency, this status reinforces its expertise in affiliate marketing strategy and publisher partnerships. For growing brands, it means working with an agency that combines experienced program management with access to established affiliate marketing technology, which can help reduce the complexity of launching, managing and scaling a partner program.

About Perhaps: Perhaps Agency is a full-funnel U.S. partner marketing agency, serving as an affiliate marketing agency and influencer marketing agency for emerging and mid-market brands across Apparel, Beauty, Health & Wellness, Home Goods, CPG, DTC and more, including affiliate marketing for Shopify brands, WooCommerce affiliate marketing and affiliate marketing for CPG brands. Perhaps combines affiliate network management, influencer and creator management and Performance PR into a single, integrated partner marketing program. The Perhaps team brings more than two decades of combined affiliate and influencer marketing experience. Learn more at Perhaps.com.

Media Contact

Jen Root, Perhaps, 1 (786) 396-9863, pr@perhaps.com, www.perhaps.com

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SOURCE Perhaps

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