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Resideo Announces Full Year and Fourth Quarter 2024 Financial Results and Initiates 2025 Outlook

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Full year 2024 net revenue was $6.76 billion, exceeding the high-end of outlook range; reflects organic revenue(1) growth at both ADI and Products and Solutions Full year 2024 cash provided from operating activities was $444 million, a new record and exceeding outlookFull year 2024 net income was $116 million or $0.61 per fully diluted share; Adjusted EBITDA was $693 million and Adjusted EPS was $2.29, both exceeding the high-end of outlook rangeFourth quarter net revenue growth was 21% year-over-year, exceeding the high-end of outlook rangeFourth quarter Products and Solutions gross margin was 40.8%, seventh consecutive quarter of year-over-year improvement

SCOTTSDALE, Ariz., Feb. 20, 2025 /PRNewswire/ — Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets, today announced financial results for the full year and the fourth quarter ended December 31, 2024.

Full Year 2024 Financial Highlights

Net revenue was $6.76 billion, up 8% compared to $6.24 billion in 2023Net income was $116 million, compared to $210 million in 2023Adjusted EBITDA(2) was $693 million, up 17% compared to $590 million in 2023Fully diluted EPS was $0.61 and $1.42 and Adjusted EPS(2) was $2.29 and $2.19 for 2024 and 2023, respectivelyCash provided from operating activities of $444 million

Fourth Quarter 2024 Financial Highlights

Net revenue was $1.86 billion, up 21% compared to $1.54 billion in the fourth quarter 2023Net income was $23 million, compared to $82 million in the fourth quarter 2023Adjusted EBITDA(2) was $187 million, up 26% compared to $149 million in the fourth quarter 2023Fully diluted EPS was $0.08 and $0.56 and Adjusted EPS(2) was $0.59 and $0.64 for the fourth quarter 2024 and fourth quarter 2023, respectively

Management Remarks

“Resideo finished 2024 in a strong position, exceeding the high-end of the range for all four of our key financial metrics. The ADI and Products and Solutions teams drove excellent operational execution, generating organic net revenue growth in both segments, continued gross margin expansion, healthy Adjusted EBITDA growth, and record operating cash generation,” said Jay Geldmacher, Resideo’s President and CEO.

“As we look ahead to 2025, Resideo remains focused on growing organically and expanding the company’s margin profile.  With the Snap One integration well underway and synergy capture ahead of schedule, ADI has momentum from its broad-based product category strength and positive returns from its strategic e-commerce and Exclusive Brands investments.  And within Products and Solutions, we are excited by the continued gross margin expansion and the new product introductions to come in 2025. We believe Resideo is well-positioned to capitalize on the profitable growth opportunities ahead of us.”

 ____________________

(1)

Excludes the impact of the Snap One acquisition of $553 million, the Genesis divestiture of $105 million, and foreign currency fluctuations of $6 million.

(2)

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, Adjusted Net Income, 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 2024 Highlights

Net revenue was $2,564 million, down 4% compared to 2023 and slightly positive growth year-over-year, excluding the impact of the Genesis divestiture and foreign currencyGross margin was 41.0%, up 240 basis points compared to 2023Income from operations was $503 million, compared to $446 million in 2023Adjusted EBITDA was $611 million, or 23.8% of revenue, compared to $562 million, or 21.0% of revenue, in 2023

Products and Solutions delivered net revenue of $2,564 million in 2024, down 4% compared to 2023 and slightly positive growth year-over-year, excluding the impact of the Genesis divestiture and foreign currency. Price increases were realized across substantially all product categories in 2024, but were offset by volume declines and foreign currency. Volume declines in the Security and EMEA OEM channels were partially offset by volume increases in the Electrical Distribution and Retail channels. The business continued to improve its performance with home builders in the new construction market and achieved record sales highs in the Retail channel due primarily to First Alert and BRK products. During the second half of 2024, Products and Solutions introduced its new programmable and connected thermostat line, the Honeywell Home FocusPRO, targeted at the entry tier of the professional market, and its new VISTA security product, in-line with its ongoing focus to introduce a regular cadence of new products and drive future innovation in key categories.

2024 gross margin was 41.0%, compared to 38.6% in the prior year, reflecting structural improvements that increased operational efficiency. Selling, general and administrative expenses were down $12 million and research and development expenses declined $14 million compared to 2023. Cost discipline was strong throughout 2024, and, combined with the strong gross margin expansion, helped drive operating profit of $503 million or 19.6% of revenue, up from $446 million or 16.7% of revenue in 2023. Adjusted EBITDA grew 9% year-over-year in 2024 to $611 million, with Adjusted EBITDA margin up 280 basis points in 2024 to 23.8%.

ADI Global Distribution 2024 Highlights

Net revenue was $4,197 million, up 18% compared to 2023 and up 2% excluding the impact of the acquisition of Snap One Holdings Corp. (“Snap One”) and foreign currency.Gross margin was 20.3%, up 160 basis points compared to 2023Income from operations was $195 million, compared to $238 million in 2023Adjusted EBITDA was $318 million, or 7.6% of revenue, compared to $275 million, or 7.7% of revenue in 2023Acquired 100% of the issued and outstanding equity of Snap One in June 2024 for an aggregate purchase price of $1.4 billion, inclusive of net debt. The integration of Snap One is well underway and we have achieved approximately $17 million in run-rate synergies in 2024, ahead of plan.

ADI delivered net revenue of $4,197 million, up $627 million compared to 2023, driven by the inclusion of $553 million of Snap One revenue. Organic growth was 2% excluding the impact of the Snap One acquisition and foreign currency. ADI overcame soft market conditions in the first half of 2024 with digital channels and product categories, such as video surveillance, residential security, and fire and access control demonstrating strength in the second half of 2024.  Volume increases were partially offset by price decreases. The e-commerce channel, excluding Snap One, grew 11% in 2024 compared to the prior year period. Exclusive Brands sales, excluding Snap One, grew 20% year-over-year.

Gross margin was 20.3%, up 160 basis points compared to 2023. The increase was driven by the inclusion of Snap One and higher margin e-commerce and Exclusive Brands sales, partially offset by a more competitive pricing environment. Selling, general and administrative and research and development expenses were $583 million in 2024, up $176 million compared to prior period, including $158 million of Snap One expenses. Operating profit of $195 million for 2024 decreased 18% from $238 million in 2023. Adjusted EBITDA increased to $318 million in 2024 from $275 million in 2023, primarily due to the impact of the Snap One acquisition.

Full Year 2024 Financial Performance

Consolidated net revenue was $6.76 billion in 2024, compared to $6.24 billion in 2023. Gross profit margin was 28.1%, up 90 basis points from the prior year period. Operating profit of $520 million is down 5%, compared to $547 million in the prior year period. Net income for 2024 was $116 million, or $0.61 per diluted common share, compared with $210 million, or $1.42 per diluted common share, in the prior year period. Adjusted EPS was $2.29 in 2024 compared with $2.19 in 2023.

Fourth Quarter 2024 Financial Performance

Consolidated net revenue was $1.86 billion in the fourth quarter of 2024, compared to $1.54 billion in the prior year period. Gross profit margin was 28.5%, up 100 basis points from the prior year period. Operating profit of $144 million is down 2%, compared to $147 million in the prior year period. Net income in the fourth quarter of 2024 was $23 million, or $0.08 per diluted common share, compared with $82 million, or $0.56 per diluted common share, in the prior year period. Adjusted EPS was $0.59 in the fourth quarter of 2024 compared with $0.64 in prior year period.

Cash Flow and Liquidity

Net cash provided by operating activities was $444 million in 2024 compared to $440 million in 2023. The increase was primarily driven by improved working capital dynamics. At December 31, 2024, Resideo had cash and cash equivalents of $692 million and total outstanding debt of $2.02 billion.

Outlook

The following table summarizes the Company’s first quarter 2025 and full year 2025 outlook.

($ in millions, except per share data)

Q1 2025

2025

Net revenue

$1,720 – $1,770

$7,285 – $7,485

Non-GAAP Adjusted EBITDA

$150 – $170

$725 – $805

Non-GAAP Adjusted Earnings Per Share

$0.27 – $0.33

$2.23 – $2.47

Cash Provided by Operations

$345 – $405

Conference Call and Webcast Details

Resideo will hold a conference call with investors on February 20, 2025, 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 Fourth Quarter and Full Year 2024 Earnings” or the conference ID: 7301399.

About Resideo

Resideo is a leading manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. We are a leader in the home heating, ventilation, and air conditioning controls markets, smoke and carbon monoxide detection home safety and fire suppression products markets, and security products markets. Our solutions and services can be found in over 150 million residential and commercial spaces globally, with tens of millions new devices sold annually. For more information about Resideo and our trusted, well-established brands including First Alert, Honeywell Home, BRK, Control4, and others, visit www.resideo.com.

Contacts:

Investors:

Media:

Christopher T. Lee

Garrett Terry

Global Head of Investor Relations

Corporate Communications Manager

investorrelations@resideo.com

garrett.terry@resideo.com

Forward-Looking Statements
This release and the related conference call contain “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 first quarter 2025 and full year 2025, (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 Snap One, and 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 Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (6) risks relating to tariffs that have been or may be imposed by the United States and other governments, and (7) 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, 2024 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 first quarter of 2025 and for the fiscal period ending December 31, 2025 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)

Q4 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

$      669

$    1,189

$        —

$   1,858

$   2,564

$    4,197

$       —

$   6,761

Cost of goods sold

396

932

—

1,328

1,514

3,346

—

4,860

Gross profit

273

257

—

530

1,050

851

—

1,901

Research and development expenses

25

17

—

42

94

17

—

111

Selling, general and administrative
     expenses

109

169

32

310

416

566

156

1,138

Intangible asset amortization

5

23

1

29

23

54

3

80

Restructuring, impairment and
     extinguishment costs

1

—

4

5

14

19

19

52

Income (loss) from operations

$      133

$         48

$      (37)

$      144

$      503

$        195

$   (178)

$      520

Q4 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

$      683

$       854

$        —

$   1,537

$   2,672

$    3,570

$        —

$   6,242

Cost of goods sold

413

700

1

1,114

1,640

2,902

4

4,546

Gross profit (loss)

270

154

(1)

423

1,032

668

(4)

1,696

Research and development expenses

26

—

(1)

25

108

—

1

109

Selling, general and administrative
     expenses

106

100

35

241

428

407

125

960

Intangible asset amortization

6

3

1

10

23

11

4

38

Restructuring and impairment
     expenses

—

—

—

—

27

12

3

42

Income (loss) from operations

$      132

$         51

$      (36)

$      147

$      446

$       238

$    (137)

$      547

Q4 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

(2) %

39 %

N/A

21 %

(4) %

18 %

N/A

8 %

Cost of goods sold

(4) %

33 %

N/A

19 %

(8) %

15 %

N/A

7 %

Gross profit

1 %

67 %

N/A

25 %

2 %

27 %

N/A

12 %

Research and development expenses

(4) %

N/A

N/A

68 %

(13) %

N/A

N/A

2 %

Selling, general and administrative
     expenses

3 %

69 %

(9) %

29 %

(3) %

39 %

25 %

19 %

Intangible asset amortization

(17) %

667 %

— %

190 %

— %

391 %

(25) %

111 %

Restructuring, impairment and
     extinguishment costs

N/A

N/A

N/A

N/A

(48) %

58 %

533 %

24 %

Income (loss) from operations

1 %

(6) %

3 %

(2) %

13 %

(18) %

30 %

(5) %

(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 twelve months ended December 31, 2023, $12 million and $49 million of corporate expenses have been reclassified into the Products and Solutions while $8 million and $32 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.

Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended

Twelve Months Ended

(in millions, except per share data)

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Net revenue

$               1,858

$                1,537

$                6,761

$               6,242

Cost of goods sold

1,328

1,114

4,860

4,546

Gross profit

530

423

1,901

1,696

Operating expenses:

Research and development expenses

42

25

111

109

Selling, general and administrative expenses

310

241

1,138

960

Intangible asset amortization

29

10

80

38

Restructuring, impairment and extinguishment
costs

5

—

52

42

Total operating expenses

386

276

1,381

1,149

Income from operations

144

147

520

547

Reimbursement Agreement expense (1)

76

50

211

178

Other (income) expenses, net

(3)

(19)

7

(9)

Interest expense, net

26

15

81

65

Income before taxes

45

101

221

313

Provision for income taxes

22

19

105

103

Net income

$                     23

$                     82

$                    116

$                  210

Less: preferred stock dividends

9

—

19

—

Less: undistributed income allocated to preferred
stockholders

2

—

6

—

Net income available to common stockholders

$                     12

$                     82

$                      91

$                  210

Earnings per common share:

Basic

$                 0.08

$                  0.56

$                   0.62

$                 1.43

Diluted

$                 0.08

$                  0.56

$                   0.61

$                 1.42

Weighted average common shares outstanding:

Basic

147

146

146

147

Diluted

150

147

149

148

(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

Twelve Months Ended

(in millions)

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Accrual for Reimbursement Agreement liabilities
deemed probable and reasonably estimable

$                     76

$                     50

$                   211

$                   178

Cash payments made to Honeywell

(35)

(35)

(140)

(140)

Accrual increase, non-cash component in period

$                     41

$                     15

$                     71

$                     38

Table 3: CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions, except par value)

December 31,
2024

December 31,
2023

ASSETS

Current assets:

Cash and cash equivalents

$                    692

$                    636

Accounts receivable, net

1,023

973

Inventories, net

1,237

941

Other current assets

220

193

Total current assets

3,172

2,743

Property, plant and equipment, net

410

390

Goodwill

3,072

2,705

Intangible assets, net

1,176

461

Other assets

369

346

Total assets

$                8,199

$                6,645

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                1,073

$                    905

Accrued liabilities

717

620

Total current liabilities

1,790

1,525

Long-term debt

1,983

1,396

Obligations payable under Indemnification Agreements

674

609

Other liabilities

443

366

Total liabilities

4,890

3,896

Stockholders’ equity

Preferred stock, $0.001 par value: 100 shares authorized, 0.5 shares issued and
outstanding at December 31, 2024 and no shares issued and outstanding at
December 31, 2023, respectively

482

—

Common stock, $0.001 par value: 700 shares authorized, 154 and 147 shares
issued and outstanding at December 31, 2024, respectively, and 151 and 145 shares
issued and outstanding at December 31, 2023, respectively

—

—

Additional paid-in capital

2,315

2,226

Retained earnings

907

810

Accumulated other comprehensive loss, net

(284)

(194)

Treasury stock at cost

(111)

(93)

Total stockholders’ equity

3,309

2,749

Total liabilities and stockholders’ equity

$                8,199

$                6,645

Table 4: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended

Twelve Months Ended

(in millions)

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Cash Flows From Operating Activities:

Net income

$                      23

$                       82

$                    116

$                    210

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

Depreciation and amortization

46

27

144

98

Restructuring, impairment and
extinguishment costs

5

—

52

42

Stock-based compensation expense

15

8

59

44

Deferred income taxes

(31)

(28)

(31)

(28)

Other, net

2

(16)

7

(14)

Changes in assets and liabilities, net of
acquired companies:

Accounts receivable, net

61

28

(18)

19

Inventories, net

(58)

36

(71)

32

Other current assets

(20)

11

(5)

6

Accounts payable

65

32

127

18

Accrued liabilities

69

80

4

(34)

Other, net

26

3

60

47

Net cash provided by operating activities

203

263

444

440

Cash Flows From Investing Activities:

Acquisitions, net of cash acquired

(3)

—

(1,337)

(16)

Capital expenditures

(22)

(31)

(80)

(105)

Proceeds from sale of business

—

86

—

86

Other investing activities, net

2

(9)

8

(9)

Net cash used in investing activities

(23)

46

(1,409)

(44)

Cash Flows From Financing Activities:

Proceeds from issuance of long-term debt, net

—

—

1,176

—

Proceeds from issuance of preferred stock,
net of issuance costs

—

—

482

—

Repayments of long-term debt

(3)

(3)

(605)

(12)

Preferred dividend payments

(12)

—

(12)

—

Common stock repurchases

—

(13)

(1)

(41)

Other financing activities, net

3

(1)

(9)

(11)

Net cash provided by (used in) financing
activities

(12)

(17)

1,031

(64)

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

(7)

(25)

(10)

(24)

Net increase in cash, cash equivalents and
restricted cash

161

267

56

308

Cash, cash equivalents and restricted cash at
beginning of period

532

370

637

329

Cash, cash equivalents and restricted cash at
end of period

$                    693

$                    637

$                    693

$                    637

 

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

ADJUSTED NET INCOME PER DILUTED COMMON SHARE AND

NET INCOME COMPARISON

RESIDEO TECHNOLOGIES, INC.

Three Months Ended

Twelve Months Ended

(in millions, except per share data)

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

GAAP Net income

$                     23

$                    82

$                   116

$                   210

Less: preferred stock dividends

9

—

19

—

Less: undistributed income allocated to
preferred stockholders

2

—

6

—

GAAP Net income available to common
stockholders

12

82

91

210

Intangible asset amortization

29

10

80

38

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

41

15

71

38

Stock-based compensation expense

15

8

59

44

Restructuring, impairment and extinguishment
costs, net

5

—

52

42

Acquisition and integration costs

8

—

45

—

Undistributed income allocated to preferred
stockholders

2

—

6

—

Other (2)

1

(17)

20

(10)

Tax effect of applicable non-GAAP
adjustments (3)

(24)

(4)

(83)

(38)

Non-GAAP Adjusted net income

$                     89

$                    94

$                   341

$                   324

Three Months Ended

Twelve Months Ended

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

GAAP Net income per diluted common share

$                 0.08

$                 0.56

$                  0.61

$                  1.42

Intangible asset amortization

0.19

0.07

0.54

0.26

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

0.27

0.10

0.48

0.26

Stock-based compensation expense

0.10

0.05

0.40

0.30

Restructuring, impairment and extinguishment
costs, net

0.03

—

0.35

0.28

Acquisition and integration costs

0.05

—

0.30

—

Undistributed income allocated to preferred
stockholders

0.01

—

0.04

—

Other (2)

0.02

(0.12)

0.13

(0.07)

Tax effect of applicable non-GAAP
adjustments (3)

(0.16)

(0.02)

(0.56)

(0.26)

Non-GAAP Adjusted net income per diluted
common share

$                 0.59

$                 0.64

$                  2.29

$                  2.19

(1)

Refer to the Consolidated Statements of Operations herein.

(2)

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

(3)

We calculated the tax effect of non-GAAP adjustments by applying a flat statutory tax rate of 25%.

 

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

ADJUSTED EBITDA AND NET INCOME COMPARISON

(Unaudited)

RESIDEO TECHNOLOGIES, INC.

Three Months Ended

Twelve Months Ended

(in millions)

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Net revenue

$             1,858

$           1,537

$           6,761

$           6,242

GAAP Net income

$                   23

$                 82

$               116

$               210

GAAP Net income as a % of net revenue

1.2 %

5.3 %

1.7 %

3.4 %

Provision for income taxes

22

19

105

103

GAAP Income before taxes

45

101

221

313

Depreciation and amortization

46

27

144

98

Interest expense, net

26

15

81

65

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

41

15

71

38

Stock-based compensation expense

15

8

59

44

Restructuring, impairment and extinguishment
costs, net

5

—

52

42

Acquisition and integration costs

8

—

45

—

Other (2)

1

(17)

20

(10)

Non-GAAP Adjusted EBITDA

$                 187

$               149

$               693

$               590

Non-GAAP Adjusted EBITDA as a % of net
revenue

10.1 %

9.7 %

10.2 %

9.5 %

(1)

Refer to the Consolidated Statements of Operations herein.

(2)

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

 

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(Unaudited)

PRODUCTS AND SOLUTIONS SEGMENT

Three Months Ended

Twelve Months Ended

(in millions)

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Net revenue

$               669

$               683

$           2,564

$           2,672

GAAP Income from operations

$               133

$               132

$               503

$               446

GAAP Income from operations as a % of net
revenue

19.9 %

19.3 %

19.6 %

16.7 %

Stock-based compensation expense

4

4

19

18

Restructuring and impairment expense

1

—

14

27

Other (1)

2

—

7

—

Non-GAAP Adjusted Income from Operations

$               140

$               136

$               543

$               491

Depreciation and amortization

17

20

68

71

Non-GAAP Adjusted EBITDA

$               157

$               156

$               611

$               562

Non-GAAP Adjusted EBITDA as a % of net
revenue

23.5 %

22.8 %

23.8 %

21.0 %

(1)

Other includes litigation settlements.

 

ADI GLOBAL DISTRIBUTION SEGMENT

Three Months Ended

Twelve Months Ended

(in millions)

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Net revenue

$           1,189

$               854

$           4,197

$           3,570

GAAP Income from operations

$                 48

$                 51

$               195

$               238

GAAP Income from operations as a % of net
revenue

4.0 %

6.0 %

4.6 %

6.7 %

Restructuring and impairment expense

—

—

19

12

Stock-based compensation expense

5

2

13

7

Acquisition and integration costs

6

—

12

—

Other (1)

5

—

11

—

Non-GAAP Adjusted Income from Operations

$                 64

$                 53

$               250

$               257

Depreciation and amortization

27

5

68

18

Non-GAAP Adjusted EBITDA

$                 91

$                 58

$               318

$               275

Non-GAAP Adjusted EBITDA as a % of net
revenue

7.7 %

6.8 %

7.6 %

7.7 %

(1)

Other includes inventory step-up adjustment related to the Snap One acquisition and litigation settlements.

 

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SOURCE Resideo Technologies, Inc.

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Bitfire Group Reports Q3 Digital Assets Under Management of US$221 Million, Up 60.1%

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Crypto-asset trading volume rises 362.2% to US$342 million, while client base expands 31.4% to 1,058

HONG KONG, Oct. 26, 2026 /PRNewswire/ — Bitfire Group Holdings Limited (HKEX: 1611), formerly known as Sinohope Technology Holdings Limited (the “Company” or the “Group”), today announced its core business operating data for the quarter ended September 30, 2026.

The Group delivered strong growth across its core businesses during the third quarter. Digital assets under management, crypto-asset trading volume and the number of clients increased by 60.1%, 362.2% and 31.4%, respectively, compared with the previous quarter.

As of September 30, 2026, the Group’s digital assets under management reached approximately US$221 million, representing quarterly growth of 60.1%. Over the past year, the Group’s digital assets under management increased by approximately 700%, despite challenging conditions in the broader crypto-asset market. The Group’s monthly average growth rate reached approximately 17%.

For the three months ended September 30, 2026, the Group recorded crypto-asset trading volume of approximately US$342 million, representing an increase of 362.2% from the previous quarter. Trading volume in September alone reached approximately US$117 million.

The number of clients using the Group’s asset management and crypto-asset trading services reached 1,058, representing quarterly growth of approximately 31.4%. The Group serves global financial institutions, listed companies, family offices and ultra-high-net-worth individuals.

Meanwhile, BitTrade, the Group’s licensed digital asset exchange in Japan, recorded approximately US$113 million in combined assets under custody and client wealth management assets. Its registered user base reached 306,358 as of September 30, 2026.

During the third quarter of 2026, the broader digital asset market showed signs of recovery, with Bitcoin prices and capital flows into related investment products attracting renewed market attention. The evolving market environment has created new opportunities for digital asset management and trading services, while institutional demand for professional asset management, trade execution and compliance services has continued to grow.

Bitfire Group will continue to focus on the evolving needs of its clients, expand its digital asset management and trading businesses, and further develop related financial services.

About Bitfire Group

Bitfire Group Holdings Limited (01611.HK) is a leading digital asset financial services platform in Asia, committed to building the Asia-Pacific’s first private-banking-grade digital asset steward. Holding SFC Type 1, 4 and 9 Licences issued by the Securities and Futures Commission of Hong Kong, the Group delivers compliant, secure and efficient one-stop digital asset services for institutional clients and high-net-worth individuals

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SOURCE Bitfire Group

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HKEX Launches Artificial Intelligence and Semiconductor Indices

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Launch of HKEX Artificial Intelligence Index and HKEX Semiconductor Index to provide benchmarks for two key technology themesHKEX continues to expand proprietary index suite and broaden coverage of emerging technology trendsLicense agreement with Southern Asset Management to issue ETFs based on the HKEX Artificial Intelligence Index in Chinese Mainland

HONG KONG, Oct. 26, 2026 /PRNewswire/ — Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the launch of the HKEX Artificial Intelligence Index and the HKEX Semiconductor Index. These new indices further expand HKEX’s proprietary index offering and provide investors with new benchmarks to capture opportunities arising from two of the most dynamic technology themes.

HKEX is also pleased to announce that it has entered into a licensing agreement with China Southern Asset Management Company Limited (Southern Asset Management) for the introduction of exchange traded funds (ETFs) based on the HKEX Artificial Intelligence Index in the Chinese Mainland. Details of the product launch will be shared in due course.

Richard Leung, HKEX Group Chief Information Officer, said: “We are delighted to be launching these new thematic indices. Artificial intelligence and semiconductors are transforming industries and becoming increasingly important drivers of growth and innovation globally. At HKEX, we are committed to continuously expanding our index suite to give investors more ways to capture these trends and participate in the growth of the region’s technology ecosystem.”

Mr Leung added: “We are pleased to be licensing the HKEX Artificial Intelligence Index to Southern Asset Management for ETF products in the Chinese Mainland and look forward to partnering with other market participants to develop more investment products based on our index suite, increasing investor choice and further elevating the depth and vibrancy of our markets.”

Yang Xiaosong, Southern Asset Management General Manager, said: “We are honoured to be licensed by HKEX to develop an ETF tracking the HKEX Artificial Intelligence Index in the Chinese Mainland market. This is an important example of Southern Asset Management putting its international strategy into practice and serving investors’ needs for diversified asset allocation. Through this collaboration, we will turn the opportunities across Hong Kong’s AI value chain into an index-based tool that mainland investors can access conveniently. Looking ahead, we will continue to enrich our product offering for cross-market connectivity, build an investment bridge between the mainland and Hong Kong capital markets, and support two-way empowerment and a virtuous cycle between the technology sector and capital markets in a high-standard opening-up environment.”

The HKEX Artificial Intelligence Index is designed to measure the performance of 40 Hong Kong-listed companies with high exposure to the artificial intelligence (AI) value chain. The index provides broad exposure to a five-layer AI stack across the AI ecosystem, spanning the areas including chip design, data centres, AI infrastructure, AI models, as well as software and physical applications. Constituents are selected and weighted using a fundamental-tilted approach, designed to identify companies with meaningful investment in AI research and development and capital expenditure. This offers investors with a representative benchmark for capturing the development of the Hong Kong-listed AI sector.

Meanwhile, the HKEX Semiconductor Index measures the performance of the 30 largest semiconductor-related companies listed in Hong Kong. The index captures exposure across multiple segments of the semiconductor industry, including semiconductor manufacturing, equipment, electronic components, computing hardware and storage, providing investors with a benchmark to track developments across the Hong Kong-listed semiconductor value chain. 

The launch of the two indices further strengthens HKEX’s proprietary index offering and broadens its coverage of emerging technology themes, supporting the development of new index-linked investment products and providing investors with more ways to capture opportunities in Hong Kong’s markets.

More information on the HKEX Artificial Intelligence Index and the HKEX Semiconductor Index, including their index methodologies, is available on the HKEX website.

About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.

As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.

HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.

www.hkexgroup.com 

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SOURCE Hong Kong Exchanges and Clearing Limited

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Fabarta Unveils Major Upgrade to Its AI for Science Platform, Named Among Inaugural “Hong Kong Top Talent Ecosystem Partners” Ahead of Hong Kong FinTech Week

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Powered by the upgraded RSI engine, the platform unifies data, models, experiments and production to accelerate materials innovation

BEIJING, Oct. 26, 2026 /PRNewswire/ — Fabarta (Beijing Fengqing Technology Co., Ltd.), a leading provider of enterprise-grade AI agents and knowledge engines, today announced a major strategic upgrade to its AI for Science (AI4S) platform: the official launch of Fabarta Science Intelligent—the platform’s newly upgraded core engine, driven by RSI (Recursive Self-Improvement)—alongside the evolution of AI4S into AI4S&E (AI for Science & Engineering), which now covers the core chain of R&D and production. The upgrade marks a comprehensive enhancement of Fabarta’s AI4S platform, equipping it with frontier capabilities including multi-agent collaboration, multiscale model self-evolution and physics-informed AI hybrid modeling. The platform now connects the entire chain—from literature review and formulation design to dry- and wet-lab experimental validation, digital pilot-scale scale-up and industrial mass production—moving toward continuous self-iteration and accelerating the shift of materials R&D from traditional trial-and-error empiricism to a new paradigm driven by AI and knowledge.

Meanwhile, as an important milestone in advancing the company’s global expansion and capital market presence, Fabarta has been invited to join the first batch of “Hong Kong Top Talent Ecosystem Partners.” Founder and CEO Andy Gao and Co-founder and COO Michelle Ge will lead a delegation to attend Asia’s largest fintech event—Hong Kong FinTech Week × StartmeupHK 2026—on November 2, where they will receive official plaque at a dedicated session and showcase the breakthrough achievements of Fabarta’s AI4S platform and enterprise-grade AI Agents to over 45,000 global industry leaders.

From Single-Point Tools to Full-Chain Integration: The AI4S Platform Takes a Leap with RSI

As an AI leader deeply engaged in the fine chemicals and new materials sectors, Fabarta’s earlier AI for Science platform had already demonstrated notable results in scenarios such as intensive literature reading, data management and single-point algorithm-based prediction. Yet in the “deep-water zone” of the materials industry—moving from the laboratory to the production line—conventional AI4S tools often remain at the level of “single-point computing” or “assisting with paper publication.”

To address this bottleneck, Fabarta systematically iterated on its AI4S platform, deeply embedding its self-developed RSI intelligent architecture into the platform foundation. Through its “Four Modules” and “Three Loops,” the upgraded AI4S platform is now capable not only of literature Q&A and molecular generation, but also of adaptive model evolution, multiscale physical simulation and digital-twin calibration—accelerating the leap of Fabarta’s AI4S platform into an “industry-grade, integrated R&D-production platform with self-iteration capability.”

Breaking Two Long-Standing Bottlenecks in Materials R&D: Multi-Objective Balancing and Data Fragmentation

New materials R&D has long been constrained by two bottlenecks: balancing competing multi-objective performance targets—such as the trade-offs among heat resistance, impact toughness, processability and cost—and the severe fragmentation of R&D and production data. Heat-resistant ABS resin is a case in point: introducing heat-resistant monomers usually comes at the expense of impact strength, while increasing rubber content restores toughness but lowers heat resistance. Meanwhile, critical clues scattered through historical literature, patents and “anomalous” batches remain siloed across departments and systems, making it difficult to establish a continuously operating “question–verify–adjust” loop.

“Fabarta has always been committed to building the industrial infrastructure of AI4S. The core of this major upgrade to our AI4S platform is the introduction of the RSI intelligent engine, which deeply integrates large models with our proprietary knowledge engine. Integrating AI into industrial upgrading cannot rely on a single general-purpose large model alone—AI must be embedded in the physical mechanisms and knowledge chains of the industry. We hope to help research and industrial teams worldwide, through the upgraded AI4S platform, connect the intelligent full chain spanning dry- and wet-lab bench-scale experiments, base pilot-scale trials and enterprise mass production, so that AI can create measurable industrial value for materials innovation.” — Andy Gao, Founder and CEO of Fabarta

RSI’s Core Operating Architecture: Four Modules Powering a Three-Layer Iterative Loop

Within the RSI platform, every materials research project is carried by four tightly integrated modules—Project, Session, Experiment and Resource Center—and driven by three layers of deep iterative loops that carry R&D across the boundary between the digital and the physical world:

P0 Validation Loop (precise hypothesis validation, real-time model evolution): Within a single project session, the research agent draws on historical formulations and predictive models consolidated in the knowledge graph to rapidly generate testable hypotheses. Built on a modeling framework combining data-driven models with physical constraints, the system introduces neural operators in scenarios with sufficient data and computing power, progressively accumulating reusable and transferable domain models and operator components. Whenever new experimental data passes quality inspection and flows back to the knowledge graph, the system identifies model weaknesses through predictive deviation, physical consistency, and uncertainty evaluation, adaptively triggering incremental training, local model updates, or parameter calibration. Updated models are deployed after independent data validation, version management, and researcher review, forming the P0 self-evolving loop of “intelligent hypothesis → autonomous experiment → data feedback → operator evolution → intelligent re-exploration.”P1 Domain Loop (cross-disciplinary deep exploration, multiscale transfer): Once initial leads and base surrogate models pass validation, RSI’s cognitive agent schedules an “exploration-exploitation” coordination strategy, breaking down R&D goals into a cross-scale digital experimental chain spanning molecular design, performance prediction, and formulation optimization connected by specialized agents. Based on high-precision surrogate models, the system conducts multi-objective global optimization within physical and engineering constraint boundaries established by researchers, performing cascade pruning on candidate solutions according to confidence and robustness stability to significantly narrow the scope of high-cost wet experiments and complex simulations. Research dimensions extend step-by-step to heat-resistant monomer polar ratios, rubber phase micro-particle topological distribution, processing additive synergy windows, as well as extreme performance such as low-temperature impact toughness and long-term aging evolution. During cross-system and cross-scale transfer, the system precisely defines generalization boundaries through few-shot active learning and model residual calibration, seamlessly connecting data and knowledge reuse across formulation screening, performance validation, and process optimization.P2 Industrial Loop (from laboratory to production line, a digital-twin closed loop): Even after an excellent formulation is validated in the laboratory, performance deviations often emerge when it is scaled up in reactors and twin-screw extruders or moved into plant production, owing to factors such as shear forces and raw-material batch variability. RSI extends the second-level prediction capability of accumulated cross-scale domain models to the production environment, while real-time operational data (temperature, pressure, torque, shear history, product quality) generated by DCS/MES systems during production are continuously fed back into the R&D knowledge graph. Through industrial-data-driven operator retraining and model-deviation diagnosis, the platform achieves dynamic digital-twin calibration. By connecting real operating-condition feedback from the production side and channeling pilot- and production-scale data back to the R&D side for model correction, the P2 industrial loop bridges the “valley of death” between the laboratory and the plant floor.

Addressing LLM Hallucination: Deep Fusion of Physical AI and the Fabarta Context Graph

Unlike conventional tools that rely on the “probabilistic guessing” of general-purpose large models, the RSI platform is built on Fabarta’s core Context Graph (enterprise knowledge graph) and physics-informed neural operator (PINO) models, ensuring rigor and traceability in scientific decision-making:

Precise traceability and knowledge consolidation: RSI organizes raw monomers, formulation parameters, test results, phase-morphology images, patent literature and researchers’ reasoning hypotheses into a unified, structured knowledge network. Researchers can trace across projects (for example, “retrieve the historical rubber particle-size characteristics of formulations that introduced N-phenylmaleimide while maintaining toughness”), and every conclusion is backed by explicit source data—eliminating the “model hallucination” of general-purpose AI in rigorous scientific domains.Hybrid physics-mechanism and AI modeling: The platform integrates equation-of-state, reaction-kinetics and simulation capabilities, embedding physical laws—such as conservation laws and constitutive relations—into operator training through a combination of soft and hard constraints, so that models remain physically consistent in data-sparse regions and deliver credible extrapolation. Computation becomes conversational, reasoning steps are visualized, and intermediate results can be re-examined.Bidirectional reinforcement between knowledge and models: The knowledge graph provides PINO with structured priors and training corpora, while PINO’s predictions and discoveries are written back to the graph as “knowledge with confidence levels” and, once confirmed through experiments, consolidated into deterministic knowledge. The graph and the models feed each other and co-evolve, forming an enterprise-exclusive, non-replicable R&D intelligence asset.

Advancing the Closed-Loop Deployment of AI4S Across Industry, Academia, Research and Application

To date, Fabarta’s AI4S solutions have been successfully deployed at leading central state-owned enterprises, national-level chemical industrial parks and multiple listed new-materials companies. Through joint laboratories, integrated dry- and wet-lab experimentation, and pilot-scale bases operated by government or enterprises, the RSI platform is accelerating the commercialization of catalyst optimization, polymer design and fine-chemical process transformation.

“In real industrial scenarios, AI must answer two questions: explainability and the cost of deployment. Through ‘Graph Fine-tuning’ and ‘standardized components + scenario-specific configuration,’ the RSI platform not only lowers the trial-and-error cost for enterprises adopting AI, but also elevates AI from mere literature Q&A to an AI R&D and production team covering molecular design, digital pilot-scale trials and energy-saving, cost-reducing production.” — Andy Gao, Founder and CEO of Fabarta

Looking ahead, Fabarta will continue to center on research and production, further deepening multi-agent collaboration, physics-informed AI hybrid modeling and its matrix of vertical-domain large models, and remains committed to providing highly reliable, evolving enterprise-grade AI agent infrastructure for chemical-energy, new-materials, advanced-manufacturing and biopharmaceutical companies worldwide.

Deepening Greater Bay Area and Global Expansion: Invited as the First Batch of “Hong Kong Top Talent Ecosystem Partner” to Debut at Hong Kong FinTech Week

Leveraging its strong technological moat in enterprise-grade AI Agents and AI4S, as well as its outstanding achievements in embedding AI into industrial upgrading, Fabarta has been officially invited to become one of the first batch of “Hong Kong Top Talent Ecosystem Partners.”

From November 2 to 6, “Hong Kong FinTech Week × StartmeupHK 2026,” jointly organized by the Financial Services and the Treasury Bureau, the Commerce and Economic Development Bureau, and InvestHK of the Hong Kong SAR Government, will take place at the Hong Kong Convention and Exhibition Centre. Fabarta Founder and CEO Andy Gao and Co-founder and COO Michelle Ge will travel to Hong Kong to attend the summit, where they will accept the official certificate of appreciation for the “Hong Kong Top Talent Ecosystem Partner” at the “Top Talent Forum Special Session” on November 2.

At this flagship international event focusing on Financial AI, enterprise-grade AI Agents, and cross-border compliance, Fabarta will leverage its upgraded AI4S&E platform and Enterprise Knowledge Platform to engage in depth with representatives from government, industry, academia, research, international investment institutions, and industry leaders across more than 120 economies. Using Hong Kong as a vital strategic hub, the company will accelerate cross-border deployment and global market expansion, bridge with the Greater Bay Area and international capital markets, and drive the thriving development of the AI Agent ecosystem in global deep-tech sectors.

About Fabarta

Fabarta Co., Ltd. is an industry-leading provider of enterprise-grade AI agents and knowledge engines. Guided by its dual-engine strategy of “knowledge engine + large model,” the company leverages its proprietary Graph Fine-tuning and physics-informed AI hybrid modeling technologies to solve the hallucination and inexplicability problems of general-purpose large models in industrial domains. Fabarta is deeply engaged in trillion-yuan-scale industries including fine chemicals, new materials and advanced manufacturing, and has built a complete AI4S deployment loop spanning “laboratory bench-scale research, digital pilot-scale trials and industrial mass production.” The company is committed to helping manufacturing customers build smart factories based on four-dimensional ontology and RSI technology, closing the loop from research to production. As a strategic partner of leading value-chain anchor enterprises, Fabarta has achieved standardized, at-scale replication of more than one hundred mature agents at national-level chemical parks and among industry leaders, dedicated to embedding AI into the core value chain of the real economy and creating measurable industrial value.

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SOURCE Fabarta Co., Ltd.

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