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Resideo Technologies (REZI) just closed out FY 2025 with Q4 revenue of US$1.9b and basic EPS of US$0.75, alongside net income of US$113m that capped off a trailing twelve month loss of US$562m and basic EPS of US$3.77 loss. The company has reported quarterly revenue between US$1.77b and US$1.94b over the past year, while EPS moved from a loss of US$5.48 in Q2 2025 to a profit of US$0.88 in Q3 and US$0.75 in Q4, so investors are watching how quickly margins can stabilise from here.

With the headline numbers on the table, the next step is to see how this earnings print lines up against the most widely held narratives around Resideo, and where the story might need updating.

See what the community is saying about Resideo Technologies

Q2 Loss Skews Trailing US$562m Net Result

• On a trailing 12 month basis Resideo reports US$7.5b in revenue and a net loss of US$562m, heavily shaped by the Q2 FY 2025 loss of US$817m on US$1.9b of revenue.
• Bulls highlight margin expansion potential and point to forecasts that earnings could rise to US$441.2m by around 2028. However, the current trailing loss and Q2 hit mean any bullish view rests on a sizeable swing in profitability from the recent US$562m loss, and the Q4 net income of US$113m is still a small fraction of that gap.
  • Consensus bullish assumptions reference profit margins moving from an 11% loss today to a 5.6% profit in three years. This contrasts sharply with the trailing negative margin implied by US$562m in losses on US$7.5b of revenue.
  • The move from Basic EPS of a US$5.48 loss in Q2 FY 2025 to a US$0.75 profit in Q4 shows recent quarters can be profitable. The full year, however, still reflects the large Q2 drag that bulls need to see normalise.

Stock At US$40.86 Versus US$43.58 DCF Fair Value

• The shares trade at US$40.86, around 6.2% below the DCF fair value of US$43.58, and on a P/S of 0.8x compared with 3.1x for peers and 2.4x for the broader US Building industry.
• Bears argue that even with this apparent discount, the five year trend of increasing losses at about 49.5% per year and current trailing 12 month loss of US$562m mean the valuation still needs to reflect execution and balance sheet risks rather than just headline multiples.
  • The company is currently unprofitable over the trailing 12 months despite quarterly profits in Q3 and Q4 FY 2025, so bears view the low P/S multiple as consistent with a business that has not yet converted forecasts into sustained earnings.
  • Debt is not well covered by operating cash flow on trailing 12 month data, which supports the cautious view that a lower multiple and a gap to fair value can be justified while profitability and cash coverage remain weak.

Forecast 86.81% EPS Growth Vs 3.9% Revenue Pace

• Earnings are forecast to grow 86.81% per year with revenue projected at 3.9% per year, a slower rate than the cited 10.4% per year for the US market, while trailing 12 month EPS is a US$3.77 loss.
• The consensus narrative suggests that margin improvement and mix shift, helped by product pipeline expansion and higher value offerings, are expected to do most of the work on earnings even though top line growth is modest relative to the broader market.
  • Across FY 2025, revenue moved within a relatively tight band between US$1.77b and US$1.94b per quarter. This fits with the idea of steady but not rapid growth while earnings are forecast to change much more sharply.
  • Analysts referencing future margin expansion from an 11% loss today to 7.5% profit in three years are effectively assuming that profitability does the heavy lifting, which contrasts with the recent trailing loss of US$562m on US$7.5b of revenue.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Resideo Technologies on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of risks and potential rewards feels finely balanced, do not wait for others to decide for you. Instead, weigh the data and check the 3 key rewards and 1 important warning sign to shape your own view.

See What Else Is Out There

Resideo’s trailing US$562m loss, weak debt coverage and reliance on ambitious margin forecasts all point to meaningful earnings and balance sheet uncertainty.

If you want to reduce that kind of uncertainty in your own portfolio, check out our solid balance sheet and fundamentals stocks screener (40 results) to focus on companies with stronger financial footing today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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