Core Insights - Resideo Technologies, Inc. reported strong financial performance in Q3 2025, achieving record-high gross margins, earnings per share, and Adjusted EBITDA, driven by organic revenue growth and margin expansion across its business segments [3][9]. Financial Performance - Total net revenue for Q3 2025 was $1.86 billion, reflecting a 2% increase year-over-year, with both ADI and Products & Solutions segments contributing equally to this growth [9][10]. - Gross margin reached a record high of 29.8%, up 110 basis points from the previous year, with both segments experiencing margin expansion [9][10]. - Net income for Q3 2025 was $156 million, a significant increase of 680% compared to $20 million in Q3 2024 [9][10]. - Adjusted EBITDA for the quarter was $229 million, up 21% from $190 million in the same period last year, with an Adjusted EBITDA margin of 25.0% [9][10]. Segment Performance - Products & Solutions (P&S) segment reported net revenue of $661 million, a 2% increase year-over-year, with strong demand for new products like ElitePRO smart thermostats [4][10]. - ADI Global Distribution achieved net revenue of $1,203 million, also up 2% year-over-year, with average daily sales growth of 3% despite fewer selling days due to planned store closures [6][11]. Cost Management - Research and development expenses increased by $10 million year-over-year, reflecting planned investments for future growth [5]. - Selling, general, and administrative expenses decreased by $3 million compared to the prior year, indicating effective cost discipline [5]. Cash Flow and Liquidity - Net cash used by operating activities was $1,571 million in Q3 2025, compared to $147 million of cash provided in Q3 2024, primarily due to a $1.59 billion payment to Honeywell [8][9]. - After adjustments, the cash provided by operations was $19 million for the quarter [8]. Future Outlook - The company anticipates continued momentum in the market with the expected separation of its business segments into two independent publicly traded companies by the second half of 2026 [4][9].