Core Insights - Resideo Technologies, Inc. reported strong financial results for Q1 2025, with net revenue of $1.77 billion, reflecting a 19% year-over-year increase, and exceeding the high-end of the outlook range [2][7][8] - The company reaffirmed its 2025 outlook, indicating confidence in continued growth across its business segments despite macroeconomic volatility [3][4] Financial Performance - Net revenue for the first quarter was $1.77 billion, up from $1.49 billion in Q1 2024, marking a 19% increase [8][27] - Gross margin improved to 28.9%, a 200 basis point increase year-over-year, with Products and Solutions achieving a gross margin of 41.4%, marking the eighth consecutive quarter of improvement [7][12] - Adjusted EBITDA reached $168 million, a 23% increase from $137 million in Q1 2024, representing a margin of 9.5% [8][35] Segment Performance - Products and Solutions segment generated net revenue of $649 million, up 5% year-over-year, driven by strong demand in HVAC and Electrical Distribution channels [10][12] - ADI Global Distribution segment reported net revenue of $1,121 million, a 29% increase compared to Q1 2024, with organic growth of 4% when excluding the Snap One acquisition [14][18] Cash Flow and Liquidity - The company reported cash used by operating activities of $65 million in Q1 2025, compared to $2 million of cash provided in the same period last year, primarily due to increased accounts receivable [16][27] - As of March 29, 2025, Resideo had cash and cash equivalents of $577 million and total outstanding gross debt of $2.02 billion [16][30] Outlook - For Q2 2025, Resideo anticipates net revenue between $1.805 billion and $1.855 billion, and for the full year 2025, net revenue is projected to be between $7.285 billion and $7.485 billion [17][19]