Spruce Point Calls for Independent Investigation into Resideo's Financial Reporting
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy REZI?
Spruce Point Capital said in a research note that after conducting a forensic financial review of Resideo Technologies (REZI), the firm is calling for an independent investigation into the accuracy of its financial reporting and accounting. "As a troubled spin-off from Honeywell (HON) in 2018, we provide evidence that it has failed to achieve its long-term financial goals, suffers from years of organizational complexity, and has failed to fix lingering technology issues." The firm also says its analysis suggests Resideo has engaged in "value-destructive" M&A with "questionable: financial reporting to bolster the appearance of earnings growth. "We find the the Company's acquisitions of First Alert and Snap One Holdings in 2022 and 2024, respectively, to be particularly troubled," Spruce Point says. "Based on our sum-of-the-parts analysis, we believe the share price to be materially overvalued and see 25% - 50% downside risk (to approximately $17.64 - $26.45 per share) and expect shares to underperform the market and its related industries."
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Analyst Views on REZI
Wall Street analysts forecast REZI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for REZI is 45.00 USD with a low forecast of 42.00 USD and a high forecast of 48.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 36.100
Low
42.00
Averages
45.00
High
48.00
Current: 36.100
Low
42.00
Averages
45.00
High
48.00
About REZI
Resideo Technologies, Inc. is a manufacturer and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. The Company’s segments include Products and Solutions and ADI Global Distribution. The Products and Solutions segment offers temperature and humidity control, water and air solutions, smoke and carbon monoxide detection, home safety products, residential and small business security products, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software. The ADI Global Distribution segment distributes low-voltage products including security, fire, and access control, and participates significantly in the broader related markets of smart home, residential audiovisual, professional audiovisual, power management, networking, data communications, wire and cable, enterprise connectivity, and structured wiring products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Resideo Wins Two 2026 IoT Breakthrough Awards for Innovation
- Award Recognition: Resideo Technologies has been awarded two 2026 IoT Breakthrough Awards for its Honeywell Home X8S smart thermostat and First Alert®CX4 video cameras, highlighting its exceptional innovation in the IoT space and reinforcing its leadership in the smart home ecosystem.
- Large Evaluation Scale: The IoT Breakthrough Awards evaluated nearly 4,000 nominations, indicating that Resideo's products excelled in innovation, performance, and real-world impact, reflecting its competitiveness and influence in the global market.
- Market Demand Driven: Resideo's product designs aim to address real issues of home comfort, safety, and intelligence, meeting the growing consumer demand for smart home solutions, thereby boosting the company's market share and brand influence.
- Long-term Commitment: Vice President Pat Tessier stated that winning these awards is a powerful validation of their commitment to designing connected solutions, indicating that Resideo will continue to focus on providing technology that fits seamlessly into everyday life, driving future growth.
See More
Honeywell Home Wins Two 2026 IoT Breakthrough Awards
- Award for Smart Home Product: The Honeywell Home X8S smart thermostat was named the 'Smart Heating and Cooling Product of the Year' for its advanced whole-home comfort solutions, enhancing user experience through precise sensing and control, thereby solidifying Resideo's leadership in the smart home market.
- Video Surveillance Innovation: The First Alert® CX4 video camera earned the title of 'Connected Home Camera Product of the Year' for its high-quality video and flexible installation options, providing reliable monitoring solutions that meet users' urgent safety needs.
- Industry Recognition: Winning these awards serves as a powerful validation of Resideo's commitment to designing connected solutions, highlighting the company's ongoing leadership in the smart home ecosystem, particularly in addressing the needs of homeowners, builders, and professional contractors.
- Selection Background: The 2026 IoT Breakthrough Awards evaluated nearly 4,000 nominations from around the world, emphasizing innovation, performance, and real-world impact, further demonstrating Resideo's technological strength and market influence in the smart home sector.
See More
QXO Inc Raises $3 Billion, Plans Major Acquisition Over $5 Billion
- Accelerated Acquisition Plans: Following a successful $3 billion capital raise, QXO Inc is in late-stage talks with seven potential acquisition targets, with annual revenues ranging from $1 billion to over $5 billion, indicating a strong intent to expand its business.
- Flexible Fund Utilization: This financing boosts QXO's available capital to approximately $10 billion, with analysts noting that this will enable the company to pursue larger transactions, thereby achieving a more competitive valuation in the market.
- Clear Acquisition Timeline: QXO is required to complete at least one acquisition by July 15, 2026, although the company is already prepared for a second and possibly third acquisition, reflecting its aggressive acquisition strategy.
- Optimistic Market Response: Analysts are bullish on QXO's acquisition prospects, viewing the M&A pipeline as a primary driver for stock performance, and expect effective capital deployment to further lower the company's valuation while offsetting dilution from transactions.
See More
BeaconLight Capital Reduces Stake in Resideo by 176,000 Shares, Remains Largest Position
- Stake Reduction: BeaconLight Capital disclosed a reduction of 175,624 shares in Resideo Technologies during Q3, leaving it with 645,028 shares valued at $27.85 million, representing 13.74% of its reportable U.S. equity assets.
- Position Adjustment: Following the sale, Resideo remains BeaconLight's largest position, with its allocation increasing from 10.33% to 13.74% of AUM, indicating sustained confidence in the company despite the reduction.
- Performance Highlights: Resideo recently reported a record net income of $156 million, up 680% year-over-year, and an adjusted EBITDA of $229 million, reflecting significant operational improvements and nearly 30% gross margins across its segments.
- Market Performance: As of last Friday, Resideo shares were priced at $35.99, marking a 48% increase over the past year, significantly outperforming the S&P 500's 15% rise, showcasing strong market performance and investor confidence.
See More
BeaconLight Capital Reduces Resideo Stake by 175,624 Shares, Yet Value Increases by $9.75 Million
- Reduction Dynamics: BeaconLight Capital sold 175,624 shares of Resideo Technologies in Q3, yet the position value increased by approximately $9.75 million due to surging REZI shares, indicating strong market confidence in the company.
- Position Value: As of September 30, BeaconLight held 645,028 shares of REZI valued at $27.85 million, representing 13.74% of its $202.73 million in reportable U.S. equity assets, highlighting the stock's significance in its portfolio.
- Performance Highlights: Resideo recently reported a record net income of $156 million, up 680% year-over-year, with adjusted EBITDA reaching $229 million and gross margins nearing 30%, showcasing robust execution in the residential comfort and security solutions sector.
- Investment Strategy: Despite the reduction, Resideo remains BeaconLight's largest holding, reflecting disciplined portfolio management, especially in light of the company's guidance for up to $832 million in full-year adjusted EBITDA, indicating confidence in long-term growth prospects.
See More
Resideo Launches Honeywell Home X8S Smart Thermostat with Video Doorbell Integration
- Smart Thermostat Launch: Resideo Technologies has introduced the Honeywell Home X8S smart thermostat, featuring the largest touchscreen in its class that streams live video from compatible doorbells, enhancing user experience and product competitiveness.
- Precision Control Technology: This thermostat combines precise sensing and control technology with an intuitive touchscreen interface and premium design, making it the brand's smartest thermostat to date, which is expected to attract more high-end market consumers.
- Market Leadership Position: As America's most trusted thermostat brand, the launch of the Honeywell Home X8S will further solidify Resideo's market leadership in home comfort and safety solutions, driving future sales growth for the company.
- Enhanced User Experience: By integrating video doorbell functionality into the thermostat, users can conveniently monitor home security while achieving more efficient energy management through smart home systems, thereby enhancing overall living comfort.
See More
Resideo Wins Two 2026 IoT Breakthrough Awards for Innovation
- Award Recognition: Resideo Technologies has been awarded two 2026 IoT Breakthrough Awards for its Honeywell Home X8S smart thermostat and First Alert®CX4 video cameras, highlighting its exceptional innovation in the IoT space and reinforcing its leadership in the smart home ecosystem.
- Large Evaluation Scale: The IoT Breakthrough Awards evaluated nearly 4,000 nominations, indicating that Resideo's products excelled in innovation, performance, and real-world impact, reflecting its competitiveness and influence in the global market.
- Market Demand Driven: Resideo's product designs aim to address real issues of home comfort, safety, and intelligence, meeting the growing consumer demand for smart home solutions, thereby boosting the company's market share and brand influence.
- Long-term Commitment: Vice President Pat Tessier stated that winning these awards is a powerful validation of their commitment to designing connected solutions, indicating that Resideo will continue to focus on providing technology that fits seamlessly into everyday life, driving future growth.
See More
Honeywell Home Wins Two 2026 IoT Breakthrough Awards
- Award for Smart Home Product: The Honeywell Home X8S smart thermostat was named the 'Smart Heating and Cooling Product of the Year' for its advanced whole-home comfort solutions, enhancing user experience through precise sensing and control, thereby solidifying Resideo's leadership in the smart home market.
- Video Surveillance Innovation: The First Alert® CX4 video camera earned the title of 'Connected Home Camera Product of the Year' for its high-quality video and flexible installation options, providing reliable monitoring solutions that meet users' urgent safety needs.
- Industry Recognition: Winning these awards serves as a powerful validation of Resideo's commitment to designing connected solutions, highlighting the company's ongoing leadership in the smart home ecosystem, particularly in addressing the needs of homeowners, builders, and professional contractors.
- Selection Background: The 2026 IoT Breakthrough Awards evaluated nearly 4,000 nominations from around the world, emphasizing innovation, performance, and real-world impact, further demonstrating Resideo's technological strength and market influence in the smart home sector.
See More
QXO Inc Raises $3 Billion, Plans Major Acquisition Over $5 Billion
- Accelerated Acquisition Plans: Following a successful $3 billion capital raise, QXO Inc is in late-stage talks with seven potential acquisition targets, with annual revenues ranging from $1 billion to over $5 billion, indicating a strong intent to expand its business.
- Flexible Fund Utilization: This financing boosts QXO's available capital to approximately $10 billion, with analysts noting that this will enable the company to pursue larger transactions, thereby achieving a more competitive valuation in the market.
- Clear Acquisition Timeline: QXO is required to complete at least one acquisition by July 15, 2026, although the company is already prepared for a second and possibly third acquisition, reflecting its aggressive acquisition strategy.
- Optimistic Market Response: Analysts are bullish on QXO's acquisition prospects, viewing the M&A pipeline as a primary driver for stock performance, and expect effective capital deployment to further lower the company's valuation while offsetting dilution from transactions.
See More
BeaconLight Capital Reduces Stake in Resideo by 176,000 Shares, Remains Largest Position
- Stake Reduction: BeaconLight Capital disclosed a reduction of 175,624 shares in Resideo Technologies during Q3, leaving it with 645,028 shares valued at $27.85 million, representing 13.74% of its reportable U.S. equity assets.
- Position Adjustment: Following the sale, Resideo remains BeaconLight's largest position, with its allocation increasing from 10.33% to 13.74% of AUM, indicating sustained confidence in the company despite the reduction.
- Performance Highlights: Resideo recently reported a record net income of $156 million, up 680% year-over-year, and an adjusted EBITDA of $229 million, reflecting significant operational improvements and nearly 30% gross margins across its segments.
- Market Performance: As of last Friday, Resideo shares were priced at $35.99, marking a 48% increase over the past year, significantly outperforming the S&P 500's 15% rise, showcasing strong market performance and investor confidence.
See More
BeaconLight Capital Reduces Resideo Stake by 175,624 Shares, Yet Value Increases by $9.75 Million
- Reduction Dynamics: BeaconLight Capital sold 175,624 shares of Resideo Technologies in Q3, yet the position value increased by approximately $9.75 million due to surging REZI shares, indicating strong market confidence in the company.
- Position Value: As of September 30, BeaconLight held 645,028 shares of REZI valued at $27.85 million, representing 13.74% of its $202.73 million in reportable U.S. equity assets, highlighting the stock's significance in its portfolio.
- Performance Highlights: Resideo recently reported a record net income of $156 million, up 680% year-over-year, with adjusted EBITDA reaching $229 million and gross margins nearing 30%, showcasing robust execution in the residential comfort and security solutions sector.
- Investment Strategy: Despite the reduction, Resideo remains BeaconLight's largest holding, reflecting disciplined portfolio management, especially in light of the company's guidance for up to $832 million in full-year adjusted EBITDA, indicating confidence in long-term growth prospects.
See More
Resideo Launches Honeywell Home X8S Smart Thermostat with Video Doorbell Integration
- Smart Thermostat Launch: Resideo Technologies has introduced the Honeywell Home X8S smart thermostat, featuring the largest touchscreen in its class that streams live video from compatible doorbells, enhancing user experience and product competitiveness.
- Precision Control Technology: This thermostat combines precise sensing and control technology with an intuitive touchscreen interface and premium design, making it the brand's smartest thermostat to date, which is expected to attract more high-end market consumers.
- Market Leadership Position: As America's most trusted thermostat brand, the launch of the Honeywell Home X8S will further solidify Resideo's market leadership in home comfort and safety solutions, driving future sales growth for the company.
- Enhanced User Experience: By integrating video doorbell functionality into the thermostat, users can conveniently monitor home security while achieving more efficient energy management through smart home systems, thereby enhancing overall living comfort.
See More
