{ "docId": "019dd923-622c-750b-8b99-c8318190e1be", "docSlug": "c1709c763a52", "documentTitle": "Resideo Technologies, Inc. (REZI)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2026-01-27 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 11, "pageCount": 93, "prevPage": 10, "nextPage": 12, "slideType": "villain_critique", "function": "name_villain", "density": "overcrowded", "nDataPoints": 8, "notes": "The slide uses a red flag icon (labeled '4') to denote a specific point of contention in a larger activist report.", "elementsJson": [ "headline_text", "paragraph" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-c8318190e1be/11", "deckHref": "/decks/019dd923-622c-750b-8b99-c8318190e1be", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-c8318190e1be.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-c8318190e1be#slide-11", "components": [ { "bbox": null, "kind": "callout", "text": "ADI (ex-Snap) exclusive brands organic revenue growth collapsed from 32% to 3% from Q2-Q3'25.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2b62-723f-b672-4fbba973cd0e", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "organic revenue growth: 3%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-2b62-723f-b672-5233c257687f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.92, "x": 0.05, "y": 0.78 }, "kind": "paragraph", "text": "Adjacent Category Expansion Hype: REZI started talking about adjacent category expansion more prominently in 2023 by focusing on Pro and Residential AV, along with Data Communications (\"Datacom\"). Combined, REZI claimed sales were over $500 million in 2022, up 20% year-over-year. Ever since, REZI has not updated its product segment or combined revenue figures for these growth categories. However, based on recent commentary, it appears that growth has significantly flattened, with Datacom and Pro AV growing at low double digits, while Residential AV seeing flat growth. The Residential AV category performance is even more troubling given that REZI bolstered its capabilities with the Snap acquisition.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "16b560af-3f05-4ad8-8e74-01095ede3e33", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.92, "x": 0.05, "y": 0.66 }, "kind": "paragraph", "text": "There is another strong clue that ADI's revenue momentum will slow in the coming quarters. From Q3'24 through Q2'25, ADI President Aarnes referenced the number of new product and SKUs launched. However, in the last quarter of Q3'25 he conspicuously stopped referencing new product launches. This factor, along with REZI now signaling that third party services are being used to develop products, suggests to us that any revenue uplift from new product introductions is likely to slow.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "23a0eb15-eac4-46d5-b691-2131b9e20d75", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.92, "x": 0.05, "y": 0.16 }, "kind": "paragraph", "text": "Exclusive Brands and Ecommerce: In the ADI segment, REZI points investors to opportunities with its ecommerce sales and exclusive brands which it says are faster growing with higher margins. The problem appears self-evident in that we find cases of brands on ADI's website that can be purchased directly from the manufacturer and available elsewhere with easy price comparison. REZI also recently claims its goals are to have touchless revenue at 60-65% of revenue and that exclusive brands can be a $1bn business. To have faith in these goals, REZI should provide reliable and consistent metrics for investors to track its progress. REZI stopped disclosing touchless revenue at the end of FY23.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "445d750e-9565-407a-bcd8-6c482b868f25", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.92, "x": 0.05, "y": 0.41 }, "kind": "paragraph", "text": "Moreover, reported organic ecommerce revenue appears to have received a big uplift during the first year of the Snap One transaction. However, in Q3'25 the growth rate declined dramatically back to just 3%. ADI (ex-Snap) exclusive brands organic revenue growth collapsed from 32% to 3% from Q2-Q3'25. If we include Snap exclusive products, organic revenue growth declined from 5% to 3% from Q2-Q3'25. Overall, it appears that these growth vectors are starting to meaningfully decelerate. This analysis is corroborated by Similarweb analytics which show a -27% decline in web traffic to SnapAV's homepage and generally flat traffic to its order status page since REZI closed its acquisition. Control4 and OVRC, its professional remote management platform for Control4 dealers, are critical exclusive brands acquired through the Snap transaction. Similarweb analytics also show weak trends to each website.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9ee0c1d5-94de-41ad-904e-64db8e70d1b2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.68, "x": 0.28, "y": 0.03 }, "kind": "title", "text": "REZI's Promoted Growth Opportunities Appear To Be Fizzling Out Fast", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "105baa06-a7f7-47b1-8031-355006f3c082", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 80, "from": 9, "beatId": "7202e722-c846-45f1-ac2f-eccd25950f31", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "The deck agitates the problems, highlighting various contradictions, concerns, and red flags.", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }