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  "documentTitle": "Resideo Technologies, Inc. (REZI)",
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  "notes": "The slide uses red highlights to draw attention to specific R&D expense drivers and financial figures in the tables.",
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      "text": "Q2'25: Research and development expenses for the six months ended June 28, 2025 were $76 million... driven by $17 million in the ADI Global Distribution segment... and $13 million in the Product and Solutions segment related to incremental headcount and third party services to develop and introduce new products into the market.",
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      "text": "Q3'25: Research and development expenses for the nine months ended September 27, 2025 were $120 million... driven by investments in both segments related to incremental headcount and third party services to develop and introduce new products into the market.",
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      "text": "Since enhancing segment reporting, R&D expense is growing sharply in the ADI distribution segment, primarily from Snap. This begs the question: Should Snap really be reported in ADI if it requires R&D while the legacy business does not? This could suggest they are completely different businesses. On the other hand, REZI is now saying that third party services to develop and introduce new products are driving R&D expense in the product and service segment along with higher headcount. We view this disclosure negatively as it may indicate that newer products are likely to carry lower margin given reliance on outside expertise.",
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      "text": "Source: SEC filings and Spruce Point analysis.",
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      "text": "Now Having To Outsource R&D....",
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      "text": "R&D In The ADI Segment Is Suddenly Accelerating From Snap's Inclusion",
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