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  "documentTitle": "Resideo Technologies, Inc. (REZI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2026-01-27 00:00:00",
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  "notes": "The slide uses a 'before-after' style logic to show that the company's provided explanations for revenue and EBIT declines do not sum up to the reported totals.",
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      "kind": "callout",
      "text": "Complicating matters, REZI reported that segment EBIT declined by -$32m, but gave explanatory figures that indicated the total decline was -$114m.",
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      "text": "EBIT: -$114m",
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      "text": "Spruce Point has identified a glaring issue with REZI's revenue and EBIT disclosure in 2023. The Company divested Genesis Cable on October 16, 2023 which was included in the Products and Solutions segment. When discussing the factors driving the segment's decline in revenue and EBIT, the Company failed to account at all for the divestiture. Based on 2024 disclosures, we estimate that Genesis had ~$126m of revenue or ~$22m of impact to the 2023 revenue decline. Complicating matters, REZI reported that segment EBIT declined by -$32m, but gave explanatory figures that indicated the total decline was -$114m.",
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      "text": "“Products and Solutions revenue decreased $111 million, or 4%, mainly due to lower sales volume of $307 million and unfavorable foreign exchange fluctuations of $5 million, partially offset by price increases of $102 million and $99 million of revenue from First Alert, Inc.” — Resideo SEC filings",
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      "kind": "source-note",
      "text": "Source: REZI SEC filings, “Resideo Completes Sale of Genesis Cable Business,” Oct 16, 2023, press release. For 2024, Resideo said, “The increase was partially offset by $105 million of lower sales from the divestiture of the Genesis business in 2023.”",
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      "text": "Comparison table of 2023 Revenue and EBIT disclosures vs Spruce Point analysis",
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      "text": "We Find Something Seriously Wrong With REZI's Financial Reporting And Revenue Explanations",
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