Resideo Technologies Inc. is leaning heavily on digital channels to fuel its distribution growth, with its ADI Global Distribution business hitting a new record in ecommerce performance in its fiscal Q1 2025.
While Resideo did not disclose specific ecommerce revenue figures, ADI president Rob Aarnes said digital sales grew 15% year over year, achieving a record high in average daily run-rate sales. The milestone came as ADI’s total revenue surged 29% to $1.02 billion. That’s up from approximately $790 million in the same period last year.
Company-wide, Resideo posted $1.77 billion in total revenue for the quarter, up 19.1% year-over-year. And adjusted net income grew 34.8% to approximately $93 million.
“Ecommerce continues to be structurally accretive to our total gross margin,” Aarnes said on the earnings call. “It contributed more gross profit dollars in Q1 than in any prior quarter. Digital is a major growth lever for ADI — and we’re just getting started.”
ADI grows Q1 ecommerce sales
Digital adoption is helping ADI scale efficiently while improving profitability. The business segment’s gross margin rose 360 basis points year-over-year to 21.6%, fueled in part by higher-margin online sales and a broader push into exclusive brand offerings. Online channels also played a key role in the launch of nearly 100 new products, many under Snap One’s premium home automation and AV brands.
“Our online platform is central to how we deliver value — faster ordering, easier access to inventory, and smarter tools for our customers,” Aarnes said. “It’s not just about shifting transactions online. It’s about meeting the expectations of integrators and pros who want speed, visibility, and reliability.”
Executives noted that exclusive brands — often promoted and sold digitally — grew 26% year over year and are increasingly being integrated into ADI’s ecommerce merchandising strategy. This not only boosted online conversions but also supported gross profit expansion, according to chief financial officer CFO Michael Carlet.
The Snap One integration is accelerating digital product rollout.
“Snap One’s product innovation and the reach of ADI’s digital platform are a powerful combination,” according to Aarnes. “We’re now moving faster on product launches, with online as the primary entry point for customers.”
Despite tariff pressures and macro uncertainty, online demand held strong.
“We saw no material customer hesitation or buy-ahead behavior,” Aarnes said. “Digital engagement continued to rise into April and early May.”
Analysts highlighted ecommerce as a durable growth engine.
“ADI’s digital growth is driving more than just sales — it’s improving mix, pricing power, and efficiency,” Evercore ISI noted in a post-earnings report. “This is a meaningful margin story with digital at the center.”
Resideo reaffirmed its 2025 guidance and emphasized that digital expansion remains a top strategic priority.
“We’re committed to building out the next phase of ADI’s digital platform,” Carlet said. “Ecommerce is no longer an option — it’s a competitive advantage we intend to keep scaling.”
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