PomegraADI Global Distribution Stock Plunges 50% After Guidance Cut
Why did ADI Global Distribution stock plunge 50%?
ADI Global Distribution (ADIG) stock fell 49.85% on Thursday from a $19.58 close after cutting its 2026 sales outlook and booking a $659 million goodwill write-down.
Key numbers
| Q3 net loss | $655Mvs $26M profit a year ago |
|---|---|
| Goodwill charge | $659Mnon-cash write-down |
| 2026 revenue outlook | $4.91–4.93Bwas $4.95–5.0B (per [4]) |
| 2026 adjusted EBITDA outlook | $230–240Mwas $275–295M (per [4]) |
| Q4 revenue guidance | $1.11–1.13Bvs $1.21B analyst view (per [2]) |
| Q3 revenue | $1.31B+9% YoY |
What happened
ADI Global Distribution (ADIG) stock fell 49.85% on Thursday from a $19.58 close after cutting its 2026 sales outlook and booking a $659 million goodwill write-down. Most of the $655 million quarterly loss came from that one-time accounting charge, which admits past acquisitions are worth less than once thought. Sales still rose 9% to $1.31 billion, but profit measures shrank. The company lowered its 2026 sales forecast from $4.95–$5.0 billion, and its profit forecast (adjusted EBITDA) to $230–$240 million from $275–$295 million.
Why it matters
ADI Global Distribution is a seller of security and audio-visual products, so its warning points to a U.S. housing market that is still weak. The company says demand for its own-brand products fell short and each sale is earning less profit. Its fourth-quarter sales forecast of about $1.12 billion also landed well below the $1.21 billion analysts expected.
Who this affects
- MarketbearishMedium impact
- Investors hit hard; housing-linked stocks may face more caution.
- CompanybearishHigh impact
- Shareholders lost about half their value in one day.
- CompetitorsmixedLow impact
- Resideo fell 6.7% too; WESCO was flat.
- IndustrybearishMedium impact
- Weak housing demand is squeezing security and audio-visual suppliers.
ADI Global Distribution vs Resideo, WESCO
How we got here
ADI Global Distribution separates from Resideo and begins trading on the NYSE.
Company sets 2026 outlook of $4.95–5.0B revenue and $275–295M adjusted EBITDA.
Reports $655M Q3 loss with $659M goodwill charge and lowers 2026 outlook.
Shares close down 49.85% in the regular session.
What to watch
- Fourth-quarter results versus guidance of $1.112–1.132B revenue and $28–38M adjusted EBITDA.Q1 2027
- Progress on about $60M annual cost savings by end-2026 and $80M by end-2027.2027-12-31
- Whether residential demand and own-brand sales stabilize after October weakness.Q4 2026
Educational content only. Not investment advice.
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