ADT reports first quarter 2025 financial results

Continued strong financial results with record recurring monthly revenue and customer retention

GAAP operating cash flows up 28%, Adjusted Free Cash Flow including interest rate swaps up 105%

Returned $445 million to shareholders through share repurchases and dividends

On track to achieve full year 2025 guidance metrics

ADT today reported financial results for the first quarter of 2025. Highlights for the first quarter are below, with variances on a year-over-year basis unless otherwise noted. Results of the former commercial and solar segments are presented as discontinued operations, except for cash flow measures.

First quarter 2025

• Total revenue increased by 7% to $1.3 billion and end-of-period recurring monthly revenue (RMR) increased 2% to $360 million
• Record customer retention with gross revenue attrition of 12.6%; revenue payback at 2.3 years
• GAAP income from continuing operations of $142 million, or $0.16 per diluted share, down $21 million
• Adjusted income from continuing operations of $186 million, or $0.21 per diluted share, up $15 million
• Net cash provided by operating activities of $467 million, up $103 million; Adjusted Free Cash Flow (including interest rate swaps) of $226 million, up $116 million

“ADT is off to a very solid start in 2025, demonstrating the resilience of our business model, with continued strong cash flow generation and operating profitability. During the quarter, we again delivered a record recurring monthly revenue balance and customer retention, a testament to the strong demand for ADT’s innovative offerings and premium customer experience,” said Jim DeVries, ADT Chairman, President and CEO. “ADT is well-positioned to achieve full-year 2025 guidance with solid growth in cash flow and earnings per share, while investing in expanded capabilities to grow and serve our customer base and returning capital to shareholders.”

Business highlights

Foundation for growth

• Strong RMR balance: End-of-period RMR balance was $360 million, up 2%, or $4.3 billion on an annualized basis.
• Maintained strong customer retention and revenue payback: Trailing 12-month gross customer revenue attrition was a record 12.6% and revenue payback ended the first quarter of 2025 at 2.3 years.

Unlocking shareholder value

• Share repurchases: In February, the ADT’s Board of Directors announced a $500 million share repurchase plan. During the quarter, the company repurchased and retired 53 million shares of its common stock for an aggregate price of $397 million under the company’s authorized plans. This included 20 million shares of common stock repurchased concurrent with a secondary offering of 80.5 million shares (including the underwriters’ over-allotment option) previously held by Apollo and its affiliates.
• Balance sheet fortification: In March, ADT issued a new $600 million first lien seven-year term loan facility and used the proceeds to partially redeem $500 million of the First Lien Notes due 2026, as well as for other general corporate purposes.

Innovative offerings, unrivaled safety and premium experience

• Redefining smart security: ADT continued the rollout of its new proprietary ADT+ platform, a next-generation smart home security offering that integrates professional monitoring with Google Nest devices, continuing to increase customer penetration as a percentage of new adds.
• ADT+ Translator: The company launched the ADT+ Translator, which converts signals from legacy sensors into a format that ADT+ can process. This provides a faster, lower-cost transition from older equipment designed to function seamlessly with the ADT+ platform.
• Improving customer care: The ADT Remote Assistance program continues to handle more than 50% of service requests virtually, generating high customer satisfaction at a lower cost while eliminating thousands of vehicle trips. The customer care operations team is also using Sierra virtual agents to efficiently improve the customer service experiences for both customers and agents.
• Strengthened executive leadership: ADT recently announced two strategic additions to its executive leadership team with the appointments of Fawad Ahmad as Chief Operating and Customer Officer and Omar Khan as Chief Business Officer.
• Renewed Miami Marlins partnership: ADT renewed and extended its partnership with the Miami Marlins through 2029. A priority for the upcoming season is to celebrate the small businesses that are the lifeblood of the Miami community and ensure they are protected.

2025 financial outlook

The company is reiterating its financial guidance for 2025.

Read the complete earnings report with financial results and complete tables with footnotes.

Conference call

As previously announced, management will host a conference call at 10 a.m. ET today to discuss the company’s first quarter 2025 results and lead a question-and-answer session. Participants may listen to a live webcast through the Investor Relations website. A replay of the webcast will be available on the website within 24 hours of the live event.

Alternatively, participants may listen to the live call by dialing 1-800-715-9871 (domestic) or 1-646-307-1963 (international), and providing the access code 4948265. An audio replay will be available for one week following the call, and can be accessed by dialing 1-800-770-2030 (domestic) or 1-609-800-9909 (international), and providing the access code 4948265.

A slide presentation highlighting the company’s results will also be available on the Investor Relations website. From time to time, ADT may use its website as a channel of distribution of material company information. Financial and other material information regarding the company is routinely posted on and accessible on the Investor Relations website.

About ADT
ADT provides safe, smart and sustainable solutions for people, homes and small businesses. Through innovative offerings, unrivaled safety and a premium customer experience, all delivered by the largest networks of smart home security professionals in the U.S., we empower people to protect and connect to what matters most. For more information, visit adt.com.

Forward-looking statements
ADT has made statements in this press release that are forward-looking and therefore subject to risks and uncertainties, including those described below. All statements, other than statements of historical fact, included in this document are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, the timing of the Company’s dividend payment; the Company’s expected future financial results, including the Company’s financial outlook and/or guidance, which includes Total Revenue, Adjusted EBITDA, Adjusted Diluted Income (Loss) per Share (“Adjusted EPS”) and Adjusted Free Cash Flow (including interest rate swaps); the Company’s partnerships and the expected benefits of the Company’s products and services; the expectations, plans and objectives of management; any stated or implied outcomes with regard to the foregoing; and other matters. Without limiting the generality of the preceding sentences, any time we use the words “ongoing,” “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “possible,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “potential,” “outlook,” “goals,” “objectives,” “targets,” “planned,” “projects,” and, in each case, their negative or other various or comparable terminology, and similar expressions, we intend to clearly express that the information deals with possible future events and is forward-looking in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. We caution that these statements are subject to risks and uncertainties, many of which are outside of the Company’s control and could cause future events or results to be materially different from those stated or implied in this press release, including, among others, factors relating to risks and uncertainties regarding the benefits and any difficulties with respect to the effect of the Company’s divestiture of its commercial business (the “Commercial Divestiture”) and the Company’s exit from its residential solar business (the “ADT Solar Exit”), including that the costs of the ADT Solar Exit may exceed the Company’s best estimates; the Company’s ability to maintain and grow the Company’s existing customer base and to integrate strategic bulk purchases of customer accounts; activity in repurchasing shares of ADT’s common stock under the Company’s current share repurchase plan; dividend rates or yields for any future quarter; the Company's ongoing assessments of the impacts of cybersecurity attacks; the Company's expectations regarding its ability to effectively implement counter measures intended to safeguard the Company’s information technology assets and operations; the impact of cybersecurity incidents on the Company's relationships with customers, employees and regulators; the Company’s ability to coordinate effectively with its third party business partners to address any cybersecurity incidents; legal, reputational and financial risks resulting from any cybersecurity incidents; and that any future, or still undetected, cybersecurity related incident, whether an attack, disruption, intrusion, denial of service, theft or other breach could result in unauthorized access to, or disclosure of, data, resulting in claims, costs and reputational harm that could negatively affect actual results of operations or financial condition; any material changes to the valuation allowances the Company takes with respect to its deferred tax assets; any changes in regulations or laws, economic and financial conditions, including labor and tax law changes or any impacts on the global economy or consumer discretionary spending due to tariffs or otherwise, changes to privacy requirements, changes to telemarketing, email marketing and similar consumer protection laws, interest volatility, and trade tariffs and restrictions applicable to the products we sell; the Company’s ability to effectively implement its strategic partnerships with State Farm or Google, including, commercializing products or utilizing any of the amounts invested in the Company or provided by State Farm for research and development or other purposes; and risks that are described in the Company’s most recently filed Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in those reports, and in the Company’s other filings with the SEC. Any forward-looking statement made in this press release speaks only as of the date on which it is made. ADT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise unless required by law.