ADT reports fourth quarter and full-year 2024 earnings results

Strong full year earnings growth; GAAP EPS up 40%, Adjusted EPS up 25%

GAAP operating cash flows up 14%; Adjusted Free Cash Flow including interest rate swaps up 42%

Record recurring monthly revenue and customer retention

Returned $423 million to shareholders and continued leverage reduction

Maintaining momentum into 2025 with strong cash flow and new $500 million share repurchase plan

ADT, the most trusted brand in smart home and small business security, today reported results for the fourth quarter and full year of 2024.

Financial highlights for the fourth quarter and full year 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.

Fourth quarter 2024

• Total revenue increased by 8% to $1.3 billion and end-of-period recurring monthly revenue (RMR) increased 2% to $359 million ($4.3 billion on an annualized basis)
• Record customer retention with gross revenue attrition of 12.7%; revenue payback at 2.2 years
• GAAP income from continuing operations of $197 million, or $0.21 per diluted share, up $90 million
• Adjusted income from continuing operations of $176 million, or $0.20 per diluted share, up $8 million

Full year 2024

• GAAP income from continuing operations of $619 million, or $0.66 per diluted share, up $169 million
• Adjusted income from continuing operations of $685 million, or $0.75 per diluted share, up $136 million
• Net cash provided by operating activities of $1.9 billion, up 14%; Adjusted Free Cash Flow (including interest rate swaps) of $744 million, up 42%

“We delivered strong 2024 results including a record-high recurring monthly revenue balance, record customer retention, and very strong cash generation. All delivered while continuing to invest in ADT’s future which includes the launch of our proprietary ADT+ platform enabling unique and differentiated customer offerings such as Trusted Neighbor. Our successful 2024 performance is a testament to the dedication of our nearly 13,000 employees and approximately 140 dealer partners who are committed to serving our customers,” said Jim DeVries, ADT Chairman, President and CEO. “We are maintaining this momentum into the new year, anchored in our plans to again deliver solid growth in cash flow and earnings per share. ADT remains focused on generating value for our shareholders, customers and employees and we look forward to a successful 2025.”

Business highlights

• Redefining Smart Security: In 2024, ADT introduced its new proprietary ADT+ platform, a next-generation smart home security offering that integrates professional monitoring with Google Nest devices in an easy to use, all-in-one experience. Trusted Neighbor™, a new service that lets customers grant secure, temporary access to their homes through the ADT+ app, launched in the third quarter 2024.

• ADT Remote Assistance: The ADT Remote Assistance program continues to generate high customer satisfaction at a lower cost while eliminating thousands of vehicle trips. In the fourth quarter 2024, more than 50% of ADT service requests were virtual.
• ADT Home Security Program for State Farm: ADT’s program for State Farm customers is available in 17 states, with solutions in select states focused on leak detection and self-setup alternatives. Building on learnings and customer feedback from earlier pilot launches, ADT continues to develop tailored packages focused on proactive risk detection and strong customer protection.
• Alarm Scoring is live nationwide: ADT is the first company to adopt and implement the Alarm Validation Scoring Standard (AVS-01) at the national level. AVS-01 uses historical and real-time information to provide first responders with crucial details, including the severity of the threat, that can help them quickly determine a well-informed plan of action.
• Monitoring Center of the Year: ADT won The Monitoring Association’s Monitoring Center of the Year award, recognizing ADT’s significant contribution to the alarm industry and demonstration of exceptional customer service.
• ADT+ app scores high rating: The ADT+ app has received consistently high ratings and is one of the highest-rated apps in the home security and smart home category, averaging 4.8 stars across thousands of reviews in the Apple App Store and Google Play store.
• Home Security Innovation of the Year: Trusted Neighbor™ was named “Home Security Innovation of the Year” at the 9th annual IoT Breakthrough Awards. This recognition underscores ADT’s commitment to advancing home security technology and reimagining how ADT connects and protects customers.
• ADT named most trusted brand: For the sixth consecutive year, ADT earned the title of most trusted home security system brand in a study based on consumer ratings conducted by Lifestory Research.
• ADT’s 150th birthday: In August, ADT proudly celebrated its 150th birthday. Employees celebrated by ringing the opening bell at the New York Stock Exchange and partnering with community groups and first responders to showcase ADT’s commitment to keeping every neighborhood in America safe.
• When Every Second Counts: ADT introduced its new brand platform: When Every Second Counts. With the introduction of the platform, ADT launched new advertisements on major television networks and streaming services contributing to customer momentum throughout the year.

2025 financial outlook

ADT is providing the following 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 fourth quarter and full-year 2024 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, the company 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 Company’s repurchases of shares of its common stock under the 2025 Share Repurchase Plan; the expected costs, benefits and timing of the implementation of the Company’s new enterprise resource planning (ERP) system; timing of the Company’s dividend payment declared on February 27, 2025; the Company’s expected future financial results, including the Company’s ability to reduce debt or improve leverage ratios, or to achieve or maintain its long-term leverage goals; the integration of strategic bulk purchases of customer accounts; the Company’s 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); any stated or implied outcomes with regards to the foregoing; the expected timing of the Company’s partial redemption of its $500 million of First Lien Notes due 2026; expectations regarding the Company’s new first lien seven-year term loan facility (the “New Term Loan”), including timing and use of proceeds of the New Term Loan; the expected benefits of the Company’s products and services; the expectations, plans and objectives of management; 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 Commercial Divestiture and 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 authorized 2025 Share Repurchase Plan; dividend rates or yields for any future quarter; the Company's ongoing assessments of the impacts of cybersecurity attacks, including the separate incidents disclosed, respectively, in the Company’s Current Reports on Form 8-K filed with the SEC on August 8, 2024 and October 7, 2024 (collectively, the “Cybersecurity Incidents”); and 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 the 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 the Cybersecurity Incidents; legal, reputational and financial risks resulting from the 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; the timing and closing of the New Term Loan; 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 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.