ADT reports third quarter 2022 financial results

6 min read

Continued sequential and year-over-year improvement in revenue, up 22% versus prior year
Strong customer satisfaction with a third consecutive quarter of record high customer retention and  recurring monthly revenue balance
Improving capital efficiency with record revenue payback
Reaffirming 2022 guidance metrics

ADT, the most trusted brand in smart home and small business security, today reported financial results for the third quarter of 2022.

Highlights for the third quarter of 2022 are listed below. Variances are on a year-over-year basis unless otherwise noted.

  • Total revenue of $1.6 billion, up 22% or 8% excluding Solar, and end-of-period Recurring Monthly Revenue (RMR) of $372 million, up 4%
  • Record high customer retention with gross customer revenue attrition at 12.6%
  • Record revenue payback of 2.1 years
  • GAAP net loss of $122 million, or a loss of $(0.13) per diluted share, down $13 million
  • Adjusted net income of $83 million, or $0.10 per diluted share, up $137 million
  • Adjusted EBITDA of $620 million, up $66 million or 12%
ADT reports third quarter 2022 financial results
Jim DeVries, ADT President and CEO

“ADT’s strong third quarter results demonstrate our continued momentum — setting records in customer retention, RMR balance and revenue payback,” said ADT President and CEO, Jim DeVries. “Our performance to date validates our progress on key initiatives, outlined earlier this year during our Investor Day, to meaningfully grow revenue, earnings and cash flows, as well as reduce debt. Additionally, we were tremendously excited to announce our partnership with State Farm. A collaboration with such a marquee organization will serve as a significant future growth catalyst for ADT and we look forward to continued positive momentum in 2023.”

Business Highlights

Foundation for Growth

Continued growth of RMR: The end-of-period RMR balance was $372 million, representing a 4% increase over the prior year period. Approximately 80% of total Consumer and Small Business (CSB) and Commercial revenue was generated from this durable recurring revenue.

Record customer retention and revenue payback: With strong customer satisfaction, trailing 12-month gross customer revenue attrition was 12.6% and revenue payback was a record 2.1 years at the end of the third quarter. This performance reflects an 80 basis point improvement in attrition versus the prior year period.

Innovative Offerings

State Farm home protection partnership: ADT announced a flagship partnership with State Farm to revolutionize homeownership through innovation in the detection and mitigation of property losses. In addition to its $1.2 billion equity investment, State Farm committed up to $300 million to fund product and technology innovation, customer growth and marketing activities in connection with the partnership.

Enhanced Google offerings: As part of ADT’s partnership with Google, the Company nationally sells, installs, and services a full suite of Google Nest products, including doorbells, cameras, and thermostats. During the third quarter of 2022, the attachment rate for the Google doorbell was 51%, helping drive a 22% increase in residential installation revenue per unit as compared to the prior year period. In August, the Company began selling and installing indoor and outdoor Google Nest cameras and is currently realizing a greater than 30% increase in cameras per home.

Google increases success fund commitment in support of Company’s partnership with State Farm: Google committed an incremental $150 million, subject to the achievement of certain milestones, raising Google’s total success fund commitment with ADT to $300 million. The incremental funds will advance opportunities to expand access for more customers to smart home innovation and technologies via new sales programs, and other related activities.

Unrivaled Safety

Protecting Uber drivers and riders: ADT partnered with Uber to integrate ADT mobile safety solutions into the Uber app for riders and drivers. Uber users in the United States can now get live help, via phone or text, from ADT professional monitoring agents. Uber joins a growing number of enterprise customers that utilize Safe by ADT to power their app-based mobile safety features.

Premium Experience

ADT Virtual Assistance program: In addition to virtual service, ADT now provides a virtual installation option, offering more flexibility, convenience, and choice to customers. The Virtual Assistance program is generating high customer satisfaction at a lower cost to the Company while also lowering the Company’s carbon footprint by eliminating thousands of vehicle trips each day. This program is a meaningful contributor to the Adjusted EBITDA margin expansion in our CSB segment.

Progress on our ESG Journey

Supporting Hurricane Ian disaster relief: ADT made a $100,000 contribution to the Red Cross in response to the widespread destruction caused by Hurricane Ian. Florida is home to ADT’s headquarters, as well as more than 3,500 employees and hundreds of thousands of customers.

Ken Porpora, Chief Financial Officer, and Jill Greer, Senior Vice President, Finance, Investor Relations and Communications, highlight ADT's third quarter results.

2022 Financial Outlook

The Company is reaffirming its previously provided financial guidance for the full year 2022. Based on performance through the end of the third quarter, the Company expects to deliver Total Revenue and Adjusted EBITDA toward the upper end of their respective ranges and Adjusted Free Cash Flow toward the lower end of its respective range.

(in millions)
Total Revenue $6,200 - $6,400
Adjusted EBITDA $2,335 - $2,435
Adjusted Free Cash Flow $550 - $625

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 10:00 a.m. ET today to discuss the Company’s third quarter of 2022 results and lead a question-and-answer session.

Participants may listen to a live webcast through the investor relations website at 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 1-877-407-9039 (domestic) or 1-201-689-8470 (international) and requesting the ADT Third Quarter 2022 Earnings Conference Call. An audio replay will be available for two weeks following the call and can be accessed by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and providing the passcode 13732625. A slide presentation highlighting the Company’s results will also be available on the Investor Relations section of the Company’s 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 at

About ADT Inc.

ADT provides safe, smart and sustainable solutions for people, homes and businesses. Through innovative products, partnerships and the largest network of smart home, security and rooftop solar professionals in the United States, we empower people to protect and connect what matters most. For more information, visit

Media & Investor Contacts

Investor Relationsinvestorrelations@adt.com888-238-8525

Forward-Looking Statements

ADT has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. 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 are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to the equity investment by and long term partnership with State Farm and the anticipated impact of these on our business and financial condition, our relationships with other insurance companies, and the market price of our Common Stock; anticipated financial performance; management’s plans and objectives for future operations; our acquisition of Sunpro Solar, now ADT Solar, and its anticipated impact on our business and financial condition; business prospects; market conditions; our ability to successfully respond to the challenges posed by the COVID-19 Pandemic; our strategic partnership and ongoing relationship with Google; the expected timing of product commercialization with Google or any changes thereto; the expected timing of product commercialization with State Farm or any changes thereto; the successful internal development, commercialization, and timing of our next generation platform and innovative offerings; the successful commercialization of our joint venture with Ford; the successful conversion of customers who continue to utilize 3G services; and other matters. Forward-looking statements can be identified by various words such as “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and similar expressions. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. ADT cautions that these statements are subject to risks and uncertainties, many of which are outside of ADT’s control, and could cause future events or results to be materially different from those stated or implied in this document, including among others, factors relating to the achievement of potential benefits of the equity investment by and long term partnership with State Farm, including as a result of restrictions on, or required prior regulatory approval of, various actions by regulated insurers, risks and uncertainties related to ADT's ability to successfully generate profitable revenue from new and existing partnerships, ADT's ability to successfully commercialize any joint products with State Farm, the Company's ability to successfully utilize the incremental funding committed by Google, risks and uncertainties related to the Company’s ability to successfully integrate and operate the ADT Solar business, the Company’s ability to commercialize its joint venture with Ford, the Company’s ability to successfully generate profitable revenue from new and existing partnerships, the Company’s ability to continuously and successfully commercialize innovative offerings, the Company’s ability to successfully implement an Environmental, Social, and Governance program across the Company, the Company’s ability to successfully convert all remaining customers away from the use of a 3G platform, and risk factors that are described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission (“SEC”), including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. 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.