ADT reports fourth quarter and full-year 2025 earnings results; Announces new $1.5 billion share repurchase authorization

Continued strong financial results and cash generation, achieving all 2025 guidance metrics

Full year earnings growth; GAAP EPS up 3%, Adjusted EPS up 19%

Returned $791 million to shareholders through share repurchases and dividends

Multi-year financial framework focused on growth in revenue, earnings, and cash flow

ADT today reported results for the fourth quarter and full year of 2025. 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 businesses are presented as discontinued operations, except for cash flow measures.

Full year 2025

• Total revenue increased 5% to $5.1 billion
• Solid core operating metrics with end-of-period recurring monthly revenue (RMR) of $359 million, gross revenue attrition of 13.1%, and revenue payback at 2.3 years
• GAAP income from continuing operations of $601 million, or $0.68 per diluted share, down $19 million
• Adjusted income from continuing operations of $750 million, or $0.89 per diluted share, up $65 million
• Net cash provided by operating activities of $1.9 billion, flat; Adjusted Free Cash Flow (including interest rate swaps) of $863 million, up 16%

Fourth quarter 2025

• GAAP income from continuing operations of $146 million, or $0.17 per diluted share, down $51 million
• Adjusted income from continuing operations of $186 million, or $0.23 per diluted share, up $10 million
• Net cash provided by operating activities of $374 million, down $86 million; Adjusted Free Cash Flow (including interest rate swaps) of $154 million, down $70 million

“ADT again delivered solid financial performance in 2025, generating robust cash flow and further strengthening our financial foundation. As we enter 2026, we are positioning ADT to lead the next era of smart home intelligence with our ADT+ platform and new ambient sensing capabilities,” said Jim DeVries, ADT Chairman, President and CEO. “I am confident in the long-term trajectory of our business, reflected in our multi-year financial framework balancing growth in revenue, earnings, and cash flow. Our disciplined capital allocation enabled us to return significant capital to shareholders in 2025, and our new $1.5 billion repurchase authorization underscores our continued commitment to direct shareholder capital returns while we invest in the business.”

Business highlights

Innovative Offerings, Unrivaled Safety and Premium Experience: The company is undertaking focused initiatives to drive growth, increase brand loyalty and increase customer acquisition efficiency while delivering on its core mission. Recent progress on these initiatives is described below.

• Redefining smart security: In 2025, ADT continued the rollout of its proprietary ADT+ platform, integrating professional monitoring with Google Nest and Yale devices and introducing new capabilities such as Trusted Neighbor.
• AI sensing and ambient intelligence for the home: In February 2026, ADT acquired Origin AI, adding revolutionary and proprietary ambient sensing capabilities to enable new privacy‑preserving security and smart home use cases. Concurrent with the acquisition, ADT established a long-term technology licensing agreement with Verisure, the leading European smart home security provider.
• Expanded safety features: In February 2026, ADT launched My Safety and Live Light. Integrated into the ADT+ app, My Safety supports customers wherever they go, while Live Light is an illuminated yard sign that responds to ADT+ system and alarm activity to help first responders quickly identify the correct home in an emergency.
• Operational efficiency and service excellence: ADT’s Remote Assistance program handled approximately 50% of service requests virtually, reducing costs and vehicle trips, while AI‑powered virtual agents improved efficiency across chat and voice interactions. ADT also further reduced false alarm dispatches and delivered an industry‑leading average alarm acknowledgment time of less than 10 seconds.
• Award‑winning innovation: ADT’s Trusted Neighbor feature was named Home Security Innovation of the Year at the 2025 IoT Breakthrough Awards.
• Industry recognition and trusted leadership: ADT earned four Stevie Awards for Sales and Customer Service, received TMA Five Diamond Certification for its Knoxville and Irving monitoring centers, and was named Most Trusted Home Security System Brand for the seventh consecutive year by Lifestory Research.
• Commitment to communities and first responders: Through ADT Safe Places, the company donated $750,000 in 2025 to community safety and first responder partners, including holiday donations to Toys for Tots, Feeding America, and expanded support for the American Red Cross.

Unlocking Shareholder Value: ADTy expects to continue to generate significant cash flow, enabling it to return capital to its shareholders while maintaining a healthy balance sheet.

• Share repurchases: During 2025, the company repurchased and retired 78 million shares of its common stock for an aggregate price of $604 million.
• Balance sheet optimization: Throughout 2025, ADT executed a series of attractively priced refinancing transactions to extend maturities and further improve its debt profile, lowering the average cost of debt to 4.3% and extending weighted average maturity to 5 years.
• S&P SmallCap 600 addition: Effective Feb. 9, 2026, ADT was added to the S&P SmallCap 600 index. This important milestone underscores the company’s strong performance and successful alignment with the index’s rigorous criteria.

Results of operations⁽¹⁾⁽²⁾

Total revenue was $1,276 million for the fourth quarter and $5,129 million for the full year, up 1% and 5%, respectively. Monitoring and related services (M&S) revenue growth was primarily driven by higher average prices, partially offset by a decrease in volume. Security installation, product and other revenue increased primarily due to a higher mix of professionally installed systems under the outright sales model.

Income from continuing operations was $146 million, or $0.17 per diluted share, for the fourth quarter, down $51 million, and $601 million, or $0.68 per diluted share, for the full year, down $19 million. Improved installation margins and continued strong M&S margins contributed to this increase for both periods, which was offset by unrealized gains/losses on interest rate swaps and a tax reserve release in the prior year. Adjusted income from continuing operations was $186 million, or $0.23 per diluted share, for the fourth quarter, up $10 million, and $750 million, or $0.89 per diluted share, for the full year, up $65 million, which benefited from the improved margins described above.

Balance sheet and cash flow

For the fourth quarter, net cash provided by operating activities was $374 million, down $86 million, driven primarily by higher cash interest and timing of payments and receipts, partially offset by higher operating income. Adjusted Free Cash Flow (including interest rate swaps) was $154 million, down $70 million, driven by higher cash interest and timing of payments and receipts, partially offset by lower subscriber acquisition spend.

For the full year, net cash provided by operating activities was $1,884 million, down $1 million, with higher cash tax payments offset by higher operating income and timing of payments and receipts. Adjusted Free Cash Flow (including interest rate swaps) was $863 million, up $119 million, driven by earnings growth, lower subscriber acquisition spend, and favorable timing of payments and receipts, offset by higher cash tax payments.

Total cash and cash equivalents as of Dec. 31, 2025, were $81 million, and no amounts were outstanding under the company’s First Lien Revolving Credit Facility.

The company returned $791 million of capital to shareholders during 2025, including dividend payments of $187 million, and $604 million of share repurchases, retiring 78 million repurchased shares.

Financial outlook⁽³⁾

The company refreshed its multi‑year financial framework, reflecting objectives to generate compounded annual growth rates of 5% revenue, 10% adjusted earnings per share, and more than 10% adjusted free cash flow (including interest rate swaps), with a target net leverage ratio of 2.5x or below. This framework is supported by the anticipated outcome of growth initiatives and near-term investments in product technology, customer service excellence, and acquisition efficiency, and is intended to serve as a long-term value creation outlook rather than near-term guidance.

For 2026, the company expects adjusted free cash flow (including interest rate swaps) growth of approximately 20% versus prior year, with revenue and Adjusted EPS approximately flat. This outlook reflects the company’s recent and continued prioritization of cash flow, share repurchases, and disciplined subscriber acquisition spending. It also incorporates planned 2026 investments in growth initiatives expected to benefit future periods, as well as headwinds from tariffs.

Share repurchase plan

On March 2, 2026, ADT announced a three-year share repurchase plan (the “2026 Share Repurchase Plan”), pursuant to which the Board of Directors has authorized the company to repurchase, through April 30, 2029, up to a maximum aggregate amount of $1.5 billion of shares of the company’s common stock. The 2026 Share Repurchase Plan allows ADT to purchase shares of the company’s common stock from time to time in one or more open market or privately negotiated transactions, including pursuant to Rule 10b5-1 or Rule 10b-18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or pursuant to one or more accelerated share repurchase agreements, subject to certain requirements and factors.

The Board of Directors may periodically review the outstanding amount authorized under the 2026 Share Repurchase Plan as part of its capital allocation strategy.

Dividend declaration

Effective March 2, 2026, the company’s board of directors declared a cash dividend of $0.055 per share to holders of the company’s common stock and Class B common stock of record as of March 12, 2026. This dividend will be paid on April 2, 2026.

(1) All variances are year-over-year unless otherwise noted. The Company may sometimes present various non-GAAP and other operating measures. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow (including interest rate swaps), Adjusted Income (Loss), Adjusted Diluted Income (Loss) per share (or, Adjusted EPS), Net Debt, and Net Leverage Ratio are non-GAAP measures. Refer to the “Non-GAAP Measures” section for the definitions of the terms and reconciliations to the most comparable GAAP measures for those measures included herein. Operating metrics such as Gross Customer Revenue Attrition, Unit Count, RMR, Gross RMR Additions, and Revenue Payback are approximated as there may be variations to reported results in each period due to certain adjustments the Company might make in connection with the integration over several periods of acquired companies that calculated these metrics differently, or otherwise, including periodic reassessments and refinements in the ordinary course of business. These refinements, for example, may include changes due to systems conversion or historical methodology differences in legacy systems. Results of the former commercial and solar businesses are presented as discontinued operations. Except for cash flow measures, and unless otherwise noted, amounts herein reflect the results of the Company’s continuing operations only.
(2) Amounts may not sum due to rounding.
(3) The Company is not providing forward-looking guidance or discussing long-range outlook for U.S. GAAP financial measures other than Revenue, nor can the Company provide quantitative reconciliation to the most directly comparable GAAP measures for its non-GAAP financial measures because the GAAP measures cannot be reliably estimated and the reconciliations cannot be performed without unreasonable effort due to their dependence on future uncertainties and adjusting items that the Company cannot reasonably predict at this time but which may be material. Please see "Non-GAAP Measures" for additional information.

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 2025 results as well as its broader strategy and longer-term financial outlook, 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 is a leading provider of security, interactive, and smart home solutions serving residential and small business customers in the U.S. Through innovative offerings, unrivaled safety, and a premium customer experience delivered by the largest network of smart home security professionals in the U.S., ADT empowers people to protect and connect to what matters most, every second, every day. 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 capital allocation priorities and commitments; the Company’s expected future financial results, including the Company’s financial outlook and/or guidance and multi-year targets, which include Total Revenue, Adjusted Diluted Income (Loss) per Share (“Adjusted EPS”), Adjusted Free Cash Flow (including interest rate swaps) and Net Leverage Ratio; the Company’s partnership programs and the bulk purchase of customer accounts; initiatives with respect to the Company’s products and services, including ADT+, and the expected benefits and capabilities of such products and services; the Company’s development, deployment, and integration of AI in its products, services, and operations, including AI-driven customer interactions, virtual agents, operational efficiencies, and home intelligence capabilities, including Origin’s presence sensing technology; and 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 presentation, including, among others, risks and uncertainties related to 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”); the Company’s ability to successfully integrate the Origin acquisition and realize expected benefits of the acquisition; the Company’s ability to execute on transformation initiatives and to execute on technology initiatives around the use of artificial intelligence and whole-home intelligence; 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 impact of cyber attacks or related breaches with respect to information technology systems, cybersecurity, or data security involving the Company, our business partners, or other third parties whose systems are interconnected with ours, and any future or still undetected attacks or incidents; 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 or commercialize products with Google; the Company’s ability to expand ADT+ and achieve expected adoption and customer engagement; risks related to the Company's use of AI in its products, services, and operations, including evolving legal and regulatory requirements, technological limitations, potential liability, and reputational concerns; the expected shift in the Company's transaction mix (including increased outright equipment sales) and the related effects on the timing and mix of revenue and costs; 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.