ADT reports second quarter 2026 financial results

Continued strong cash generation

GAAP Operating Cash Flows up 18%, Adjusted Free Cash Flow (including swaps) up 48%

Returned $684 million to shareholders through share repurchases and dividends in first half of the year

Raising full-year 2026 financial outlook based on year-to-date performance

ADT today reported results for the second quarter of 2026. Financial highlights for the second quarter are set forth below with variances on a year-over-year basis unless otherwise noted.

Second quarter 2026

• Total revenue increased 2% to $1.3 billion
• Solid core operating metrics with end-of-period recurring monthly revenue (RMR) of $360 million, gross revenue attrition of 13.1%, and revenue payback at 2.3 years
• GAAP income from continuing operations of $155 million, or $0.19 per diluted share, down $13 million
• Adjusted income from continuing operations of $180 million, or $0.23 per diluted share, down $12 million
• Net cash provided by operating activities of $666 million, up $102 million; Adjusted Free Cash Flow (including interest rate swaps) of $406 million, up $133 million

“ADT delivered another quarter of solid performance reflecting the resilience of our business model. Strong cash generation supported significant capital returns to shareholders, including elevated share repurchases, underscoring our disciplined approach to capital allocation while continuing to invest in the business,” said Jim DeVries, ADT Chairman, President and CEO. “We continue to advance our strategy by expanding the capabilities and reach of our ADT+ platform, progressing the development and integration of our proprietary ambient sensing technology, and launching ADT Blu to broaden our channel reach and self-service offerings. Concurrently, we remain focused on improving attrition trends as we navigate a dynamic and competitive environment. We are well-positioned to build on our progress through the second half of the year and deliver on our 2026 outlook while creating long-term shareholder value.”

Business highlights

Innovative Offerings, Unrivaled Safety and Premium Experience

ADT is undertaking focused initiatives to drive growth, strengthen brand loyalty, and improve customer acquisition efficiency while advancing our core mission of providing peace of mind. Recent progress on these initiatives is described below.

• Broadening customer choice and market reach: Launched ADT Blu, a self-installed security solution that combines the convenience of DIY setup with the flexibility of the ADT+ platform and optional professional monitoring, while expanding customer reach through new channels such as Amazon.

• Advancing AI-powered customer service: Continued to scale AI-powered customer service capabilities, including AI-driven call routing and virtual AI agents, to improve issue resolution, streamline customer interactions and enhance the customer experience. These efforts, together with digital self-service initiatives, also improved service efficiency across customer support operations.

• Leadership in presence sensing technology: Continued progress on commercialization of Wi‑Fi-based sensing capabilities, including initial manufacturing of a smart plug device, supporting the development of innovative privacy-preserving security and smart home use cases powered through the ADT+ platform.

• Industry leadership in connected home standards: Joined the Board of Directors of the Connectivity Standards Alliance, reinforcing ADT’s role in advancing industry standards and helping shape the future of connected living and advancing interoperable smart home standards.

• Recognized for customer trust and excellence: ADT received multiple 2026 recognitions from ConsumerAffairs, Newsweek, and TIME for customer service, brand trust, product quality and overall company performance, reinforcing our leadership position and commitment to delivering exceptional customer experiences.

Unlocking Shareholder Value

ADT is focused on continuing to generate significant cash flow, enabling direct capital returns to shareholders while maintaining a healthy balance sheet.

• Share repurchases: During the second quarter, ADT repurchased and retired 68 million shares of our common stock for an aggregate price of $478 million, including 29 million shares repurchased in connection with a secondary offering of 102 million shares of common stock by Apollo. Following the completion of the offering, Apollo no longer owns shares of ADT’s common stock.

• Strategic bulk account purchase: ADT completed a bulk purchase of approximately 10,000 customer accounts for $18 million cash.

Results of operations

Total revenue was $1,312 million for the second quarter, up 2%. The increase was primarily driven by higher security installation, product, and other revenue due to an increase in the mix of professionally installed systems under the outright sales model. Monitoring and related services (M&S) revenue reflects the revenue loss from the October 2025 divestiture of the multifamily business.

Income from continuing operations was $155 million, or $0.19 per diluted share, for the second quarter, down $13 million. This was primarily attributable to higher selling, general, and administrative expenses partially offset by increased revenue net of related costs.

Adjusted income from continuing operations was $180 million, or $0.23 per diluted share, for the second quarter, down $12 million, driven primarily by the same factors noted.

In addition to the factors above, earnings per share metrics benefited from a lower weighted-average diluted share count as a result of share repurchases.

Balance sheet and cash flow

For the second quarter, net cash provided by operating activities was $666 million, up $102 million, and Adjusted Free Cash Flow (including interest rate swaps) was $406 million, up $133 million. These measures benefited primarily from lower cash taxes and working capital discipline. Adjusted Free Cash Flow also benefited from lower spending on subscriber acquisition.

In May, the company secured an additional $100 million of incremental borrowings under its First Lien Term Loan A due 2030, further enhancing financial flexibility.

Total cash and cash equivalents as of June 30, 2026, were $4 million, and no amounts were outstanding under the company’s First Lien Revolving Credit Facility.

ADT returned $523 million of capital to shareholders during the quarter, including $478 million of share repurchases and $45 million of dividend payments. Through the end of the second quarter, the company has repurchased 86 million shares, returning $684 million to shareholders through share repurchases and dividends. As of June 30, 2026, the company has $906 million remaining available for repurchases.

2026 financial outlook

Based on performance through the end of the second quarter and expected progress during the second half of the year, ADT is raising its 2026 financial outlook and now projects Adjusted Free Cash Flow (including interest rate swaps) growth of approximately 30% versus the prior year, Total Revenue growth of approximately 2% versus the prior year, and Adjusted EPS growth of approximately 2% versus the prior year. This outlook reflects recent and continued prioritization of cash flow, share repurchases, and disciplined subscriber acquisition spending, as well as investments in growth initiatives expected to benefit future periods.

Dividend declaration

Effective July 30, 2026, the company’s Board of Directors declared a cash dividend of $0.055 per share to holders of ADT’s common stock and Class B common stock of record as of September 10, 2026. This dividend will be paid on October 1, 2026.

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 second quarter 2026 results and lead a question-and-answer session. Participants may listen to a live webcast through the Investor Relations website. Alternatively, participants may listen to the live call by dialing 1-833-461-5787 (toll-free) or 1-585-542-9983 and providing the access code 130714042. A replay of the webcast will be available on the website within 24 hours of the live event.

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 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+, ADT Blu, Origin AI’s presence sensing technology, and the expected benefits and capabilities of such products and services; the Company’s ability to successfully execute and scale its DIY offerings; 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; the payment of any dividend to the Company’s stockholders; 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 press release, 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 acquisition of Origin AI and realize expected benefits of the acquisition; the Company’s ability to execute on transformation initiatives, including technology initiatives related to artificial intelligence and whole-home intelligence; the Company’s ability to maintain and grow the Company’s existing customer base, including the conversion of customers who continue to utilize outdated technology, 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, global, economic, sovereign, political, or 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 dependence on third-party providers, suppliers, and dealers to enable it to produce and distribute its products and services in a cost-effective manner that protects the Company’s brand; the Company’s ability to effectively implement its strategic partnership with, and utilize any of the amounts invested by, 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.