ADT reports third quarter 2025 financial results

Continued strong financial results and cash generation

Revenue up 4% versus prior year, driven by durable recurring monthly revenue

Year-to-date GAAP Operating Cash Flow up 6%, Adjusted Free Cash Flow (including swaps) up 36%

Returned $746 million to shareholders year to date through share repurchases and dividends

On track to achieve full-year 2025 guidance metrics

ADT today reported financial results for the third quarter of 2025. Financial highlights for the third quarter 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.

Third quarter 2025

• Total revenue increased 4% to $1.3 billion and end-of-period recurring monthly revenue (RMR) increased 1% to $362 million
• Solid customer retention with gross revenue attrition of 13%; revenue payback at 2.3 years
• GAAP income from continuing operations of $144 million, or $0.17 per diluted share, up $11 million
• Adjusted income from continuing operations of $187 million, or $0.23 per diluted share, up $4 million
• Net cash provided by operating activities of $480 million, down $18 million; Adjusted Free Cash Flow (including interest rate swaps) of $208 million, up $50 million

“ADT again delivered solid revenue growth, robust cash flow and very strong earnings per share in the third quarter, reflecting the resilience of our business model and our team’s execution of our strategy,” said Jim DeVries, ADT Chairman, President and CEO. “With our ADT+ platform, we continue to enhance the safety, convenience and experience we deliver to our customers. Our focus on operational excellence and our disciplined approach to capital allocation positions us to achieve our 2025 financial guidance and deliver long-term value for our stakeholders.”

Business highlights

Foundation for growth

• Durable RMR balance: End-of-period RMR balance was up 1% to $362 million, or $4.3 billion on an annualized basis.
• Solid customer retention and revenue payback: Trailing 12-month gross customer revenue attrition was 13% with revenue payback at 2.3 years.
• Strategic bulk account purchase: ADT closed on a bulk purchase of approximately 15,000 customer accounts for $24 million cash with attractive projected returns.

Unlocking shareholder value

• Share repurchases: During the third quarter, ADT repurchased and retired 13 million shares of its common stock for an aggregate price of $112 million. As of Sept. 30, 2025, the company has repurchased 78 million shares this year.
• Balance sheet fortification: The company executed a series of attractively priced refinancing transactions to extend maturities and further improve its debt profile, lowering average cost of debt to 4.3%.
• Multifamily divestiture: On Oct. 1, ADT completed the divestiture of its multifamily business for a purchase price of approximately $56 million. This business included sales to businesses that own or operate residential rental housing and consisted of approximately 200,000 customers representing approximately $2.6 million of RMR.

Innovative offerings, unrivaled safety and premium experience

• Alarm Range Extender launch: Launched the new ADT+ Alarm Range Extender, further enhancing the ADT+ platform’s capabilities, performance and dependability. The device expands coverage between the ADT+ Base and connected devices in larger or more complex homes with 24-hour battery backup and tamper alerts.
• Smarter testing for ADT+: ADT introduced new automation and AI-driven testing capabilities to streamline app development, reduce the need for manual testing, and deliver faster high-quality releases. These innovations help ensure a smoother, more reliable experience for ADT+ customers.
• Google Nest device refresh: Beginning Oct. 15, ADT began offering five new Google Nest camera models following Google’s launch of updated wired Nest cameras and doorbells, reflecting the continued expansion of ADT’s partnership with Google to bring customers an updated smart home security portfolio.
• ADT Safe Places program partners: ADT’s corporate social responsibility program, ADT Safe Places, made $10,000 donations to four first responder organizations as part of National Night Out and a $55,000 donation to the Fuller Center, a nonprofit organization providing affordable childcare and family-centered support.

2025 financial outlook

Based on performance through the end of the third quarter, the company is updating its 2025 guidance.

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 third 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 — 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 www.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, including with respect to the bulk purchase of customer accounts, and the expected benefits of such partnerships; the Company’s products and services, including ADT+, and the expected benefits and capabilities of such 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 or commercialize products with State Farm or Google; 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.