ADT Reports First Quarter 2026 Results (Form 8-K)

ADT Reports First Quarter 2026 Results

Continued strong financial results and cash generation

GAAP EPS up 25%, Adjusted EPS up 10%

GAAP Operating Cash Flows up 37%, Adjusted Free Cash Flow (including swaps) up 83%

Returned $161 million to shareholders through share repurchases and dividends

On track to achieve full year 2026 financial outlook

BOCA RATON, Fla., April 30, 2026 - ADT Inc. (NYSE: ADT), a leading provider of security, interactive, and smart home solutions serving residential and small business customers in the U.S., today reported results for the first quarter of 2026. Financial highlights for the first quarter are below with variances on a year-over-year basis unless otherwise noted.

First Quarter 2026

•Total revenue increased 1% to $1.3 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 $169 million, or $0.20 per diluted share, up $27 million

•Adjusted income from continuing operations of $191 million, or $0.23 per diluted share, up $5 million

•Net cash provided by operating activities of $638 million, up $171 million; Adjusted Free Cash Flow (including interest rate swaps) of $414 million, up $187 million

"ADT delivered another quarter of solid results highlighted by strong cash generation, and returned $161 million to shareholders through share repurchases and dividends, reflecting our disciplined approach to capital allocation while continuing to invest in our future," said ADT Chairman, President and CEO, Jim DeVries. "In addition to our acquisition of Origin AI to add proprietary ambient sensing capabilities to our portfolio, we continue to expand and add new features to our ADT+ ecosystem, which most recently include Live Light™ and MySafety. With our solid performance in the first quarter, ADT is on track to deliver our full-year 2026 outlook and create long-term shareholder value."

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Business Highlights

Innovative Offerings, Unrivaled Safety and Premium Experience: The Company is undertaking focused initiatives to drive growth, strengthen brand loyalty, and improve customer acquisition efficiency while advancing its core mission of providing peace of mind. Recent progress on these initiatives is described below.

•AI sensing and ambient intelligence for the home - Acquired Origin Wireless, Inc. ("Origin AI") in February 2026, 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.

•Real-time visual alarm signaling for faster emergency response - Launched Live Light™, the industry's first illuminated, wireless yard sign integrated with the ADT+ platform, providing immediate visual indication during alarm events to help first responders quickly identify the correct home and signaling active, professional monitoring to would-be intruders.

•Personal safety protection beyond the home - Introduced MySafety, a personal safety service embedded in the ADT+ app that extends ADT's professional monitoring network beyond the front door, enabling customers to access real-time safety support and peace of mind while on the go.

•Redefining smart security - ADT continues the rollout of its proprietary ADT+ platform, which comprises approximately 30% of new customer additions in the first quarter, integrating professional monitoring with Google Nest and Yale devices and capabilities such as Trusted Neighbor.

•Operational efficiency and service excellence - Expanded AI-powered customer engagement with AI agents handling customer interactions across voice and chat including integrated troubleshooting within the ADT+ app, improved containment rates, and increased digital sales engagement.

•AI-Enabled Fleet Safety - Deployed AI dash cameras across approximately 300 technician vehicles to monitor driver behavior and deliver real-time safety alerts. Early results show significant reductions in distracted driving and cell phone usage.

•Commitment to communities and first responders - Relaunched ADT's Lifesaver Program with a donation to Pasco County Fire Rescue and made contributions to the Boca Raton Police Foundation and Boca-based partner Fuller Center as part of the ADT Safe Places program.

Unlocking Shareholder Value: The Company is focused on continuing to generate significant cash flow, enabling direct capital returns to shareholders while maintaining a healthy balance sheet.

•Share repurchases - In March, the Company's Board of Directors announced a $1.5 billion share repurchase plan. During the quarter, the Company repurchased and retired 18 million shares of its common stock for an aggregate price of $116 million.

•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.

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Results of Operations (1)(2)

(in millions, except revenue payback, attrition, and per share data)						Three Months Ended March 31,
						2026						2025						$ Change						% Change
						GAAP
Monitoring and related services						$	1,080					$	1,083					$	(3)					-%
Security installation, product, and other						198						184						14						7%
Total revenue						$	1,279					$	1,267					$	11					1%
Income (loss) from continuing operations						$	169					$	142					$	27					19%
Income (loss) from continuing operations per share - diluted						$	0.20					$	0.16					$	0.04					25%
Net cash provided by (used in):
Operating activities						$	638					$	467					$	171					37%
Investing activities						$	(406)					$	(258)					$	(147)					57%
Financing activities						$	(189)					$	(321)					$	132					(41)%
						Non-GAAP Measures
Adjusted EBITDA from continuing operations						$	674					$	661					$	13					2%
Adjusted income (loss) from continuing operations						$	191					$	186					$	5					3%
Adjusted EPS						$	0.23					$	0.21					$	0.02					10%
Adjusted Free Cash Flow (including interest rate swaps)						$	414					$	226					$	187					83%
						Other Measures
Trailing twelve-month revenue payback						2.3 years						2.3 years						0 years						-%
Trailing twelve-month gross customer revenue attrition						13.1		%				12.6		%				50 bps						N/A
RMR						$	359					$	360					$	(1)					-%

Total revenue was $1,279 million for the first quarter, up 1%. Monitoring and related services (M&S) revenue reflects higher average pricing, offset by revenue loss from the October 2025 divestiture of the multifamily business. Security installation, product, and other revenue increased primarily due to a higher mix of professionally installed systems under the outright sales model, in connection with the transition to the ADT+ platform and refined ownership go-to-market approach.

Income from continuing operations was $169 million, or $0.20 per diluted share, for the first quarter, up $27 million. This was primarily attributable to a loss recovery from a legal settlement and lower net interest expense due to a decrease in unrealized losses on interest rate swaps, partially offset by an increase in allowance for credit losses. Adjusted income from continuing operations was $191 million, or $0.23 per diluted share, for the first quarter, up $5 million, driven by the same factors noted above excluding the impact of interest rate swaps. Earnings per share metrics also benefited from lower weighted average shares outstanding as a result of share repurchases.

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Balance Sheet and Cash Flow

For the first quarter, net cash provided by operating activities was $638 million, up $171 million and Adjusted Free Cash Flow (including interest rate swaps) was $414 million, up $187 million. These measures benefited primarily from lower cash interest, and the timing of payroll-related disbursements and other payments and receipts.

Total cash and cash equivalents as of March 31, 2026 were $119 million and no amounts were outstanding under the Company's First Lien Revolving Credit Facility.

The Company returned $161 million of capital to shareholders during the quarter, including dividend payments of $45 million, and $116 million of share repurchases, retiring 18 million repurchased shares.

2026 Financial Outlook (3)

The Company continues to expect Adjusted Free Cash Flow (including interest rate swaps) growth of approximately 20% versus the prior year, with revenue and Adjusted EPS approximately flat. This outlook reflects recent and continued prioritization of cash flow, share repurchases, and disciplined subscriber acquisition spending. It also reflects planned 2026 investments in growth initiatives expected to benefit future periods, as well as anticipated tariffs.

Dividend Declaration

Effective April 30, 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 June 11, 2026. This dividend will be paid on July 7, 2026.

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(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.

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Conference Call

As previously announced, management will host a conference call at 10 a.m. ET today to discuss the Company's first quarter 2026 results and lead a question-and-answer session. Participants may listen to a live webcast through the investor relations website at investor.adt.com. 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 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 investor.adt.com.

About ADT Inc.

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 www.adt.com.

Investor Relations:			Media Relations:
[email protected] Tel: 888-238-8525			[email protected]

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