ADT Inc.

Total revenue was $1.3 billion, up 2% year over year. Adjusted earnings per diluted share were $0.23, flat to last year, and adjusted EBITDA was $671 million. Monitoring and services revenue fell 1%, installation revenue rose 17% to $230 million, and ending recurring monthly revenue was $360 million. Gross new subscribers were 190,000 with $11.9 million of RMR, net cash SAC was $345 million down 7%, and attrition was 13.1%, flat to last quarter. For 2026, management now expects total revenue to grow approximately 2%, adjusted EPS to grow 2%, and adjusted free cash flow to grow approximately 30%.

Jim DeVries emphasized that ADT is balancing growth, retention, and cash generation while investing in three priorities: product technology, service excellence, and customer acquisition efficiency. He pointed to ADT Blue, dealer migration to ADT+, and AI-driven service improvements as early examples of the strategy, and said the company believes these initiatives can support both growth and margin expansion over time. His tone was constructive and confident, but he repeatedly framed the transformation as early-stage and incremental.

Jeffrey Likosar highlighted strong cash generation as the standout financial result, with adjusted free cash flow including swaps of $406 million, up $133 million or 48%, and year-to-date free cash flow of $820 million, up more than $300 million or 64%. He said the improvement was driven mainly by working capital timing, lower cash taxes and interest, and lower subscriber acquisition spending, and noted the company returned $684 million to shareholders in the first half, including $594 million of repurchases and $90 million of dividends. He also cited a strong liquidity position with an $800 million revolver undrawn, $7.4 billion of net debt, 2.8x leverage, and a target of 2.5x, while warning that 2027 will likely see headwinds from higher cash taxes and interest expense.

Analysts focused on the decline in gross additions, with management saying the shortfall versus last year was mainly due to fewer bulk deals, reduced reliance on expensive affiliate channels, and some dealer softness; direct DIFM and SMB trends were described as healthy. Management said ADT+ adoption should phase in over 3 to 4 quarters, with benefits to attrition, service cost, and customer lifetime value showing up over roughly 9 to 12 months. Questions also centered on free cash flow sustainability, and CFO Jeffrey Likosar said first-half working capital was unusually favorable but should be a smaller benefit going forward, while 2027 should face roughly $50 million to $100 million each of headwind from taxes and interest. Analysts also pressed on ADT Blue, where management said early demand was encouraging, pricing starts as low as $10 per month for video-only, and the company is seeing a majority of early buyers choose the fuller monitored security package.