Core Insights - ADT Inc. has launched the Yale Assure Lock 2 Touch with Z-Wave, integrating fingerprint control and the Z-Wave User Credential Command Class for enhanced smart home security [1][3][5] - The ADT+ app has been updated to include Home | Away functionality, utilizing geofencing to automate security settings based on user presence [2][8] Product Features - The Yale Assure Lock 2 Touch offers multiple unlocking methods, including biometric fingerprint recognition, keypad entry, physical key access, and virtual key control through the ADT+ app [4][5] - The lock allows users to arm and disarm their security system directly from the lock, creating a streamlined security experience [4][6] Strategic Collaboration - The partnership between ADT, Yale, and the Z-Wave Alliance aims to set a new standard for smart home security, combining convenience and protection [3][6] - The introduction of the User Credential Command Class represents a significant advancement in interoperability across the smart home industry [6][7] User Experience Enhancements - The Trusted Neighbor program allows designated individuals to access the home using their fingerprint, enhancing convenience for families [7] - The ADT+ app update includes a redesigned interface for easier navigation and access to frequently used features [9][10] Availability and Pricing - The Yale Assure Lock 2 Touch is priced at $279.99 and is available for purchase at ADT.com, with options for self-setup or professional installation [10]

Group 1 - The article discusses the positive outlook for ADT Inc. (NYSE: ADT) based on improving fundamentals and the successful performance of the ADT+ platform, with expectations for EPS growth as guided [1] - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1] Group 2 - There are no disclosed positions in any of the companies mentioned, indicating a neutral stance on potential conflicts of interest [2] - The article is presented as an individual opinion without compensation, reinforcing the independence of the analysis [2]

Financial Performance - Total revenue for the three months ended March 31, 2025, was $1,267,491,000, an increase of $77,819,000 compared to $1,189,672,000 in the same period of 2024 [198]. - Recurring Monthly Revenue (RMR) increased to $359,534,000, up $6,260,000 from $353,274,000 in the prior year [198]. - Adjusted EPS for the three months ended March 31, 2025, was $0.21, an increase of $0.02 compared to $0.19 in the same period of 2024 [198]. - Adjusted EBITDA rose to $660,801,000, reflecting an increase of $23,110,000 from $637,691,000 in the prior year [198]. - Monitoring and related services revenue increased by $20,452,000 to $1,083,104,000, driven by higher average prices despite lower volume [198]. - Security installation, product, and other revenue surged by $57,367,000 to $184,387,000, primarily due to a higher mix of professionally installed systems under the outright sales model [198]. Customer Metrics - As of March 31, 2025, the company served approximately 6.4 million security monitoring service subscribers, with revenue break-even achieved in approximately two years for new subscribers [180]. - Gross customer revenue attrition decreased to 12.6% from 13.1% in the prior year, indicating improved customer retention [198]. Debt and Financing - Cash and cash equivalents as of March 31, 2025, totaled $3.7 million, with total debt outstanding amounting to $7.8 billion [221]. - The company has a remaining borrowing capacity of $760 million under its First Lien Revolving Credit Facility as of March 31, 2025 [221]. - The company redeemed $500 million of the First Lien Notes due 2026 in March 2025, resulting in a total redemption price of $506 million [240]. - As of March 31, 2025, approximately 38% of the total carrying amount of the company's debt was subject to variable interest rates [259]. - The company was in compliance with all financial covenants and maintenance tests for its debt obligations as of March 31, 2025 [246]. - The company intends to redeem its notes before maturity through ongoing sources of liquidity or refinancing [241]. - The company amended the 2020 Receivables Facility to extend the uncommitted revolving period to March 2026 and reduce the interest rate on outstanding borrowings [242]. Shareholder Returns - The 2025 Share Repurchase Plan allows for the repurchase of up to $500 million of Common Stock, with approximately $208 million remaining as of March 31, 2025 [230][233]. - In March 2025, the company repurchased 20 million shares for approximately $152 million, and an additional 18 million shares for $140 million [232]. - A dividend of $0.055 per share was announced on April 24, 2025, to be paid on July 8, 2025 [237]. Taxation - The effective tax rate for the period was 26.4%, with an income tax expense of $51,032,000 [205]. - Income tax expense for the three months ended March 31, 2024, was $56 million, resulting in an effective tax rate of 25.6% [206]. - The company expects to begin making federal cash tax payments in the second quarter of 2025, with estimated payments fluctuating based on financial results [236]. Cash Flow - The net cash provided by operating activities for the three months ended March 31, 2025, was $466,626, an increase of $102,824 compared to $363,802 in the same period of 2024 [248]. - The company experienced a decrease in cash used in investing activities by $41,811 compared to the prior year period, primarily due to lower expenditures on subscriber system assets [250][252]. - The company reported an increase in net cash used in financing activities by $246,260 compared to the prior period, largely due to increased share repurchases [248][252]. Strategic Initiatives - The company continues to work towards a commitment of $200 million in aggregate purchases under the Google Cloud Agreement Addendum [235]. - In March 2025, the company amended and restated the First Lien Credit Agreement, issuing a new $600 million first lien seven-year term loan facility due in 2032 [238]. - As of March 31, 2025, the company had an outstanding balance of $396 million under the 2020 Receivables Facility after a voluntary prepayment of $23 million during Q1 2025 [242][245].

Financial Data and Key Metrics Changes - ADT Inc. reported a record recurring monthly revenue balance of $360 million, up 2% year-over-year [7] - Total revenue grew by 7% compared to the prior year, reaching $1.3 billion [28] - Adjusted earnings per diluted share increased by 11% to $0.21 [9] - Adjusted free cash flow more than doubled year-over-year to $226 million [26] - Adjusted EBITDA for the first quarter was $661 million, an increase of 4% [30] Business Line Data and Key Metrics Changes - Monitoring and services revenue increased by 2%, driven by the record RMR balance [27] - Installation revenue was $184 million, up $57 million or 45%, attributed to the transition to the ADT Plus platform [28] - The average installation revenue per unit improved to approximately $1,500 due to customer interest in comprehensive systems [29] Market Data and Key Metrics Changes - Gross new customer additions totaled 72,000, contributing $10.6 million of new RMR [31] - Gross RMR additions fell 7% year-over-year, with a decline of 15,000 units compared to Q1 2024 [58][59] - The small business segment remained flat in attrition, indicating stability in that market [78] Company Strategy and Development Direction - The company focuses on delivering safety and peace of mind through unrivaled safety, innovative offerings, and premium customer service [11] - Continued investment in the product and experience ecosystem to develop differentiated customer offerings [12] - Expansion of the ADT Plus platform to a larger percentage of new customers and enhancement of capabilities for existing customers [12][15] - The partnership with State Farm is progressing, with gross ads increasing in Q1 2025 compared to the previous year [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite macroeconomic uncertainties [43] - The company reaffirmed full-year guidance, expecting adjusted free cash flow to be up 14% and adjusted earnings per share to be up 8% [36] - Management noted potential tariff impacts but believes they can manage net exposure within guidance ranges [53] Other Important Information - The company appointed Fawad Ahmad as Chief Operating and Customer Officer and Omar Khan as Chief Business Officer [22] - Customer satisfaction reached a three-year high, contributing to record customer retention [16] Q&A Session Summary Question: Assessment of the demand environment and housing market impact - Management noted that demand for personal safety increases during uncertain times, and the business model is resilient [43] Question: Metrics indicative of consumer strength - Slight uptick in slower payments observed, but overall positive trends in pricing and record attrition were highlighted [46] Question: Impact of tariffs and cost structure adjustments - Management is actively negotiating with partners and considering inventory management strategies to mitigate tariff impacts [50][51] Question: Dynamics driving gross RMR additions decline - The decline was attributed to tightened credit standards in DIY and health business segments [59][60] Question: Update on State Farm partnership and AI initiatives - The partnership is progressing well, with increased gross ads, and AI initiatives are improving customer care operations [71][72] Question: Pricing and inflation outlook - Management indicated that inflation impacts are primarily related to tariffs, but overall pricing strategies are being adjusted [94]

ADT Inc. (NYSE:ADT) Q1 2025 Earnings Conference Call April 24, 2025 10:00 AM ET Company Participants Elizabeth Landers - Investor Relations Jim DeVries - Chairman, President & Chief Executive Officer Jeff Likosar - Chief Financial Officer Conference Call Participants Ronan Kennedy - Barclays George Tong - Goldman Sachs David Paige - RBC Capital Markets Peter Christiansen - Citigroup Yehuda Silverman - Morgan Stanley Operator Hello and welcome to the ADT Inc. First Quarter 2025 Earnings Conference Call. All ...

First Quarter 2025 Earnings Presentation April 24, 2025 Forward Looking Statements and Non-GAAP Measures ADT has made statements in this presentation 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 ...

Group 1: Earnings Performance - ADT reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and up from $0.16 per share a year ago, representing an earnings surprise of 5% [1] - The company posted revenues of $1.27 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.12%, compared to $1.21 billion in the same quarter last year [2] - Over the last four quarters, ADT has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - ADT shares have increased approximately 14.5% since the beginning of the year, contrasting with the S&P 500's decline of -8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.20 on revenues of $1.25 billion, and for the current fiscal year, it is $0.83 on revenues of $5.07 billion [7] Group 3: Industry Context - The Security and Safety Services industry, to which ADT belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for ADT is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expectations of outperforming the market in the near future [6]

Financial Performance - Total revenue for Q1 2025 was $1,267 million, an increase of 7% year-over-year[4] - Net income for Q1 2025 was $140 million, representing a 53% increase compared to $92 million in Q1 2024[24] - Operating income rose by 9% to $319 million from $292 million year-over-year[24] - Adjusted income from continuing operations was $186 million, or $0.21 per diluted share, an increase of $15 million year-over-year[8] - Income from continuing operations was $142 million in Q1 2025, a decrease from $164 million in Q1 2024, representing a decline of 13.4%[47] - Adjusted Income from continuing operations increased to $186 million in Q1 2025 from $171 million in Q1 2024, showing an increase of 8.8%[55] - Adjusted EPS for Q1 2025 was $0.21, up from $0.19 in Q1 2024, indicating a growth of 10.5%[55] Cash Flow and Capital Management - Net cash provided by operating activities was $467 million, up $103 million, while Adjusted Free Cash Flow increased by 105% to $226 million[9] - For the three months ended March 31, 2025, the Company reported Free Cash Flow of $209 million, a significant increase from $65 million in the same period of 2024, representing a growth of 221.5%[40] - Adjusted Free Cash Flow for the same period was $210 million, up from $89 million in 2024, indicating a year-over-year increase of 135.7%[40] - Adjusted Free Cash Flow including interest rate swaps reached $226 million, compared to $111 million in 2024, marking a 103.6% increase[40] - The company repurchased 53 million shares for $397 million during the quarter as part of a $500 million share repurchase plan[5] - The company repurchased $397 million of common stock during the quarter, compared to $93 million in the same period last year[28] - A cash dividend of $0.055 per share was declared, payable on July 8, 2025[15] Revenue Breakdown - Monitoring and related services revenue increased by 2% to $1,083 million, while security installation and product revenue surged by 45% to $184 million[24] - End-of-period recurring monthly revenue (RMR) reached $360 million, up 2% year-over-year, equivalent to an annualized rate of $4.3 billion[5] Guidance and Future Outlook - The company reiterated its financial guidance for 2025, projecting total revenue between $5,025 million and $5,225 million[14] - The company expects continued growth in revenue and operating income, driven by strategic partnerships and product innovations[22] Operational Metrics - The trailing twelve-month gross customer revenue attrition rate improved to 12.6%, down from 13.1%[6] - Adjusted EBITDA from continuing operations was $661 million for the three months ended March 31, 2025, compared to $638 million in 2024, reflecting a growth of 3.6%[47] - The Adjusted EBITDA Margin for the period was 52%, slightly down from 54% in the previous year[47] Balance Sheet Highlights - The company reported a decrease in cash and cash equivalents to $4 million from $96 million at the end of 2024[26] - Total assets decreased to $15,830 million from $16,051 million at the end of 2024[26] - Long-term debt increased to $7,613 million from $7,511 million at the end of 2024[26] Other Notable Developments - ADT launched the ADT+ Translator to facilitate the transition from legacy systems to the new ADT+ platform[5] - The Company did not provide a quantitative reconciliation for forward-looking Adjusted EBITDA to GAAP income due to uncertainties in future adjustments[32] - The Company plans to exclude cash flows from the solar business from Free Cash Flow measures starting in Q3 2024, as the business has been substantially wound down[33]

Core Insights - ADT Inc. reported strong financial results for Q1 2025, with record recurring monthly revenue and customer retention, indicating robust demand for its services [2][3] - The company is on track to meet its full-year 2025 guidance metrics, supported by solid growth in cash flow and earnings per share [3][15] Financial Performance - Total revenue increased by 7% to $1.3 billion, with monitoring and related services revenue growing by 2% to $1.083 billion and security installation revenue rising by 45% to $184 million [5][7] - GAAP income from continuing operations was $142 million, or $0.16 per diluted share, down from $164 million in the previous year [9][28] - Adjusted income from continuing operations rose to $186 million, or $0.21 per diluted share, up $15 million year-over-year [10][56] Cash Flow and Shareholder Returns - Net cash provided by operating activities was $467 million, up 28% year-over-year, while adjusted free cash flow increased by 105% to $226 million [11][44] - The company returned $445 million to shareholders through share repurchases and dividends, including $49 million in dividends and $397 million in share repurchases [14][18] Customer Metrics - The end-of-period recurring monthly revenue (RMR) was $360 million, up 2%, with a record gross customer revenue attrition rate of 12.6% [5][6] - Revenue payback period improved to 2.3 years, reflecting strong customer retention [6][7] Strategic Initiatives - ADT continued the rollout of its proprietary ADT+ platform, enhancing its smart home security offerings and increasing customer penetration [4][8] - The company launched the ADT+ Translator to facilitate the transition from legacy systems to the ADT+ platform, improving customer care through virtual assistance programs [8] Balance Sheet and Financing - In March, ADT issued a new $600 million first lien seven-year term loan facility, using proceeds to redeem $500 million of First Lien Notes due 2026 [13][30] - Total cash and cash equivalents as of March 31, 2025, were $4 million, with $40 million outstanding under the First Lien Revolving Credit Facility [12][30]

Core Viewpoint - ADT Inc. is set to release its first quarter 2025 financial results on April 24, 2025, before market opening, followed by a conference call for discussion and Q&A session [1]. Group 1: Financial Results Announcement - The financial results for Q1 2025 will be released before the market opens on April 24, 2025 [1]. - A conference call will be held at 10 a.m. ET on the same day to discuss the results [1]. Group 2: Participation Details - Participants can listen to a live webcast via the investor relations website, with a replay available within 24 hours [2]. - For those preferring a phone call, domestic participants can dial 1-800-715-9871, while international participants can call 1-646-307-1963, using access code 4948265 [3]. - An audio replay of the call will be available for one week, accessible through specific phone numbers and the same access code [3]. Group 3: Company Overview - ADT Inc. offers safe, smart, and sustainable solutions for individuals, homes, and small businesses, focusing on innovative offerings and premium customer experience [4]. - The company operates the largest networks of smart home security professionals in the U.S., empowering customers to protect what matters most [4].