ADT(ADT)2025-04-24 10:58Financial 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]