ADT(US:ADT)2025-11-04 12:00Financial Performance - Total revenue for Q3 2025 was $1.298 billion, representing a 4% increase year-over-year[4] - Net income for Q3 2025 was $145 million, a 14% increase from $127 million in Q3 2024[23] - Adjusted EBITDA for the nine months ended September 30, 2025, was $976 million, an 8% increase from $903 million in the same period of 2024[23] - Free Cash Flow for Q3 2025 was $182 million, compared to $119 million in Q3 2024, indicating a 52.9% increase[39] - Adjusted Free Cash Flow for the nine months ended September 30, 2025, was $659 million, up from $454 million in 2024, a 45.2% increase[39] - Adjusted EPS for Q3 2025 was $0.23, an increase from $0.20 in Q3 2024, marking a 15% rise[54] Revenue Breakdown - Monitoring and related services revenue increased by 2% to $1,098 million in Q3 2025, compared to $1,078 million in Q3 2024[23] - Security installation, product, and other revenue rose by 21% to $200 million in Q3 2025, up from $166 million in Q3 2024[23] - End-of-period recurring monthly revenue (RMR) rose 1% to $362 million, equating to an annualized RMR of $4.3 billion[5] Shareholder Returns - The company repurchased 13 million shares for $112 million during Q3, totaling $746 million returned to shareholders year-to-date[11] - The company declared a cash dividend of $0.055 per share, payable on January 8, 2026[14] Strategic Initiatives - The company completed a strategic bulk purchase of approximately 15,000 customer accounts for $24 million, with attractive projected returns[5] - The company divested its multifamily business for approximately $56 million, which included around 200,000 customers[5] - The company updated its 2025 guidance, projecting total revenue between $5.075 billion and $5.175 billion[13] - The new ADT+ Alarm Range Extender was launched, enhancing the platform's capabilities and performance[5] Debt and Cash Management - Long-term debt decreased to $7,284 million as of September 30, 2025, compared to $7,511 million at the end of 2024[25] - The company reported a 30% decrease in net interest expense, down to $113 million in Q3 2025 from $162 million in Q3 2024[23] - Total debt as of September 30, 2025, was $7,806 million, slightly up from $7,707 million at the end of 2024[59] - The ending cash balance as of September 30, 2025, was $171 million, compared to $205 million at the end of Q3 2024[27] Operational Metrics - Operating cash flow for the nine months ended September 30, 2025, was $1,511 million, compared to $1,425 million for the same period in 2024, reflecting a 6.0% increase[39] - The company incurred $11 million in loss on extinguishment of debt during the nine months ended September 30, 2025, compared to $5 million in the same period of 2024[27] - The company plans to exclude cash flows from the solar business from its financial measures starting Q3 2024, as the business was substantially wound down[32] Equity and Valuation - The company’s total stockholders' equity decreased to $3,659 million from $3,801 million at the end of 2024[25] - The net leverage ratio improved to 2.8x as of September 30, 2025, down from 2.9x at the end of 2024[59] - The debt to income from continuing operations ratio was 12.0x for Q3 2025, improved from 12.4x in Q4 2024[59] Other Financial Metrics - Adjusted Free Cash Flow, including interest rate swaps, increased by 32% to $208 million[8] - Amortization of deferred subscriber acquisition costs rose to $64 million in Q3 2025, compared to $56 million in Q3 2024[45] - Adjusted EBITDA from continuing operations for Q3 2025 was $676 million, compared to $659 million in Q3 2024, reflecting a 2.6% growth[45] - Share-based compensation expense increased to $11 million in Q3 2025 from $10 million in Q3 2024[54] - The adjusted EBITDA margin for Q3 2025 was 52%, slightly down from 53% in Q3 2024[45]