ADT(US:ADT)2026-03-02 12:01Financial Performance - Total revenue for 2025 was $5.129 billion, an increase of 5% year-over-year[4] - Adjusted EPS for 2025 was $0.89, up 19% from the previous year[4] - Total revenue for Q4 2025 was $1,276 million, a 1% increase from $1,260 million in Q4 2024[30] - For the full year 2025, total revenue reached $5,129 million, up 5% from $4,898 million in 2024[30] - Operating income for Q4 2025 was $333 million, representing a 9% increase compared to $305 million in Q4 2024[30] - Net income for Q4 2025 was $145 million, a decrease of 23% from $190 million in Q4 2024[30] - The diluted earnings per share for Q4 2025 was $0.17, down from $0.21 in Q4 2024[30] - Net income for the twelve months ended December 31, 2025, increased to $596 million, up 19% from $501 million in 2024[36] - Adjusted income from continuing operations for the twelve months ended December 31, 2025, was $750 million, compared to $685 million in 2024, representing a 9.5% increase[62] Cash Flow and Expenses - Adjusted Free Cash Flow for 2025 was $863 million, an increase of 16% year-over-year[13] - Free Cash Flow for the twelve months ended December 31, 2025, was $716 million, an increase of 17% compared to $612 million in 2024[48] - Adjusted Free Cash Flow for the twelve months ended December 31, 2025, rose to $798 million, up 21% from $659 million in 2024[48] - Selling, general, and administrative expenses decreased by 5% to $360 million in Q4 2025 compared to $380 million in Q4 2024[30] - Interest expense increased by 34% to $110 million in Q4 2025, compared to $82 million in Q4 2024[30] - Interest expense for the twelve months ended December 31, 2025, was $459 million, compared to $441 million in 2024, reflecting a rise of 4.1%[54] Shareholder Returns - The company returned $791 million to shareholders in 2025, including $604 million in share repurchases[14] - The company announced a new $1.5 billion share repurchase authorization effective March 2, 2026[17] Assets and Liabilities - Total assets decreased from $16,051 million in December 2024 to $15,819 million in December 2025, a decline of 1.4%[33] - Long-term debt decreased slightly from $7,511 million in December 2024 to $7,379 million in December 2025, a reduction of 1.8%[33] - Current liabilities decreased from $1,264 million in December 2024 to $1,013 million in December 2025, a decline of 20%[33] - Total stockholders' equity remained relatively stable, decreasing slightly from $3,801 million in December 2024 to $3,779 million in December 2025[33] Operational Highlights - Recurring monthly revenue (RMR) at the end of 2025 was $359 million, with a gross revenue attrition rate of 13.1%[4] - The company launched new safety features and expanded its ADT+ platform, integrating with Google Nest and Yale devices[8] - The company is focusing on integrating AI into its products and services, including customer interactions and operational efficiencies[29] - ADT was added to the S&P SmallCap 600 index effective February 9, 2026, highlighting its strong performance[8] Financial Ratios - The company achieved a net leverage ratio target of 2.5x or below as part of its multi-year financial framework[15] - The net leverage ratio improved to 2.7x as of December 31, 2025, down from 2.9x in the prior year, indicating better credit position[68] Other Financial Metrics - Adjusted EBITDA from continuing operations for Q4 2025 was $670 million, compared to $653 million in Q4 2024, reflecting a year-over-year increase of 2.6%[54] - Adjusted EBITDA margin for Q4 2025 was 53%, slightly up from 52% in Q4 2024, indicating stable operational profitability[54] - The company reported a goodwill impairment charge of $12 million associated with the Multifamily Divestiture during the year[55]