ADT Reports Second Quarter 2025 Results

Core Insights - ADT Inc. reported a strong financial performance for the second quarter of 2025, with total revenue increasing by 7% year-over-year to $1.287 billion, driven by record recurring monthly revenue and robust cash flow generation [2][5][7]. Financial Performance - Total revenue for the second quarter was $1,287 million, up 7% from $1,205 million in the prior year [7]. - Monitoring and related services revenue grew by 2% to $1,090 million, while security installation and product revenue surged by 44% to $197 million [7]. - GAAP income from continuing operations was $168 million, or $0.19 per diluted share, reflecting a 33% increase from the previous year [8][27]. - Adjusted income from continuing operations rose to $191 million, or $0.23 per diluted share, up 23% year-over-year [8][27]. Cash Flow and Shareholder Returns - Year-to-date GAAP Operating Cash Flow increased by 11%, while Adjusted Free Cash Flow (including swaps) surged by 38% [1][10]. - The company returned $589 million to shareholders through share repurchases and dividends year-to-date, with $143 million returned in the second quarter alone [1][12]. - During the second quarter, ADT repurchased 12 million shares for $96 million, with a total of 65 million shares repurchased under its $500 million share repurchase plan [6][12]. Strategic Developments - ADT closed a strategic bulk purchase of approximately 50,000 customer accounts for $89 million, which is expected to yield attractive returns and enhance economies of scale [6]. - The company launched the Yale Assure Touch smart lock, integrating it with the ADT+ platform to enhance security features [6]. Customer Metrics - The end-of-period recurring monthly revenue (RMR) increased by 2% to $363 million, equating to an annualized figure of $4.4 billion [6]. - Customer retention remained solid, with a gross revenue attrition rate of 12.8% and a revenue payback period of 2.3 years [6][7]. Financial Outlook - ADT reiterated its 2025 financial guidance for Total Revenue, Adjusted EBITDA, and Adjusted Free Cash Flow, while updating the range for Adjusted EPS due to a lower share count from repurchases [13][14].