ADT Reports Third Quarter 2025 Results

Core Insights - ADT Inc. reported a 4% increase in total revenue for Q3 2025, reaching $1.3 billion, driven by durable recurring monthly revenue and solid customer retention [4][6][8] - The company achieved a year-to-date GAAP Operating Cash Flow increase of 6% and an Adjusted Free Cash Flow increase of 36%, totaling $208 million for the quarter [1][4][9] - ADT returned $746 million to shareholders year-to-date through share repurchases and dividends, with $157 million returned in Q3 alone [1][12] Financial Performance - Total revenue for Q3 2025 was $1,298 million, up from $1,244 million in Q3 2024, marking a 4% year-over-year increase [6][25] - GAAP income from continuing operations was $144 million, or $0.17 per diluted share, reflecting an increase of $11 million from the previous year [4][8] - Adjusted income from continuing operations was $187 million, or $0.23 per diluted share, up $4 million year-over-year [4][8] Cash Flow and Shareholder Returns - Net cash provided by operating activities was $480 million, down $18 million from the previous year, primarily due to higher cash tax disbursements [9][31] - Adjusted Free Cash Flow, including interest rate swaps, was $208 million, up $50 million year-over-year, driven by lower subscriber acquisition spending [1][9] - The company repurchased 13 million shares for $112 million during Q3, totaling 78 million shares repurchased year-to-date [5][12] Strategic Developments - ADT completed a strategic bulk purchase of approximately 15,000 customer accounts for $24 million, expected to yield attractive returns [5] - The company launched the ADT+ Alarm Range Extender to enhance its platform's capabilities and introduced new automation and AI-driven testing for app development [7] - ADT's corporate social responsibility program, ADT Safe Places, made significant donations to first responder organizations and a nonprofit supporting affordable childcare [7] Financial Outlook - The company updated its 2025 financial guidance, projecting total revenue between $5,075 million and $5,175 million, and Adjusted EBITDA between $2,665 million and $2,715 million [13][14] - The Adjusted EPS guidance was revised to a range of $0.85 to $0.89 [14]