Financial Data and Key Metrics Changes - ADT reported a record recurring monthly revenue balance of €363 million, up 2% year over year [6] - Total revenue increased by 7% to $1.3 billion, with adjusted earnings per diluted share rising by 35% to $0.23 [7][17] - Adjusted free cash flow for the first half reached $500 million, up 38% [7][16] - Customer retention remained solid with attrition at 12.8%, down 10 basis points from last year [7][46] Business Line Data and Key Metrics Changes - Monitoring and services revenue grew by 2%, driven by the record RMR balance [17] - Installation revenue increased by $60 million to $197 million, attributed to the shift towards the ADT plus platform [17] - The company added 242,000 new subscribers, contributing $14.3 million in new RMR [18] Market Data and Key Metrics Changes - The Nest Aware subscriber base surpassed 1 million, indicating strong collaboration with Google [11] - The State Farm partnership generated slightly over 30,000 subscribers, with plans for a new approach targeting prospective movers [12][26] Company Strategy and Development Direction - ADT's strategic focus includes optimizing and completing the rollout of new capabilities and offerings [8] - The company aims to enhance customer experience through innovative products like Alarm Messenger and Trusted Neighbor [9][10] - Continued investment in core monitoring capabilities and technology to ensure 100% uptime [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 objectives despite macroeconomic uncertainties [20][57] - The company is monitoring tariff pressures closely but believes it can manage exposure within guidance ranges [56] - Management remains optimistic about long-term attrition improvements and customer satisfaction metrics [49] Other Important Information - ADT completed a strategic customer portfolio acquisition of approximately 50,000 subscribers for $89 million [7] - The company returned $589 million to shareholders year-to-date through share repurchases and dividends [7][19] Q&A Session Summary Question: Bulk account purchase attractiveness - Management highlighted that the recent bulk account purchase was economically attractive due to high density and good credit scores of the accounts [24] Question: Update on State Farm partnership - Management acknowledged that subscriber growth from the State Farm partnership was below expectations but is working on a new approach focused on movers [26] Question: Incremental value from bulk purchases - Management confirmed a well-established playbook for converting bulk customers, with a focus on high-density accounts and quality equipment [32][34] Question: Trusted Neighbor product feedback - Initial feedback on the Trusted Neighbor product has been positive, with significant installation revenue reported [38] Question: Sales process optimization - Management discussed ongoing efforts to optimize sales processes, including the introduction of tech engineers for simultaneous sales and installations [43] Question: Drivers of attrition - Management provided insights into attrition drivers, noting modest increases in nonpayment cancellations and a focus on improving customer satisfaction [46][49] Question: Macro environment impact - Management described the business as resilient, with a modest increase in nonpay cancellations being monitored closely [55][57] Question: Subscriber growth and market share - Management remains bullish on core DIFM business and is making changes to compete more effectively in the DIY space [62][63]

Financial Data and Key Metrics Changes - ADT reported a record recurring monthly revenue balance of €363 million, up 2% year over year [6] - Total revenue increased by 7% to $1.3 billion [17] - Adjusted earnings per diluted share rose by 35% to $0.23 [7] - Adjusted free cash flow for the first half reached $500 million, up 38% [7][16] - Customer retention remained solid with attrition at 12.8%, down 10 basis points from last year [7][48] Business Line Data and Key Metrics Changes - Monitoring and services revenue increased by 2%, driven by the record RMR balance [17] - Installation revenue rose to $197 million, up $60 million, attributed to the shift towards the ADT plus platform [17] - New subscriber additions totaled 242,000, contributing $14.3 million in new RMR [18] Market Data and Key Metrics Changes - The Nest Aware subscriber base surpassed 1 million customers, indicating strong collaboration with Google [12] - The State Farm partnership generated slightly more than 30,000 subscribers, with plans for a new approach targeting prospective movers [12][13] Company Strategy and Development Direction - ADT's strategic focus areas include optimizing and completing the rollout of new capabilities and offerings [8] - The company aims to enhance customer experience through innovative offerings like the Trusted Neighbor program and the ADT plus platform [11][12] - Continued investment in core monitoring capabilities and new technologies to reduce false alarms and improve service efficiency [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 objectives despite macroeconomic uncertainties [20][58] - The company noted a modest increase in non-payment cancellations but remains optimistic about long-term attrition improvements [50][55] - Management reaffirmed full-year guidance for total revenue, adjusted EBITDA, and adjusted free cash flow, while increasing adjusted EPS guidance [20][58] Other Important Information - ADT completed a strategic customer portfolio acquisition of approximately 50,000 subscribers for $89 million [7] - The company returned $589 million to shareholders year-to-date through share repurchases and dividends [7][19] Q&A Session Summary Question: Bulk account purchase details - The bulk account purchase of 50,000 accounts was economically attractive due to high density and good credit scores, with a strong pipeline for future acquisitions [24][25] Question: Update on State Farm partnership - The partnership has generated around 33,000 subscribers, with a new focus on prospective movers to improve traction [27][28] Question: Incremental value from bulk purchases - The company has a well-established playbook for converting bulk customers, focusing on high-density accounts and quality equipment [32][34] Question: Feedback on Trusted Neighbor product - Initial feedback has been positive, with Trusted Neighbor representing over 10% of installations and higher average installation revenue [37][38] Question: Sales process and optimization initiatives - The company is focusing on a new sales process involving tech engineers to improve installation revenue and customer experience [43][44] Question: Drivers of attrition - Attrition was influenced by modestly higher non-payment cancellations and lower relocation losses, with overall performance remaining stable [47][50] Question: Macro environment impact - The business model is resilient, with management monitoring non-payment trends and tariff pressures closely [55][56] Question: Subscriber growth and market share strategies - The company is optimistic about its core DIFM business and is making changes to compete more effectively in the DIY space [63][64]