Reconciliations to the most comparable GAAP measures are included in the earnings presentation on our website. Non-GAAP cash flow measures include amounts related to our former solar business through 2Q 2024. Adjusted EBITDA grew 3% to $676 million, with adjusted earnings per diluted share of $0.23, up a strong 15% year-over-year. Cash flow continues to be a highlight, with Adjusted Free Cash Flow, including interest rate swaps, reaching $709 million year-to-date.

We ended the third quarter with a recurring monthly revenue balance of $362 million, up 1% year-over-year. Turning to attrition, earlier this year, ADT achieved record levels, and this quarter, we ticked up to 13%. Jeff will provide more specific details about our results and full-year outlook later in our call. Our product and engineering teams are firing on all cylinders in coordination with our strategic partners to drive a continued pipeline of innovative releases.

I remain confident in ADT's outlook and our ability to deliver on our commitments for 2025. I will take the next few minutes to share some additional details on our third quarter and year-to-date results and our outlook for the rest of the year. In the third quarter, we generated $208 million of Adjusted Free Cash Flow, including swaps, up 32%, and we have generated $709 million year-to-date, up 36%. Year-to-date, we have generated adjusted earnings per share of $0.67, up 20%.

What went well
  • Total revenue grew 4% to $1.3 billion and adjusted diluted EPS rose 15% year-over-year to $0.23.
  • Adjusted free cash flow including swaps was $208 million in the quarter (up 32%) and $709 million year-to-date (up 36%).
  • Returned $746 million to shareholders year-to-date through the repurchase of 78 million shares and dividends.
  • Installation revenue grew 21% to $200 million on the mix shift to higher-priced outright ADT+ sales.
  • Completed a major refinancing: a new $1 billion eight-year bond and $300 million term loan add-on repaid the $1.3 billion 2028 second-lien notes, extending ~$2.5 billion of maturities and lowering borrowing cost to 4.3% with leverage at 2.8x.
  • AI and remote-service initiatives progressed, with remote assistance eliminating roughly half of in-home service calls and nearly half of AI chat interactions resolved without a live agent.
What went wrong
  • Attrition ticked up to 13%, above the company's budget.
  • Gross subscriber additions of 210,000 were down year-over-year, driven mainly by fewer bulk account purchases (~15,000 accounts versus ~49,000 a year earlier).
  • New subscriber and RMR adds were lower as ADT stayed disciplined on SAC spend amid cautious consumer sentiment and low relocation activity.
  • Recurring monthly revenue grew only 1% year-over-year to $362 million.
  • Adjusted EBITDA rose just 3% to $676 million.
  • The company lowered its adjusted EBITDA guidance midpoint (offsetting a slightly higher EPS midpoint), citing SAC expense/capitalization mix and a delayed planned legal recovery.

More on ADT Inc.

Reported 2025-11-04 · figures from the ADT Inc. Q3 2025 earnings call.

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