Slide 1: Second Quarter 2026 Earnings Presentation
Second Quarter 2026 Earnings Presentation July 30, 2026
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures ADT has made statements in this presentation that are forward-looking and therefore subject to risks and uncertainties, including those described below. All statements, other than statements of historical fact, included in this document are, or could
Slide 3: 2Q26 highlights
2Q26 highlights • Continued strong cash generation with YTD Adj. Free Cash Flow (incl. swaps) of $820 million $1.3B Total Revenue • Durable recurring revenue base, supported by $4.3 billion of annualized RMR Up 2% • Continued solid core operating metrics, with gross revenue attrition of 13.1% and re
Slide 4: Key quarterly financials
Key quarterly financials TOTAL REVENUE ADJUSTED EBITDA & MARGIN $ in millions $ in millions +2% • Increase in revenue primarily $1,312 due to mix of pro install outright $1,287 Flat $197 $230 sales partially offset by prior year Multifamily Divestiture $2,578 $2,680 $1,090 $1,083 $1,082 $1,080 $674
Slide 5: Key year to date financials
Key year to date financials TOTAL REVENUE ADJUSTED EBITDA & MARGIN $ in millions $ in millions +1% +1% $2,555 $2,591 $381 $428 $1,334 $1,344 $2,680 $2,578 $2,173 $1,083 $2,163 $1,080 52.1% 52.2% 54.9% 51.9% YTD 2Q’25 YTD 2Q’26 YTD 2Q’25 YTD 2Q’26 Monitoring and Related Services Security Installation
Slide 6: Additional key metrics
Additional key metrics 2Q’26 2Q’25 Y/Y % • Subscriber count and RMR decrease primarily due to Ending Subscriber Count 6.1M 6.4M (5%) Multifamily Divestiture End of Period RMR $360M $363M (1%) • Direct unit and RMR additions including wholesale roughly inline with prior year; fewer dealer and bulk pu
Slide 7: Disciplined capital allocation driving durable shareholder value
Disciplined capital allocation driving durable shareholder value Returning Capital Investing Strengthening to Shareholders in the Business the Balance Sheet Deliver predictable, sustainable returns Fund high-return growth with discipline Preserve flexibility, reduce risk • $906 million remaining on
Slide 8: Executing focused initiatives to drive growth, strengthen brand loyalty, and improve customer acquisition efficiency
Executing focused initiatives to drive growth, strengthen brand loyalty, and improve customer acquisition efficiency 1H26 Accomplishments Product Technology ✓Origin AI acquisition Proprietary ecosystem ✓ADT Blu launch with Amazon / e-tail availability advanced by ambient ✓MySafety and Live Light lau
Slide 9: Advancing product technology and innovation through ADT Blu and presence sensing
Advancing product technology and innovation through ADT Blu and presence sensing ADT Blu Presence Sensing (Origin AI) Self-installed security pairing DIY convenience with the ADT+ Wi-Fi-based sensing that detects human presence without platform and optional professional monitoring cameras or wearabl
Slide 10: 2026 financial outlook
2026 financial outlook Based on performance through the end of the second quarter and expected progress during the second half of the year, the Company is updating 2026 outlook 2026 Outlook (versus prior year) 2025 Prior Updated Actual Total $5.1B Flat Revenue Up ~2% Adjusted $0.89 Flat Up ~2% EPS (
Slide 11: Our compelling value creation algorithm generates strong long-term total shareholder returns
Our compelling value creation algorithm generates strong long-term total shareholder returns Well positioned to deliver strong total shareholder returns Dividends and Continued Share Repurchases efficiency ~5% revenue improvements growth Durable recurring revenue base 11
Slide 12: ADT is a compelling investment, well-positioned for durable long-term value creation
ADT is a compelling investment, well-positioned for durable long-term value creation and strong shareholder returns • Most trusted brand in smart home security • Stable recurring subscriber base generates significant durable and resilient recurring revenue • National footprint and scale with industr
Slide 13: Appendix
Appendix Additional Financial Information & Non-GAAP Reconciliations
Slide 14: Financial & Operating Measures
Financial & Operating Measures For the Three Months Ended Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30, ($ in millions) 2026 2026 2025 2025 2025 Financial Measures Monitoring and related services (M&S) $1,082 $1,080 $1,083 $1,098 $1,090 Security installation, product, and other $230 $198 $193 $200 $
Slide 15: Adjusted Free Cash Flow Detail
Adjusted Free Cash Flow Detail For the Three Months Ended Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30, ($ in millions) 2026 2026 2025 2025 2025 Adjusted Free Cash Flow Adjusted EBITDA $671 $674 $670 $676 $674 Net Expensed SAC $40 $45 $46 $61 $48 Net Cash SAC (1) ($345) ($287) ($277) ($355) ($369) C
Slide 16: Net Subscriber Acquisition Cost Calculation
Net Subscriber Acquisition Cost Calculation For the three months ended For the twelve months ended June 30, 2026 June 30, 2026 ($ in millions) Capitalized Non-capitalized Total Total Selling, Advertising, and Commissions $100 $74 $173 $676 Security Installation, Product, and Other Cost - $107 $107 $
Slide 17: Capital Structure and Maturity Profile
Capital Structure and Maturity Profile Leverage Ratios and Net Debt1 Debt Maturity Profile2 Jun. 30, Jun. 30, 2026 2025 1st Lien Notes 1st Lien Term Loan B Net Debt / Adj. EBITDA 2.8x 2.8x 1st Lien Term Loan A Net Debt / Adj. EBITDA prior to 2.6x 2.6x subscriber acquisition Net Debt / Annualized RMR
Slide 18: Statements of Operations
Statements of Operations (in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 $ Change % Change Revenue: Monitoring and related services $ 1,082 $ 1,090 $ (8) (1)% $ 2,163 $ 2,173 $ (11) —% Security installation, product, an
Slide 19: Balance Sheets
Balance Sheets in millions June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 4 $ 81 Restricted cash and restricted cash equivalents 24 28 Accounts receivable, net 373 385 Inventories, net 184 202 Prepaid expenses and other current assets 180 250 Total current assets
Slide 20: Statements of Cash Flows
Statements of Cash Flows Three Months Ended June 30, Six Months Ended June 30, in millions 2026 2025 2026 2025 Cash flows from operating activities: Net income (loss) $ 154 $ 165 $ 322 $ 305 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciati
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ADT sometimes uses information (“non-GAAP financial measures”) that is derived from the consolidated financial statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under SEC rules, non-GAAP financial
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash Flow including interest rate swaps The Company defines Free Cash Flow as cash flows from operating activities less cash outlays related to capital expenditures. The Company defines capital expenditures t
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted EBITDA from Continuing Operations ("Adjusted EBITDA") and Adjusted EBITDA Margin from Continuing Operations ("Adjusted EBITDA Margin") The Company defines Adjusted EBITDA as income (loss) from continuing operations adjusted for (i) interest; (ii) taxes; (iii
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Income (Loss) from Continuing Operations (“Adjusted Income (Loss)”) and Adjusted Diluted Income (Loss) per Share from Continuing Operations (“Adjusted Diluted Income (Loss) per Share” or “Adjusted EPS”) The Company defines Adjusted Income (Loss) as income (l
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Leverage Ratios Net Leverage Ratio, Net Leverage Ratio prior to subscriber acquisition, and Net Debt / Annualized RMR are calculated as the ratio of net debt to last twelve months (“LTM”) Adjusted EBITDA from continuing operations, LTM Adjusted EBITDA from continuing
Slide 26: For More Information
For More Information +1 (888) 238-8525 investorrelations@adt.com 1501 Yamato Road Boca Raton, FL 33431 United States