Adt Inc. · NYSE:ADT
Adt — Q4 2025 Earnings Presentation
53 slides from Adt's earnings presentation, Mar 2, 2026
Slide 1: Strategy Update & 2025 Financial Results
Strategy Update & 2025 Financial Results March 2, 2026
Slide 2: Table of Contents
Table of Contents 1. 2. 3. 4. Trusted Leader Redefining Smart Delivering 2025 in Smart Home Home Security Shareholder Financial Security Value Results 2
Slide 3: 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 4: Trusted Leader in Smart Home Security
1. Trusted Leader in Smart Home Security
Slide 5: We are the trusted leader in smart home security
We are the trusted leader in smart home security • Stable recurring subscriber base generates significant durable and resilient recurring revenue 150 #1 YEARS smart home security • National footprint and scale with industry-leading of innovative protection provider1 monitoring and service infrastruc
Slide 6: Our core mission and competitive differentiators remain consistent
Our core mission and competitive differentiators remain consistent Mission PROTECT and CONNECT what matters most UNRIVALED PREMIUM INNOVATIVE SAFETY EXPERIENCE OFFERINGS Vision Provide the MOST TRUSTED PEACE OF Best-in-class Unmatched Sophisticated protection experience and technology and MIND servi
Slide 7: Our scale and capabilities are unmatched
Our scale and capabilities are unmatched Scaled nationwide monitoring and service presence Largest US-based Six UL-listed monitoring 24/7 professional centers delivering 24/7/365 monitoring footprint coverage nationwide Large, nationwide workforce of approximately 12,000 4,000 Customer care professi
Slide 8: Comprehensive set of differentiated products and services
We deliver smart home security with a comprehensive set of differentiated products and services Intrusion and Life Safety Smart Home Automation Video Monitoring Comprehensive perimeter and life-safety protection, Seamless control of locks, climate, lighting, and devices Intelligent video with AI-pow
Slide 9: ADT+ is the foundation for innovative customer experiences
ADT+ is the foundation for innovative and unique experiences tailored to our customers’ individual needs Significant expansion of ADT+ ecosystem Increasing adoption and since launch strong customer response Trusted Neighbor TM first flagship ADT+ experience Broadened device integrations including Go
Slide 10: Our core market is growing, with adjacent market opportunities
Our core market is growing, and we see significant incremental opportunities in adjacent market segments CORE HOME SECURITY REVENUE SIGNIFICANT ADJACENT TAM OPPORTUNITY IS EXPANDING1 EXPANSION OPPORTUNITIES1 Self-monitoring and equipment sales Professional monitoring $25B Standalone Small and Medium
Slide 11: Grown recurring revenue base, reduced attrition, improved acquisition efficiency
We have grown our recurring revenue base, reduced attrition, and improved subscriber acquisition efficiency RECURRING MONTHLY REVENUE ATTRITION • Stable subscriber base +9% 40 bps underpins resilient and durable improvement recurring revenue model $359M $328M 13.5% • Improved attrition resulting 13.
Slide 12: Redefining Smart Home Security
2. Redefining Smart Home Security
Slide 13: Transforming the delivery of peace of mind
We are transforming the delivery of peace of mind to accelerate growth and improve efficiency The future of peace of mind is always-on protection, combining human expertise with artificial intelligence Always-on protection AI-driven presence sensing, monitoring, and video, coupled with ADT’s human e
Slide 14: Focused initiatives to advance our strategy
We are executing focused initiatives to advance our strategy 1 2 3 Product Technology Service Service ExcellenceCustomer Technology Excellence Acquisition GROWTH LOYALTY EFFICIENCY Proprietary Best-in-class service Diverse sales channels ecosystem advanced powered by people and with expanded and by
Slide 15: ADT+ technology roadmap expands use cases and engagement
1. PRODUCT TECHNOLOGY ADT+ technology roadmap expands use cases and engagement My Safety We are innovating and expanding the ADT+ ecosystem Live Light TM Live Light illuminated sign integrated into ADT+, guides first responders in alarm events My Safety on-the-go security drives app engagement and e
Slide 16: Strengthening our SMB and DIY portfolios
1. PRODUCT TECHNOLOGY We are strengthening our SMB and DIY portfolios Providing intelligent capabilities and SMB Channel: AI Deterrence flexible acquisition models for SMB AI deterrence with real-time adaptive verbal warnings, video search capabilities, and remote video monitoring Visual verificatio
Slide 17: Ambient sensing is a significant advancement in smart home security
1. PRODUCT TECHNOLOGY Ambient sensing represents a significant advancement in smart home security AI Sensing – A New Layer of Intelligence • Interprets WiFi signals to deliver continuous awareness of presence, movement, and change, enabling proactive protection • Classifies human motion without rely
Slide 18: Presence sensing enables new safety and smart home use cases
1. PRODUCT TECHNOLOGY Presence sensing enables new safety and smart home use cases Enables new use cases and features • Extends home security to detect motion, occupancy, and human presence • Expansion into smart aging use cases such as detecting activity/ inactivity or fall detection without a wear
Slide 19: Our service footprint and response time are unmatched
2. SERVICE EXCELLENCE Our service footprint and response time are unmatched Unrivaled commitment to best-in-class Recent improvements have strengthened customer service at scale customer service and efficiency ✓ Virtual service via remote video-based 9,400 45k <10 diagnosis enabling resolution of ~5
Slide 20: Best-in-class service powered by people and strengthened by AI
2. SERVICE EXCELLENCE Our best-in-class service is powered by people and further strengthened by AI 1. Smarter customer interactions • AI expansion across chat and increasingly complex voice interactions • Interaction mapping and transcription to better understand customer needs • “Next best action”
Slide 21: Customer acquisition driven by brand, offerings, and protection
3. CUSTOMER ACQUISITION Our customer acquisition approach is driven by our strong brand, compelling offerings, and commitment to protecting customers Recent initiatives have strengthened our customer acquisition ecosystem ✓ Expanded “Tech Engineer” model to configure, sell, and install customer syst
Slide 22: Expanding routes to market and optimizing channel strategy
3. CUSTOMER ACQUISITION We are expanding our routes to market and optimizing our channel strategy Ecommerce, retail, and 3rd Sales effectiveness + AI tools Advertising efficiency party distribution • Speech analytics & AI-backed • Multiple buyer journeys and • Active presence in online and SMS to im
Slide 23: Strategic initiatives to drive growth, loyalty, and efficiency
We expect our strategic initiatives to drive GROWTH, increase brand LOYALTY, and increase customer acquisition EFFICIENCY 1 2 3 Product Technology Service Service ExcellenceCustomer Technology Excellence Acquisition GROWTH LOYALTY EFFICIENCY 2030 objectives to improve key operating metrics 7M+ Subsc
Slide 24: Delivering Shareholder Value
3. Delivering Shareholder Value
Slide 25: We have built a strong financial foundation
We have built a strong financial foundation • Durable financial performance underpinned by recurring revenue and high margins $4.3B ~85% • Strong core subscriber economics, with annualized RMR monitoring and service margin improved retention and acquisition efficiency • Substantial growth in adjuste
Slide 26: Strong growth in revenue and profitability
We have delivered strong growth in revenue and profitability TOTAL REVENUE ADJUSTED EBITDA ADJUSTED EPS ~5% CAGR ~6% CAGR $5.1B $2.7B $0.89 $2.6B $4.9B $2.5B $0.75 $4.7B $2.3B $0.60 $4.4B $2.1B $4.2B 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Steady growth in key fina
Slide 27: We have doubled our free cash flow generation
We have doubled our free cash flow generation ADJUSTED FREE CASH FLOW (including interest rate swaps) $3B+ cumulative Adjusted Free Cash Flow since 2021 21% CAGR $863M • Prioritized cash generation, with disciplined subscriber acquisition spend and $744M technology and infrastructure investments • I
Slide 28: Significantly reduced leverage and enhanced capital structure
We have significantly reduced leverage and enhanced our capital structure NET DEBT NET LEVERAGE RATIO $2.4B 1.7x Improved capital structure enabling capital allocation flexibility • Executed multiple refinancing and $9.7B 4.4x repricing transactions $7.3B 2.7x • Repaid $2.4B, including proceeds from
Slide 29: Balanced approach to capital allocation
We are committed to shareholder returns through our balanced approach to capital allocation CAPITAL RETURNS1 Capital allocation priorities $1.6 billion returned to Share repurchases shareholders since 2021 Highly attractive at recent share prices Dividends $604M Maintaining regular quarterly dividen
Slide 30: Multi-year framework enabled by 2026 initiatives and investments
Our multi-year framework is enabled by 2026 initiatives and investments 2026 Multi-Year Outlook Framework • Multi-year framework for strong revenue growth, with Total Flat ~5% adjusted EPS growing faster Revenue than revenue and adjusted FCF growing faster than adjusted EBITDA Adjusted Flat ~10% EPS
Slide 31: Value creation algorithm generates strong 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 31
Slide 32: ADT is a compelling investment for 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 33: 2025 Financial Results
4. 2025 Financial Results l aBSEEc=:
Slide 34: 2025 highlights
2025 highlights $5.1B $2.7B $0.89 Total Revenue Adjusted EBITDA Adjusted EPS Up 5% Up 4% Up 19% 2.3 years $863M 2.7x Revenue Payback Adjusted Free Cash Flow Net Leverage Ratio (incl. interest rate swaps) Up 0.1 Up 16% Down 0.2x Note: All variances are on a year-over-year basis. Reconciliations for t
Slide 35: Key full year financials
Key full year financials TOTAL REVENUE ADJUSTED EBITDA & MARGIN Highlights $ in millions $ in millions +5% +4% • Strong results; all metrics within or $4,898 $5,129 above original guidance ranges $605 $775 • Increase in revenue primarily due to $2,578 $2,680 mix of pro install outright sales and $4,
Slide 36: Additional key metrics
Additional key metrics Highlights FY25 FY24 Y/Y % • RMR reflects higher average Ending Subscriber Count 6.1M 6.4M (4%) pricing in core customer segments, offset by $2.6M End of Period RMR $359M $359M 0% reduction from Multifamily including wholesale Divestiture Gross RMR Additions $47.6M $49.7M (4%)
Slide 37: Key quarterly financials & metrics
Key quarterly financials & metrics TOTAL REVENUE ADJUSTED EBITDA & MARGIN 4Q’25 4Q’24 Y/Y % $ in millions $ in millions +1% +3% Gross RMR Additions $10.3M $11.1M (7%) $1,260 $1,276 $175 $193 Gross Unit Additions 169K 186K (9%) $653 $670 $1,085 $1,083 Net Cash SAC $277M $320M (14%) 51.8% 52.5% 4Q’24
Slide 38: Capital structure and maturity profile
Capital structure and maturity profile • 2.7x Net Leverage Ratio, down from 2.9x in prior year • Strong liquidity position with undrawn $800M revolver facility and $81M cash on hand at year end • 2025 transactions strengthened debt profile by reducing average cost of debt to 4.3% and extending $2.5B
Slide 39: Appendix
Appendix Additional Financial Information & Non- GAAP Reconciliations
Slide 40: Financial & Operating Measures
Financial & Operating Measures For the Three Months Ended For the Twelve Months Ended Dec. 31, Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30, Mar. 31, Dec. 31, Dec. 31, ($ in millions) 2025 2025 2025 2025 2024 2024 2024 2024 2025 2024 Financial Measures Monitoring and related services (M&S)
Slide 41: Adjusted Free Cash Flow Detail
Adjusted Free Cash Flow Detail For the Three Months Ended For the Twelve Months Ended Dec. 31, Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30, Mar. 31, Dec. 31, Dec. 31, ($ in millions) 2025 2025 2025 2025 2024 2024 2024 2024 2025 2024 Adjusted Free Cash Flow Adjusted EBITDA $670 $676 $674 $
Slide 42: Net Subscriber Acquisition Cost Calculation
Net Subscriber Acquisition Cost Calculation For the three months ended For the twelve months ended December 31, 2025 December 31, 2025 ($ in millions) Capitalized Non-capitalized Total Total Selling, Advertising, and Commissions $93 $68 $160 $662 Security Installation, Product, and Other Cost - $81
Slide 43: Statements of Operations
Statements of Operations (in millions, except per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 $ Change % Change 2025 2024 $ Change % Change Revenue: Monitoring and related services $ 1,083 $ 1,085 $ (2) —% $ 4,354 $ 4,293 $ 61 1% Security installation, prod
Slide 44: Balance Sheets
Balance Sheets in millions December 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 81 $ 96 Restricted cash and restricted cash equivalents 28 108 Accounts receivable, net 385 394 Inventories, net 202 197 Prepaid expenses and other current assets 250 211 Total current a
Slide 45: Statements of Cash Flows
Statements of Cash Flows Three Months Ended December 31, Twelve Months Ended December 31, in millions 2025 2024 2025 2024 Cash flows from operating activities: Net income (loss) $ 145 $ 190 $ 596 $ 501 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Slide 46: Non-GAAP Measures
Non-GAAP Measures 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 measures may be
Slide 47: 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 48: 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 49: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Historical Adjusted EBITDA (including discontinued operations) Historical Adjusted EBITDA includes results of the Company's continuing and discontinued operations and reflects the calculation of the measure prior to the Company reporting results of the commercial and
Slide 50: 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 51: 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 52: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Historical Leverage Ratios (including discontinued operations) Net Leverage Ratio (historical), Net Leverage Ratio prior to subscriber acquisition (historical), and Net Debt / Annualized RMR (historical) is calculated as the ratio of net debt to last twelve months (“
Slide 53: For More Information
For More Information +1 (888) 238-8525 investorrelations@adt.com 1501 Yamato Road Boca Raton, FL 33431 United States