Slide 1: Third Quarter 2025 Earnings Presentation
Third Quarter 2025 Earnings Presentation November 4, 2025
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: Table of Contents
Table of Contents • Company Overview Page 4 • Financial Results & Outlook Page 18 • Additional Financial Information Page 25 • Non-GAAP Reconciliations Page 32
Slide 4: Company Overview
Company Overview
Slide 5: ADT: Delivering Safe, Smart, Sustainable Solutions
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations ADT: Delivering Safe, Smart, Sustainable Solutions Market Leader #1 brand in smart home security with national footprint and scale Well-Positioned Opportunity to increase share in large, growing, and highly
Slide 6: Leading Brand in Home Security and Smart Home
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Leading Brand in Home Security and Smart Home Scaled Nationwide Monitoring and #1 Technical Support Presence smart home security provider1 of innovative protection 2X Home security provider MOST more users t
Slide 7: Large, Growing, Highly Attractive Markets
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Large, Growing, Highly Attractive Markets Growing Consumer Spend on Residential Security Significant Incremental Opportunity Total Annual Revenue1 Select Security and Smart Home Adjacencies Security Services
Slide 8: Business Model is Durable, Resilient, and Flexible
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Business Model is Durable, Resilient, and Flexible… Durable Recurring • Large existing subscriber base generates ~$4.3B in annualized recurring monthly revenue Revenue Base • Retention solid; implies average
Slide 9: Strong Returns on Capital Through Three Key Levers
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations … And Generates Strong Returns on Capital Through Three Key Levers… Efficient Customer Profitable Service Customer Loyalty Acquisition of Customers and Retention Long-Term Value and Cash Generation 9
Slide 10: Improved Performance Across Key Metrics
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations …With Improved Performance Across Key Metrics Recurring Monthly Revenue Installation Revenue Per Unit +16% >2x $359M ~$1,300 $310M $328M ~$975 ~$500 2019 2021 2024 2019 2021 2024 Revenue Payback Attrition Do
Slide 11: Accelerating Differentiation Through Focused Initiatives
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Accelerating Differentiation Through Focused Initiatives to Drive Growth, Profitability, and Loyalty Recent Highlights • ADT+ proprietary platform Use Cases • New security and lifestyle-oriented solutions •
Slide 12: Innovating on the new proprietary ADT+ Platform
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Innovating on the new proprietary ADT+ Platform Strengthening our Smart Home Security Offerings Trusted Neighbor launched nationally on the ADT+ platform, driving a growing percentage of sales and strong IRP
Slide 13: Delivering Top-Line Growth and Strong Free Cash Flow
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Delivering Top-Line Growth and Strong Free Cash Flow Total Revenue Adjusted EBITDA Adjusted Free Cash Flow (including interest rate swaps) +5% +5% $2.665- $5.075- $2.6B 2.715B +16% $800- 5.175B $2.5B 900M $4
Slide 14: Disciplined and Balanced Capital Allocation Framework
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Disciplined and Balanced Capital Allocation Framework Investing Strengthening Returning Capital in the Business the Balance Sheet to Shareholders • Organic RMR growth • Leverage reduction • Dividends • Produ
Slide 15: Strong Cash Flow Supports Capital Allocation Strategy
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Strong Cash Flow Supports Capital Allocation Strategy Investing in Strengthening Returning Capital the Business the Balance Sheet to Shareholders • Capital-efficient subscriber acquisition • Reduced leverage
Slide 16: Value Creation Algorithm Focused on Shareholder Returns
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Compelling Value Creation Algorithm Focused on Driving Shareholder Returns Durable Recurring Revenue Base Generating • Annuity-like ~$4.3B Significant • Stable and predictable Annualized RMR • Solid retentio
Slide 17: Investment Thesis for ADT is Strong
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Investment Thesis for ADT is Strong Large, growing, and highly resilient markets underpinned by secular tailwinds with opportunity 1 to meaningfully increase share 2 #1 brand in smart home security combined
Slide 18: Financial Results & Outlook
Financial Results & Outlook
Slide 19: 3Q25 Highlights
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations 3Q25 Highlights $1.3B $676M Total Revenue Adjusted EBITDA up 4% up 3% $0.23 2.3 years Adjusted EPS Revenue Payback up 15% up 0.1x $208M 2.8x Adjusted Free Cash Flow Net Leverage Ratio (including interest rat
Slide 20: Key Quarterly Financials
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Key Quarterly Financials Total Revenue Adjusted EBITDA & Margin Highlights $ in Millions +4% $ in Millions +3% $1,244 $1,298 • Increase in revenue primarily due to $166 $200 higher average pricing and mix of
Slide 21: Key Year-to-Date Financials
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Key Year-to-Date Financials Total Revenue Adjusted EBITDA & Margin $ in Millions +6% $ in Millions +4% $3,638 $3,852 $430 $582 $1,926 $2,010 $3,208 $3,271 52.9% 52.2% YTD 3Q’24 YTD 3Q’25 YTD 3Q’24 YTD 3Q’25
Slide 22: Additional Key Metrics
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Additional Key Metrics 3Q'25 3Q'24 Y/Y % Highlights Ending Subscriber Count 6.3M 6.4M (1%) • Higher average pricing enabling RMR growth, End of Period RMR $362M $359M 1% including wholesale despite modestly
Slide 23: Capital Structure with Balanced Maturity Profile
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Capital Structure with Balanced Maturity Profile • 2.8x Net Leverage Ratio, down from 2.9x in prior year • Strong liquidity position with undrawn $800M revolver facility and $63M cash on hand at the end of t
Slide 24: 2025 Guidance
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations 2025 Guidance • Based on performance through the end of the third quarter, the Company is updating guidance 2024 Prior Updated Midpoint ($ in millio ns, except per share data) Actual 2025 Guidance 2025 Guida
Slide 25: Additional Financial Information & Non-GAAP Reconciliations
Additional Financial Information & Non-GAAP Reconciliations
Slide 26: Financial & Operating Measures
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Financial & Operating Measures For the Three Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, ($ in millions) 2025 2025 2025 2024 2024 Financial Measures Monitoring and related services (M&S) $1,0
Slide 27: Adjusted Free Cash Flow Detail
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Adjusted Free Cash Flow Detail For the Three Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, ($ in millions) 2025 2025 2025 2024 2024 Adjusted Free Cash Flow Adjusted EBITDA $676 $674 $661 $653 $
Slide 28: Net Subscriber Acquisition Cost Calculation
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Net Subscriber Acquisition Cost Calculation For the three months ended For the twelve months ended September 30, 2025 September 30, 2025 ($ in millions) Capitalized Non-capitalized Total Total Selling, Adver
Slide 29: Statements of Operations
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Statements of Operations (in millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 $ Change % Change 2025 2024 $ Change % Change Revenue: Monitoring and
Slide 30: Balance Sheets
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Balance Sheets in millions September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 63 $ 96 Restricted cash and restricted cash equivalents 108 108 Accounts receivable, net 400
Slide 31: Statements of Cash Flows
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations Statements of Cash Flows Three Months Ended September 30, Nine Months Ended September 30, in millions 2025 2024 2025 2024 Cash flows from operating activities: Net income (loss) $ 145 $ 127 $ 451 $ 311 Adjus
Slide 32: Non-GAAP Measures
Company Overview Results & Outlook Additional Financial Information Non-GAAP Reconciliations 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
Slide 33: GAAP to Non-GAAP Reconciliations
Company Overview Results & Outlook Additional Financial Information 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
Slide 34: GAAP to Non-GAAP Reconciliations
Company Overview Results & Outlook Additional Financial Information 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 E
Slide 35: GAAP to Non-GAAP Reconciliations
Company Overview Results & Outlook Additional Financial Information 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 reflect
Slide 36: GAAP to Non-GAAP Reconciliations
Company Overview Results & Outlook Additional Financial Information 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
Slide 37: GAAP to Non-GAAP Reconciliations
Company Overview Results & Outlook Additional Financial Information 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 m
Slide 38: GAAP to Non-GAAP Reconciliations
Company Overview Results & Outlook Additional Financial Information 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