Slide 1: First Quarter 2026 Earnings Presentation
First Quarter 2026 Earnings Presentation April 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: 1Q26 highlights
1Q26 highlights • Continued strong financial results and cash generation $1.3B Total Revenue • Durable recurring revenue base, supported by Up 1% $4.3 billion of annualized RMR • Solid core operating metrics, with gross revenue attrition of 13.1% and revenue payback at 2.3 years $0.23 Adjusted EPS •
Slide 4: Key quarterly financials
Key quarterly financials TOTAL REVENUE ADJUSTED EBITDA & MARGIN $ in millions $ in millions • Increase in revenue primarily +1% due to mix of pro install outright sales and average pricing, $1,267 $1,279 +2% partially offset by prior year $184 $198 Multifamily Divestiture $2,578 $2,680 $1,083 $1,083
Slide 5: Additional key metrics
Additional key metrics 1Q’26 1Q’25 Y/Y % • RMR and subscriber count Ending Subscriber Count 6.1M 6.4M (4%) decrease primarily due to Multifamily Divestiture End of Period RMR $359M $360M 0% including wholesale • RMR reflects higher average pricing Gross RMR Additions $10.1M $10.6M (4%) • Lower SAC s
Slide 6: 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 • $1.5B share repurchase • O
Slide 7: Executing focused initiatives to drive growth, strengthen brand loyalty, and improve customer acquisition efficiency
Executing focused initiatives to drive growth, strengthen brand loyalty, and improve customer acquisition efficiency 1Q26 Highlights Product Technology ✓ Origin AI acquisition ✓ MySafety and Live Light Proprietary ecosystem advanced by ✓ AI inbound call containment ambient sensing ✓ Affiliate rate r
Slide 8: Our multi-year framework is enabled by 2026 initiatives and investments
Our multi-year framework is enabled by 2026 initiatives and investments 2026 Multi-Year Outlook Framework • 2026 initiatives and investments focused on expanding TAM, enhancing Total customer loyalty, and Flat ~5% Revenue improving efficiency • Multi-year framework for strong revenue growth, with Ad
Slide 9: Our compelling value creation algorithm generates strong long-term total shareholder returns
Our compelling value creation algorithm generates strong long-term total shareholder returns Well positioned to deliver strong total shareholder returns Dividends and Continued Share Repurchases efficiency ~5% revenue improvements growth Durable recurring revenue base 9
Slide 10: ADT is a compelling investment, well-positioned for durable long-term value creation
ADT is a compelling investment, well-positioned for durable long-term value creation and strong shareholder returns • Most trusted brand in smart home security • Stable recurring subscriber base generates significant durable and resilient recurring revenue • National footprint and scale with industr
Slide 11: Appendix
Appendix Additional Financial Information & Non-GAAP Reconciliations
Slide 12: Financial & Operating Measures
Financial & Operating Measures For the Three Months Ended Mar. 31, Dec. 31, Sept. 30, Jun. 30, Mar. 31, ($ in millions) 2026 2025 2025 2025 2025 Financial Measures Monitoring and related services (M&S) $1,080 $1,083 $1,098 $1,090 $1,083 Security installation, product, and other $198 $193 $200 $197 $
Slide 13: Adjusted Free Cash Flow Detail
Adjusted Free Cash Flow Detail For the Three Months Ended Mar. 31, Dec. 31, Sept. 30, Jun. 30, Mar. 31, ($ in millions) 2026 2025 2025 2025 2025 Adjusted Free Cash Flow Adjusted EBITDA $674 $670 $676 $674 $661 Net Expensed SAC $45 $46 $61 $48 $51 Net Cash SAC (1) ($287) ($277) ($355) ($369) ($302) C
Slide 14: Net Subscriber Acquisition Cost Calculation
Net Subscriber Acquisition Cost Calculation For the three months ended For the twelve months ended March 31, 2026 March 31, 2026 ($ in millions) Capitalized Non-capitalized Total Total Selling, Advertising, and Commissions $94 $67 $161 $665 Security Installation, Product, and Other Cost - $87 $87 $3
Slide 15: Capital Structure and Maturity Profile
Capital Structure and Maturity Profile Leverage Ratios and Net Debt1 Debt Maturity Profile2 Mar. 31, Mar. 31, 2025 2026 1st Lien Notes 1st Lien Term Loan B Net Debt / Adj. EBITDA 2.9x 2.7x 1st Lien Term Loan A Net Debt / Adj. EBITDA prior to 2.7x 2.5x subscriber acquisition Net Debt / Annualized RMR
Slide 16: Statements of Operations
Statements of Operations (in millions, except per share data) Three Months Ended March 31, 2026 2025 $ Change % Change Revenue: Monitoring and related services $ 1,080 $ 1,083 $ (3) —% Security installation, product, and other 198 184 14 7% Total revenue 1,279 1,267 11 1% Cost of revenue (exclusive
Slide 17: Balance Sheets
Balance Sheets in millions March 31, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 119 $ 81 Restricted cash and restricted cash equivalents 32 28 Accounts receivable, net 368 385 Inventories, net 189 202 Prepaid expenses and other current assets 191 250 Total current asse
Slide 18: Statements of Cash Flows
Statements of Cash Flows Three Months Ended March 31, in millions 2026 2025 Cash flows from operating activities: Net income (loss) $ 168 $ 140 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and intangible asset amortization 345 340 Am
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 24: For More Information
For More Information +1 (888) 238-8525 investorrelations@adt.com 1501 Yamato Road Boca Raton, FL 33431 United States