Mar 31

ADT Q1 2025 Earnings Report

ADT reported solid Q1 2025 performance with strong cash flow, improved customer retention, and increased revenue.

Key Takeaways

ADT saw revenue climb to $1.267 billion, net income of $142 million, and Adjusted EPS of $0.21, supported by record recurring monthly revenue and customer retention.

Revenue reached $1.267 billion, up 7% from last year.

Net income from continuing operations totaled $142 million.

Record end-of-period recurring monthly revenue of $360 million.

Returned $445 million to shareholders through dividends and share repurchases.

Total Revenue
$1.27B
Previous year: $1.21B
+4.8%
EPS
$0.21
Previous year: $0.16
+31.2%
Customer Revenue Attrition
12.6%
Previous year: 13.1%
-3.8%
Recurring Monthly Revenue
$360M
Previous year: $353M
+2.0%
Revenue Payback Period
2.3
Previous year: 2.1
+9.5%
Cash and Equivalents
$4M
Previous year: $4M
+0.0%
Free Cash Flow
$226M
Previous year: $65M
+247.7%
Total Assets
$15.8B
Previous year: $15.9B
-0.7%

ADT

ADT

ADT Revenue by Segment

Forward Guidance

ADT reaffirmed its full-year 2025 guidance with expectations of continued revenue and earnings growth.

Positive Outlook

  • Revenue guidance maintained at $5.025B to $5.225B.
  • Adjusted EBITDA expected to reach up to $2.75B.
  • Adjusted EPS projected between $0.77 and $0.85.
  • Adjusted Free Cash Flow guidance of $800M to $900M.
  • Company positioned for long-term growth after solar business exit.

Challenges Ahead

  • No forward-looking GAAP metrics aside from revenue due to uncertainty.
  • Interest expense remains elevated from refinancing activities.
  • Customer acquisition costs and system asset spending remain significant.
  • Continued impact from discontinued solar operations on cash flow.
  • Unrealized losses on interest rate swaps affected net income.