Continued strong financial results and cash generation
GAAP EPS up 25%, Adjusted EPS up 10%
GAAP Operating Cash Flows up 37%, Adjusted Free Cash Flow (including swaps) up 83%
Returned $161 million to shareholders through share repurchases and dividends
On track to achieve the full-year 2026 financial outlook
ADT, a leading provider of security, interactive and smart home solutions serving residential and small business customers in the U.S., today reported financial results for the first quarter of 2026. Financial highlights for the first quarter are below with variances on a year-over-year basis unless otherwise noted.
First quarter 2026
- Total revenue increased 1% to $1.3 billion
- Solid core operating metrics with end-of-period recurring monthly revenue (RMR) of $359 million, gross revenue attrition of 13.1%, and revenue payback at 2.3 years
- GAAP income from continuing operations of $169 million, or $0.20 per diluted share, up $27 million
- Adjusted income from continuing operations of $191 million, or $0.23 per diluted share, up $5 million
- Net cash provided by operating activities of $638 million, up $171 million; Adjusted Free Cash Flow (including interest rate swaps) of $414 million, up $187 million
“ADT delivered another quarter of solid results highlighted by strong cash generation, and returned $161 million to shareholders through share repurchases and dividends, reflecting our disciplined approach to capital allocation while continuing to invest in our future,” said Jim DeVries, ADT Chairman, President and CEO. “In addition to our acquisition of Origin AI to add proprietary ambient sensing capabilities to our portfolio, we continue to expand and add new features to our ADT+ ecosystem, which most recently include Live Light™ and MySafety. With our solid performance in the first quarter, ADT is on track to deliver our full-year 2026 outlook and create long-term shareholder value.”
Business highlights
Innovative Offerings, Unrivaled Safety and Premium Experience: ADT is undertaking focused initiatives to drive growth, strengthen brand loyalty, and improve customer acquisition efficiency while advancing its core mission of providing peace of mind. Recent progress on these initiatives is described below.
- AI sensing and ambient intelligence for the home: Acquired Origin Wireless, Inc. (“Origin AI”) in February 2026, adding revolutionary and proprietary ambient sensing capabilities to enable new privacy‑preserving security and smart home use cases. Concurrent with the acquisition, ADT established a long-term technology licensing agreement with Verisure.
- Real‑time visual alarm signaling for faster emergency response: Launched Live Light, the industry’s first illuminated, wireless yard sign, integrated with the ADT+ platform, providing immediate visual indication during alarm events to help first responders quickly identify the correct home and signaling active, professional monitoring to would-be intruders.
- Personal safety protection beyond the home: Introduced MySafety, a personal safety service embedded in the ADT+ app that extends ADT’s professional monitoring network beyond the front door, enabling customers to access real‑time safety support and peace of mind while on the go.
- Redefining smart security: ADT continues the rollout of its proprietary ADT+ platform, which comprises approximately 30% of new customer additions in the first quarter, integrating professional monitoring with Google Nest and Yale devices and capabilities such as Trusted Neighbor.
- Operational efficiency and service excellence: Expanded AI‑powered customer engagement with AI agents handling customer interactions across voice and chat, including integrated troubleshooting within the ADT+ app, improved containment rates and increased digital sales engagement.
- AI‑Enabled fleet safety: Deployed AI dash cameras across approximately 300 technician vehicles to monitor driver behavior and deliver real‑time safety alerts. Early results show significant reductions in distracted driving and cellphone usage.
- Commitment to communities and first responders: Relaunched the ADT Life Savers program with a donation to Pasco County Fire Rescue and made contributions to the Boca Raton Police Foundation and Boca‑based partner Fuller Center as part of the ADT Safe Places program.
Unlocking shareholder value: ADT is focused on continuing to generate significant cash flow, enabling direct capital returns to shareholders while maintaining a healthy balance sheet.
- Share repurchases: In March, ADT’s Board of Directors announced a $1.5 billion share repurchase plan. During the quarter, the company repurchased and retired 18 million shares of its common stock for an aggregate price of $116 million.
- S&P SmallCap 600® addition: Effective Feb. 9, 2026, ADT was added to the S&P SmallCap 600 index. This important milestone underscores the company’s strong performance and successful alignment with the index’s rigorous criteria.
Results of operations
Total revenue was $1,279 million for the first quarter, up 1%. Monitoring and related services (M&S) revenue reflects higher average pricing, offset by revenue loss from the October 2025 divestiture of the multifamily business. Security installation, product, and other revenue increased primarily due to a higher mix of professionally installed systems under the outright sales model, in connection with the transition to the ADT+ platform and refined ownership go-to-market approach.
Income from continuing operations was $169 million, or $0.20 per diluted share, for the first quarter, up $27 million. This was primarily attributable to a loss recovery from a legal settlement and lower net interest expense due to a decrease in unrealized losses on interest rate swaps, partially offset by an increase in allowance for credit losses. Adjusted income from continuing operations was $191 million, or $0.23 per diluted share, for the first quarter, up $5 million, driven by the same factors noted above, excluding the impact of interest rate swaps. Earnings per share metrics also benefited from lower weighted-average shares outstanding as a result of share repurchases.
Balance sheet and cash flow
For the first quarter, net cash provided by operating activities was $638 million, up $171 million and Adjusted Free Cash Flow (including interest rate swaps) was $414 million, up $187 million. These measures benefited primarily from lower cash interest, and the timing of payroll-related disbursements and other payments and receipts.
Total cash and cash equivalents as of March 31, 2026, were $119 million and no amounts were outstanding under the company’s First Lien Revolving Credit Facility.
The company returned $161 million of capital to shareholders during the quarter, including dividend payments of $45 million, and $116 million of share repurchases, retiring 18 million repurchased shares.
2026 financial outlook
ADT continues to expect Adjusted Free Cash Flow (including interest rate swaps) growth of approximately 20% versus the prior year, with revenue and Adjusted EPS approximately flat. This outlook reflects recent and continued prioritization of cash flow, share repurchases and disciplined subscriber-acquisition spending. It also reflects planned 2026 investments in growth initiatives expected to benefit future periods, as well as anticipated tariffs.
Dividend declaration
Effective April 30, 2026, the company’s Board of Directors declared a cash dividend of $0.055 per share to holders of the ADT’s common stock and Class B common stock of record as of June 11, 2026. This dividend will be paid on July 7, 2026.
Read the complete earnings report with financial results and complete tables with footnotes.
Conference call
As previously announced, management will host a conference call at 10 a.m. ET today to discuss the company’s first quarter 2026 results and lead a question-and-answer session. Participants may listen to a live webcast through the Investor Relations website. A replay of the webcast will be available on the website within 24 hours of the live event.
Alternatively, participants may listen to the live call by dialing 1-800-715-9871 (domestic) or 1-646-307-1963 (international), and providing the access code 4948265. An audio replay will be available for one week following the call, and can be accessed by dialing 1-800-770-2030 (domestic) or 1-609-800-9909 (international), and providing the access code 4948265.
A slide presentation highlighting the company’s results will also be available on the Investor Relations website. From time to time, ADT may use its website as a channel of distribution of material company information. Financial and other material information regarding the company is routinely posted on and accessible on the Investor Relations website.
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About ADT
ADT is a leading provider of security, interactive and smart home solutions serving residential and small business customers in the U.S. Through innovative offerings, unrivaled safety and a premium customer experience delivered by the largest network of smart home security professionals in the U.S., ADT empowers people to protect and connect to what matters most, every second, every day. For more information, visit ADT.com.
Forward-looking statements
ADT has made statements in this press release 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 be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, the Company’s capital allocation priorities and commitments; the Company’s expected future financial results, including the Company’s financial outlook and/or guidance and multi-year targets, which include Total Revenue, Adjusted Diluted Income (Loss) per Share (“Adjusted EPS”), Adjusted Free Cash Flow (including interest rate swaps) and Net Leverage Ratio; the Company’s partnership programs and the bulk purchase of customer accounts; initiatives with respect to the Company’s products and services, including ADT+ and the integration of Origin AI’s presence sensing technology, and the expected benefits and capabilities of such products and services; the Company’s development, deployment, and integration of AI in its products, services, and operations, including AI-driven customer interactions, virtual agents, operational efficiencies, and home intelligence capabilities; the Company’s Remote Assistance program; the payment of any dividend to the Company’s stockholders; and the expectations, plans and objectives of management; any stated or implied outcomes with regard to the foregoing; and other matters. Without limiting the generality of the preceding sentences, any time we use the words “ongoing,” “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “possible,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “potential,” “outlook,” “goals,” “objectives,” “targets,” “planned,” “projects,” and, in each case, their negative or other various or comparable terminology, and similar expressions, we intend to clearly express that the information deals with possible future events and is forward-looking in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. We caution that these statements are subject to risks and uncertainties, many of which are outside of the Company’s control and could cause future events or results to be materially different from those stated or implied in this press release, including, among others, risks and uncertainties related to the Company’s divestiture of its commercial business (the “Commercial Divestiture”) and the Company’s exit from its residential solar business (the “ADT Solar Exit”); the Company’s ability to successfully integrate the acquisition of Origin AI and realize expected benefits of the acquisition; the Company’s ability to execute on transformation initiatives, including technology initiatives related to artificial intelligence and whole-home intelligence; the Company’s ability to maintain and grow the Company’s existing customer base, including the conversion of customers who continue to utilize outdated technology, and to integrate strategic bulk purchases of customer accounts; activity in repurchasing shares of ADT’s common stock under the Company’s current share repurchase plan; dividend rates or yields for any future quarter; the impact of cyber attacks or related breaches with respect to information technology systems, cybersecurity, or data security involving the Company, our business partners, or other third parties whose systems are interconnected with ours, and any future or still undetected attacks or incidents; any material changes to the valuation allowances the Company takes with respect to its deferred tax assets; any changes in regulations or laws, global, economic, sovereign, political, or financial conditions, including labor and tax law changes or any impacts on the global economy or consumer discretionary spending due to tariffs or otherwise, changes to privacy requirements, changes to telemarketing, email marketing and similar consumer protection laws, interest volatility, and trade tariffs and restrictions applicable to the products we sell; the Company’s dependence on third-party providers, suppliers, and dealers to enable it to produce and distribute its products and services in a cost-effective manner that protects the Company’s brand; the Company’s ability to effectively implement its strategic partnership with, and utilize any of the amounts invested by, Google; the Company’s ability to expand ADT+ and achieve expected adoption and customer engagement; risks related to the Company's use of AI in its products, services, and operations, including evolving legal and regulatory requirements, technological limitations, potential liability, and reputational concerns; the expected shift in the Company's transaction mix (including increased outright equipment sales) and the related effects on the timing and mix of revenue and costs; and risks that are described in the Company’s most recently filed Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in those reports, and in the Company’s other filings with the SEC. Any forward-looking statement made in this press release speaks only as of the date on which it is made. ADT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, unless required by law.