ADT Inc

adt.com

What Do They Do?

Sells security systems, alarm monitoring, and smart-home services to residential customers and small businesses.

How Do They Make Money?

Customers pay monthly or quarterly in advance for monitoring and related services, and pay fees for system sales and installation, sometimes through installment plans. For systems ADT retains, customers also pay a one-time initiation fee.

revenue

Segment	Share	How money arrives
Recurring monthly revenue Recurring	82% FY2022: 90%	Recurring
Other related services Recurring	2.7% FY2022: 2.5%	Recurring
Amortization of deferred subscriber acquisition revenue	7.0% FY2022: 5.4%
Installation revenue Sold outright	8.1% FY2022: 2.1%	Sold outright

Who Are Their Customers?

Residential customers and small businesses buy directly through ADT’s phone and field sales teams, website, and other retail channels. Residential customers can also buy through independent dealers, who sell and install equipment and ADT-branded services.

Do Revenues Turn Into Profits?

Yes. It kept 12 cents of every revenue dollar as net income in FY2025 and turned 33 cents into free cash flow.

Operating income, FY2025

26% of revenue

▲ +8% vs FY2024 ($1.2B, 25%)

Net income, FY2025

12% of revenue

▲ +19% vs FY2024 ($501.1M, 10%)

Free cash flow, FY2025

33% of revenue

▼ −1% vs FY2024 ($1.7B, 35%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +2%; vs $1.3B in Q2 FY2025
Net income: ▼ −7%; vs $165.2M in Q2 FY2025

Recurring monthly revenue share of revenue vs 82.1% in Q2 FY2025

Jul 30, 2026 ADT raised its full-year financial outlook The company cited its year-to-date performance.
Apr 30, 2026 ADT acquired Origin AI The acquisition added ambient-sensing capabilities and included a long-term technology licensing agreement with Verisure.

Growing. Revenue grew 22% in 4 years, from $4.2B in FY2021 to $5.1B in FY2025, about 5% a year.

Portfolio narrowed The older report described residential and small-business security alongside commercial systems and residential solar; the latest describes security and smart-home services for residential and small-business customers after the Commercial Divestiture and ADT Solar Exit.

ADT+ spans installation models ADT+ has shifted from an app for self-setup products toward a shared platform for professionally installed and self-installed security offerings.

Revenue over time

Recurring monthly revenue Other related services Amortization of deferred subscriber acquisition revenue Installation revenue

$10B$5B$0

FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with SimpliSafe Home Security Systems, Comcast, Vivint Smart Home, Monitronics International, Amazon, Roku, Arlo Technologies, and Wyze Home Monitoring

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