ADT

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how ADT (NYSE:ADT) and the rest of the consumer discretionary - specialized consumer services stocks fared in Q2. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to serve customers better. The 9 consumer discretionary - specialized consumer services stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 1% above. While some consumer discretionary - specialized consumer services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.3% since the latest earnings results. Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE:ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection. ADT reported revenues of $1.31 billion, up 2% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a satisfactory quarter for the company with EPS in line with analysts’ estimates. “ADT delivered another quarter of solid performance reflecting the resilience of our business model. Strong cash generation supported significant capital returns to shareholders, including elevated share repurchases, underscoring our disciplined approach to capital allocation while continuing to invest in the business,” said ADT Chairman, President and CEO, Jim DeVries. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $7.37. Is now the time to buy ADT? Access our full analysis of the earnings results here, it’s free. Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses. H&R Block reported revenues of $1.14 billion, up 3% year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with full-year revenue and EBITDA guidance beating analysts’ expectations. H&R Block pulled off the biggest analyst estimate beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 11.9% since reporting. It currently trades at $52.24. Is now the time to buy H&R Block? Access our full analysis of the earnings results here, it’s free. Originally a death care company, Matthews International (NASDAQ:MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies. Matthews reported revenues of $246 million, down 29.6% year on year, falling short of analysts’ expectations by 7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations. Matthews delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. As expected, the stock is down 20% since the results and currently trades at $22.13. Read our full analysis of Matthews’s results here. Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ:POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products. Pool reported revenues of $1.82 billion, up 2.2% year on year. This print met analysts’ expectations. More broadly, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and full-year EPS guidance missing analysts’ expectations. The stock is flat since reporting and currently trades at $195.78. Read our full, actionable report on Pool here, it’s free. Established in 1991, Carriage Services (NYSE:CSV) is a provider of funeral and cemetery services in the United States. Carriage Services reported revenues of $102.9 million, flat year on year. This number lagged analysts’ expectations by 5.5%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ EPS estimates. The stock is down 16.8% since reporting and currently trades at $34.46. Read our full, actionable report on Carriage Services here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Interested in ADT Inc.? Here are five stocks we like better. ADT reported modest growth but significantly stronger cash generation: Second-quarter revenue rose 2% to $1.3 billion, while adjusted free cash flow increased 48% to $406 million. The company returned $684 million to shareholders in the first half, including $594 million in share repurchases and $90 million in dividends. The company modestly raised its full-year outlook to approximately 2% revenue growth, 2% adjusted EPS growth and roughly 30% adjusted free-cash-flow growth, while warning that higher taxes and the expiration of favorable interest-rate swaps could create $50 million to $100 million headwinds each in 2027. ADT is shifting toward lower-cost growth and technology initiatives: It is expanding the ADT+ platform through its dealer network, rolling out the self-installed ADT Blu offering and using AI to reduce human-agent contacts and service tickets by nearly 20%. Subscriber additions softened amid reduced affiliate reliance, but direct residential and small-business channels continued to grow organically. Game-changing news for Ambarella puts the market in reversal ADT (NYSE:ADT) reported second-quarter 2026 revenue growth of 2% to $1.3 billion, while highlighting stronger cash generation, shareholder returns and continued investment in its ADT+ technology platform, artificial intelligence tools and lower-cost customer acquisition channels. Chairman, President and Chief Executive Officer Jim DeVries said the company generated adjusted free cash flow, including interest-rate swaps, that rose nearly 50% from a year earlier. ADT returned $684 million to shareholders during the first half of 2026, including $594 million used to repurchase and retire 86 million shares and $90 million in dividends. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now ADT also repurchased 29 million shares in connection with Apollo’s secondary offering during the quarter. Apollo sold its remaining ADT holdings and is no longer a shareholder, DeVries said. Chief Financial Officer Jeff Likosar said adjusted free cash flow, including interest-rate swaps, totaled $406 million in the second quarter, up $133 million, or 48%, from the prior year. First-half adjusted free cash flow reached $820 million, an increase of more than $300 million, or 64%. → Microsoft Just Flipped the AI Spending Narrative Overnight Likosar attributed the cash-flow improvement primarily to working-capital timing, lower cash taxes and interest expense, and lower subscriber acquisition spending. He also cited tax-planning progress and working-capital management. Total revenue increased 2% to $1.3 billion. Monitoring and services revenue declined 1%, reflecting the loss of revenue from the multifamily business ADT divested in October 2025. Installation revenue increased 17% to $230 million, driven by a greater mix of outright equipment sales. Adjusted EBITDA was $671 million. Adjusted income from continuing operations was $180 million, or $0.23 per diluted share, flat from a year earlier. Year-to-date adjusted EPS was $0.47, up $0.03. ADT ended the quarter with recurring monthly revenue of $360 million. Net debt was approximately $7.4 billion, equating to leverage of 2.8 times adjusted EBITDA, with a weighted average borrowing cost of about 4.3%. The company’s $800 million revolving credit facility was undrawn. → Carrier Earnings Could Send the Stock to a New All-Time High The company modestly raised its full-year outlook. ADT now expects revenue to grow about 2%, adjusted EPS to rise 2%, and adjusted free cash flow to increase approximately 30%. Likosar said the cash-flow outlook reflects tax planning and working-capital management, while noting the company expects higher cash taxes and cash interest expense in 2027. Likosar said higher taxes and the expiration of favorable interest-rate swaps could each create a $50 million to $100 million headwind next year, though the company plans to continue seeking ways to optimize its cash generation. ADT added 190,000 gross new subscribers during the quarter, representing $11.9 million of recurring monthly revenue. Gross additions were lower than the prior-year quarter, when the company completed a bulk acquisition of approximately 50,000 accounts, compared with a 10,000-account bulk purchase in the latest quarter. DeVries said that excluding the difference in bulk purchases, ADT had roughly 10,000 fewer additions than in the second quarter of 2025. He attributed the decline to reduced reliance on high-cost affiliate channels and softness in the dealer channel, including one dealer in particular. However, he said the company’s direct “do it for me” residential business posted high-single-digit organic growth year to date, while small and medium-sized business additions were up about 4% organically from the prior year. Net cash subscriber acquisition costs were $345 million, down 7%, primarily due to fewer bulk purchases. Trailing 12-month attrition was 13.1%, flat sequentially, and revenue payback held at 2.3 years. DeVries said relocation losses were flat and voluntary cancellations improved from last year, while non-payment cancellations were modestly higher. He cited improvements in customer-service metrics, lower turnover among retention personnel, tighter credit standards and changes to proactive retention offers as factors that could support retention over time. The company said about 30% of new customer additions in the first half were on the ADT+ platform. ADT has started rolling out the platform to its dealer network, initially launching in the Western region and beginning deployment in the Eastern region. Chief Business Officer Omar Khan said the migration of dealers to ADT+ is expected to take three to four quarters. Since dealers account for about one-third of additions, he said benefits from the conversion should phase in over roughly nine to 12 months. ADT also launched ADT Blu, a lower-cost, self-installed security offering available through telephone and online channels, including Amazon. Khan said the offering includes plans beginning at about $10 per month for video-only service, while professionally monitored security packages begin at $34.99, depending on equipment choices. While the company described the rollout as early, Khan said initial data showed a majority of ADT Blu customers selecting full security packages that include sensors and a base system. Likosar said the company expects returns on subscriber acquisition spending for self-install customers to be similar to those targeted for other offerings, despite lower average pricing because acquisition costs are also lower. DeVries said ADT plans to expand its Amazon presence and increase advertising for ADT Blu in the second half, with volume expected to begin increasing in the third and fourth quarters. ADT also reported progress in using AI for customer service. DeVries said AI-based call routing and virtual agents helped the company handle nearly 20% fewer customer contacts through human agents and reduce service tickets by a similar amount, while customer satisfaction improved. During the third quarter, ADT plans to begin transcribing and analyzing sales and service calls, expand virtual-agent engagement through SMS, and deploy AI-enabled fleet safety technology. The company also expects customer pilots for a Wi-Fi-based smart plug using privacy-preserving presence-sensing technology to begin in the fall, ahead of a planned early-2027 launch. ADT Inc is a leading provider of security and automation solutions for residential and commercial customers. The company offers a comprehensive suite of products and services, including intrusion detection systems, video surveillance, fire and carbon monoxide monitoring, and integrated smart home automation platforms. Through professional installation, continuous monitoring, and a network of 24/7 monitoring centers, ADT helps customers protect their properties, assets and loved ones. Founded in 1874 as the American District Telegraph Company, ADT has evolved from one of the first telegraph-based alarm services into a modern security technology enterprise. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ADT Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Total Revenue: $1.3 billion, up 2% year-over-year. Monitoring and Services Revenue: Down 1% year-over-year. Installation Revenue: $230 million, up 17% year-over-year. Ending Recurring Monthly Revenue (RMR): $360 million. Adjusted EBITDA: $671 million. Adjusted Net Income: $180 million. Adjusted Earnings Per Diluted Share (EPS): $0.23, flat year-over-year. Adjusted Free Cash Flow (including interest rate swaps): $406 million, up 48% year-over-year. Gross Subscriber Additions: 190,000 new subscribers. Net Cash SAC (Subscriber Acquisition Cost): $345 million, down 7% year-over-year. Trailing 12-Month Attrition: 13.1%, flat sequentially. Revenue Payback: 2.3 years. Share Repurchases: 86 million shares repurchased in the first half of 2026. Dividends: $90 million returned to shareholders in the first half of 2026. Net Debt: Approximately $7.4 billion. Leverage: 2.8x adjusted EBITDA. Warning! GuruFocus has detected 5 Warning Signs with ADT. Is ADT fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted free cash flow surged 48% year-over-year to $406 million, driven by working capital management and tax planning. Direct DIFM residential subscriber additions grew high single digits, and SMB additions rose mid-single digits, showing organic strength. AI initiatives reduced human-agent customer contacts by nearly 20% and service tickets similarly, while improving customer satisfaction. ADT Blue, a new low-cost DIY security solution, launched successfully with strong customer uptake, including a majority choosing the fully monitored package. Company raised full-year 2026 outlook for revenue, adjusted EPS, and free cash flow, reflecting solid first-half performance. Gross RMR additions fell 17% year-over-year, and gross unit additions declined 22%, partly due to fewer bulk purchases and dealer channel softness. Attrition remained flat at 13.1%, with modest pressure from non-payment cancellations, though voluntary cancels improved. Dealer channel and affiliate channel volumes declined as the company intentionally dialed back expensive acquisition channels. Higher cash taxes and interest expenses are expected in 2027, creating potential headwinds for free cash flow. Installation revenue growth was driven by a shift to outright equipment sales, which may not be sustainable long-term as the transition completes. Q: Gross RMR additions fell 17% year-over-year and gross unit additions declined 22%, which you attributed largely to fewer dealer and bulk account purchases. How much of the current pressure reflects intentional changes to your acquisition strategy versus underlying end market demand? And what does the path back to gross additions growth look like?A: Jim DeVries, CEO: The biggest difference between this quarter and Q2 of last year is related to unit bulks. We completed a 10,000 unit bulk this quarter versus a 50,000 unit bulk in Q2 of last year. Absent the difference in bulk, we had about 10,000 fewer adds this quarter, attributable to two things: dialing back our reliance on expensive channels like affiliate channels, and softness in our dealer channel. Our core DIFM business is up high single digits year-to-date, and SMB is up organically about 4% over last year. The underlying engine feels excellent, but it will take a little time to replace the volume from affiliate and dealer softness. Q: As you think about improving retention rates and service costs and customer economics, those attributes are central to the ADT+ thesis. With the dealer rollout beginning in the second half of this year, when would you expect ADT+ platform adoption to become large enough to produce measurable improvement in attrition, service costs and customer lifetime value?A: Omar Khan, Chief Business Officer: We began rolling out ADT+ to dealers at the beginning of this month. The initial feedback from the dealer community has been very positive. It will be about a three to four quarter migration of the dealer community across the board. Since about one-third of our adds come from the dealer community, you will see the benefit phasing in over the next 9 to 12 months. Q: There is really strong momentum in free cash flow. Could you help parse out some of the tailwinds from working capital, tax planning, and lower SAC? Also, could you provide preliminary color on how to think about increased interest expense and cash taxes in '27 and the free cash flow trajectory over the midterm?A: Jeff Likosar, CFO: The most significant reason we increased our outlook is progress on tax planning initiatives. On a year-to-date basis, we are up a little more than $300 million. About half of that is working capital management, including discrete items from payroll timing, inventory, and payables. We also benefited from not making a material cash tax payment this year. For 2027, we expect to become a pure cash taxpayer, and our upcoming refinancing next year is at 3.375%, which we likely won't be able to match. Both of those items are probably $50 million to $100 million each of headwind next year. Q: Could you share any initial feedback from the ADT Blue launch? And as this scales, how do you think about the ARPU and SAC for ADT Blue compared to your more traditional customer acquisition channel?A: Omar Khan, Chief Business Officer: It is still very early. The ARPU is lower because we have plans starting at around $10 per month for video only, but initial results show a majority of customers adopting the fully monitored security package, which prices higher at $34.99 and above. While the overall ARPU is lower, we are trending higher than the general market in terms of adoption of full security packages. Jeff Likosar, CFO: The economics we seek on our self-install offerings are very similar with respect to the returns we will generate on the SAC we deploy, because the subscriber acquisition cost is also much lower. Q: Could you unpack attrition and the trends and drivers there? Also, could you comment on the impact of non-pay cancellations and any retention benefits you are seeing from ADT+ or increasing engagement with the ecosystem?A: Jim DeVries, CEO: We ended the quarter with attrition at 13.1%, flat sequentially. If we zoom into the last three months, we are actually flat to last year. Relocation losses were flat. There was modest pressure from nonpayment cancellations, which were higher than last year but only modestly so. Voluntary cancels were better than last year, and we are seeing the benefit of that in our customer service metrics. Canceled demand is down modestly, and leading indicators like team stability and customer service metrics are all moving in the right direction. Q: You highlighted nearly 20% fewer customer contacts by human agents and a similar reduction in service tickets from AI initiatives. Could you provide more context on which AI applications have the highest ROI and how much of that benefit is already showing up versus the opportunity over the next 12 to 24 months?A: Jim DeVries, CEO: Most of our focus in AI so far has been around the call center, call routing technology, and virtual AI agents. We are in the middle innings now and beginning to focus on call transcription, two-way SMS, and deploying Gemini across the enterprise as an employee productivity tool. Omar Khan, Chief Business Officer: On the product side, over three-quarters of our code generated by our product software team was generated and accepted from AI. The AI features from Origin, including motion intelligence and alarm event intelligence, will be rolling out starting in the first half of 2027. Q: You talked about rationalizing marketing spend in your highest cost channels, which has temporarily impacted subscriber adds. Do you expect to increase adds in other channels to offset this? Or is this a change in go-to-market strategy?A: Jim DeVries, CEO: That is the objective. The core do-it-for-me business is up high single digits year-to-date, and SMB is mid-single digits. We have optimism from a unit add perspective related to ADT+ expansion, more assertive advertising, advances in AI technology and the Origin product, and the DIY entry with ADT Blue. We are just getting to e-commerce and talking to a handful of retail partners, and we are generally optimistic on gross adds from DIY. Q: On installation revenue, the acceleration there is significant. Can you give us a sense of how much outright system sales are contributing to that acceleration?A: Jeff Likosar, CFO: Total installation revenue in the quarter was up 17%. Outright sales were up about 30%. The main driver is our transition away from the historic model where we generally retained ownership of the equipment. With the launch of ADT+, we began transitioning equipment ownership to the customer. I would expect to continue to see higher growth in outright sales in the third and fourth quarter, after which we will have largely completed the transition, so less For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ADT (ADT) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.55%. A quarter ago, it was expected that this home security company would post earnings of $0.21 per share when it actually produced earnings of $0.23, delivering a surprise of +9.52%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. ADT, which belongs to the Zacks Security and Safety Services industry, posted revenues of $1.31 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.56%. This compares to year-ago revenues of $1.29 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ADT shares have lost about 8.2% since the beginning of the year versus the S&P 500's gain of 6.9%. While ADT has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ADT was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $1.3 billion in revenues for the coming quarter and $0.91 on $5.16 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Security and Safety Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Cadre Holdings, Inc. (CDRE), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -3.3%. The consensus EPS estimate for the quarter has been revised 8.6% higher over the last 30 days to the current level. Cadre Holdings, Inc.'s revenues are expected to be $178.39 million, up 13.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ADT Inc. (ADT) : Free Stock Analysis Report Cadre Holdings, Inc. (CDRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Continued strong cash generation GAAP Operating Cash Flows up 18%, Adjusted Free Cash Flow (including swaps) up 48% Returned $684 million to shareholders through share repurchases and dividends in first half of the year Raising full year 2026 financial outlook based on year-to-date performance BOCA RATON, Fla., July 30, 2026 (GLOBE NEWSWIRE) -- ADT Inc. (NYSE: ADT), a leading provider of security, interactive, and smart home solutions serving residential and small business customers in the U.S., today reported results for the second quarter of 2026. Financial highlights for the second quarter are set forth below with variances on a year-over-year basis unless otherwise noted. Total revenue increased 2% to $1.3 billion Solid core operating metrics with end-of-period recurring monthly revenue (RMR) of $360 million, gross revenue attrition of 13.1%, and revenue payback at 2.3 years GAAP income from continuing operations of $155 million, or $0.19 per diluted share, down $13 million Adjusted income from continuing operations of $180 million, or $0.23 per diluted share, down $12 million Net cash provided by operating activities of $666 million, up $102 million; Adjusted Free Cash Flow (including interest rate swaps) of $406 million, up $133 million “ADT delivered another quarter of solid performance reflecting the resilience of our business model. Strong cash generation supported significant capital returns to shareholders, including elevated share repurchases, underscoring our disciplined approach to capital allocation while continuing to invest in the business,” said ADT Chairman, President and CEO, Jim DeVries. “We continue to advance our strategy by expanding the capabilities and reach of our ADT+ platform, progressing the development and integration of our proprietary ambient sensing technology, and launching ADT Blu to broaden our channel reach and self-service offerings. Concurrently, we remain focused on improving attrition trends as we navigate a dynamic and competitive environment. We are well positioned to build on our progress through the second half of the year and deliver on our 2026 outlook while creating long-term shareholder value.” Business Highlights Innovative Offerings, Unrivaled Safety and Premium Experience: The Company 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. Broadening customer choice and market reach – Launched ADT Blu, a self-installed security solution that combines the convenience of DIY setup with the flexibility of the ADT+ platform and optional professional monitoring, while expanding customer reach through new channels such as Amazon. Advancing AI-powered customer service – Continued to scale AI-powered customer service capabilities, including AI-driven call routing and virtual AI agents, to improve issue resolution, streamline customer interactions, and enhance the customer experience. These efforts, together with digital self-service initiatives, also improved service efficiency across customer support operations. Leadership in presence sensing technology – Continued progress on commercialization of Wi‑Fi-based sensing capabilities, including initial manufacturing of smart plug device, supporting the development of innovative privacy-preserving security and smart home use cases powered through the ADT+ platform. Industry leadership in connected home standards – Joined the Board of Directors of the Connectivity Standards Alliance (CSA), reinforcing ADT’s role in advancing industry standards and helping shape the future of connected living and advancing interoperable smart home standards. Recognized for customer trust and excellence – ADT received multiple 2026 recognitions from ConsumerAffairs, Newsweek, and TIME for customer service, brand trust, product quality, and overall company performance, reinforcing its leadership position and commitment to delivering exceptional customer experiences. Unlocking Shareholder Value: The Company is focused on continuing to generate significant cash flow, enabling direct capital returns to shareholders while maintaining a healthy balance sheet. Share repurchases – During the second quarter, the Company repurchased and retired 68 million shares of its common stock for an aggregate price of $478 million, including 29 million shares repurchased in connection with a secondary offering of 102 million shares of common stock by Apollo. Following the completion of the offering, Apollo no longer owns shares of the Company’s common stock. Strategic bulk account purchase – The Company completed a bulk purchase of approximately 10,000 customer accounts for $18 million cash. Results of Operations (1)(2) Total revenue was $1,312 million for the second quarter, up 2%. The increase was primarily driven by higher security installation, product, and other revenue due to an increase in the mix of professionally installed systems under the outright sales model. Monitoring and related services (M&S) revenue reflects the revenue loss from the October 2025 divestiture of the multifamily business. Income from continuing operations was $155 million, or $0.19 per diluted share, for the second quarter, down $13 million. This was primarily attributable to higher selling, general, and administrative expenses partially offset by increased revenue net of related costs. Adjusted income from continuing operations was $180 million, or $0.23 per diluted share, for the second quarter, down $12 million, driven primarily by the same factors noted. In addition to the factors above, earnings per share metrics benefited from a lower weighted-average diluted share count as a result of share repurchases. Balance Sheet and Cash Flow For the second quarter, net cash provided by operating activities was $666 million, up $102 million and Adjusted Free Cash Flow (including interest rate swaps) was $406 million, up $133 million. These measures benefited primarily from lower cash taxes and working capital discipline. Adjusted Free Cash Flow also benefited from lower spending on subscriber acquisition. In May, the Company secured an additional $100 million of incremental borrowings under its First Lien Term Loan A due 2030, further enhancing financial flexibility. Total cash and cash equivalents as of June 30, 2026 were $4 million and no amounts were outstanding under the Company’s First Lien Revolving Credit Facility. The Company returned $523 million of capital to shareholders during the quarter, including $478 million of share repurchases and $45 million of dividend payments. Through the end of the second quarter, the Company has repurchased 86 million shares returning $684 million to shareholders through share repurchases and dividends. As of June 30, 2026, the Company has $906 million remaining available for repurchases. 2026 Financial Outlook (3) Based on performance through the end of the second quarter and expected progress during the second half of the year, the Company is raising its 2026 financial outlook and now projects Adjusted Free Cash Flow (including interest rate swaps) growth of approximately 30% versus the prior year, Total Revenue growth of approximately 2% versus the prior year, and Adjusted EPS growth of approximately 2% versus the prior year. This outlook reflects recent and continued prioritization of cash flow, share repurchases, and disciplined subscriber acquisition spending as well as investments in growth initiatives expected to benefit future periods. Dividend Declaration Effective July 30, 2026, the Company’s Board of Directors declared a cash dividend of $0.055 per share to holders of the Company’s common stock and Class B common stock of record as of September 10, 2026. This dividend will be paid on October 1, 2026. Conference Call As previously announced, management will host a conference call at 10 a.m. ET today to discuss the Company’s second quarter 2026 results and conduct a question-and-answer session. Participants may listen to a live webcast through the investor relations website at investor.adt.com. Alternatively, participants may listen to the live call by dialing 1-833-461-5787 (toll-free) or 1-585-542-9983 and providing the access code 130714042. A replay of the webcast will be available on the website within 24 hours after the event. A slide presentation highlighting the Company’s results will also be available on the Investor Relations section of the Company’s website. From time to time, the Company 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 at investor.adt.com. About ADT Inc. 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 www.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+, ADT Blu, Origin AI’s presence sensing technology, and the expected benefits and capabilities of such products and services; the Company’s ability to successfully execute and scale its DIY offerings; 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 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. Note: amounts may not sum due to rounding Note: amounts may not sum due to rounding Note: amounts may not sum due to rounding 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 considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The following information includes definitions of the Company’s non-GAAP financial measures used in this release, reasons management believes these measures are useful to investors regarding the Company’s financial condition and results of operations, additional purposes, if any, for which management uses the non-GAAP financial measures, and limitations to using these non-GAAP financial measures, as well as reconciliations of these non-GAAP financial measures to the most comparable GAAP measures. Each non-GAAP financial measure is presented following the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The limitations of non-GAAP financial measures are best addressed by considering these measures in conjunction with the appropriate GAAP measures. In addition, computations of these non-GAAP measures may not be comparable to other similarly titled measures reported by other companies. With regard to the Company’s financial outlook for 2026 and long-range framework, the Company is not providing quantitative reconciliations for forward-looking Adjusted EPS to GAAP diluted income (loss) per share from continuing operations or Adjusted Free Cash Flow (including interest rate swaps) to GAAP net cash provided by operating activities, which are the most directly comparable respective GAAP measures. These GAAP measures cannot be reliably predicted or estimated without unreasonable effort due to their dependence on future uncertainties, such as the adjustment of items used in the following reconciliations. Additionally, information not currently available to the Company about other adjusting items could have a potentially unpredictable and potentially significant impact on future GAAP financial results. Unless otherwise noted, non-GAAP measures herein reflect the results of the Company’s continuing operations. 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 to include accounts purchased through the Company’s network of authorized dealers or third parties outside of the Company’s authorized dealer network, subscriber system asset expenditures, and purchases of property and equipment. These items are subtracted from cash flows from operating activities because they represent long-term investments that are required for normal business activities. The Company defines Adjusted Free Cash Flow as Free Cash Flow adjusted for net cash flows related to (i) net proceeds or payments from the Company’s consumer receivables facility; (ii) restructuring and integration payments; (iii) integration-related capital expenditures; and (iv) transaction costs and other payments or receipts that may mask operating results or business trends. Adjusted Free Cash Flow including interest rate swaps reflects Adjusted Free Cash Flow plus net cash settlements on interest rate swaps presented outside of net cash provided by (used in) operating activities. The Company believes the presentations of these non-GAAP measures are appropriate to provide investors with useful information about the Company’s ability to repay debt, pay dividends, repurchase shares, and make other investments. The Company believes the presentation of Adjusted Free Cash Flow is also a useful measure of the cash flow attributable to normal business activities, inclusive of the net cash flows associated with the acquisition of subscribers, as well as the Company’s ability to repay debt, pay dividends, repurchase shares, and make other investments. Further, Adjusted Free Cash Flow including interest rate swaps is a useful measure of Adjusted Free Cash Flow inclusive of all cash interest. There are material limitations to using these non-GAAP measures. These non-GAAP measures adjust for cash items that are ultimately within management’s discretion to direct, and therefore, may imply that there is less or more cash available than the most comparable GAAP measure. These non-GAAP measures are not intended to represent residual cash flow for discretionary expenditures since debt repayment requirements and other non-discretionary expenditures are not deducted. Note: amounts may not sum due to rounding (1)   During 2026, primarily includes costs related to the Origin AI Acquisition.(2)   For the periods presented, primarily includes net outflows related to the former Solar business.(3)   Includes net settlements related to interest rate swaps presented outside of net cash provided by (used in) operating activities. 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) depreciation and amortization, including depreciation of subscriber system assets and other fixed assets and amortization of dealer and other intangible assets; (iv) amortization of deferred costs and deferred revenue associated with subscriber acquisitions; (v) share-based compensation expense; (vi) merger, restructuring, integration, and other items; (vii) impairment charges; and (viii) other non-cash or non-routine adjustments not necessary to operate our business. The Company believes Adjusted EBITDA is useful to investors to measure the operational strength and performance of its business. The Company believes the presentation of Adjusted EBITDA is useful as it provides investors additional information about operating profitability adjusted for certain non-cash items, non-routine items the Company does not expect to continue at the same level in the future, as well as other items not core to its operations. Further, the Company believes Adjusted EBITDA provides a meaningful measure of operating profitability because the Company uses it for evaluating business performance, making budgeting decisions, and comparing company performance against other peer companies using similar measures. There are material limitations to using Adjusted EBITDA as it does not include certain significant items which directly affect income (loss) from continuing operations (the most comparable GAAP measure). The discussion above is also applicable to Adjusted EBITDA margin, which is calculated as Adjusted EBITDA as a percentage of total revenue. Note: amounts may not sum due to rounding (1)   During 2026, primarily includes costs related to restructuring expenses.(2)   Includes the unrealized gain or loss on interest rate swaps presented in other income (expense). 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 (loss) from continuing operations adjusted for (i) share-based compensation expense; (ii) merger, restructuring, integration, and other items; (iii) impairment charges; (iv) unrealized (gains) or losses on interest rate swaps; (v) other non-cash or non-routine adjustments not necessary to operate our business; and (vi) the impact these items have on taxes. The Company defines Adjusted EPS as diluted income (loss) from continuing operations per share adjusted for the per share amounts related to (i) share-based compensation expense; (ii) merger, restructuring, integration, and other items; (iii) impairment charges; (iv) unrealized (gains) or losses on interest rate swaps; (v) other non-cash or non-routine adjustments not necessary to operate our business; and (vi) the impact these items have on taxes. Adjusted EPS equals Adjusted Income (Loss) divided by diluted weighted-average shares outstanding of common stock as calculated in accordance with GAAP. When the control number for the GAAP calculation is negative, diluted weighted-average shares outstanding of common stock does not include the assumed conversion of Class B common stock and other potential shares, such as share-based compensation awards, to shares of common stock. The Company believes Adjusted Income (Loss) and Adjusted EPS are benchmarks used by analysts and investors who follow the industry for comparison of our performance with other companies in the industry, although these measures may not be directly comparable to similar measures reported by other companies. The Company believes the presentation of Adjusted EPS is useful to investors as it provides additional information about how our management evaluates the business. Management and the Board also use Adjusted EPS to evaluate the performance of employees (including members of management) and the Company as a whole, as well as to allocate resources. There are material limitations to using these measures, as they do not reflect certain significant items which directly affect income (loss) from continuing operations and related per share amounts (the most comparable GAAP measures). Note: amounts may not sum due to rounding. (1)   During 2026, primarily includes costs related to restructuring expenses.(2)   Primarily includes unrealized (gains) or losses on interest rate swaps presented in interest expense, net and other income (expense).(3)   Represents the tax impact on adjustments using the federal and state blended statutory rate. (4)   Refer to the Company’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K for further discussion regarding the computation of diluted weighted-average shares outstanding of Common Stock.(5)   Includes the impact related to the two-class method of EPS. Refer to the Company’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. ADT (ADT) is back on investors’ radar as RBC Capital Markets expects in line second quarter results and a reiterated 2026 outlook, keeping attention on the company’s customer acquisition efforts and broader growth initiatives. See our latest analysis for ADT. At a share price of $6.90, ADT has seen a 4.70% 30 day share price return but is still down 13.86% year to date. The 3 year total shareholder return of 15.75% contrasts with a 1 year total shareholder return that declined 15.67%, suggesting recent momentum has cooled even as longer term holders remain ahead of where they were three years ago. If ADT’s recent moves have you reassessing your watchlist, it can help to see what else is out there and compare business models side by side using 18 top founder-led companies ADT offers a long established security business and a recent share price that has struggled this year. The key issue now is whether that mix results in a compelling valuation or a stock that is already fairly priced. The most followed valuation narrative for ADT pegs fair value at $8.21 per share versus the recent $6.90 close, highlighting a gap that stands out to investors tracking the stock. Read the complete narrative. Want to understand why this narrative sees room above today’s price? It leans heavily on cash flow durability, measured profitability and a tighter view on long term revenue pressure. Result: Fair Value of $8.21 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this ADT narrative still faces clear risks, particularly if refinancing its debt strains cash generation or the ADT Blu DIY rollout fails to gain real traction. Find out about the key risks to this ADT narrative. With sentiment on ADT split between concerns and optimism, it makes sense to move quickly and review the underlying data yourself, starting with the 3 key rewards and 1 important warning sign. Do not stop with ADT. Give yourself options by lining up a few high quality ideas that fit your risk comfort and return goals using focused stock screens. Target stable growth potential by reviewing companies filtered as solid balance sheet and fundamentals stocks screener (49 results) that aim to pair financial resilience with room to expand. Zero in on compelling pricing by scanning 47 high quality undervalued stocks that may offer a margin of safety while still maintaining solid business fundamentals. Aim for upside others might overlook by checking the screener containing 20 high quality undiscovered gems that sit off the mainstream radar but pass strict fundamental checks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ADT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]