ADT (ADT) Q2 2025 earnings summary

Executive summary

• Revenue grew 7% year-over-year to $1.3B, with record recurring monthly revenue of $363M and a stable 6.4M subscriber base.

• Net income from continuing operations rose 33% to $168M, with adjusted EPS up 35% to $0.23.

• Adjusted EBITDA for Q2 was $674M, up 7% year-over-year, with margin steady at 52%.

• Completed exit from the Solar business and made a strategic acquisition of 50,000 subscribers for $89M.

• Customer satisfaction and retention remained strong, with attrition at 12.8% and record NPS.

Financial highlights

• Total revenue for Q2 2025 was $1.3B (+7%); adjusted EBITDA $674M (+7%); adjusted EPS $0.23 (+35%).

• Monitoring and related services revenue up 2% to $1.09B; installation and product revenue up 44% to $197M.

• Adjusted free cash flow (including swaps) was $274M for Q2 and $500M year-to-date, up 38%.

• Net cash from operating activities for the first half was $1.03B, up $104M year-over-year.

• Gross margin for Q2 2025 was approximately 80.6%.

Outlook and guidance

• 2025 guidance reiterated: total revenue $5.025–$5.225B, adjusted EBITDA $2.65–$2.75B, adjusted EPS $0.81–$0.89, and adjusted free cash flow $800–$900M.

• Guidance reflects durable RMR base, higher outright sales mix, and efficiency improvements.

• Third quarter adjusted EBITDA and EPS expected to be similar or slightly lower than Q2; larger sequential decline in adjusted free cash flow due to timing of cash interest.

• Tariff exposure and macroeconomic risks expected to be manageable within guidance.

• Company expects to maintain strong liquidity and meet all operational and debt obligations over the next twelve months.