ADT (ADT) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 grew 4% year-over-year to $1.3 billion, with adjusted EBITDA up 3% to $676 million and adjusted EPS up 15% to $0.23 per share.

• Net income for Q3 2025 was $145 million, with diluted EPS from continuing operations at $0.17.

• Adjusted Free Cash Flow reached $709 million year-to-date, up 36%, and $208 million in Q3, up 32%.

• Returned $746 million to shareholders year-to-date through share repurchases and dividends.

• Completed divestiture of the multifamily business for $56 million in October 2025.

Financial highlights

• Monitoring and related services revenue up 2% year-over-year to $1.10 billion; installation and product revenue up 21% to $200 million.

• Adjusted EBITDA margin was 52% for Q3 2025.

• Gross subscriber additions were 210,000, adding $12.5 million in RMR; gross RMR and unit additions declined year-over-year.

• Gross margin for Q3 2025 was approximately 81%.

• End-of-period recurring monthly revenue (RMR) was $362 million, up 1% year-over-year.

Outlook and guidance

• 2025 guidance: total revenue $5.075–$5.175 billion, adjusted EBITDA $2.665–$2.715 billion, adjusted EPS $0.85–$0.89, adjusted free cash flow $800–$900 million.

• On track to achieve full-year 2025 guidance metrics despite macroeconomic headwinds.

• Management expects outright sales to increase as a proportion of direct channel transactions.

• Company anticipates continued cost pressures from inflation and supply chain, offset by cost-saving initiatives and price increases.

• No material impact expected from recent ownership change for tax attributes; evaluating OBBBA tax reform.