ADT (ADT) Q4 2024 earnings summary

Executive summary

• Achieved $4.9 billion in total revenue for 2024, up 5% year-over-year, with record recurring monthly revenue, strong customer retention, and adjusted net income of $685 million, up 25%.

• Adjusted EBITDA reached $2.6 billion, up 4%, and Adjusted EPS rose 25% to $0.75; GAAP EPS increased 40% year-over-year.

• Returned $423 million to shareholders via dividends and share repurchases, with a new $500 million repurchase plan for 2025.

• Launched the ADT+ platform nationwide, introduced innovative services like Trusted Neighbor, and received industry recognition for innovation and customer service.

• Transitioned focus to core security and smart home business after winding down solar and commercial operations.

Financial highlights

• Adjusted Free Cash Flow (including interest rate swaps) rose 42% to $744 million for 2024; Q4 adjusted free cash flow was $224 million.

• Adjusted EBITDA margin remained strong at 53% for the year.

• Installation, product, and other revenue increased 28% to $605 million; outright sales revenue up 50% for the year.

• Gross revenue attrition improved to a record low of 12.7% due to superior customer service and retention.

• GAAP income from continuing operations was $619 million, up 38% year-over-year.

Outlook and guidance

• 2025 guidance: total revenue of $5.025–$5.225 billion, Adjusted EBITDA of $2.65–$2.75 billion, Adjusted EPS of $0.77–$0.85, and Adjusted Free Cash Flow of $800–$900 million.

• Focus on expanding the ADT+ platform, optimizing sales process, and driving efficiency in subscriber acquisition cost.

• Announced a new $500 million share repurchase plan through April 2026 and declared a quarterly dividend of $0.055 per share.