$ADT

ADT Inc.

CIK:0001703056|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Total revenue	$ 1,312,285	$ 1,287,035	$ 2,590,814	$ 2,554,526
Total cost of revenue	263,549	250,186	506,404	490,308
Selling, general, and administrative expenses	385,907	356,138	750,676	724,738
Depreciation and intangible asset amortization	346,938	338,734	692,424	678,251
Operating income (loss)	315,891	341,977	641,310	661,229
Interest expense, net	(102,266)	(115,798)	(200,647)	(236,677)
Other income (expense)	2,259	803	2,685	(4,061)
Income (loss) from continuing operations before income taxes	215,884	226,982	443,348	420,491
Income tax benefit (expense)	(60,817)	(58,749)	(118,930)	(109,781)
Income (loss) from continuing operations	155,067	168,233	324,418	310,710
Income (loss) from discontinued operations, net of tax	(1,217)	(3,054)	(2,194)	(5,285)
Net income (loss)	$ 153,850	$ 165,179	$ 322,224	$ 305,425
Common Stock
Income (loss) from continuing operations per share - basic (in dollars per share)	$ 0.20	$ 0.20	$ 0.41	$ 0.37
Income (loss) from continuing operations per share - diluted (in dollars per share)	0.19	0.19	0.39	0.35
Net income (loss) per share - basic (in dollars per share)	0.20	0.20	0.41	0.36
Net income (loss) per share - diluted (in dollars per share)	$ 0.19	$ 0.18	$ 0.38	$ 0.34
Weighted-average shares outstanding - basic (in shares)	706,307	777,635	732,864	792,748
Weighted-average shares outstanding - diluted (in shares)	765,384	839,951	793,536	855,559
Class B Common Stock
Income (loss) from continuing operations per share - basic (in dollars per share)	$ 0.20	$ 0.20	$ 0.41	$ 0.37
Income (loss) from continuing operations per share - diluted (in dollars per share)	0.19	0.19	0.39	0.35
Net income (loss) per share - basic (in dollars per share)	0.20	0.20	0.41	0.36
Net income (loss) per share - diluted (in dollars per share)	$ 0.19	$ 0.18	$ 0.38	$ 0.34
Weighted-average shares outstanding - basic (in shares)	54,745	54,745	54,745	54,745
Weighted-average shares outstanding - diluted (in shares)	54,745	54,745	54,745	54,745
Monitoring and related services
Total revenue	$ 1,082,111	$ 1,090,241	$ 2,162,587	$ 2,173,345
Total cost of revenue	156,471	161,928	312,161	319,778
Security installation, product, and other
Total revenue	230,174	196,794	428,227	381,181
Total cost of revenue	$ 107,078	$ 88,258	$ 194,243	$ 170,530

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ 322,224	$ 305,425
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and intangible asset amortization	692,424	678,269
Amortization of deferred subscriber acquisition costs	136,609	122,507
Amortization of deferred subscriber acquisition revenue	(179,132)	(178,489)
Share-based compensation expense	32,214	32,170
Deferred income taxes	17,845	2,488
Provision for losses on receivables and inventory	117,826	100,882
Loss on extinguishment of debt	0	6,443
Goodwill, intangible, and other asset impairments	0	1,504
Unrealized (gain) loss on interest rate swap contracts	17,159	41,876
Other non-cash items, net	33,190	38,607
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Deferred subscriber acquisition costs	(193,857)	(188,690)
Deferred subscriber acquisition revenue	98,272	115,365
Other, net	209,680	(47,832)
Net cash provided by (used in) operating activities	1,304,454	1,030,525
Cash flows from investing activities:
Dealer generated customer accounts and bulk account purchases	(239,008)	(330,997)
Subscriber system asset expenditures	(169,637)	(209,188)
Purchases of property and equipment	(95,162)	(83,052)
Acquisition of businesses, net of cash acquired	(163,739)	0
Proceeds (payments) from interest rate swaps	1,079	(1,378)
Other investing, net	(394)	2,056
Net cash provided by (used in) investing activities	(666,861)	(622,559)
Cash flows from financing activities:
Proceeds from long-term borrowings	249,700	730,000
Repayment of long-term borrowings, including call premiums	(246,872)	(650,489)
Proceeds from receivables facility	103,256	146,623
Repayment of receivables facility	(130,416)	(114,752)
Proceeds (payments) from interest rate swaps	24,386	34,163
Repurchases of common stock, including excise tax	(600,009)	(495,111)
Dividends on common stock	(89,908)	(95,998)
Payments on finance leases	(15,282)	(14,456)
Other financing, net	(12,951)	431
Net cash provided by (used in) financing activities	(718,096)	(459,589)
Cash and cash equivalents and restricted cash and restricted cash equivalents:
Net increase (decrease)	(80,503)	(51,623)
Beginning balance	108,540	204,065
Ending balance	$ 28,037	$ 152,442

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 3,875	$ 80,817
Restricted cash and restricted cash equivalents	24,162	27,723
Accounts receivable, net of allowance for credit losses of $73,556 and $63,841, respectively	373,035	384,909
Inventories, net	183,658	201,778
Prepaid expenses and other current assets	179,630	250,325
Total current assets	764,360	945,552
Property and equipment, net	283,653	243,398
Subscriber system assets, net	2,695,659	2,790,879
Intangible assets, net	4,806,674	4,817,996
Goodwill	4,991,601	4,885,574
Deferred subscriber acquisition costs, net	1,508,923	1,451,841
Other assets	688,186	683,271
Total assets	15,739,056	15,818,511
Current liabilities:
Current maturities of long-term debt	240,524	310,204
Accounts payable	191,624	106,980
Deferred revenue	245,144	243,724
Accrued expenses and other current liabilities	430,698	352,040
Total current liabilities	1,107,990	1,012,948
Long-term debt	7,447,063	7,379,430
Deferred subscriber acquisition revenue	2,061,789	2,083,580
Deferred tax liabilities	1,298,254	1,267,329
Other liabilities	346,520	296,614
Total liabilities	12,261,616	12,039,901
Commitments and contingencies (See Note 12)
Stockholders' equity:
Preferred stock—authorized 1,000,000 shares of $0.01 par value; zero issued and outstanding as of June 30, 2026 and December 31, 2025	0	0
Additional paid-in capital	6,104,965	6,679,222
Accumulated deficit	(2,667,945)	(2,907,255)
Accumulated other comprehensive income (loss)	33,084	(1,556)
Total stockholders' equity	3,477,440	3,778,610
Total liabilities and stockholders' equity	15,739,056	15,818,511
Common Stock
Stockholders' equity:
Common stock	6,789	7,652
Class B Common Stock
Stockholders' equity:
Common stock	$ 547	$ 547