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olivLaw · US equity research

ADT Inc. ADT

Services-Detective, Guard & Armored Car Services · SIC 7381 · Vertical: Services-Detective, Guard & Armored Car Services (SIC 7381)

9.90USD+0.51% · 1 dayClose 04 Nov 2026

ADT Inc. is a major provider of security, interactive and smart home solutions for residential and small business customers in the United States, with roughly 6.1 million monitoring subscribers at the end of 2025. The company is shifting toward a platform model built on its ADT+ app and AI-based presence sensing, while the first half of 2026 was dominated by cash generation and capital returns to shareholders.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, ADT Inc. (ADT) stock was 9.90 USD (+0.51% on the day), with market capitalisation 7.5 bn USD, P/E 12.2 on diluted EPS of -0.57 USD over the last 12 months, dividend yield 2.22%, beta 0.68, 52-week range 6.08–9.90 USD. Latest reported quarter (Q3 2026): revenue of 1.3 bn USD (+3.9% YoY), net income of 150.6 m USD (+3.8% YoY).

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
7.5 bn USD
shares as of 29 Jul 2020
P/E (TTM)
12.2
Diluted EPS TTM -0.57 · TTM to 31 Dec 2019
E/P (TTM)
-5.76%
TTM to 31 Dec 2019
Dividend yield
2.22%
DPS 12m 0.22
Beta (2y)
0.68
Volatility (1y) 42%
52-week range
6.089.90

Price history

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Technical reading

RSI (14)
87.8
overbought (≥ 70)
Bollinger (20, 2)
4.84 – 10.25
in the upper half of the band · %B 0.93 · band width 71.6%
SMA 50 / 200
7.12 / 7.11
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.80 / 0.44
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+59.4%−1.1%+60.5 pp—
3 months+28.6%−0.5%+29.0 pp—
6 months+41.8%+4.4%+37.4 pp—
Year to date+22.7%+12.3%+10.4 pp—
1 year+22.5%+13.5%+9.0 pp−36.8%
3 years+61.5%+76.4%−14.9 pp+67.4%
5 years+9.5%+63.7%−54.2 pp—
Max drawdown (1y)
−27.4%
13 Nov 2025 → 30 Sept 2026
Max drawdown (5y)
−49.2%
09 Nov 2021 → 04 May 2023
Compound annual growth (5y)
+1.8%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
1.3 bn USD
+3.9% YoY
Net income
150.6 m USD
+3.8% YoY
Diluted EPS
unavailable
unavailable YoY
net / operating
11.2% / 23.0%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue1.3 bn1.3 bn1.3 bn1.3 bn1.3 bn1.3 bn1.3 bn1.3 bn
SG&A379.9 m368.6 m356.1 m384.4 m360.4 m364.8 m385.9 m400.4 m
Operating income305.4 m319.3 m342.0 m315.1 m332.6 m325.4 m315.9 m310.5 m
Depreciation & amortisation340.7 m339.5 m338.7 m347.8 m341.1 m345.5 m346.9 m345.3 m
Pre-tax income226.6 m193.5 m227.0 m198.6 m214.7 m227.5 m215.9 m209.4 m
Income tax29.3 m51.0 m58.7 m55.1 m68.4 m58.1 m60.8 m56.5 m
Net income190.0 m140.2 m165.2 m145.1 m145.4 m168.4 m153.9 m150.6 m
Operating cash flow459.7 m466.6 m563.9 m ≈480.1 m ≈373.6 m638.1 m666.4 m ≈440.4 m ≈
Capex33.7 m45.4 m37.6 m ≈42.6 m ≈50.1 m48.9 m46.2 m ≈45.8 m ≈
Dividends paid50.1 m48.9 m47.1 m ≈45.8 m ≈45.0 m45.0 m44.9 m ≈40.6 m ≈
Share repurchases147.2 m396.6 m98.5 m ≈111.7 m ≈0115.9 m484.1 m ≈23.3 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue4.6 bn5.1 bn5.3 bn4.2 bn4.4 bn4.7 bn4.9 bn5.1 bn
Revenue YoY+6.2%+11.9%+3.7%−20.9%+4.3%+6.2%+5.3%+4.7%
Net income-609.2 m-424.2 m-632.2 m-340.8 m132.7 m463.0 m501.1 m596.0 m
Net income YoY−277.8%unavailableunavailableunavailableunavailable+249.0%+8.2%+18.9%
Diluted EPS-0.81-0.57unavailableunavailableunavailableunavailableunavailableunavailable
Diluted EPS YoY−252.8%unavailableunavailableunavailableunavailableunavailableunavailableunavailable
net %-13.3%-8.3%-11.9%-8.1%3.0%10.0%10.2%11.6%
Free cash flow1.7 bn1.7 bn1.2 bn1.5 bn1.7 bn1.5 bn1.7 bn1.7 bn

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
80.8 m USD
Financial debt
7.7 bn USD
Net debt
7.6 bn USD
Equity
3.8 bn USD
Total assets
15.8 bn USD
Debt / equity
2.04x
Current ratio
0.93x
ROE
15.7%
ROA
3.7%
FCF margin
33.3%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
4.7 bn
2024
4.9 bn
2025
5.1 bn

SEC (XBRL)· 02 Mar 2026verified

SG&A
2023
1.4 bn
2024
1.5 bn
2025
1.5 bn

SEC (XBRL)· 02 Mar 2026verified

Operating income
2023
1.2 bn
2024
1.2 bn
2025
1.3 bn

SEC (XBRL)· 02 Mar 2026verified

Depreciation & amortisation
2023
1.3 bn
2024
1.3 bn
2025
1.4 bn

SEC (XBRL)· 02 Mar 2026verified

EBITDA
2023
2.5 bn ≈
2024
2.6 bn ≈
2025
2.7 bn ≈

SEC (XBRL)· 02 Mar 2026derived

Interest expense
2023
586.0 m
2024
451.0 m
2025
470.0 m

SEC (XBRL)· 02 Mar 2026verified

Pre-tax income
2023
604.4 m
2024
815.2 m
2025
833.8 m

SEC (XBRL)· 02 Mar 2026verified

Income tax
2023
160.6 m
2024
195.8 m
2025
233.3 m

SEC (XBRL)· 02 Mar 2026verified

Net income
2023
463.0 m
2024
501.1 m
2025
596.0 m

SEC (XBRL)· 02 Mar 2026verified

Dividend per share
2023
0.14
2024
0.22
2025
0.22

SEC (XBRL)· 02 Mar 2026verified

Balance sheet · USD

Cash
2023
14.6 m
2024
96.2 m
2025
80.8 m

SEC (XBRL)· 02 Mar 2026verified

Receivables
2023
370.2 m
2024
393.5 m
2025
384.9 m

SEC (XBRL)· 02 Mar 2026verified

Current assets
2023
1.0 bn
2024
1.0 bn
2025
945.6 m

SEC (XBRL)· 02 Mar 2026verified

Property, plant & equipment, net
2023
253.7 m
2024
247.2 m
2025
243.4 m

SEC (XBRL)· 02 Mar 2026verified

Goodwill
2023
4.9 bn
2024
4.9 bn
2025
4.9 bn

SEC (XBRL)· 02 Mar 2026verified

Intangibles (excl. goodwill)
2023
4.9 bn
2024
4.9 bn
2025
4.8 bn

SEC (XBRL)· 02 Mar 2026verified

Total assets
2023
16.0 bn
2024
16.1 bn
2025
15.8 bn

SEC (XBRL)· 02 Mar 2026verified

Accounts payable
2023
277.2 m
2024
153.5 m
2025
107.0 m

SEC (XBRL)· 02 Mar 2026verified

Short-term debt
2023
312.1 m
2024
195.8 m
2025
310.2 m

SEC (XBRL)· 02 Mar 2026verified

Long-term debt
2023
7.5 bn
2024
7.5 bn
2025
7.4 bn

SEC (XBRL)· 02 Mar 2026verified

Current liabilities
2023
1.5 bn
2024
1.3 bn
2025
1.0 bn

SEC (XBRL)· 02 Mar 2026verified

Total liabilities
2023
12.2 bn
2024
12.3 bn
2025
12.0 bn

SEC (XBRL)· 02 Mar 2026verified

Equity
2023
3.8 bn †
2024
3.8 bn †
2025
3.8 bn †

SEC (XBRL)· 02 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
1.7 bn
2024
1.9 bn
2025
1.9 bn

SEC (XBRL)· 02 Mar 2026verified

Capex
2023
176.4 m
2024
163.8 m
2025
175.7 m

SEC (XBRL)· 02 Mar 2026verified

Free cash flow
2023
1.5 bn ≈
2024
1.7 bn ≈
2025
1.7 bn ≈

SEC (XBRL)· 02 Mar 2026derived

Investing cash flow
2023
242.5 m
2024
-1.3 bn
2025
-1.1 bn

SEC (XBRL)· 02 Mar 2026verified

Financing cash flow
2023
-2.1 bn
2024
-515.4 m
2025
-861.9 m

SEC (XBRL)· 02 Mar 2026verified

Dividends paid
2023
128.6 m
2024
182.3 m
2025
186.8 m

SEC (XBRL)· 02 Mar 2026verified

Share repurchases
2023
0
2024
240.6 m
2025
606.8 m

SEC (XBRL)· 02 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
4.7%
computed by olivLawFY 2025
Revenue CAGR 3Y
5.4%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
-0.7%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
8.3%
computed by olivLawFY 2025
Net income growth (YoY)
18.9%
computed by olivLawFY 2025
Net income CAGR 3Y
65.0%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
input data missing
EPS CAGR 3Y
unavailable
input data missing
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
-0.7%
computed by olivLawFY 2025

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
51.1%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
24.6%
computed by olivLawTTM to 30 Sept 2026
Net margin
11.9%
computed by olivLawTTM to 30 Sept 2026
FCF margin
37.0%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
16.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
3.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
8.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROCE
9.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
9.1%
computed by olivLawTTM to 30 Sept 2026

Balance sheet

Net debt
7.6 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
2.8x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Debt / equity
2.1x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
2.7x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
0.5x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
2.1 bn USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
191.0 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
1.9 bn USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
311.8%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
79.5%
computed by olivLawTTM to 30 Sept 2026

Efficiency

Days sales outstanding
27 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
7.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
15.1 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
12.2x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
12.2x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
8.2%
computed by olivLawTTM to 30 Sept 2026
P/B
2.1x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
1.4x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
5.7x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBIT
11.7x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/Sales
2.9x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
3.9x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
25.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
2.2%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
10.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 66 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

9.90 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 7.5 bn USD

Key indicators

Market capitalisation
7.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
12.2x
computed by olivLawTTM to 30 Sept 2026
P/B
2.1x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
5.7x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROE
16.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
11.9%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
4.7%
computed by olivLawFY 2025
Dividend yield
2.2%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 29 Jul 2020
Source: SEC (XBRL)published 03 Nov 2026
verified 1304derived 93

Score by group

  • Valuation88
  • Returns100
  • Quality71
  • Balance sheet22
  • Growth45

Estimated value range

Low
25.24
USD per share
Mid
34.94
USD per share
High
54.96
USD per share
Price: 9.90 USD
The price is below the range
Potential to the central value: 253.0% (value / price − 1)
Margin of safety: 71.7% (1 − price / value)
Agreement between methods: low · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.89 – 106.02 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)47.60 – 106.02 (Mid 66.57)
    WACC 6.8% · starting FCFF 2.3 bn USD · terminal value share of EV 82%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: no growth between −30% and +40% justifies the price
  • Peers: EV/EBITDAunavailable · not enough peers
  • Peers: P/Eunavailable · not enough peers
  • Dividend discount (DDM)2.89 – 3.89 (Mid 3.32)
Multiple comparisons use the SIC vertical: Services-Detective, Guard & Armored Car Services (SIC 7381)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 66/100

FactorValueScoreWeight used
ROIC · Quality8.2%47 (on a fixed band)11%
Net margin · Quality11.9%80 (vs peers)7%
FCF conversion · Quality311.8%100 (on a fixed band)7%
Revenue CAGR 3Y · Growth5.4%45 (on a fixed band)9%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet2.8x33 (on a fixed band)11%
Interest coverage · Balance sheet2.7x19 (on a fixed band)7%
Current ratio · Balance sheet0.5x0 (on a fixed band)5%
P/E (TTM) · Valuation12.2x81 (on a fixed band)11%
EV/EBITDA · Valuation5.7x85 (on a fixed band)11%
FCF yield · Valuation25.6%100 (on a fixed band)9%
Shareholder yield (distributions) · Returns10.6%100 (on a fixed band)7%
Payout ratio (FCF) · Returns9.1%100 (on a fixed band)5%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet22/100 · 3/3 factors with a value
  • Growth· partial45/100 · 1/2 factors with a value
  • Quality71/100 · 3/3 factors with a value
  • Returns100/100 · 2/2 factors with a value
  • Valuation88/100 · 3/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

ADT Inc. (ADT). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 5.1 bn USD in 2025; YoY growth 4.7%; net margin 11.9%; ROE 16.9%; net debt/EBITDA 2.8x.

The estimated value range is 25.24–54.96 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 34.94 USD, the price of 9.90 USD leaves a potential of 253.0% (value / price − 1) and a margin of safety of 71.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 66/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 11.9%
  • FCF conversion: 311.8%
  • P/E (TTM): 12.2x
  • EV/EBITDA: 5.7x
  • FCF yield: 25.6%
  • Shareholder yield (distributions): 10.6%
  • Payout ratio (FCF): 9.1%
  • The price is below the estimated value range

What contradicts it

  • Interest coverage: 2.7x
  • Current ratio: 0.5x
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y.

Versus the vertical median

Services-Detective, Guard & Armored Car Services (SIC 7381) · same industry (4-digit SIC) · compared with 5 companies

Multiples and returns vs the median

P/E
12.2x
vertical median —
EV/EBITDA
5.7x
vertical median —
P/S
1.4x
vertical median 1.5x
at median
P/B
2.1x
vertical median 3.9x
below median (−46.3%)
ROE
16.9%
vertical median -20.1%
above median
Net margin
11.9%
vertical median -9.6%
above median
EBIT margin
24.6%
vertical median -3.9%
above median
Revenue YoY
4.7%
vertical median 3.6%
above median (+30.4%)
Net debt/EBITDA
2.8x
vertical median —
Dividend yield
2.2%
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
ALLEAllegion plc16.2 bn24.033.6%15.7%+7.8%+16% / +82%
ADTADT Inc.7.5 bn12.216.9%11.9%+4.7%+23% / +62%
ARLOArlo Technologies, Inc.1.6 bn56.322.1%5.2%+3.6%+5% / +67%
GFAIGuardforce Ai Co., Limited4.6 m—-20.5%-16.1%+0.2%−79% / −95%
SUGPSU Group Holdings Ltd2.5 m—-20.1%-9.6%+5.5%−99% / unavailable
CIGLConcorde International Group Ltd——-3,579.0%-797.3%−1.6%unavailable / unavailable

1- and 3-year price returns: for ADT from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
5.90
Total return -40% · Per year -40%
10.43
Total return 5% · Per year 5%
15.71
Total return 59% · Per year 59%
3 years
5.83
Total return -41% · Per year -16%
11.59
Total return 17% · Per year 5%
19.14
Total return 93% · Per year 25%
5 years
5.76
Total return -42% · Per year -10%
12.87
Total return 30% · Per year 5%
23.32
Total return 136% · Per year 19%
What moves the 3-year price the most
  • Exit P/E± 2.90
  • Net margin± 2.03
  • Annual revenue growth± 1.65
  • Annual dilution± 0.17

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).

In brief

ADT Inc. is a major provider of security, interactive and smart home solutions for residential and small business customers in the United States, with roughly 6.1 million monitoring subscribers at the end of 2025 1. The company is shifting toward a platform model built on its ADT+ app and AI-based presence sensing, while the first half of 2026 was dominated by cash generation and capital returns to shareholders 23.

SWOT

Strengths

  • The ADT brand has a long history and a reputation for trust, which matters to customers choosing security products 1. A large subscriber base and recurring revenue give predictability and cash generation capacity 13.
  • The ADT+ platform integrates the user experience, customer service and back-end support, which can lower service costs through remote assistance 1. The company has also improved call centre efficiency through AI tools 3.
  • Operating cash flow and the ability to return capital to shareholders show financial discipline, even in a year of nearly flat revenue 3.

Weaknesses

  • Gross customer attrition has stayed high and rose year over year, eroding the recurring revenue base 12.
  • Revenue growth increasingly relies on equipment sales, which carry lower margins than recurring monitoring 13.
  • Dependence on Google for devices and services under exclusivity for DIFM customers limits commercial flexibility in some segments 1.

Opportunities

  • The DIY segment and the retail and e-commerce channels can reach customers not served by traditional professional installation 13.
  • AI presence sensing technology, acquired with Origin AI, could support more precise alarms and new use cases such as wellness monitoring 1.
  • If attrition falls, each percentage point of improvement could have a significant impact on annual recurring revenue 1.

Threats

  • Price pressure from DIY providers and large technology companies could reduce margins and market share 1.
  • A weaker macroeconomic environment and a slower housing market could raise non-payment and reduce new subscriber additions 12.
  • Software defects, cloud outages or security vulnerabilities could affect core security functions and the company's reputation 1.

Risks

  • Customer attritionhigh

    If attrition stays high or rises, recurring revenue could fall more than expected and contract amortisation could accelerate 12.

  • Price competitionhigh

    Lower-priced offers from professional and DIY competitors could force price cuts or a loss of market share 1.

  • Dependence on Googlemedium

    A failure of the partnership, or a future Google security product competing with ADT, could seriously affect the DIFM business 1.

  • Platform technology riskmedium

    Defects, vulnerabilities or outages in the ADT+ platform could affect safety functions and customer trust 1.

  • Integration of Origin AIlow

    Integrating and commercialising Origin AI technology could take longer than expected or fail to deliver the anticipated benefits 1.

Investment thesis

What would need to be true (bull case)

  • If attrition stabilises and the DIY and retail expansion reaches scale, recurring revenue growth could return in coming years 13.
  • Strong cash generation and the buyback programme could continue to support shareholder value while the company keeps its discipline 3.
  • AI presence sensing technology could open new revenue streams and differentiate ADT from competitors 13.

What would break the thesis

  • If attrition stays at current levels, growth in the recurring revenue base could remain weak and revenue could depend largely on equipment sales 12.
  • Pressure from better-resourced and DIY competitors could prevent a recovery in margins 1.
  • The roughly 2% revenue growth projected for 2026 signals limited momentum, and the cash flow targets depend on lower acquisition spending and lower cash taxes 3.

What to watch

  • Trend in gross customer revenue attrition and RMRQ3 2026
  • Delivery of the roughly 30% growth target for adjusted free cash flow2026
  • Share of outright equipment sales in new subscriptions and its effect on marginsnext 10-K
  • Adoption of ADT Blu and the new distribution channels2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).

The business

ADT operates under the ADT brand, associated with security services since 1874, and offers burglar and life safety alarms, smart cameras, home automation and video surveillance 1. The company is evolving toward a platform-centric software-as-a-product model built around its proprietary ADT+ app, which integrates professionally installed and self-installed solutions 1. In July 2026 ADT launched ADT Blu, a self-installed solution with optional professional monitoring, and expanded its channels, including Amazon 3.

Segments

Single reportable segment

ADT reports one operating and reportable segment because its chief executive, as chief operating decision maker, manages the business on a consolidated basis 1. Revenue from customers outside the U.S. is not material 1. Revenue has two main lines: monitoring and related services, which edged down in the second quarter of 2026, and security installation, product and other revenue, which rose 3.

Monitoring and related services

This line represents the recurring revenue from monitoring subscriptions, which forms the predictable base of the business 1. In the quarter to June 30, 2026, monitoring revenue slipped year over year, reflecting the loss of revenue from the October 2025 divestiture of the multifamily business 3.

Market context

ADT competes in the U.S. residential and small business security market, which is fragmented and subject to strong price competition, and where acquiring a subscriber requires significant upfront investment recovered in roughly two years 1. Demand depends on economic conditions, the housing market, perceived crime threat and technology change 1. Rising preference for DIY solutions and AI-based detection creates room for growth but also pressure on the traditional professional installation model 1.

Relocations are sensitive to the residential housing market, and non-payment disconnects generally rise in a weaker macroeconomic environment 2. Customer attrition therefore depends on the economic cycle as well as on company execution 2.

Trends

  • Shift to outright equipment salesmixed

    A growing share of new subscriptions involves the customer owning the equipment outright, which raises installation and product revenue and the related costs 12. This change in accounting model can make quarterly results harder to compare over time 2.

  • Rising demand for DIY and AI solutionstailwind

    Customers increasingly seek flexible self-installed solutions, and AI presence sensing could reduce false alarms and extend use cases 13. The Origin AI acquisition, closed in February 2026, supports this direction 1.

  • Customer attritionheadwind

    Gross attrition rose in 2025 and stayed elevated into mid-2026, driven by non-payment and voluntary disconnects 12. Higher attrition feeds directly into lower recurring revenue 1.

  • Cash generation and capital returnstailwind

    Operating cash flow rose in the second quarter of 2026, and the company repurchased shares and paid dividends 3. The company says it is prioritising cash flow, buybacks and disciplined subscriber acquisition spending 3.

Competitive position

Competition comes from two directions: professional providers offering lower installation and monitoring fees, and DIY companies such as SimpliSafe, Wyze Home Monitoring and Amazon Ring 1. Cable, telecom and large technology companies bundle security with other services, often at lower monthly monitoring rates 1.

In the DIY segment, larger rivals can cross-subsidise their offers from other products, which could accelerate attrition at ADT 1. ADT's expansion into retail and e-commerce channels brings it into direct contact with consumer electronics brands of greater scale 1.

  • SimpliSafe

    provider of self-installed security systems with optional monitoring, a direct rival in the DIY segment 1

  • Wyze Home Monitoring

    monitoring service for DIY devices, named as a rival in the self-installed segment 1

  • Amazon Ring

    range of home security devices competing in the DIY segment and through online channels 1

  • Cable, telecom and technology companies

    providers that bundle security into service packages, often at lower monitoring rates 1

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

  • Quarterly report03 Nov 2026
  • Current report03 Nov 2026
    Results of operations · Financial statements and exhibits
  • Current report29 Oct 2026
    Material agreement · Departure or appointment of officers · Financial statements and exhibits
  • Current report29 Oct 2026
    Other events · Financial statements and exhibits
  • Current report31 Aug 2026
    Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
  • Quarterly report30 Jul 2026
  • Current report30 Jul 2026
    Results of operations · Regulation FD disclosure · Financial statements and exhibits
  • Current report28 May 2026
    Material agreement · Creation of a direct financial obligation · Shareholder vote · Financial statements and exhibits
  • Current report08 May 2026
    Departure or appointment of officers · Amendments to articles or bylaws · Other events · Financial statements and exhibits
  • Quarterly report30 Apr 2026

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / ADT Inc. · 02 Mar 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / ADT Inc. · 30 Jul 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / ADT Inc. · 30 Jul 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.