On Thursday, ADT Inc. (NYSE:ADT) announced second-quarter results that beat analyst expectations. The company reported adjusted earnings per share of $0.23, exceeding the consensus estimate of $0.20, and generated revenue of $1.29 billion, slightly above the anticipated $1.28 billion.
The security services firm posted a 7% year-over-year revenue increase, driven by higher average prices and greater adoption of professionally installed systems. Recurring monthly revenue (RMR) hit a record $363 million, up 2% from the previous year. Adjusted income from continuing operations grew 23% to $191 million, while adjusted EBITDA rose 7% to $674 million.
Cash flow remained strong, with adjusted free cash flow (including interest rate swaps) increasing 9% to $274 million compared to the prior year. Through the first half of 2025, ADT returned $589 million to shareholders via dividends and share buybacks, including $96 million spent repurchasing 12 million shares in the second quarter.
“ADT delivered another strong quarter, highlighted by record recurring monthly revenue, robust cash flow generation, and strong earnings per share growth,” said Jim DeVries, ADT’s Chairman, President, and CEO. “These results reflect the resilience of our business and effective execution of our strategy.”
The company maintained solid customer retention metrics, with trailing 12-month gross customer revenue attrition at 12.8% and revenue payback at 2.3 years. ADT also made a strategic bulk acquisition of about 50,000 customer accounts for $89 million.
Looking forward, ADT reaffirmed its 2025 guidance, expecting total revenue between $5.025 billion and $5.225 billion, adjusted EBITDA ranging from $2.65 billion to $2.75 billion, and adjusted free cash flow forecasted at $800 million to $900 million. The company also raised its adjusted EPS guidance to a range of $0.81 to $0.89, reflecting a lower share count due to ongoing share repurchases.
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