ADT (ADT) Q1 2025 earnings summary

Executive summary

• Total revenue grew 7% year-over-year to $1.3 billion, driven by higher installation revenue and recurring monthly revenue (RMR) up 2% to $360 million.

• Adjusted EPS rose 11% to $0.21, and Adjusted EBITDA increased 4% to $661 million.

• Net income from continuing operations was $142 million, with gross customer revenue attrition improved to 12.6%.

• Returned $445 million to shareholders via share repurchases and dividends in Q1.

• Continued focus on innovation, customer experience, and disciplined capital allocation, including new leadership appointments and digital transformation initiatives.

Financial highlights

• Monitoring and related services revenue reached $1,083 million, up 2% year-over-year; security installation and product revenue was $184 million, up 45%.

• Adjusted EBITDA margin remained strong at 52%.

• Adjusted Free Cash Flow (including interest rate swaps) more than doubled year-over-year to $226 million.

• Operating income was $319 million, up $27 million from Q1 2024.

• GAAP income from continuing operations was $142 million, with GAAP EPS of $0.16.

Outlook and guidance

• Full-year 2025 guidance reiterated: total revenue $5,025–$5,225 million (5% growth), Adjusted EBITDA $2,650–$2,750 million (5% growth), Adjusted EPS $0.77–$0.85 (8% growth), and Adjusted Free Cash Flow $800–$900 million (14% growth).

• Monitoring and services revenue expected to rise ~2% for the year.

• Second quarter revenue expected to be slightly higher than Q1, with similar adjusted free cash flow and slightly lower adjusted EBITDA and EPS due to timing and tariffs.

• Tariffs and macroeconomic uncertainty present risks, but mitigating actions are underway.

• Dividend of $0.055 per share declared, payable July 8, 2025.