ADT (ADT) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 2% to $1.31 billion, driven by higher installation and product sales, while monitoring services revenue declined slightly.

• Adjusted EPS was $0.23, flat year-over-year; adjusted EBITDA was $671 million, with a margin of 51%.

• Adjusted free cash flow (including swaps) for Q2 was $406 million, up 48% year-over-year; YTD $820 million, up 64%.

• $684 million was returned to shareholders in H1 2026 through share repurchases and dividends; 68 million shares repurchased in Q2.

• Launched ADT Blu, a self-installed security solution, and completed the Origin AI acquisition to enhance AI-driven sensing.

Financial highlights

• Monitoring and related services revenue declined 1% to $1.08 billion, while installation and product revenue grew 17% to $230 million.

• Adjusted EBITDA margin was 51.1% for Q2 2026.

• Gross revenue attrition was 13.1%, up from 12.8% year-over-year; revenue payback period was 2.3 years.

• Net debt at $7.4 billion; leverage at 2.8x adjusted EBITDA; weighted average cost of debt ~4.3%.

• Net cash provided by operating activities for H1 2026 was $1.3 billion, up $274 million year-over-year.

Outlook and guidance

• Full-year 2026 outlook raised: total revenue and adjusted EPS expected to grow ~2%, adjusted free cash flow to grow ~30%.

• Higher cash taxes and interest expected in 2027 due to expiring interest rate swaps and refinancing at higher rates.

• Management anticipates stable liquidity and ability to meet operational and long-term needs.

• Focus remains on recurring revenue growth, efficiency improvements, and continued capital returns.

• No material revenue or cost impact expected from the Origin AI acquisition in 2026.