ADT (ADT) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1,348.979M, up 4% YoY; Adjusted EBITDA was $664.965M, down 2%, and Adjusted EPS rose 4% to $0.24.

• YTD Adjusted Free Cash Flow including swaps reached $1.037B, up 46%; $748M was returned to shareholders YTD.

• Thrive Holdings agreed to acquire the business for $10.00 per share in cash; closing is expected in Q1 2027, subject to approvals and other conditions.

Financial highlights

• Q3 operating income was $310.531M versus $315.073M; net income was $150.577M versus $145.132M.

• Q3 Adjusted Free Cash Flow including interest-rate swaps was $217M, up 4% YoY; YTD operating cash flow rose 16% to $1.745B.

• YTD revenue was $3.940B, up 2%; Adjusted EBITDA was $2.009B, flat, and Adjusted EPS was $0.71, up 6%.

• Q3 Adjusted EBITDA margin was 49.3%, versus 52.1%; higher G&A and technology investment costs were partly offset by installation revenue.

Outlook and guidance

• Previously issued financial guidance was withdrawn in consideration of the pending Thrive Holdings acquisition; no new guidance will be provided.

• Closing is expected in Q1 2027, subject to stockholder and U.S. antitrust approval and other customary conditions; operations continue independently until closing.

• The merger agreement includes a go-shop period through November 28, 2026.