ADT (ADT) Q4 2024 earnings summary

Executive summary

• Achieved $4.9 billion in total revenue for 2024, up 5% year-over-year, with record recurring monthly revenue, customer retention, and strong cash generation.

• Adjusted net income from continuing operations reached $685 million, or $0.75 per diluted share, a 25% increase year-over-year; Adjusted EBITDA was $2.6 billion, up 4%.

• Adjusted Free Cash Flow (including interest rate swaps) rose 42% to $744 million, supporting capital returns and debt reduction.

• Returned $423 million to shareholders via dividends and share repurchases, with a new $500 million repurchase plan for 2025.

• Strategic focus shifted to core security and smart home business after winding down solar and commercial operations; launched the proprietary ADT+ platform and innovative services like Trusted Neighbor.

Financial highlights

• Monitoring and related services revenue grew to $4.3 billion; installation, product, and other revenue at $605 million, up 28%.

• Adjusted EBITDA margin remained strong at 53% for the year.

• Adjusted Free Cash Flow (including interest rate swaps) was $744 million, up from $525 million in 2023.

• GAAP income from continuing operations was $619 million, up 38% year-over-year.

• Gross revenue attrition improved to a record low of 12.7%; revenue payback period was 2.2 years.

Outlook and guidance

• 2025 guidance: total revenue of $5.025–$5.225 billion (5% growth), Adjusted EBITDA of $2.65–$2.75 billion (5% growth), Adjusted EPS of $0.77–$0.85 (8% growth), and Adjusted Free Cash Flow of $800–$900 million (14% growth).

• Announced a new $500 million share repurchase plan through April 2026 and increased quarterly dividend to $0.055 per share.

• Continued focus on recurring revenue, SAC efficiency, and capital allocation flexibility.