Key Highlights

  • Adjusted EPS of USD 0.24 topped the consensus estimate of USD 0.23, while GAAP diluted EPS was USD 0.20.
  • Total Revenue of USD 1.349 billion rose 4%, above the consensus estimate of USD 1.32 billion.
  • Thrive Holdings agreed to acquire the company for USD 10.00 per share in cash, with closing targeted for early 2027.
  • Year to date, the company returned USD 748 million to shareholders while adjusted free Cash Flow reached USD 1.037 billion.

ADT Inc. (NYSE:ADT) reported third quarter 2026 total revenue of USD 1.349 billion, up 4% from USD 1.298 billion a year earlier and above the consensus estimate of USD 1.32 billion. Adjusted EPS of USD 0.24 compared with a consensus estimate of USD 0.23 and with USD 0.23 in the prior year period. GAAP income from continuing operations was USD 153 million, or USD 0.20 per diluted share, up from USD 0.17.

Chairman, President and Chief Executive Officer Jim DeVries described the quarter as one of revenue growth, strong year to date cash generation and stable core operating metrics, and pointed to investments in AI, next generation sensing and expanded digital and retail distribution.

Installation Revenue Offsets Softer Monitoring Sales

Security installation, product and other revenue climbed 32% to USD 265 million from USD 200 million, driven by a higher mix of professionally installed systems sold outright. Monitoring and related services revenue slipped 1% to USD 1.084 billion from USD 1.098 billion, reflecting lower sales volume, including the loss of the multifamily Business divested in October 2025, partly offset by higher average prices.

Adjusted EBITDA from continuing operations fell 2% to USD 665 million, and the adjusted EBITDA Margin was 49% against 52% a year earlier. Adjusted income from continuing operations fell USD 11 million to USD 176 million. Operating Cash Flow was USD 440 million against USD 480 million, a decline the company tied to higher net subscriber Acquisition spending on outright sales, higher general and administrative expenses and lower monitoring margins, partly offset by lower cash taxes. Adjusted free cash flow including Interest Rate swaps rose USD 8 million to USD 217 million.

Pending Sale to Thrive Holdings and Guidance Withdrawal

On October 29, 2026, the company announced a definitive agreement to be acquired by Thrive Holdings in an all-cash transaction at USD 10.00 per share. The Board of Directors approved the agreement unanimously. Closing is targeted for the first quarter of 2027 and is subject to stockholder approval and U.S. antitrust clearance, among other customary conditions. Until then the company continues to operate independently as a public company, and its common stock would stop trading on the New York Stock Exchange after completion.

Because of the pending transaction, the company is not providing financial guidance and withdrew the guidance it had issued earlier. The company is also not taking questions on its earnings call.

Cash Flow, Buybacks and Core Metrics Against Prior Year Levels

Year to date adjusted free cash flow including swaps reached USD 1.037 billion against USD 709 million a year earlier. Repurchases totaled USD 617 million for 89 million shares year to date, but only USD 23 million for 3 million shares in the third quarter, when total Shareholder returns were USD 64 million including USD 41 million of dividends. Cash stood at USD 228 million with nothing drawn on the first Lien revolving Credit facility, after USD 100 million of incremental term Loan A borrowings in August. Recurring monthly revenue was USD 360 million against USD 362 million, gross revenue attrition was 13.1% against 13.0%, and revenue payback held at 2.3 years.