ADT Q3 Revenue Rises 3.9% to $1.35 Billion; Withdraws Guidance Ahead of Thrive Deal
ADT reported a 3.9% rise in third-quarter revenue and withdrew its financial guidance, its first results since agreeing last week to be acquired by Thrive Holdings for $10.00 per share in cash.
Revenue climbed to $1.35 billion from $1.30 billion a year earlier, according to the earnings release the home security company filed with an 8-K on Tuesday. Income from continuing operations rose to $153 million, or $0.20 per diluted share, from $144 million, or $0.17, a 17.6% increase in per-share earnings.
Adjusted EPS rose 4.3% to $0.24 from $0.23, even though adjusted income from continuing operations fell 5.9% to $176 million. Share repurchases lowered the diluted share count, the company said.
"ADT delivered solid third quarter results, with revenue growth, strong year-to-date cash generation and stable core operating metrics," Chairman, President and CEO Jim DeVries said in the release.
Guidance pulled ahead of the deal
ADT announced on Oct. 29 that it had agreed to be acquired by Thrive Holdings in an all-cash deal unanimously approved by its board. The transaction is expected to close in the first quarter of 2027, subject to stockholder approval and U.S. antitrust clearance, after which ADT will become privately held and its stock will stop trading on the New York Stock Exchange.
"In consideration of the pending transaction," ADT said it is not providing financial guidance and is withdrawing its previously issued outlook. Management will not take questions on its earnings call.
Installations drive growth
Security installation, product and other revenue jumped 32.5% to $265 million, driven by a higher mix of professionally installed systems sold under the outright sales model. Monitoring and related services revenue slipped 1.3% to $1.08 billion, reflecting lower volume, including the October 2025 sale of the multifamily business, partly offset by higher prices.
Recurring monthly revenue ended the quarter at $360 million, versus $362 million a year earlier. Trailing 12-month gross customer revenue attrition was 13.1%, compared with 13.0%. Adjusted EBITDA fell 1.6% to $665 million.
Cash flow and capital returns
Operating cash flow fell 8.3% to $440 million, which the company attributed largely to higher subscriber acquisition spending tied to outright sales. Adjusted free cash flow including interest rate swaps rose to $217 million from $208 million.
ADT returned $64 million to shareholders in the quarter, including $23 million of buybacks and $41 million of dividends. Year to date, it has repurchased 89 million shares and returned $748 million through buybacks and dividends.
By the numbers
- Revenue: $1.35 billion, up 3.9%
- Diluted EPS from continuing operations: $0.20, up 17.6%
- Adjusted EPS: $0.24, up 4.3%
- Recurring monthly revenue: $360 million
- Thrive deal price: $10.00 per share in cash
- Guidance: withdrawn
Sources
- ADT Inc. Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001703056-26-000113)
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