ADT earnings analysis
What we found in ADT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
ADT reported Q1 2026 results showing a slight revenue increase of 0.2% sequentially to $1.28 billion and a 0.9% year-over-year rise, surpassing estimates. GAAP EPS improved to $0.23, marking a 43.75% increase from $0.16 in Q1 2025, benefiting from decreased interest expenses and effective cost management. Despite a small dip in total recurring monthly revenue (RMR), the overall financial health and cash flow generation remain strong with solid positive cash flow from operations.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth vs Estimates
- Total revenue was $1.28 billion, above the estimate of $1.27 billion, reflecting a 0.9% increase from Q1 2025.
- EPS Beat Expectations
- Diluted EPS of $0.23 beat the expected $0.20, representing a 43.75% increase from $0.16 in the year-ago quarter.
- Operating Cash Flow Robust
- Operating cash flow was $638.1 million, an increase of $171.5 million year-over-year from $466.6 million.
- Improved Interest Expense
- Interest expense decreased to $98.4 million, down from $120.9 million, contributing positively to net income.
- Growth in Adjusted EBITDA
- Adjusted EBITDA grew to $673.8 million from $660.8 million, showcasing operational strength.
- Active Share Repurchase Program
- During Q1 2026, ADT repurchased 17.65 million shares for $116 million under its $1.5 billion repurchase plan.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Customer Revenue Attrition
- Gross customer revenue attrition increased to 13.1% from 12.6% year-over-year, hinting at potential customer retention issues.
- Fluctuating RMR
- RMR decreased to $358.9 million from $359.5 million year-over-year, mainly due to the Multifamily Divestiture.
- Macroeconomic Pressures
- Ongoing supply chain issues and inflation could impact operational costs and customer spending behavior.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.23
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads better than the one before it.
What came before.
- 10-K · March 2, 2026
- ADT is positioning itself as a platform-centric security and smart-home provider centered on its ADT+ ecosystem and strategic partnerships (notably Google). Revenue rose modestly to about $5.14 billion in 2025 (from…
- 10-K · February 27, 2025
- ADT positions itself as a leading U.S. residential and small-business security provider with a strong brand and ~6.4 million monitoring subscribers as of December 31, 2024. Management completed a strategic Commercial…
- 10-Q · October 24, 2024
- ADT reported Q3 revenue of $1,243,836 (up $63,963 or ~5.4% vs. Q3 2023) driven by growth in both Monitoring ($1,077,550) and Security installation, product & other ($166,286). Operating income rose to $326,350 (26.2%…
- 10-Q · April 25, 2024
- ADT returned to profitability in Q1 2024 with operating income of $195,496 (thousands) and net income of $91,551 (thousands), driven by lower interest expense and cost reductions, despite a year-over-year revenue…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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