- Total revenue for ADT Inc. (ADT, Financial) increased by 7% to $1.3 billion in Q1 2025.
- Record customer retention was achieved with a gross revenue attrition rate of 12.6%.
- Operating cash flows rose 28% to $467 million, while Adjusted Free Cash Flow grew 105% to $226 million.
ADT Inc. (ADT) reported a robust financial performance for the first quarter of 2025 with total revenue increasing by 7% to $1.3 billion. Monitoring and related services revenue rose 2% to $1.083 billion, while security installation and product revenue surged by 45% to $184 million, reflecting the strategic shift toward the ADT+ platform.
The company achieved a record recurring monthly revenue (RMR) of $360 million, marking a 2% year-over-year increase, which equates to $4.3 billion on an annualized basis. Customer retention remained strong with a gross revenue attrition rate recorded at a historical low of 12.6%.
Financially, ADT's GAAP income from continuing operations was $142 million, or $0.16 per diluted share, although this was a decline of $21 million compared to the previous year. However, adjusted income from continuing operations grew by 9% to $186 million, or $0.21 per diluted share.
Cash flow metrics showed significant improvement, with operating cash flows up 28% to $467 million. Additionally, the Adjusted Free Cash Flow, which includes interest rate swaps, more than doubled, increasing by 105% to $226 million.
ADT returned $445 million to its shareholders during this quarter, breaking down into $397 million through share repurchases and $49 million in dividends. The company also issued a $600 million term loan to refinance existing debt, demonstrating proactive balance sheet management.
The company reaffirmed its full-year 2025 guidance, with projected revenues between $5.025 billion and $5.225 billion and Adjusted EPS ranging from $0.77 to $0.85. ADT continues to advance its proprietary ADT+ platform, enhancing its integration with Google Nest devices, and launched the ADT+ Translator to streamline sensor conversions.
CEO Jim DeVries expressed confidence in ADT's strategic direction, citing the company's business model's resilience and the strong demand for its offerings. ADT remains committed to achieving its financial outlook while continuing to innovate and enhance customer experiences.
