ADT Inc. Reports Q4 and Full-Year 2025 Results; Announces \$1.5 Billion Share Repurchase Authorization and Dividend

Key Highlights

• Strong 2025 Financial Performance: ADT achieved all its 2025 guidance metrics, with solid earnings growth and robust cash generation.
• GAAP EPS Growth: Full-year GAAP earnings per share (EPS) rose 3%, while adjusted EPS increased by 19%.
• Shareholder Returns: Returned \$791 million to shareholders via share repurchases and dividends.
• New Share Repurchase Plan: Board authorized a three-year, \$1.5 billion share repurchase plan through April 30, 2029.
• Dividend Declaration: Announced a dividend of \$0.055 per share, payable April 2, 2026, to shareholders of record as of March 12, 2026.
• Index Inclusion: ADT added to the S&P SmallCap 600® index, effective February 9, 2026.
• Financial Outlook: Multi-year framework targets 5% revenue growth, 10% adjusted EPS growth, and >10% adjusted free cash flow CAGR.

Detailed Financial Results

Full-Year 2025

• Adjusted Income from Continuing Operations: \$750 million, or \$0.89 per diluted share, up \$65 million.
• Net Cash Provided by Operating Activities: \$1.9 billion (flat year-over-year).
• Adjusted Free Cash Flow (including interest rate swaps): \$863 million, up 16%.
• Share Repurchases: 78 million shares retired for \$604 million.
• Dividend Payments: \$187 million distributed to shareholders.

Fourth Quarter 2025

• GAAP Income from Continuing Operations: \$146 million, or \$0.17 per diluted share (down \$51 million year-over-year).
• Adjusted Income from Continuing Operations: \$186 million, or \$0.23 per diluted share (up \$10 million).

Capital Allocation and Shareholder Value Initiatives

Share Repurchase Plan

On March 2, 2026, ADT’s Board authorized a \$1.5 billion share repurchase plan running through April 30, 2029. The plan allows ADT to buy back shares in open market or privately negotiated transactions, including under Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act, or through accelerated share repurchase agreements. The Board may periodically review the authorized amount as part of capital allocation strategy.

Dividend Declaration

Effective March 2, 2026, ADT declared a cash dividend of \$0.055 per share for holders of common stock and Class B common stock of record as of March 12, 2026. The dividend will be paid April 2, 2026. This continues ADT’s commitment to returning capital to shareholders through regular cash dividends.

Index Inclusion

ADT was added to the S&P SmallCap 600® index on February 9, 2026, reflecting the company’s strong performance and alignment with the index’s criteria. This inclusion may increase visibility and demand from institutional investors.

Financial Outlook and Guidance

• ADT refreshed its multi-year financial framework, targeting:
  • 5% compounded annual revenue growth
  • 10% compounded annual adjusted EPS growth
  • More than 10% compounded annual adjusted free cash flow growth (including interest rate swaps)
  • Target net leverage ratio of 2.5x or below
• 2026 Outlook: Adjusted free cash flow growth of approximately 20% versus prior year; revenue and adjusted EPS expected to be approximately flat. The outlook incorporates continued prioritization of cash flow, share repurchases, and disciplined subscriber acquisition spending, as well as planned investments in growth initiatives and headwinds from tariffs.

Other Notable Items

• Information furnished in the Form 8-K, including Exhibit 99.1, is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act.
• Management will host a conference call at 10 a.m. ET to discuss Q4 and full-year results, strategy, and outlook. A webcast and replay will be available on ADT’s investor relations website.

Potential Share Price Impact

This release contains several price-sensitive items:

• The announcement of a new \$1.5 billion share repurchase plan is typically viewed positively by investors, as buybacks can support share price appreciation and signal management’s confidence in the company’s outlook.
• The continued payment of dividends and significant shareholder returns (\$791 million in 2025) reinforce ADT’s commitment to capital return, which may attract income-focused investors.
• Inclusion in the S&P SmallCap 600® may increase institutional demand for ADT shares.
• The multi-year financial framework and 2026 outlook provide clarity and confidence regarding future performance, supporting investor sentiment.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties. Actual results may differ materially from those described. Readers should consult the original SEC filings and ADT’s investor relations materials for further information before making any investment decisions.

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