Earlier today, we issued a press release and an earnings presentation summarizing our results. Reconciliation to the most comparable GAAP measures can be found in the earnings presentation. These statements are subject to risks and uncertainties that are described in the earnings presentation and in our SEC filings. I will also build on the strategic update and longer-range outlook we shared on our last call in March.

I'll turn the call over to Jeff to walk through our financials and outlook. Adjusted free cash flow, including swaps, was at $414 million, and adjusted earnings per diluted share was $0.23, up 10% year-over-year. Our durable recurring monthly revenue was $359 million, flat versus prior year. Gross revenue attrition remained at 13.1%, and our revenue payback period was 2.3 years.

Cumulatively, these results reinforce the durability of our model and progress strengthening ADT's business, prioritizing high-quality ads and more efficient acquisition channels. As discussed on our last call, we acquired Origin AI in February which will add AI-driven ambient intelligence technology into the ADT+ platform, creating a new layer of home intelligence. Concurrent with this acquisition, we also entered into a long-term technology licensing agreement with Verisure reinforcing the global relevance and scalability of this platform and the practical use cases already deployed in Europe. As we deepen our plans to deploy this sensing technology and work with the team, I'm even more excited about the role these capabilities will play in our evolution to proactive peace of mind.

What went well
  • Adjusted free cash flow including swaps was $414 million, up $187 million or more than 80% year-over-year.
  • Adjusted EPS rose 10% to $0.23 and adjusted EBITDA grew 2% to $674 million.
  • About 30% of new customer additions included ADT+, and the company launched two new features, Live Light and MySafety, which already had 35,000 activations.
  • The Origin AI integration advanced quickly, with a smart-plug design completed and pilots planned, reinforced by the Verisure technology licensing agreement.
  • Repurchased ~18 million shares for $116 million in Q1 (about 35 million shares for $230 million year-to-date through April) while funding the Origin acquisition and returning $161 million to shareholders.
  • Drove acquisition efficiency, lowering third-party affiliate lead fees by $100 per installation, and recorded a favorable legal settlement recovery.
What went wrong
  • Total revenue grew only 1% to $1.3 billion, and monitoring and services revenue was relatively flat with RMR flat year-over-year at $359 million.
  • Gross revenue attrition remained elevated at 13.1%.
  • Gross new subscriber additions were 161,000 (adding $10.1 million of RMR) on lower cash SAC, reflecting fewer adds.
  • An increase in the allowance for credit losses partially offset the favorable legal settlement recovery.
  • Channel rationalization is expected to temporarily reduce subscriber additions.
  • Management guided Q2 revenue and EPS slightly lower sequentially and adjusted free cash flow $100-$150 million lower sequentially on higher seasonal SAC, working capital timing and tax payments.

More on ADT Inc.

Reported 2026-04-30 · figures from the ADT Inc. Q1 2026 earnings call.

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