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1. Company Snapshot

1.a. Company Description

ADT Inc.provides security, automation, and smart home solutions to consumer and business customers in the United States.It provides a range of fire detection, fire suppression, video surveillance, and access control systems to residential, commercial, and multi-site customers.


The company primarily offers monitored security and automation solutions, including the installation and monitoring of security and premises automation systems designed to detect intrusion, control access, sense movement, smoke, fire, carbon monoxide, flooding, temperature, and other environmental conditions and hazards; and address personal emergencies, such as injuries, medical emergencies, or incapacitation.It also provides interactive and smart home solutions that allow customers to use their smart phones, tablets, and laptops to arm and disarm their security systems, adjust lighting or thermostat levels, and view real-time video of their premises; and creates customized and automated schedules for managing lights, thermostats, appliances, garage doors, cameras, and other connected devices, as well as offers monitoring and maintenance services.The company offers its products under the ADT, ADT Pulse, Protection 1, ADT Commercial, and Blue by ADT names.


It operates through a network of approximately 250 sales and service offices, as well as three regional distribution centers, which are supported by 17 multi-use sales, customer, and field support locations housing its nine UL-listed monitoring centers and four national sales centers.The company was formerly known as Prime Security Services Parent, Inc.and changed its name to ADT Inc.


in September 2017.ADT Inc.was founded in 1874 and is headquartered in Boca Raton, Florida.

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1.b. Last Insights on ADT

ADT Inc.'s recent performance was negatively impacted by its Q4 2025 results, which missed revenue and EPS expectations. The company's guidance for 2026 was also flat, contributing to the decline. Furthermore, ADT faces an investigation by Johnson Fistel, PLLP, which focuses on potential claims against the company and its executive officers regarding compliance with federal securities laws. Despite this, the company has made strategic investments in AI-driven growth and product technology. ADT also announced a new $1.5 billion share repurchase authorization. (Source: Marketbeat)

1.c. Company Highlights

2. ADT Inc. Delivers Solid FY2025 Performance, Eyes Growth Through AI-Driven Initiatives

ADT Inc. reported a full-year 2025 revenue of $5.1 billion, representing a 5% increase, with adjusted EBITDA of $2.68 billion, up 4%. The company's adjusted EPS came in at $0.89 per share, marking a 19% increase. Attrition ended at 13.1%, and ADT Inc. returned nearly $800 million of capital directly to shareholders, including $600 million in share repurchases and $187 million in dividends. The company's leverage ratio improved to 2.7x adjusted EBITDA, and adjusted free cash flow grew by 16%. The actual EPS for the quarter was $0.1758, slightly below estimates of $0.2.

Publication Date: Mar -03

📋 Highlights
  • 2025 Financial Growth: Full-year revenue $5.1B (+5%), adjusted EBITDA $2.68B (+4%), and adjusted EPS $0.89 (+19%).
  • Shareholder Returns: Returned $800M to shareholders: $600M in share repurchases and $187M in dividends, with a $1.5B repurchase authorization.
  • Origin AI Acquisition: $30M acquisition integrates AI sensing technology using Wi-Fi signals to enhance home intelligence and unique use cases.
  • 2026 Investment & Efficiency: $50M allocated to product tech, service, and go-to-market initiatives, targeting 20% cash flow growth and 5% revenue growth over time.
  • Long-Term Targets: Aims for 1M new subscribers by 2030 (11% attrition), 5% revenue growth, and 10% EPS growth, leveraging AI and DIY market expansion (23% YTD growth).

Investment in Technology and Growth Initiatives

ADT Inc. is investing $50 million in product technology, service, and go-to-market initiatives in 2026, with a focus on accelerating progress in customer service, customer acquisition efficiency, and product innovation. The recent acquisition of Origin AI is expected to enhance the company's capabilities in AI sensing technology, which uses existing Wi-Fi signals to interpret changes in the home. The company sees AI as transformational, with applications in customer service, sales, and marketing, and expects its AI investments to drive growth, improve customer outcomes, and expand into adjacent use cases.

Valuation and Capital Allocation

With a P/E Ratio of 9.11 and an EV/EBITDA of 5.35, ADT Inc.'s valuation appears reasonable, considering its growth prospects and returns to shareholders. The company's commitment to shareholder returns is evident in its new $1.5 billion share repurchase authorization and maintained $0.055 per share quarterly dividend. ADT Inc.'s capital allocation priorities focus on executing initiatives that position it for future growth, including investments in technology, service excellence, and efficient customer acquisition.

Growth Outlook and Guidance

ADT Inc. guides for 2026 revenue and EPS to be approximately flat to 2025, citing headwinds from the sale of its multifamily business and changes in dealer and affiliate partnerships. However, the company expects strong cash generation, with 20% growth in 2026. Analysts estimate revenue growth at 3.0% for the next year. The company's long-range financial outlook targets 5% revenue growth, 10% EPS growth, and adjusted free cash flow over 10%, driven by investments in AI, Origin AI, and other initiatives.

3. NewsRoom

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ADT Inc. $ADT Shares Purchased by Crossmark Global Holdings Inc.

Mar -07

Source: defenseworld.net

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AustralianSuper Pty Ltd Acquires Shares of 1,634,459 ADT Inc. $ADT

Mar -04

Source: defenseworld.net

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ADT Q4 Earnings Call Highlights

Mar -04

Source: defenseworld.net

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ADT Inc. (NYSE:ADT) Receives Average Rating of “Hold” from Analysts

Mar -03

Source: defenseworld.net

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ADT Inc. Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses

Mar -03

Source: globenewswire.com

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ADT's Plunge Is A Great Buying Opportunity (Upgrade)

Mar -02

Source: seekingalpha.com

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ADT Inc. (ADT) Q4 2025 Earnings Call Transcript

Mar -02

Source: seekingalpha.com

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ADT (ADT) Q4 Earnings Surpass Estimates

Mar -02

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.60%)

6. Segments

Consumer and Small Business

Expected Growth: 3.5%

ADT Inc.'s Consumer and Small Business segment growth of 3.5% is driven by increasing adoption of smart home security systems, rising demand for DIY security solutions, and growing need for cybersecurity services among small businesses. Additionally, strategic partnerships and acquisitions, such as the purchase of Sunpro Solar, have expanded ADT's offerings and reach, contributing to the segment's growth.

Solar

Expected Growth: 5.0%

The 5.0% growth of Solar from ADT Inc. is driven by increasing adoption of renewable energy, declining solar panel costs, and government incentives. Additionally, ADT's strong brand recognition and expanding customer base contribute to the growth. Furthermore, the rising demand for energy independence and environmental concerns also fuel the segment's growth.

7. Detailed Products

Home Security Systems

ADT's home security systems provide 24/7 monitoring and protection against burglary, fire, and environmental hazards.

Smart Home Automation

ADT's smart home automation solutions integrate with security systems to control lighting, temperature, and door locks remotely.

Video Surveillance

ADT's video surveillance solutions provide real-time video monitoring and recording to deter crime and protect properties.

Fire and Life Safety

ADT's fire and life safety solutions provide early detection and warning systems for fire, carbon monoxide, and other hazards.

Medical Alert Systems

ADT's medical alert systems provide emergency response and monitoring for seniors and individuals with medical conditions.

Commercial Security

ADT's commercial security solutions provide customized security systems for businesses of all sizes.

8. ADT Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ADT Inc. faces moderate threat from substitutes due to the presence of alternative security solutions such as DIY security systems and other security providers.

Bargaining Power Of Customers

ADT Inc. has a large customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

ADT Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers, giving the company an upper hand in negotiations.

Threat Of New Entrants

The security services industry is highly competitive, and new entrants can easily enter the market, posing a significant threat to ADT Inc.'s market share.

Intensity Of Rivalry

The security services industry is highly competitive, with many established players, leading to a high intensity of rivalry among competitors, including ADT Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 67.33%
Debt Cost 6.68%
Equity Weight 32.67%
Equity Cost 11.76%
WACC 8.34%
Leverage 206.06%

11. Quality Control: ADT Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ADT

A-Score: 6.8/10

Value: 8.0

Growth: 6.6

Quality: 6.4

Yield: 5.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Mueller Industries

A-Score: 6.4/10

Value: 4.3

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

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Brady

A-Score: 6.1/10

Value: 3.9

Growth: 6.2

Quality: 7.6

Yield: 3.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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MSA Safety

A-Score: 5.7/10

Value: 3.5

Growth: 6.7

Quality: 8.0

Yield: 2.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Brinks

A-Score: 5.5/10

Value: 4.7

Growth: 6.6

Quality: 4.3

Yield: 2.0

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Resideo Technologies

A-Score: 4.8/10

Value: 8.5

Growth: 5.4

Quality: 4.3

Yield: 0.0

Momentum: 7.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.64$

Current Price

6.64$

Potential

-0.00%

Expected Cash-Flows