- 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.