ADT Inc. Reports 6.5% Revenue Growth to $1.27 Billion in Q1 2025

ADT Inc. reported its financial results for the first quarter of 2025, revealing total revenue of $1.27 billion, a 6.5% increase from $1.19 billion in the same period last year. The growth was primarily driven by a rise in monitoring and related services revenue, which reached $1.08 billion, up from $1.06 billion, and a significant increase in security installation and product revenue, which surged to $184.4 million from $127 million. The company’s net income for the quarter was $140.2 million, compared to $91.6 million in the prior year, reflecting a notable improvement in profitability.

In terms of operational metrics, ADT's recurring monthly revenue (RMR) increased to $359.5 million, up from $353.3 million, while gross customer revenue attrition improved to 12.6% from 13.1%. The company served approximately 6.4 million security monitoring service subscribers as of March 31, 2025. The increase in RMR was attributed to higher average prices for new and existing subscribers, although this was partially offset by lower subscriber volume. The company also reported a decrease in voluntary disconnects, contributing to the improved attrition rate.

Strategically, ADT has been focusing on enhancing its product offerings and customer acquisition strategies. The company has been transitioning to a new ADT+ platform, which has led to a higher mix of professionally installed systems under an outright sales model. This shift is expected to continue as ADT rolls out new products and strengthens its partnership with Google. Additionally, ADT has been actively repurchasing shares, having repurchased 20 million shares for $152 million under its 2025 Share Repurchase Plan, which is part of a broader strategy to return value to shareholders.

Financially, ADT's total assets decreased to $15.83 billion from $16.05 billion at the end of 2024, while total liabilities also saw a slight decline to $12.21 billion. The company’s long-term debt stood at $7.61 billion, up from $7.51 billion, reflecting ongoing investments in growth and strategic initiatives. The company has maintained compliance with all financial covenants related to its debt obligations.

Looking ahead, ADT anticipates continued growth driven by its strategic initiatives and market conditions. The company is monitoring macroeconomic trends, including inflation and supply chain dynamics, which could impact its operations. ADT remains committed to leveraging technology and optimizing its cost structure to enhance profitability while navigating the evolving market landscape.