Q2 2025 ADT Inc Earnings Call Transcript
Key Points
- ADT Inc (ADT) reported a record recurring monthly revenue balance of $363 million, up 2% year-over-year.
- The company achieved a 35% increase in adjusted earnings per diluted share, reaching $0.23.
- Adjusted free cash flow, including interest rate swaps, was $500 million through the first half, up 38%.
- Customer retention remained solid with attrition at 12.8%, slightly better than the previous year.
- ADT Inc (ADT) completed a strategic customer portfolio acquisition of approximately 50,000 subscribers for $89 million, enhancing its customer base.
- The State Farm partnership has not met initial expectations, with only 33,000 subscribers added, below projections.
- Non-payment cancellations were modestly higher than last year, indicating potential financial strain on some customers.
- Voluntary losses were worse than last year, with a significant loss in the multifamily business impacting results.
- The company faces ongoing tariff pressures, which could impact financial performance if not managed effectively.
- Relocation losses, while a tailwind for retention, present a headwind for gross additions, affecting overall growth.
Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the ADT Second Quarter 2025 Earnings Call. (Operator Instructions)
I would now like to turn the call over to Elizabeth Landers, Vice President of Investor Relations. Elizabeth. Please go ahead.
Good morning, and thank you for joining us to discuss ADT's Second Quarter 2025 results. Today's speakers are Jim DeVries, ADT's Chairman, President and CEO; and Jeff Likosar, our CFO. After their prepared remarks, we will take analyst questions. This morning, we issued a press release and presentation summarizing our financial results. Both are available at investor.adt.com.
We'll reference our non-GAAP financial measures today. Reconciliations to the most comparable GAAP measures are included in the earnings presentation on our website. Unless noted otherwise, all financials and metrics discussed reflect continuing operations. Non-GAAP
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