ADT Inc.

This report does not constitute a rating action. Overview Key strengths Key risks High brand recognition as the largest residential alarm monitoring service provider in the U.S. High customer acquisition costs that hurt free operating cash flow (FOCF) generation though necessary for top line growth. Large revenue and operating scale with multiple sales channels. Competitive market with ongoing pricing pressure and investment needs. Good revenue and earnings predictability. Elevated but improving debt levels. Smart home security solutions growth opportunity. ADT Inc. has shifted focus on its core residential and small to midsize business operations after successful divestment from underperforming solar and commercial alarm monitoring segments. During 2024, revenue from security installations grew by 28% driven by continued rollout of the

...We forecast good revenue growth over the next couple of years. ADT Inc. has shifted focus on its core residential and small to midsize business operations after successful divestment from underperforming solar and commercial alarm monitoring segments. During 2024, revenue from security installations grew by 28% driven by continued rollout of the ADT+ platform, while the monitoring and related service grew by about 3% as recurring monthly revenue (RMR) improves through lower subscriber attrition and higher pricing from bundling of home automation...

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