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BOCA RATON - On Thursday, ADT Inc. (NYSE:ADT) reported second quarter results that exceeded analyst expectations, with adjusted earnings per share of $0.23 beating the consensus estimate of $0.20 and revenue of $1.29 billion slightly ahead of the expected $1.28 billion.
The security services provider delivered a 7% increase in total revenue compared to the same quarter last year, reaching $1.29 billion, driven by higher average prices and increased adoption of professionally installed systems. The company reported record-high recurring monthly revenue (RMR) of $363 million, up 2% YoY. Adjusted income from continuing operations rose 23% to $191 million, while adjusted EBITDA increased 7% to $674 million.
Cash generation remained robust with adjusted free cash flow (including interest rate swaps) of $274 million, up 9% from the previous year. Year-to-date, the company has returned $589 million to shareholders through share repurchases and dividends, including $96 million used to repurchase 12 million shares during the second quarter.
"ADT delivered another strong quarter, highlighted by record recurring monthly revenue, robust cash flow generation, and strong earnings per share growth," said ADT Chairman, President and CEO Jim DeVries. "These results reflect the resilience of our business and effective execution of our strategy."
The company maintained solid customer retention with trailing 12-month gross customer revenue attrition of 12.8% and revenue payback at 2.3 years. ADT also completed a strategic bulk purchase of approximately 50,000 customer accounts for $89 million.
Looking ahead, ADT reaffirmed its 2025 financial guidance for total revenue of $5.025-$5.225 billion, adjusted EBITDA of $2.65-$2.75 billion, and adjusted free cash flow of $800-$900 million, while raising its adjusted EPS guidance to $0.81-$0.89 to reflect a lower share count due to ongoing repurchases.
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