Earnings call transcript: ADT Q2 2025 sees 7% revenue growth, EPS guidance raised

ADT Corporation reported a robust second-quarter performance with a 7% increase in revenue, reaching 1.3 billion dollars. The company also raised its adjusted EPS guidance for the year, reflecting confidence in its ongoing strategic initiatives. The stock currently trades at $8.65, showing strong momentum with a 23.72% year-to-date return. According to InvestingPro analysis, ADT’s overall Financial Health Score of 2.92 is rated as GOOD, suggesting solid fundamental strength. The company appears undervalued based on InvestingPro’s Fair Value analysis.

Key Takeaways

• Revenue increased by 7% to 1.3 billion dollars.
• Adjusted EPS rose by 35% to 0.23 dollars.
• ADT reaffirmed full-year guidance and increased its EPS guidance range.
• Innovative product launches and strategic partnerships drive growth.
• Stock price remained unchanged at 33.46 dollars.

Company Performance

ADT demonstrated strong performance in the second quarter of 2025, with revenue climbing 7% compared to the same period last year. The company’s focus on innovation and strategic partnerships, particularly with Google and State Farm, has bolstered its market position. Trading at an attractive EV/EBITDA multiple of 5.78x and P/E ratio of 12.8x, ADT shows compelling valuation metrics. Despite a challenging macroeconomic environment, including cooling labor markets and potential tariff pressures, ADT has managed to maintain robust growth with trailing twelve-month revenue reaching nearly $5 billion. Discover more detailed valuation insights and 12+ key metrics with InvestingPro.

Financial Highlights

• Revenue: 1.3 billion dollars, up 7% year-over-year.
• Earnings per share: 0.23 dollars, an increase of 35%.
• Adjusted free cash flow: 500 million dollars, up 38%.
• Adjusted EBITDA: 674 million dollars, up 7%.
• Returned 589 million dollars to shareholders through repurchases and dividends.

Outlook & Guidance

ADT reaffirmed its full-year guidance for total revenue, adjusted EBITDA, and free cash flow. The company raised its adjusted EPS guidance range to 0.81 to 0.89 dollars, reflecting optimism about future earnings. With a strong EBITDA of $2.61 billion and healthy gross profit margin of 82%, ADT continues to demonstrate operational efficiency. The company expects its Q3 adjusted EBITDA and EPS to be similar to or slightly lower than Q2, with an anticipated increase in cash interest. For comprehensive analysis of ADT’s financial outlook and growth potential, access the detailed Pro Research Report available on InvestingPro.

Executive Commentary

Jim DeVries, CEO of ADT, emphasized the company’s mission to "empower people to protect and connect what matters most." He expressed optimism about reducing attrition rates and highlighted the recurring nature of ADT’s revenue streams. These comments underscore the company’s strategic focus on customer retention and long-term growth.

Risks and Challenges

• Non-payment cancellations have shown a modest increase, which could impact future revenue.
• Potential tariff pressures may affect costs and pricing strategies.
• The cooling labor market could influence hiring and operational efficiency.
• Relocation trends are slightly down, potentially affecting demand for ADT’s services.

Q&A

During the earnings call, analysts inquired about ADT’s strategic growth avenues, particularly the bulk account purchases and partnership with State Farm. Executives discussed optimizing sales channels and pricing strategies, focusing on integrating technology engineers for simultaneous sales and installation efforts. These discussions highlight ADT’s proactive approach to market expansion and operational efficiency.

Full transcript - ADT Corp-Exch (ADT) Q2 2025:

Tiffany, Conference Operator: 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 twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.

I would now like to turn the call over to Elizabeth Landers, Vice President of Investor Relations. Elizabeth, please go ahead.

Elizabeth Landers, Vice President of Investor Relations, ADT: Good morning, and thank you for joining us to discuss ADT’s second quarter twenty twenty five results. Today’s speakers are Jim DeVries, ADT’s Chairman, President and CEO and Jeff Likasar, 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 cash flow measures include amounts related to our former solar business through 2Q twenty twenty four. Forward looking statements included in today’s remarks are subject to risks and uncertainties.

Actual results may differ materially. Please refer to our SEC filings for more details. And now I’m happy to turn it over to Jim.

Jim DeVries, Chairman, President and CEO, ADT: Thank you, Elizabeth, and good morning, everyone. I am very pleased that ADT is reporting yet another quarter of strong financial results and cash generation as we continue to execute on our 2025 strategic priorities. Our results continue to demonstrate the resilience of ADT’s business model. ADT ended the second quarter with another record recurring monthly revenue balance of €363,000,000 which was up 2% year over year. We continued to grow total revenue, up 7%, while balancing profitability and investments for the future.

We also delivered very strong adjusted earnings per diluted share of $0.23 an increase of 35%. Cash flow continues to be a highlight with adjusted free cash flow including interest rate swaps of $500,000,000 through the first half, up 38%. This strong cash generation has enabled us to return $589,000,000 year to date to ADT shareholders through share repurchases and dividends. Our customer retention also remained solid with attrition at 12.8%, down zero one point from last year’s second quarter and slightly higher than last quarter’s record performance. I’d also like to note that during the second quarter, we completed a strategic customer portfolio acquisition of approximately 50,000 subscribers for $89,000,000 Jeff will provide more details about our results and full year outlook later in our call.

First, I’d like to spend the next few minutes updating you on ADT’s strategic focus areas, which remain consistent with the themes we’ve discussed on previous earnings calls. We are very proud of our progress to date and our progress towards delivering on our full year 2025 commitments. As I mentioned earlier this year, our primary objectives in 2025 are to continue execution of our strategy and importantly, optimize and complete the rollout of our newly developed and launched capabilities, platform and offerings. ADT’s mission remains clear, to empower people to protect and connect what matters most, delivered through our differentiators, unrivaled safety, innovative offerings and a premium best in class customer service experience. As always, we are relentlessly focused on delivering unrivaled safety and peace of mind to our over 6,000,000 customers who trust us to keep them safe every day.

We continue to invest in our core monitoring capabilities, including the technologies and redundant infrastructure that have enabled 100% uptime throughout the first half of twenty twenty five. We also continue to advance new technologies and introduce features such as Alarm Messenger, which has enabled more than a 50% reduction in false alarms this year. One of the key components of our strategy has been investing in our product and experience ecosystem to develop new and innovative offerings for our customers. This includes further expansion of our ADT plus platform to a larger percentage of our new customers, increased availability across additional sales channels and enhanced capabilities to enable existing customers to enjoy some of the features available to new customers. We continue to see an increasing percentage of our new customers select our new ADT plus platform, who are also choosing larger and more comprehensive systems.

With our reduced use of discounts and promotions, this is driving average installation revenue to approximately $1,500 per unit. Another contributor to this strong revenue is our Trusted Neighbor offering, which continues to generate positive customer feedback. As a reminder, this feature allows our customers to grant trusted individuals temporary access to their homes. In April, we enhanced this offering with the launch of the new Yale AssureTouch Smart Lock, which integrates seamlessly with ADT plus and Trusted Neighbor for an elevated security experience utilizing fingerprint recognition. In addition to these innovative offerings, we remain focused on delivering the best in industry customer experience.

We are pleased that ADT’s customer satisfaction remains at a three year high, including a record NPS during the month of June. ADT’s results demonstrate the cumulative benefits from our focus on continuous improvement across customer experience metrics, agent satisfaction and areas such as virtual service, first call resolution, customer onboarding and agent training. Additionally, our partnership with Google remains strong and our Nest Aware subscriber base has now surpassed 1,000,000 customers, highlighting the continued strength of our collaboration and growing smart home adoption. Turning to our State Farm partnership. Since our original launch, we have generated slightly more than 30,000 subscribers.

While this volume is below the level we projected at this stage of the partnership, we’re pleased that these customers report high satisfaction with the program. As we near the three year anniversary of our partnership, we’re working together on redesigning our approach and leveraging our combined learning to explore a new program related to prospective movers who are relocating. We hope to gain more traction with this new approach. We also remain pleased with our progress with ADT’s remote assistance program and early artificial intelligence efforts. Approximately half of our service calls continue to utilize remote alternatives rather than requiring in home service visits, allowing us to efficiently serve our customers while avoiding thousands of truck rolls, which ultimately contributes to reductions in our field service costs.

Our initial AI efforts remain focused on our customer care operations with an emphasis on improving the customer service experiences for both our ADT customers and our employee agents, while also improving overall efficiency. We built on our first quarter AI progress with 90% of our customer service chats processed by AI agents, and we are now resolving nearly half of these chats without the need for a live agent interaction. Utilizing the knowledge we’ve gained from our experience with chat, we have now started our initial rollout of AI agents for voice calls. We remain excited about the opportunities to leverage AI to support and serve our customers more efficiently. In closing, I am confident in ADT’s outlook, and we remain committed to delivering value for our customers, employees and shareholders.

I want to say thank you to the entire ADT team for their dedication and performance. I remain incredibly proud of this team as well as encouraged for the opportunities that lie ahead. Thank you for your time today. I’ll now turn the call over to Jeff.

Jeff Likasar, CFO, ADT: Thanks, Jim, and thanks, everyone, for joining our call today. I’ll take the next few minutes to share some additional detail on our second quarter results along with an update on our full year outlook. Like Jim, I’m very pleased with our first half performance and our progress towards achieving our full year 2025 objectives. As Jim mentioned, our very strong cash flow remains a highlight. We generated $274,000,000 of adjusted free cash flow including swaps in the second quarter and $500,000,000 through the first half up 38%.

Adjusted net income for the quarter was $191,000,000 or $0.23 per share and year to date we have generated adjusted earnings per share of $0.44 up 22%. Adjusted EBITDA for the quarter was $674,000,000 up 7%. Key drivers of this performance include our RMR growth, overall efficiency and the non recurrence of a prior year legal settlement. Our adjusted earnings per share also benefited from our repurchases enabled by our strong cash generation and efficient capital structure. Our top line was also very strong with total revenue up 7% to 1,300,000,000 Monitoring and services revenue was up 2% driven by a record $363,000,000 RMR balance also up 2%.

Installation revenue was $197,000,000 up $60,000,000 driven by our continued mix shift to our ADT plus platform and the outright sales of relevant equipment. During the quarter, we generated 242,000 new subscriber additions adding $14,300,000 of new RMR inclusive of our bulk accounts purchase. Another highlight in the quarter is that our leverage ticked lower and is now at 2.8 times adjusted EBITDA with net debt of $7,500,000,000 Additionally, we continue to enjoy a very efficient weighted average interest rate of approximately 4.4%. We finished the quarter with $45,000,000 of unrestricted cash on hand and no outstanding revolver balance. I’m also happy to share that we recently received lender commitments to fund an incremental $550,000,000 of our existing 2,032 term loan.

The pricing on this facility is very favorable at SOFR plus 175 basis points. We also entered into swaps to fix the effective interest rate which at a little over 5.3% is lower than the 5.75% April 2026 notes we will redeem with the proceeds. We expect the loan transaction to close tomorrow and along with our ongoing cash generation are very well positioned to repay our remaining 2026 notes. As Jim mentioned earlier, we continue to return significant capital to shareholders enabled by this efficient capital structure and our cash generation. In addition to our $47,000,000 dividend payment, we repurchased and retired 12,000,000 shares during the quarter for an aggregate price of $96,000,000 Through the first half, we have returned $589,000,000 to shareholders.

As we look to the second half, we are on track to deliver full year results consistent with the guidance we shared in February. We are therefore reaffirming our full year guidance ranges for total revenue, adjusted EBITDA and adjusted free cash flow. Additionally, we are increasing our adjusted earnings per share range by $04 to $0.81 to $0.89 per share reflecting our lower diluted share count. I will note that the timing of marketing expenses, working capital flows, cash interest and potential tariffs will affect our second half relative to the first. We expect third quarter adjusted EBITDA and EPS to be similar to or slightly lower than the second quarter and a larger sequential decline in adjusted free cash flow.

The most significant specific driver is the timing of cash interest which we expect to be approximately $70,000,000 higher in the third quarter. Despite ongoing uncertainty as to the exact amounts, we continue to believe we can absorb our tariff exposure within our full year guidance ranges. With the first half of the year behind us, I am exceptionally pleased with our progress and remain confident in delivering our full year objectives. Like Jim, I want to thank all our employees, partners, customers and investors for helping us deliver a very strong first half of the year. Thank you everyone for joining our call today and for your support of our company.

Operator, please open the line to questions.

Tiffany, Conference Operator: Your first question comes from the line of George Tong with Goldman Sachs. Please go ahead.

Jeff Likasar, CFO, ADT: Hi, thanks. Good morning. You completed a bulk account purchase for $89,000,000 this quarter that added around 50,000 customer accounts. Can you talk more about what made this account purchase bulk account purchase economically attractive and your appetite for future bulk account purchases?

Jim DeVries, Chairman, President and CEO, ADT: Sure, George. It’s Jim. Good morning. We we have, as as you know, executed both deals in, I think, five of the last six years. In q two, we brought on, as you mentioned, 50,000 accounts.

These were acquired from a single seller. They the the accounts had high density, good credit scores. As you know, we always build in attrition protection for ADT, and we did so again this time. The returns for bulk are generally consistent with our dealer business. The bulk pipeline is strong.

I’d I’d say probably stronger than we’ve seen even in the last couple of years. And, we’ll continue to review bulk as an option for, incremental subscriber ads.

Jeff Likasar, CFO, ADT: Great. Very helpful. And then can you provide an update on your State Farm partnership? How that’s tracking in terms of new states being launched and new customers being acquired?

Jim DeVries, Chairman, President and CEO, ADT: Sure. So I’d I’d mentioned on the call, our program to date subscriber ads is right around 33,000. Candidly, George, the the trajectory has been positive for us, but the pace and the volume isn’t what I think either party had hoped to achieve. We’re right now in the process of designing a new approach that’s focused on movers, on prospective customers who are relocating. It’s not necessarily the last effort in trying traditional distribution with State Farm on new states, the same tactics that we’ve been focused on in the past, but it’s a fresh tactic.

And and we’ll lean in and see if we can get some better traction here. Lastly, it’s probably worth mentioning, we conservatively budgeted new subscribers from the State Farm partnership. We’re hopeful. I’m hopeful the new approach carries some momentum. But even if it doesn’t, the results won’t be material to our gross ads budget or or delivery of our financial commitments.

Thanks for the question, George.

Jeff Likasar, CFO, ADT: Very helpful. Thank you.

Tiffany, Conference Operator: Your next question comes from Peter Christiansen with Citi. Please go ahead.

Peter Christiansen, Analyst, Citi: Good morning. Thanks for the question. Nice results here, gentlemen. I want to get back to the bulk purchase that you did in the quarter. We figure LTV to CAC somewhere in the mid threes potentially, but which sounds great.

I was just wondering, Jim, can you just talk about when you do when you think about these bulk purchases, the opportunity to uplift a lot of these customers, convert them on to new systems, how do you think about the incremental value that you can drive by fully merging these customers onto the ADT platform, particularly with a lot of the the new products and solutions that you’ve been delivering? Thank you. Yeah.

Jim DeVries, Chairman, President and CEO, ADT: Thanks, Pete. So the playbook for us on bulk is is a well established playbook. We have a team that’s focused on it. We do a really good job converting customers. There’s there’s some, to be frank, some heightened attrition at the beginning of the conversion.

That’s why we build in the attrition protection usually for twelve months, sometimes a little bit longer. But the the swing to our monitoring and and our service is something that we we do well. I mentioned, Pete, we always look for high density, have have accounts in a concentrated geography that helps us with service costs. We are conscious of the equipment that that we’re acquiring. This most recent acquisition bulk acquisition had high quality equipment we feel great about.

And so and and then we pay a lot of attention to the credit scores and ensure that we have a high credit quality customer when we bring them on board. But all in all, I I think it’s a well worn playbook, one that we execute well, and optimistic this will be a supplemental way for us to grow subscribers going forward.

Unidentified Executive, Executive, ADT: And one point I I might add is is is Jim knows the returns are very strong. You can think of it similar to dealers, a little bit less efficient at the time of acquisition, your your point about the the acquisition cost. But it’s because we have insight into the other characteristics, including the attrition protection, including knowledge of the account base. But your specific question about seeking to upgrade those customers or or have additional, sales or revenue opportunities over time, we don’t underwrite based on that, but that for sure would would be an opportunity. But we speak of their terms where we’re not banking on that.

Peter Christiansen, Analyst, Citi: That’s that’s good to hear. Certainly sounds like a lot of opportunity with the with the basis of customers. Jim, I also want I would love to to to dive a little bit into trusted neighbor. You know, what are you seeing from initial feedback there and and and and pickup of of the product? You know, how how do you see things trending with the with that new launch?

Jim DeVries, Chairman, President and CEO, ADT: Sure. So some context that that I shared on the last call, and I’ll I’ll share on this call, and is that Trusted Neighbor is the initial product to launch. It it’s the first part of an overall product led strategy to to drive growth for us. Trusted Neighbor was launched in August. It’s it’s still relatively early, but we continue to be optimistic, Pete.

Trusted Neighbor represents, I I think, something north of 10% of our do it for me installations. And customer response has been really positive. Our field sales and technician response has been positive. And very importantly, the average installation revenue for our installs that include trusted neighbor is north of $2,500, pretty pretty meaningfully above our overall average. So it’s got it’s got good traction out of the gate and feel great about the install revenue.

Peter Christiansen, Analyst, Citi: That’s that’s good to hear. Glad to see that. Thank you.

Jim DeVries, Chairman, President and CEO, ADT: Thank you.

Tiffany, Conference Operator: Your next question comes from the line of Patnaik with Barclays. Please go ahead.

Ronny Kennedy, Analyst, Barclays: Hi, good morning. This is Ronny Kennedy on for Manav. Thank you for taking my questions. You mentioned Jim in the prepared remarks efforts around increased availability across additional sales channels. I think on the prior calls, talked about an emphasis on sales process and go to market optimization initiatives, refining structure, bundling pricing, marketing.

Can you provide more color around these and an update? And if, for example, that includes, say, more deliberate focus on DIY or other efforts?

Jim DeVries, Chairman, President and CEO, ADT: Sure. Ronan, thanks for the question. The we’re we’re always working, I think, on on sales process and optimization, testing new bundles, testing new pricing. One of the more meaningful shifts that we’ve undertaken over the course of the last twelve months, and I’d say accelerated in the last six months or so, is a a process change to focus on what we call tech engineers. And so the the customer is sold an initial basic system, and when the tech engineer arrives at their home, arrives at their premise, the technician both sells and up both sells and installs the equipment in one consistent motion.

We’ve had really good success with with install revenue using this technician engineer construct. The customer feedback has been positive because the sale and install can happen simultaneously, and it’s it’s been a been a nice change and a nice win for for our organization. But across across all offers, pricing process, we’re we’re constantly adjusting the knobs and dials, Ronan, and and and trying to improve conversion.

Ronny Kennedy, Analyst, Barclays: That’s very helpful. Thank you. If I may go to attrition for a follow-up, actually a two part question. Can you provide color on the drivers of attrition? Then as far as relocation having been a headwind to gross adds but a tailwind to attrition, how do how should we think about the puts and takes to that under, you know, different scenarios of the housing market?

Say, if it continues to remain challenged versus and it picks up. And if there’s anything to be mindful of there such as lapping a relocation tail with MedFit.

Jim DeVries, Chairman, President and CEO, ADT: Sure. So a little bit of color on attrition, specifically related to relocation. As as you know, we ended the quarter at 12.8 attrition, down 10 basis points from last year, a couple ticks up sequentially. Color on q two. Nonpayment cancellations were modestly higher than last year.

Relocation losses were were actually modestly lower than last year. Voluntary losses were a bit worse than last year. We had a large loss in our multifamily business that accounted for about half of our voluntary losses. Save rates were were modestly down as well. But all in all, a a pretty good quarter for us.

You’re right that relocation losses relocation being down is a good guy when it comes to attrition and a bit of a headwind when it comes to gross ads. But despite that fact, we had a had a pretty decent quarter on the gross ads front and as you heard a minute ago, supplemented by some pretty good return bulk. So last thing I’ll mention on attrition, the we are we continue to feel optimistic. I think this was in the prepared notes. Our NPS continues to improve.

We had our best scores in three years on NPS, all time record in June. Call center metrics are clipping along nicely for us, continue to improve, and our the customer response to self-service has has been really positive. So as as I’ve said a bunch of times, attrition won’t be attrition improvement won’t be linear, but but we are optimistic about where it can go longer term.

Ronny Kennedy, Analyst, Barclays: Thank you. I appreciate all the insight there. Thank you.

Tiffany, Conference Operator: Your next question comes from Ashish Sabadra with RBC Capital Markets. Please go ahead.

Will Chi, Analyst, RBC Capital Markets: Hey, good morning guys. This is Will Chi on for Ashish Sabadra. I appreciate you taking our question. Wondering if you could maybe spend a little bit of time just on your views on the macro environment. I know there’s a lot going on, but curious how you’re seeing kind of the general end client behaving, if there’s any developments on that.

I know you mentioned kind of a modest uptick in slower payments the prior quarter, though not notably material, but curious if there’s any updates on that front.

Jim DeVries, Chairman, President and CEO, ADT: Sure. Thanks for the question. I’d start with some context. Our business, we feel, is very resilient in most any environment. And while we’re not insulated from the macro environment, we tend to be a organization and have a model that performs well in any environment.

Relocation is is trending down, I think, across the country a bit. That, as I mentioned on the earlier question, provides a bit of a headwind when it comes to gross ads, fewer bites at the apple. But it’s a nice tailwind for us on retention. Non pay has increased from last year. We’re watching it very closely.

The increase has been relatively modest in non pay cancellations. Labor market’s cooling a bit. That’s been helpful to the cause from an employee retention perspective. And then I’m not sure if it’s if it’s considered macro or not, but we’re watching tariff pressures closely. That’s obviously difficult to predict given given the frequency of change.

We have a team focused on it. And as Jeff mentioned in his prepared remarks, we can manage the net exposure to tariffs within the 25, guide.

Unidentified Executive, Executive, ADT: And one one thing I would add on the resilient point is is, as you know, most of our revenue is is recurring in the truest sense of the word recurring. So so as as and if we start to see trends or dynamics, you tend to see them with enough foresight that we’re able to make other adjustments in in our business, which is which is why we’re able to, even even in this environment, even with some uncertainty, affirm our our guidance and and as you saw, increase our EPS guidance in the results or the release we put out today.

Will Chi, Analyst, RBC Capital Markets: Thank you. That’s that’s very helpful. And and maybe just a follow-up on the, the State Farm side. Curious if if you might be able to provide additional color on on some of the learning points on the initial stages of the partnership, and, you know, how that’s informed the new redesign strategy?

Jim DeVries, Chairman, President and CEO, ADT: Sure. The the the central thesis is is one that I continue to believe that by having monitored professionally monitored 24 devices in the home that that can be a source of claims mitigation, large claims mitigation, and fire and, and, water in particular. And I also think that there’s the potential to use the data with customer consent, use the data that the sensors provide to help provide more sophisticated, more precision in the pricing algorithms. The new program that we’re contemplating is is focused, as I mentioned, just on movers. Customers prospective customers that are changing geographies, And we’re working together with with State Farm and and an external organization that has some very deep digital expertise to design a a new tactic around those movers and see if we can get a little more volume than now than what we’ve had to date.

Will Chi, Analyst, RBC Capital Markets: Understood. Thank you very much. Appreciate the color. Sure.

Tiffany, Conference Operator: Your final question comes from Toni Kaplan with Morgan Stanley. Please go ahead.

Yehuda Silverman, Analyst, Morgan Stanley: Hi, good morning. This is Yehuda Silverman on for Toni Kaplan. Just had a question on subscriber growth and demographic trends in general. So it’s it’s been relatively stable past few quarters and years around 6,400,000 customers. Just curious, aside from bulk purchases, what are some ways that you could take market share?

Are there any changes to your target demographic or any products or themes that you think are shaping the industry in the midterm or the long term?

Jim DeVries, Chairman, President and CEO, ADT: Sure. I think on the so we we continue I continue to be bullish on our core DIFM business. I’m excited about the product road map. I like what the direction we’re heading in terms of premium customer service. There’s some differentiation that I think we’ll be able to deliver around monitoring quality and speed on the monitoring front, and so continue to be bullish on DIFM.

DIY for us, we had tightened our credit standards. We were returns focused. We’re making some changes to the go to market on DIY, the product set and cost in DIY so that we can more assertively compete in that space. So it’s a little bit of a hiatus the last handful of months. And I think by the end of this year, early twenty six, we’ll be able to compete more effectively in DIY.

And then I continue to be bullish on the small business channel. That too is an area of of increased focus for us. We have a new leader over the SMB space, and I think that’s the third leg of the stool that helps us get some traction on gross ads. We we also have been talking a couple of times on the call about bulk acquisitions. Frankly, our deal dealer channel was down a little year over year.

We replaced that volume with bulk acquisitions, but I think, dealer will get back on track in the second half, and, bulk opportunities are more plentiful than what they’ve been historically.

Unidentified Executive, Executive, ADT: And I and I would add too a little bit further to I believe it it was Ronen’s question about about optimization, and and a lot of those things are to do with the nature of offer, the the recurring price versus the upfront price, you know, when we offer financing and when we don’t. Some some of those when Jim says knobs and dials. But but there there’s also things related to that to do with features. And one of the reasons in fact, the main reason that we transitioned to our proprietary ADT plus platform was to enable things like trust the neighbor. And we continue to make adjustments, some some smaller, some larger, including some of the things that that you you see with respect to biometric lock, the the home away automation feature that that we noted.

And and those are also the kinds of things that we’re able to put in front of of customers who are more attracted to a particular feature or particular use case. And and as we look beyond 2025, you know, we we would expect more of that as a means of driving growth as well.

Yehuda Silverman, Analyst, Morgan Stanley: Great. Thank you. That

Tiffany, Conference Operator: will conclude our question and answer session. And I will now turn the call back over to Jim DeFries for closing remarks.

Jim DeVries, Chairman, President and CEO, ADT: Thank you, Tiffany, and thanks, everyone, for taking the time to join us today. ADT had a strong quarter and a strong first half of the year. We’re confident, as as we reiterated earlier, in achieving our financial commitments for 2025. I’d like to again extend my appreciation to our ADT employees and dealer partners. Thanks again, everybody, and have a great day.

Tiffany, Conference Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.