ADT Withdraws Its Guidance While Posting 4% Revenue Growth, With Thrive Takeover Pending
ADT's third-quarter revenue rose 4% to $1.3 billion, and the company will take no questions on its call because of the $10.00-a-share Thrive deal.
ADT, which provides security and smart home systems to residential and small business customers, withdrew its financial guidance on Tuesday while reporting third-quarter revenue up 4% to $1.3 billion. The company said it is pulling the outlook in light of its pending all-cash sale to Thrive Holdings at $10.00 a share.
Installation sales carry the quarter
Revenue reached $1,349 million, up from $1,298 million a year earlier. Security installation and product sales jumped 32% to $265 million, which the company tied to more professionally installed systems sold outright. Monitoring and related services revenue slipped 1% to $1,084 million, reflecting lower sales volume, including the loss of revenue from the October 2025 sale of its multifamily business, partly offset by higher average prices.
Income from continuing operations was $153 million, or $0.20 per diluted share, up from $0.17. Adjusted income fell $11 million to $176 million, yet adjusted earnings per share edged up to $0.24 from $0.23, helped by a smaller share count after buybacks.
Operating cash flow fell $40 million to $440 million, which the company attributed to higher net spending to acquire subscribers under outright sales, higher administrative costs and lower monitoring margins. Adjusted free cash flow including interest rate swaps rose $8 million to $217 million. For the first nine months it reached $1,037 million, against $709 million a year earlier.
Smaller payouts, still 89 million shares retired
ADT repurchased and retired 3 million shares for $23 million in the quarter, down from $112 million of repurchases a year earlier. Dividends were $41 million, against $46 million. Together that is $64 million returned in the quarter.
Year to date, the company has retired 89 million shares for $617 million and returned $748 million including dividends. It held $228 million in cash at September 30 and nothing was drawn on its revolving credit facility. In August it secured $100 million of extra borrowing under a term loan due 2030.
Thrive deal ends the outlook
ADT announced on October 29 that its board unanimously approved the sale to Thrive Holdings. A Yahoo Finance report put the transaction at $15.3 billion including debt. Close is expected in the first quarter of 2027, pending stockholder approval and U.S. antitrust clearance. Until then ADT stays independent and publicly traded; afterward it will be private and leave the New York Stock Exchange.
The company will not take questions on its 10 a.m. ET webcast Tuesday. CEO Jim DeVries said the company delivered "solid third quarter results," and pointed to AI investments and expanded retail distribution, including ADT Blu on Walmart.com and an installation service for Apple Retail's U.S. customers beginning this fall.
ADT's stockholders still have to vote on the $10.00-per-share offer before the first-quarter 2027 target for closing.
Sources
- 8-K Filing — ADT Inc. (ADT) — SEC EDGAR
- Exhibit q32026adtearningsrelease-e.htm — ADT Inc. 8-K exhibit — SEC EDGAR
- ADT (ADT) Stock Sees Fair Value Lift After Thrive Deal Sparks Analyst Debate — Yahoo Finance
- Was There Any Sign ADT Stock Would Run? — Yahoo Finance
- ADT agrees to $7.6 billion buyout; more offers possible — thestreet.com
- ADT to be Acquired by Thrive Holdings in $15.3 Billion Transaction — Yahoo Finance
- ADT stock surges to 5-year high after Thrive Holdings agrees to $7.6 billion buyout deal — Yahoo Finance
