At a glance
ADT Inc is worth $5.67B, about 10 times its fiscal 2025 earnings. Revenue grew 4.7% to $5.13B in fiscal 2025, with 11.6% kept as profit; over 4 years it has grown 5.1% a year. It pays a 3.24% dividend yield, and returned $2.79B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −12.0% over the past year with dividends reinvested and +0.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 47.9% in the 2020 crash (S&P 500: 33.7%) and 28.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 3 months after the lows.
The business in plain English
ADT sells home security and smart home systems to households and small businesses in the United States, under a brand tied to home security since 1874. Products include burglar alarms, smart cameras, sensors for smoke, fire, carbon monoxide and leaks, and personal emergency devices that can detect falls. Customers can pick professional installation or do-it-yourself systems, and most new residential customers choose smart home features they can control remotely. ADT had about 6.1 million monitoring subscribers as of December 31, 2025.
Most revenue comes from monthly fees. In fiscal 2025 (ended December 31, 2025), revenue was about $5.13 billion: 82% recurring monthly revenue from monitoring and other service contracts, 8% installation charges, 7% upfront customer payments booked as revenue gradually over time, and 3% other services. ADT reports a single business segment, and almost all sales are in the US. Signing each customer takes heavy upfront spending on labor, commissions and equipment, so profits depend on customers staying for years.
ADT is centering its offerings on its ADT+ app and offers Google devices through a partnership running to 2030. In February 2026 it paid $170 million in cash for Origin AI, which uses radio signals and artificial intelligence to sense people at home without cameras; ADT expects this to help cut false alarms.
Price history
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ADT -12.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Recurring monthly revenue | $4.22B | 82.2% |
| Installation revenue | $416.1M | 8.1% |
| Amortization of deferred subscriber acquisition revenue | $358.4M | 7% |
| Other related services | $137.7M | 2.7% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $1.31B, up 2% from a year earlier, and net income was $153.8M (-6.9%).
- For fiscal 2025, revenue was $5.13B (+4.7% year over year; +5.1% a year from FY2021 to FY2025) with a 11.6% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2025) | +5.1% good |
|---|---|
| Operating margin | 25.5% good |
| Free cash flow margin | 33.3% good |
| Return on equity (FY2025) | 15.8% good |
| Return on assets (FY2025) | 3.8% watch |
| Net cash (cash minus debt) | $-7.77B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $5.31B | $-632.2M | $1.21B |
| FY2021 | $4.20B | $-340.8M | $1.48B |
| FY2022 | $4.38B | $132.7M | $1.71B |
| FY2023 | $4.65B | $463.0M | $1.48B |
| FY2024 | $4.90B | $501.1M | $1.72B |
| FY2025 | $5.13B | $596.0M | $1.71B |
Valuation snapshot
| Market value | $5.67B |
|---|---|
| P/E ratio | 9.5 |
| Dividend yield | 3.24% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ADT price data to Oct 28, 2026 | -5.7% | -12.0% | +12.8% | +0.3% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -5.7% |
| 2025 | +20.3% |
| 2024 | +4.8% |
| 2023 | -22.9% |
| 2022 | +10.0% |
| 2021 | +9.1% |
| 2020 | +1.4% |
| 2019 | +46.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 47.9% over that stretch · deepest drop along the way 47.9%, back to its old high 2.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 0.9% over that stretch · deepest drop along the way 28%, back to its old high 2.9 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 1 open-market purchases ($101K) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 29, 2026 | Jeffrey Likosar Pres Corp Dev & Trans. & CFO | buy | $101K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 10.3% | Jul 31, 2026 |
| Vanguard Portfolio Management | 8.46% | Sep 30, 2026 |
| Dimensional Fund Advisors LP | 6.4% | Sep 30, 2026 |
| AQR Capital Management, LLC | 4.38% | Mar 31, 2026 |
| Citadel Advisors LLC | 2.2% | Jun 30, 2025 |
ETFs with the most weight in ADT
| GUNZ Tuttle Capital Self Defense Index ETF | 6.86% |
| PTEC Global X PropTech ETF | 5.33% |
| WBIF WBI BullBear Value 3000 ETF | 4.72% |
| WBIG WBI BullBear Yield 3000 ETF | 4.51% |
| SIMS SPDR S&P Kensho Intelligent Structures ETF | 4.07% |
| SNSR Global X Internet of Things ETF | 3.91% |
| CTEX ProShares S&P Kensho Cleantech ETF | 3.44% |
| CNRG SPDR S&P Kensho Clean Power ETF | 2.87% |
What could go wrong
- Heavy reliance on its Google partnership. Until November 2030, ADT has agreed, with exceptions, to use Google as its exclusive supplier of certain devices for professionally installed customers. If the devices lag, or Google supplies rivals or competes, ADT could suffer.
- Customers canceling sooner than expected. ADT spends heavily up front on installation, equipment and commissions for each new subscriber. It earns that back only if customers stay for years, so rising cancellations would hurt profits and cash flow.
- A heavy debt load. ADT carried about $7.8 billion of debt as of June 30, 2026, more than twice its shareholders' equity (assets minus liabilities). Loan terms limit its flexibility, and higher interest rates could raise its financing costs.
- Competition from big tech companies. Large technology companies and other service providers with large resources and customer bases sell home security and smart home products too. That could squeeze ADT's profit margins and market share.
- Older networks being retired. Older telecom and network technologies get retired over time, and new ones may not work with systems already in homes. Upgrading customers can take significant spending and may lead some to cancel.
- Police response and false alarm fines. Police and fire departments could refuse to respond to calls from monitoring companies, hurting trust in the service. ADT can also be fined for false alarms and may be unable to pass on the cost.
Recent events
- Major agreement signed; Executive or board change
- Other company announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation; Shareholder vote results
- Executive or board change; Bylaws or fiscal year changed; Other company announcement
- Quarterly results released; Investor presentation or announcement
- Other company announcement
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement
For income and retirement investors
ADT pays a dividend but lacks a long record of raises. Regular dividends per share were $0.14 in fiscal 2022 and 2023 and $0.22 in fiscal 2024 and 2025, so there was no increase in the latest year. In fiscal 2025 the dividend used about 31% of earnings and 11% of free cash flow (cash left after capital spending), a modest share. The yield was 3.24% as of October 28, 2026. ADT also spent about $2.05 billion buying back its own shares from fiscal 2021 to 2025, while carrying heavy debt.
In the 2020 COVID crash, the shares fell about 48% between February 19 and March 23, 2020, then recovered by June 1, 2020. In the 2022 bear market, they dropped 28% from January 4 to June 16, 2022, and recovered by September 12, 2022. The deepest fall since its stock market listing in January 2018 was about 67%. Single stocks carry more risk than diversified funds.
Questions investors ask
How does ADT make money?
Mostly from monthly fees. In fiscal 2025, which ended December 31, 2025, ADT had about $5.13 billion in revenue, and 82% of it was recurring monthly revenue from alarm monitoring and other service contracts. Installation charges added about 8%, upfront customer payments booked as revenue gradually over time added 7%, and other services about 3%. ADT had about 6.1 million monitoring subscribers at that date, and almost all its sales are in the US.
Does ADT raise its dividend every year?
No. ADT pays a dividend but has no streak of yearly increases. Regular dividends per share were $0.14 in fiscal 2022 and 2023, rose to $0.22 in fiscal 2024, and stayed at $0.22 in fiscal 2025. The fiscal 2025 dividend used about 31% of earnings and about 11% of free cash flow, a modest share. The dividend yield (the yearly dividend divided by the share price) was 3.24% as of October 28, 2026.
How much debt does ADT have?
About $7.8 billion of total debt as of June 30, 2026, against shareholders' equity of about $3.5 billion and total assets of about $15.7 billion. ADT's annual report says this debt limits its financial and operating flexibility, and its loan agreements restrict how it runs and finances the business. Higher interest rates could also raise its financing costs. A significant part of its assets is goodwill (the premium paid for past acquisitions) and other intangibles, whose full value ADT may never realize.
Does Google own part of ADT?
Yes, as of December 31, 2025, Google held all of ADT's Class B common stock. It bought 54,744,525 of those shares in a private sale in September 2020, alongside a commercial deal, with an initial term to November 15, 2030, that puts Google devices in ADT's lineup. Google was barred from selling them, with some exceptions, until June 2025. At the end of 2025 the three largest shareholders were State Farm (about 16%), Apollo Global Management (about 12%) and Vanguard (about 8%).
How has ADT stock performed over time?
Unevenly. As of October 28, 2026, the share price was down 12% over one year and roughly flat over five years, up about 1% in total, but up 43% over three years. By calendar year it fell 22.9% in 2023, then rose 4.8% in 2024 and 20.3% in 2025, and it was down 5.7% for 2026 through October 28. Its deepest fall since listing in January 2018 was about 67%.