A provider of security and smart home systems for homes and small businesses, ADT offers both professionally installed and do-it-yourself setups, all tied together through its ADT+ app. The name comes from the American District Telegraph, a call-box system telegrapher Edward Callahan invented in 1874 after his boss's house was burglarized — he wired 50 neighbors to a central office so pulling a lever would summon help. Today it monitors around six million subscribers from six UL-listed centers.
ADT repurchased 86 million shares for $594 million in H1 2026 while credit loss allowances continued to rise.
ADT's aggressive is reshaping its capital structure even as consumer credit stress persists. rose 2.0% to $1.31 billion in Q2 2026, driven by a shift to outright equipment sales, but fell 6.9% to $154 million as higher credit loss allowances and advertising costs offset lower interest expenses. The company is returning substantial capital to shareholders while its subscriber base faces ongoing pressure from customer delinquencies.
Key takeaways
fell 6.9% to $153.8 million, as higher selling, advertising, and credit loss expenses more than offset lower interest costs.
Total rose 2.0% to $1.31 billion, with a $33 million increase in security installation revenue from the shift to an outright sales model under the platform, partially offset by an $8 million decline in monitoring revenue tied to the Multifamily divestiture.
fell 7.6% to $315.9 million and contracted 2.5 points to 24.1%, pressured by increased costs and investments.
Section summaries
Management's Discussion and Analysis
ADT's Q2 2026 revenue rose 2% on higher outright equipment sales, while net income fell 7% on increased costs and investments.
⌄
Total increased 2% to $1.31 billion, driven by a $33 million rise in security installation revenue from the shift to an outright sales model under the platform.
The company repurchased 86 million shares for $594 million in the first half of 2026 under its new $1.5 billion authorization, reducing diluted share count by 9%.
rose 17.8% to $620.1 million, while cash and equivalents dropped 97.5% to $3.9 million as the company deployed cash toward share repurchases.
rose 10.3% to $7.45 billion, and the company expects to refinance its 2027 debt maturity, with $800 million available on its .
What changed
The $19 million increase in credit loss allowances flagged in Q1 2026 continued into Q2, with management citing higher credit loss expenses as a pressure on , confirming the trend of rising consumer delinquencies.
The 13.1% gross customer attrition rate from FY 2025 was not updated in this filing, leaving the trajectory of subscriber losses unresolved.
No launch timeline or adoption metrics for the Google and State Farm next-gen security platform were disclosed, extending the multi-year silence on the partnership.
The acquisition, completed for $164 million in Q1 2026, was noted as not expected to have a material or cost impact in 2026, with no further integration milestones provided.
What to watch
Whether the allowance for credit losses continues to rise in Q3 2026, further pressuring as non-payment disconnects increase.
Any update on gross customer attrition and subscriber counts, to see if the 13.1% FY 2025 rate is stabilizing or still climbing.
The pace of share repurchases under the remaining $906 million of the $1.5 billion authorization against a $7.45 billion debt load and a cash balance of just $3.9 million.
Progress on refinancing the 2027 debt maturity and the effect of variable-rate exposure on , given 45% of debt is subject to variable rates before swaps.
Monitoring and related services declined $8 million due to lower volume from the Multifamily Divestiture, partially offset by higher average prices.
decreased 7% to $154 million, pressured by higher selling, advertising, and credit loss expenses, despite lower interest costs.
was nearly flat at $671 million, as higher installation profits were offset by increased advertising and credit loss allowances.
The company aggressively repurchased 86 million shares for $594 million in H1 2026 under a new $1.5 billion authorization, reducing diluted share count by 9%.
Liquidity remains strong with $800 million available on the , and the company expects to refinance its 2027 debt maturity.
Quantitative and Qualitative Disclosures About Market Risk
Our operations expose us to a variety of market risks, including the effects of changes in interest rates as we have both fixed-rate and variable-rate debt. We monitor and manage these financial exposures as an integral part of our overall risk management program. Our policies a…
⌄
Our operations expose us to a variety of market risks, including the effects of changes in interest rates as we have both fixed-rate and variable-rate debt. We monitor and manage these financial exposures as an integral part of our overall risk management program. Our policies allow for the use of specified financial instruments for hedging purposes only. Use of derivatives for speculation purposes is prohibited.
There were no material changes in our interest rate risk exposure to that disclosed in our 2025 Annual Report.
See Note 12 “Commitments and Contingencies” to the condensed consolidated financial statements under the heading “Legal Proceedings” included in this Quarterly Report on Form 10-Q for legal proceedings and related matters.
⌄
See Note 12 “Commitments and Contingencies” to the condensed consolidated financial statements under the heading “Legal Proceedings” included in this Quarterly Report on Form 10-Q for legal proceedings and related matters.
Our significant business risks are described in Part I, Item 1A “Risk Factors” in our 2025 Annual Report and in our other filings with the SEC. The risk factors described in our filings with the SEC and other information may not describe every risk facing the Company. There have…
⌄
Our significant business risks are described in Part I, Item 1A “Risk Factors” in our 2025 Annual Report and in our other filings with the SEC. The risk factors described in our filings with the SEC and other information may not describe every risk facing the Company. There have been no material changes in our risk factors from those disclosed in our 2025 Annual Report.