Description

ADT’s $820 Million Cash Flow Surge: Is The Business Model Quietly Changing?

The full results from ADT Incorporated for the second quarter of 2026 show a mixed but generally stable business performance with a modest increase in revenue and solid cash flow generation. Total revenue for the quarter rose 2% to $1.3 billion, while recurring monthly revenue remained steady at $360 million. Adjusted earnings per diluted share held flat at $0.23 year-over-year. These financial outcomes reflect ongoing challenges in subscriber acquisition, particularly from bulk account purchases and dealer channel softness, partially offset by growth in the direct-to-consumer segment. Cash flow continued to be a strong aspect of ADT’s performance, with adjusted free cash flow increasing by nearly 50% year-over-year to $406 million in the quarter and by 64% year-to-date to $820 million. This improvement was driven in part by favorable working capital timing, lower cash taxes, reduced interest expense, and more efficient subscriber acquisition spending.