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• The Verizon of home and business security systems.
• The Comcast of home security and smart home services.

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• Residential Security Monitoring: Provides professional monitoring services for home burglar alarms, fire, carbon monoxide, and other environmental sensors.
• Smart Home Automation: Offers integration and control of smart home devices such as lighting, thermostats, and door locks, often tied into security systems.
• Commercial Security Solutions: Delivers customized security systems and monitoring for businesses, including access control, video surveillance, and intrusion detection.
• Solar Energy Solutions (ADT Solar): Specializes in the installation and maintenance of residential solar panels and related energy storage systems.

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ADT (Symbol: ADT) Major Customers

ADT primarily sells security, smart home, and monitoring services directly to end-users, encompassing both individuals and businesses. The company's major customer categories are:

• Residential Customers: These are individuals and families who subscribe to ADT's services for their homes. This category includes homeowners and renters seeking professional monitoring, intrusion detection, fire and life safety, and smart home automation solutions for personal security and convenience.
• Small to Medium Business (SMB) Customers: This category comprises businesses of various sizes, such as retail stores, offices, restaurants, and healthcare facilities. These customers utilize ADT's solutions for commercial property protection, including security systems, video surveillance, access control, and professional monitoring services to safeguard their assets, employees, and operations.

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• Alphabet Inc. (GOOGL)

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Jim DeVries, Chairman, President and Chief Executive Officer

Jim DeVries is the Chairman of the Board, President, and Chief Executive Officer of ADT. He joined ADT in 2016 as Executive Vice President and Chief Operating Officer, became President in September 2017, CEO in December 2018, and Chairman in 2023. Prior to ADT, he spent nearly a decade at Allstate Insurance Company, serving as Executive Vice President of Operations and Executive Vice President and Chief Administrative Officer. He also held various executive and management roles at Principal Financial Group, Ameritech, Quaker Oats Company, and Andrew Corporation. DeVries currently serves on the board of directors of ABM and as Lead Director on the board of Amsted Industries Inc. ADT was taken private by Apollo in 2016, the same year DeVries joined, and later went public again.

Jeff Likosar, President, Corporate Development and Transformation, and Chief Financial Officer

Jeff Likosar serves as President, Corporate Development and Transformation, and was reappointed Chief Financial Officer in April 2024, a position he previously held from February 2017 to August 2022, and on an interim basis since December 2023. In this role, he is responsible for corporate development activities, including strategic planning, mergers and acquisitions, and transformation execution. Before joining ADT, Likosar was the CFO at Gardner Denver, a private equity-backed provider of industrial equipment. He also held various executive finance roles at Dell Technologies, where he managed key elements of a multibillion-dollar take-private transaction, and at GE.

Fawad Ahmad, Executive Vice President and Chief Operating and Customer Officer

Fawad Ahmad has served as ADT's Executive Vice President and Chief Operating and Customer Officer since April 2025. He oversees the company’s operations organization, including field technicians, remote service and call center teams, IT, and procurement. With over 20 years of experience in building global products and leading digital transformations, he previously served as Chief Strategy & Transformation Officer at State Farm.

Omar Khan, Executive Vice President and Chief Business Officer

Omar Khan was appointed Executive Vice President and Chief Business Officer in March 2025. In this role, he leads ADT's product, innovation, business development, and engineering teams. Khan brings extensive expertise in product development, emerging technologies, and strategic growth, having previously worked as a senior advisor at Boston Consulting Group and holding leadership roles at Magic Leap, Samsung, Motorola, and HealthyMD.

DeLu Jackson, Executive Vice President and Chief Marketing and Communications Officer

DeLu Jackson is the Executive Vice President and Chief Marketing and Communications Officer at ADT, a position he joined in 2021. He leverages over 20 years of marketing and brand leadership experience to drive ADT's transformation. Prior to ADT, he was Vice President, Precision Marketing at Conagra Brands, and held senior roles at other recognizable brands such as Kellogg Company, McDonald's, Audi, Nissan, and Subaru.

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Key Risks to ADT Business

1. High Debt Load: ADT carries a significant amount of debt, with net debt around $7.5 billion as of the third quarter of 2025. The company's debt-to-equity ratio was approximately 2.13 as of September 2025, which is nearly three times the industry average of about 0.7297, indicating aggressive financial leverage. Managing this heavy debt load requires consistent and strong cash flow from its operations.
2. Customer Churn and Intense Competition: ADT operates in a highly competitive market, facing "fierce competition from Do-It-Yourself (DIY) and self-monitored smart home solutions." This competitive landscape contributes to persistent customer churn, with a trailing 12-month gross customer revenue attrition rate of 13.0% in Q3 2025. This attrition directly erodes ADT's recurring monthly revenue base. Key competitors include Vivint, Ring, Frontpoint, and SimpliSafe, each offering diverse security solutions and targeting various market segments.
3. Cybersecurity Incidents: ADT has recently experienced multiple cybersecurity incidents. In October 2024, the company reported that an "unauthorized party stole encrypted internal data related to employee user accounts" by accessing ADT's network through compromised credentials from a third-party business partner. This followed an August 2024 disclosure where "unauthorized actors illegally accessed certain databases containing ADT customer order information," which included email addresses, phone numbers, and postal addresses. Such incidents pose legal, reputational, and financial risks for the company, potentially affecting customer relationships.

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1. Rise of DIY and Smart Home Security Systems:

Similar to Netflix disrupting Blockbuster, companies like Ring (Amazon), SimpliSafe, and Google Nest are offering user-friendly, self-installable, and often more affordable security systems with competitive features. These systems frequently provide lower-cost professional monitoring options or free self-monitoring, directly challenging ADT's traditional model of professional installation, long-term contracts, and higher monthly fees. The market shift towards consumer preference for flexibility, affordability, and ease of setup is evident in the rapid growth and widespread adoption of these solutions, forcing ADT to develop its own DIY offerings as a defensive measure.

2. Aggressive Entry and Bundling by Tech and Telecom Giants:

Comparable to how Uber leveraged technology to disrupt traditional taxi services, major tech and telecom companies are integrating comprehensive security solutions into their existing ecosystems. Amazon (with Ring and Blink), Google (with Nest), and Comcast (with Xfinity Home) are leveraging their massive customer bases, brand recognition, and advanced technology to offer security as part of broader smart home, internet, or mobile service bundles. This allows them to compete on pricing, advanced features, and seamless integration, directly threatening ADT's standalone security proposition and its ability to capture new customers who prefer integrated digital lifestyle solutions.

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ADT's main products and services encompass residential and small business electronic security, fire protection, and alarm monitoring services. They also offer smart home automation and health safety solutions. The addressable markets for these services are substantial, primarily within North America and the United States.

Residential Security (including Smart Home Security)

• The global smart home security market was estimated at approximately USD 33.94 billion in 2024 and is projected to reach USD 82.07 billion by 2030, growing at a CAGR of 15.2%.
• North America holds a significant share of the global smart home security market, accounting for over 37% in 2024 and an estimated 36% of the connected home security market in 2025.
• The U.S. smart home security market alone represented over 80% of the U.S. market in 2024 and 80.5% of the North American home security market.
• The overall global home security systems market was valued at USD 54.9 billion in 2023 and is expected to reach USD 109.18 billion by 2032, with a CAGR of 7.94%. Other estimates place the global market at over USD 59.75 billion in 2025, potentially exceeding USD 119.75 billion by 2035.
• In North America, the home security system market was valued at USD 13.6 billion in 2024 and is projected to grow to USD 45.6 billion by 2033, demonstrating a CAGR of 13.70%.
• The DIY home security solutions market globally was estimated at approximately US$ 12.13 billion in 2023 and is expected to reach US$ 30.707 billion by 2033, with a CAGR of 9.7%. This market is also projected to reach US$ 22.2 billion by 2030 from US$ 9.8 billion in 2023, at a CAGR of 12.3%.

Commercial Security

• The global commercial security system market was estimated at USD 202.23 billion in 2024 and is projected to reach USD 540.47 billion by 2033, growing at a CAGR of 11.8%.
• Other estimations for the global commercial security market include USD 250.82 billion in 2024, anticipated to reach USD 640.84 billion by 2035 with a CAGR of 8.90%, and USD 204.23 billion in 2024, expected to grow to USD 381.66 billion by 2030 at a CAGR of 11.4%.
• North America is a dominant region in the commercial security system market, holding the largest revenue share of 37.3% in 2024.

Medical Alert Systems

• The global medical alert systems market was valued at USD 9.05 billion in 2023 and is expected to reach USD 18.71 billion by 2032, growing at a CAGR of 8.45%.
• North America holds a substantial share of the medical alert systems market, accounting for 40% in 2024 and 38.6% in 2023. It is expected to dominate the global market with a 41.8% share in 2024.
• The U.S. medical alert systems market was valued at USD 2.55 billion in 2024 and is projected to reach around USD 7.63 billion by 2034, with a CAGR of 11.58%.

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Expected Drivers of Future Revenue Growth for ADT

ADT is positioned for future revenue growth over the next 2-3 years, driven by several strategic initiatives and market dynamics:

1. Expansion and Adoption of the ADT+ Platform and Related Outright Sales: The ADT+ platform, launched in 2024, is a significant driver, integrating security, life safety, automation, and analytics functions with Google Nest devices. This platform is leading to a continued mix shift towards outright sales of equipment at higher average prices, significantly boosting installation revenue. As more customers choose ADT+ offerings, the company benefits from upfront revenue recognition for equipment sales.
2. Strategic Partnerships and New Customer Acquisition Channels: Collaborations, particularly with Google and State Farm, are key to expanding ADT's market reach and diversifying revenue streams. The integration of Google Nest camera models into ADT's ecosystem enhances its competitive position and attracts customers seeking advanced smart home security features. Additionally, ADT is exploring a new digital approach with State Farm for customer acquisition, which aims to access new customer segments.
3. Growth in Recurring Monthly Revenue (RMR) through Enhanced Product Mix and Pricing: Despite some fluctuations in gross subscriber additions, ADT has demonstrated consistent growth in its recurring monthly revenue (RMR). This growth is primarily fueled by increases in average pricing and an improved product mix, as customers opt for more comprehensive and higher-value ADT+ offerings. The company's focus on retaining customers is also crucial, with ongoing initiatives aimed at improving attrition rates.
4. Launch and Growth of New Products and Services, including AI Initiatives: ADT continues to expand its product ecosystem with new offerings beyond the core ADT+ platform, such as the 'Trusted Neighbor' service, which enhances customer convenience and control. Furthermore, ADT's investments in AI and remote service technologies are improving operational efficiency, reducing in-home service calls, and enhancing overall customer service, which can indirectly support revenue by improving customer satisfaction and retention.
5. Strategic Bulk Account Purchases: While the volume of bulk account purchases can vary quarter-to-quarter, these acquisitions remain a strategic tool for ADT to augment new subscriber growth and boost RMR. The company has historically closed on such purchases to directly increase its customer base.

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Share Repurchases

• In February 2025, ADT's Board of Directors authorized a new share repurchase plan for up to $500 million of its common stock, expiring on April 30, 2026.
• For the full year 2024, ADT repurchased 36 million shares for a total of $241 million.
• Year-to-date in 2025, ADT has returned $746 million to shareholders through share repurchases and dividends, including $112 million to repurchase 13 million shares in the third quarter of 2025 alone.

Share Issuance

• ADT has not directly issued shares for capital raising in the last 3-5 years. Secondary public offerings of ADT common stock by affiliates of Apollo Global Management have occurred, where ADT did not sell shares or receive proceeds, such as 70 million shares in March 2025 and 71 million shares in July 2025.

Inbound Investments

• In August 2020, Google invested $450 million in ADT in exchange for a 6.6% equity stake.
• In September 2022, State Farm made a $1.5 billion investment in ADT, acquiring a 15% stake and committing $300 million to growth initiatives.
• Google has committed $300 million towards marketing efforts, with ADT receiving $40 million in 2023 and $22.5 million in the first nine months of 2024.

Outbound Investments

• In November 2021, ADT acquired Sunpro Solar (later rebranded as ADT Solar) for approximately $825 million, which included $160 million in cash and 77.8 million shares of ADT common stock. ADT subsequently exited the solar business in January 2024.
• In December 2023, ADT acquired approximately 57,000 subscriber accounts for $89 million.
• In January 2024, ADT completed acquisitions of companies such as Apex Integrated Security Solutions and Portland Safe.

Capital Expenditures

• For the nine months ended September 30, 2025, total capital expenditures decreased by $104 million (19%) to $433 million.
• This reduction was primarily due to a $99 million decrease in subscriber system asset expenditures, stemming from a strategic shift towards the ADT+ outright sales model.
• ADT's capital expenditures include purchases of property and equipment, capitalized costs associated with security systems where the company retains ownership, and accounts acquired through authorized dealers or third parties.