Key Highlights

● Second-quarter Revenue was $1,312 million, up 2%.

● Adjusted EBITDA was $671 million, a Margin of 51%.

● Gross customer revenue attrition rose to 13.1% from 12.8%.

● ADT repurchased 68 million shares for $478 million in the quarter.

ADT Inc. (NYSE:ADT) operates in a security and smart-home market that is increasingly crowded, and its latest quarterly figures offer a snapshot of how it is holding its ground. Revenue grew modestly, margins stayed near 51%, and the company raised parts of its 2026 outlook. At the same time, Recurring Revenue slipped and customer attrition ticked higher. How those competing signals evolve could shape perceptions of ADT's competitive position when markets open on Thursday.

Latest Company Context

ADT reported second-quarter 2026 revenue of $1,312 million, up 2% from $1,287 million. Monitoring and related services revenue was $1,082 million, down 1%, while security installation, product and other revenue rose 17% to $230 million. Net Income was $154 million, and adjusted EBITDA was $671 million versus $674 million a year earlier, an adjusted margin of 51%. Recurring monthly revenue was $360 million, down $3 million, or 1%. Trailing twelve-month gross customer revenue attrition was 13.1%, up from 12.8%, and revenue payback was unchanged at 2.3 years. Management guidance for 2026 calls for adjusted free Cash Flow growth of about 30%, revenue growth of about 2% and adjusted EPS growth of about 2%. Income from continuing operations was $155 million, or $0.19 per diluted share, a decline of $13 million, a detail that sits alongside the improved outlook.

Key Business Drivers

Competitive position can be read through several lines of the report. Installation and product revenue growth of 17% suggests continued new-customer activity, while the 1% decline in recurring revenue and higher attrition indicate pressure on the installed base. The release refers to a dynamic and competitive environment without naming rivals, and mentions its strategic Partnership with Google only in forward-looking statements. Capital allocation also matters: ADT repurchased 68 million shares for $478 million in the quarter, including 29 million tied to Apollo's secondary offering, and returned $523 million in total including $45 million of dividends. Long-term Debt was about $7,447 million, plus $241 million of current maturities. In May the company also secured an additional $100 million of incremental borrowings under its First Lien Term Loan A due 2030, which adds to financing flexibility.

What Investors Should Watch

Attrition is the most direct competitive indicator, and a further rise could pressure recurring revenue. Investors may also watch whether installation growth is sustained and whether the 2026 guidance, which management raised, remains on track. A quarterly Dividend of $0.055 per share was payable on October 1, 2026, and $906 million of repurchase authorization remained at June 30. Leverage is another consideration, given debt of roughly $7.7 billion against $4 million of cash, with no amounts drawn on the revolving facility. Updates on the Google partnership and any commentary on pricing or promotional intensity could also be informative. The next Earnings release could show whether the roughly 2% revenue growth target is being supported by monitoring revenue or primarily by installation activity. Management's description of a dynamic and competitive environment suggests that retention and pricing discipline may remain recurring themes for the sector.

Holding Margins While Recurring Revenue Slips

ADT's latest results show a business maintaining margins and returning capital while contending with slightly weaker recurring revenue and attrition. The competitive picture may hinge on whether retention stabilises.