ADT reports Q1 gains, boosts cash flow and shareholder returns

BOCA RATON, Fla.—ADT delivered solid Q1 2026 results, posting strong cash flow growth and continued shareholder returns as it advances its platform strategy and expands its use of artificial intelligence (AI) across the business.

The company reported modest revenue growth but significant gains in profitability and cash generation, reinforcing its focus on recurring revenue, operational efficiency, and long-term value creation.

“ADT delivered another quarter of solid results highlighted by strong cash generation and returned $161 million to shareholders through share repurchases and dividends, reflecting our disciplined approach to capital allocation while continuing to invest in our future,” said Jim DeVries, ADT chairman, president and CEO.

Q1 2026 by the numbers

• Total revenue: $1.28 billion, up 1% year over year
• GAAP income from continuing operations: $169 million, or $0.20 per diluted share (up $27 million)
• Adjusted income: $191 million, or $0.23 per diluted share
• Operating cash flow: $638 million, up 37%
• Adjusted free cash flow (incl. swaps): $414 million, up 83%
• Recurring monthly revenue (RMR): $359 million
• Gross revenue attrition: 13.1%
• Revenue payback period: 2.3 years

ADT returned $161 million to shareholders during the quarter, including $116 million in share repurchases and $45 million in dividends.

Platform growth and AI investment

ADT continued to build out its ADT+ platform, which accounted for approximately 30% of new customer additions in the quarter. The platform integrates professional monitoring with devices from partners such as Google Nest and Yale, along with proprietary features designed to enhance both security and convenience.

A key strategic move was the February acquisition of Origin AI, bringing ambient sensing technology into ADT’s portfolio. The technology enables motion and activity detection without cameras, supporting privacy-focused security and smart-home use cases.

The company also launched new features, including:

• Live Light, a wireless illuminated yard sign that activates during alarm events to help first responders quickly locate the correct property
• MySafety, a mobile-based personal safety service that extends monitoring protection beyond the home

Driving efficiency through technology

ADT highlighted continued progress in operational efficiency, with expanding use of AI across customer engagement and field operations.

The company has deployed AI-powered support tools to handle customer interactions across voice and chat, improving service efficiency and digital engagement. In addition, ADT introduced AI-enabled dash cameras in approximately 300 technician vehicles, helping reduce distracted driving and improve fleet safety.

Capital return and market momentum

Capital allocation remained a key focus during the quarter. In March, ADT announced a $1.5 billion share repurchase program, underscoring its commitment to returning capital to shareholders while maintaining a healthy balance sheet.

The company was also added to the S&P SmallCap 600 index in February, reflecting improved financial performance and alignment with index criteria.

Outlook

ADT said it remains on track to achieve its full-year 2026 outlook, which calls for:

• Approximately 20% growth in adjusted free cash flow
• Flat revenue and adjusted earnings per share

The company said its outlook reflects ongoing investment in growth initiatives, including platform innovation and AI capabilities, along with disciplined subscriber acquisition spending.