ADT touts its resilience

BOCA RATON, Fla. — Despite a volatile market, ADT highlighted record RMR returns and record customer retention in the first quarter of 2025 and doubled-down on its resilience during a recent earnings presentation. 

In total, ADT saw recurring monthly revenue (RMR) increase by 2% to $360 million in Q1, with record customer retention (gross revenue attrition of 12.6%; revenue payback at 2.3 years).  

“I think the headline from us is we have an exceptionally resilient business and feel very good about that,” said ADT Chairman, President and CEO Jim DeVries during the presentation. 

‘We've done well in past recessions’  

During the Q&A of the presentation, investors asked ADT’s leadership for an assessment on how its customers are responding to conditions in the housing market and the resulting attrition in the company’s business.  

“Demand for personal safety increases during uncertain times,” DeVries said. “Factors that pressure new subscriber adds for us, such as fewer relocations, actually contribute to customer retention. We’re not particularly reliant on new home builds, perhaps 5% or so of our gross adds. So net, we’ve done well in past recessions and generally expect our model to be resilient this time around.” 

Tariff mitigation 

As for the tariffs that are dominating the headlines in the U.S., DeVries confirmed that ADT has a team focused on mitigation plans, including negotiating with existing partners (or selecting new ones in some cases), managing inventory, buffering stock, and potentially increasing prices for new customers. DeVries noted that the two biggest sources of their products are Vietnam and Mexico, the latter being protected under 2020 United States-Mexico-Canada Agreement (USMCA). 

Unrivaled safety 

Ultimately, DeVries reiterated the themes he laid out during a previous call on ADT’s full year 2024.  

“We remain centered on delivering safety and peace of mind to our residential and small business customers with our strategy anchored in three areas,” DeVries told investors. “Unrivaled safety, innovative offering, and a premium best in class customer experience. Our focus on unrivaled safety is and will always remain core to who we are and what we do.” 

Financials at a glance:   

• Total revenue increased by 7% to $1.3 billion and end-of-period recurring monthly revenue (RMR)  

increased 2% to $360 million 

• Record customer retention with gross revenue attrition of 12.6%; revenue payback at 2.3 years 

• GAAP income from continuing operations of $142 million, or $0.16 per diluted share, down $21 million 

• Adjusted income from continuing operations of $186 million, or $0.21 per diluted share, up $15 million 

• Net cash provided by operating activities of $467 million, up $103 million; Adjusted Free Cash Flow  

(including interest rate swaps) of $226 million, up $116 million 

rate swaps) of $226 million, up $116 million