Revenue stayed near $1.3B with gross margin reported at 78.3% in 2026Q3 versus roughly 49% through 2025, a jump that warrants review for possible reclassification given net margin of only 11.2% to 13.1%.
ADT Inc. (ADT) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 5.22B | 5.13B | 4.9B | 4.65B | 5.17B | 5.31B | 5.31B | 5.13B | 4.58B | 4.32B | 2.95B | 549.28M |
| Revenue Growth % | 2.02% | 4.7% | 5.28% | -9.97% | -2.61% | -0.14% | 3.69% | 11.87% | 6.17% | 46.3% | 437.03% | - |
| Cost of Goods Sold | 2.14B | 2.6B | 2.41B | 2.28B | 2.97B | 3.59B | 3.53B | 3.46B | 2.97B | 2.76B | 1.95B | 406.31M |
| COGS % of Revenue | - | 50.75% | 49.29% | 48.9% | 57.48% | 67.66% | 66.36% | 67.49% | 64.87% | 63.93% | 66.22% | 73.97% |
| Gross Profit | 3.08B | 2.53B | 2.48B | 2.38B | 2.2B | 1.72B | 1.79B | 1.67B | 1.61B | 1.56B | 996.37M | 142.97M |
| Gross Margin % | 58.96% | 49.25% | 50.71% | 51.1% | 42.52% | 32.34% | 33.64% | 32.51% | 35.13% | 36.07% | 33.78% | 26.03% |
| Gross Profit Growth % | - | 1.69% | 4.48% | 8.17% | 28.07% | -4.01% | 7.29% | 3.53% | 3.4% | 56.21% | 596.93% | - |
| Operating Expenses | 1.79B | 1.19B | 1.25B | 1.16B | 1.51B | 1.66B | 1.63B | 1.33B | 1.26B | 1.21B | 831.9M | 127.11M |
| OpEx % of Revenue | - | 23.24% | 25.55% | 24.92% | 29.19% | 31.33% | 30.6% | 25.88% | 27.43% | 28.02% | 28.2% | 23.14% |
| Selling, General & Admin | 1.45B | 1.19B | 1.25B | 1.16B | 1.51B | 1.66B | 1.63B | 1.33B | 1.26B | 1.21B | 831.9M | 127.11M |
| SG&A % of Revenue | - | 23.24% | 25.55% | 24.92% | 29.19% | 31.33% | 30.6% | 25.88% | 27.43% | 28.02% | 28.2% | 23.14% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.28B | 1.33B | 1.23B | 1.22B | 689.18M | 53.15M | 161.59M | 339.76M | 352.46M | 347.27M | 164.47M | 15.86M |
| Operating Margin % | 24.63% | 26.01% | 25.15% | 26.18% | 13.33% | 1% | 3.04% | 6.63% | 7.69% | 8.05% | 5.58% | 2.89% |
| Operating Income Growth % | - | 8.27% | 1.17% | 76.72% | 1196.67% | -67.11% | -52.44% | -3.6% | 1.49% | 111.14% | 937.36% | - |
| EBITDA | 2.66B | 2.7B | 2.58B | 2.61B | 2.38B | 1.97B | 2.08B | 2.33B | 2.28B | 2.21B | 1.4B | 173.05M |
| EBITDA Margin % | 51.06% | 52.67% | 52.61% | 56.02% | 46.1% | 37.08% | 39.05% | 45.43% | 49.84% | 51.22% | 47.37% | 31.51% |
| EBITDA Growth % | -6.25% | 4.83% | -1.14% | 9.39% | 21.08% | -5.18% | -10.88% | 1.99% | 3.29% | 58.19% | 707.52% | - |
| D&A (Non-Cash Add-back) | 1.38B | 1.37B | 1.34B | 1.39B | 1.69B | 1.91B | 1.91B | 1.99B | 1.93B | 1.86B | 1.23B | 157.2M |
| EBIT | 1.28B | 1.24B | 1.24B | 1.17B | 749.21M | 204.93M | -70.73M | 97.38M | 30.59M | 311.15M | -281.25M | -27.89M |
| Net Interest Income | -406.09M | -410.61M | -441.03M | -569.91M | -263.07M | -456.82M | -708.19M | -619.57M | -663.2M | -732.84M | -521.49M | -74.3M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 406.09M | 410.61M | 441.03M | 569.91M | 263.07M | 456.82M | 708.19M | 619.57M | 663M | 733M | 521.49M | 74.3M |
| Other Income/Expense | -417.36M | -500.26M | -417.02M | -606.97M | -544.64M | -524.34M | -940.5M | -861.95M | -985.08M | -768.95M | -967.21M | -118.04M |
| Pretax Income | 867.36M | 833.81M | 815.17M | 610.96M | 144.54M | -471.19M | -778.92M | -522.19M | -632.62M | -421.69M | -802.74M | -102.18M |
| Pretax Margin % | 16.63% | 16.26% | 16.64% | 13.13% | 2.8% | -8.88% | -14.66% | -10.19% | -13.81% | -9.77% | -27.21% | -18.6% |
| Income Tax | 238.51M | 233.29M | 195.78M | 160.59M | 37.68M | -130.37M | -146.73M | -98.04M | -23.46M | -764.31M | -266.15M | -29.34M |
| Effective Tax Rate % | 27.5% | 27.98% | 24.02% | 26.28% | 26.07% | 27.67% | 18.84% | 18.78% | 3.71% | 181.25% | 33.16% | 28.71% |
| Net Income | 624.58M | 595.95M | 501.05M | -166.97M | 132.66M | -340.82M | -632.19M | -424.15M | -609.15M | 342.63M | -536.59M | -72.84M |
| Net Margin % | 11.97% | 11.62% | 10.23% | -3.59% | 2.57% | -6.42% | -11.89% | -8.28% | -13.3% | 7.94% | -18.19% | -13.26% |
| Net Income Growth % | -2.49% | 18.94% | 400.08% | -225.86% | 138.92% | 46.09% | -49.05% | 30.37% | -277.79% | 163.85% | -636.62% | - |
| Net Income (Continuing) | 628.85M | 600.52M | 619.39M | 450.37M | 106.86M | -340.82M | -632.19M | -424.15M | -609.15M | 342.63M | -536.59M | -72.84M |
| Discontinued Operations | -2M | -4.57M | -118.34M | -617.34M | 25.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.85 | 0.67 | 0.52 | -0.17 | 0.19 | -0.41 | -0.82 | -0.57 | -0.81 | 0.46 | -0.77 | -0.10 |
| EPS Growth % | 5.8% | 28.85% | 405.88% | -189.47% | 146.34% | 50% | -43.86% | 29.63% | -276.09% | 159.74% | -670% | - |
| EPS (Basic) | - | 0.72 | 0.56 | -0.18 | 0.19 | -0.41 | -0.82 | -0.57 | -0.81 | 0.46 | -0.77 | -0.10 |
| Diluted Shares Outstanding | 736.76M | 895.92M | 963.45M | 973.89M | 970M | 826M | 778M | 747M | 747.71M | 748.95M | 694.63M | 694.63M |
| Basic Shares Outstanding | 730.84M | 832.57M | 901.27M | 911.59M | 848M | 771M | 760M | 747M | 747.71M | 748.95M | 694.63M | 694.63M |
| Dividend Payout Ratio | - | 31.38% | 36.38% | - | 95.83% | - | - | - | - | 218.9% | - | - |
Quick answers to the most common questions about buying ADT stock.
For fiscal year 2025, ADT Inc. (ADT) reported total revenue of $5.13B. This represents a 833.7% increase compared to $549.3M in 2015.
ADT Inc. (ADT) is profitable, generating $596.0M in net income for the fiscal year ending 2025 with a net profit margin of 11.6%.
ADT Inc. (ADT) reported an operating income of $1.33B, resulting in an operating profit margin of 26.0%. This margin reflects the operational efficiency of the business before interest and taxes.
ADT Inc. (ADT) generated $2.53B in gross profit for the year, representing a gross profit margin of 49.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Subscriber churn and labor cost inflation
Metrics are mathematically derived from official filings.
Top-Line Growth Flattening Near Single Digits
Based on reported quarterly figures, ADT's revenue held near $1.3B through 2026, with year-over-year growth decelerating from 6.5% in 2025Q1 to 0.9% in 2026Q1 before recovering to 3.9% in 2026Q3.
The recent pattern suggests growth is being sustained more by pricing and recurring monthly revenue than by new subscriber volume, which is consistent with a mature residential security base. The 2026Q3 rebound may reflect the simplification after the commercial divestiture, but a single quarter does not establish durability. Investors should monitor whether growth can persist without the subsidy of the divested segments.
Gross Margin Shift Warrants Classification Review
According to the income statement, gross margin ranged from roughly 49% through 2025 to 78.3% in 2026Q3, a jump that appears inconsistent with the cost-of-revenue trend seen in prior quarters.
The sharp move in reported gross margin, alongside cost of revenue falling to $292.7M from above $580M in earlier quarters, may indicate a change in cost classification or segment reporting rather than a pure operating improvement. Structurally, monitoring economics should support stable margins, but the magnitude of this change exceeds what pricing alone would typically explain. Analysts should verify whether acquisition-related costs were reclassified before treating the margin expansion as durable.
Net Income Volatility Obscures Underlying Earnings
As reported in financial statements, net income swung from $92.4M in 2024Q2 to $190.0M in 2024Q4 and back to $150.6M in 2026Q3, while diluted EPS moved within a narrow $0.15 to $0.20 band.
Net margin of 11.2% to 15.1% against operating margins of 23% to 26% indicates a meaningful gap between operating and bottom-line results, likely driven by interest expense and amortization of subscriber intangibles. The large quarter-to-quarter swings in EPS growth, including -66.1% and +66.7%, suggest the reported earnings base is sensitive to one-time or non-operating items. Adjusted measures favored by management should be reconciled against GAAP results before drawing conclusions.
Fixed Operating Base Dominates the Cost Structure
Based on reported figures, SG&A ran between $294M and $400M per quarter, consuming roughly 23% to 30% of revenue and representing the largest controllable cost line relative to operating income.
The high fixed-cost base reflects monitoring center operations and field technician labor, which limits operating leverage when revenue growth stalls. SG&A rose to $400.4M in 2026Q3 even as revenue growth slowed, which suggests expense discipline has not kept pace with the top line. Investors should monitor whether subscriber acquisition spending is being masked within SG&A.
Margin Optics May Overstate Profitability Durability
The strongest bear case is that the 78.3% gross margin in 2026Q3 reflects reporting reclassification rather than economics, and that net margins near 11% to 13% leave limited room for rising technician labor or churn costs.
If cost of revenue was reclassified or excluded, the reported margin expansion would not reflect improved unit economics, and the earnings base would be overstated relative to prior periods. Combined with stagnant revenue growth and flat EPS, this suggests the income statement may not yet demonstrate sustainable operating leverage. Analytical conclusions here remain inference from reported figures and warrant further investigation into segment disclosures.