Revenue growth has decelerated to 0.9% in 2026Q1, though management has maintained operating margins between 24% and 26% despite ongoing gross margin pressure near the 49% level.
| Sales/Revenue | 5.14B | 5.13B | 4.9B | 4.65B | 5.17B | 5.31B | 5.31B | 5.13B | 4.58B | 4.32B | 2.95B | 549.28M |
| Revenue Growth % | 3.3% | 4.7% | 5.28% | -9.97% | -2.61% | -0.14% | 3.69% | 11.87% | 6.17% | 46.3% | 437.03% | - |
| Cost of Goods Sold | 2.55B | 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 | 2.59B | 2.53B | 2.48B | 2.38B | 2.2B | 1.72B | 1.79B | 1.67B | 1.61B | 1.56B | 996.37M | 142.97M |
| Gross Margin % | 50.38% | 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 | 1.27B | 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 | 1.27B | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.32B | 1.33B | 1.23B | 1.22B | 689.18M | 53.15M | 161.59M | 339.76M | 352.46M | 347.27M | 164.47M | 15.86M |
| Operating Margin % | 25.61% | 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 | 2.88B | 2.95B | 2.8B | 2.74B | 2.46B | 2.09B | 2.17B | 2.41B | 2.28B | 2.21B | 1.42B | 173.05M |
| EBITDA Margin % | 56.05% | 57.6% | 57.15% | 58.92% | 47.58% | 39.46% | 40.87% | 47% | 49.84% | 51.22% | 48.29% | 31.51% |
| EBITDA Growth % | 1.94% | 5.51% | 2.12% | 11.48% | 17.44% | -3.6% | -9.83% | 5.5% | 3.29% | 55.19% | 723.12% | - |
| D&A (Non-Cash Add-back) | 1.56B | 1.62B | 1.57B | 1.52B | 1.77B | 2.04B | 2.01B | 2.07B | 1.93B | 1.86B | 1.26B | 157.2M |
| EBIT | 1.32B | 1.33B | 1.24B | 1.17B | 749.21M | 204.93M | -70.73M | 97.38M | 30.59M | 311.15M | -281.25M | -27.89M |
| Net Interest Income | -406.98M | -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 | 406.98M | 410.61M | 441.03M | 569.91M | 263.07M | 456.82M | 708.19M | 619.57M | 663M | 733M | 521.49M | 74.3M |
| Other Income/Expense | -448.63M | -500.26M | -417.02M | -606.97M | -544.64M | -524.34M | -940.5M | -861.95M | -985.08M | -768.95M | -967.21M | -118.04M |
| Pretax Income | 867.6M | 833.81M | 815.17M | 610.96M | 144.54M | -471.19M | -778.92M | -522.19M | -632.62M | -421.69M | -802.74M | -102.18M |
| Pretax Margin % | 16.88% | 16.26% | 16.64% | 13.13% | 2.8% | -8.88% | -14.66% | -10.19% | -13.81% | -9.77% | -27.21% | -18.6% |
| Income Tax | 239.86M | 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 % | 27.65% | 27.98% | 24.02% | 26.28% | 26.07% | 27.67% | 18.84% | 18.78% | 3.71% | 181.25% | 33.16% | 28.71% |
| Net Income | 623.31M | 595.95M | 501.05M | -166.97M | 132.66M | -340.82M | -632.19M | -424.15M | -609.15M | 342.63M | -536.59M | -72.84M |
| Net Margin % | 12.13% | 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 % | 13.37% | 18.94% | 400.08% | -225.86% | 138.92% | 46.09% | -49.05% | 30.37% | -277.79% | 163.85% | -636.62% | - |
| Net Income (Continuing) | 627.75M | 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) | 0.71 | 0.67 | 0.52 | 0.48 | 0.19 | -0.41 | -0.82 | -0.57 | -0.81 | 0.46 | -0.77 | -0.10 |
| EPS Growth % | 18.97% | 28.85% | 8.33% | 152.63% | 146.34% | 50% | -43.86% | 29.63% | -276.09% | 159.74% | -670% | - |
| EPS (Basic) | - | 0.72 | 0.56 | 0.51 | 0.19 | -0.41 | -0.82 | -0.57 | -0.81 | 0.46 | -0.77 | -0.10 |
| Diluted Shares Outstanding | 877M | 895.92M | 963.45M | 973.89M | 970M | 826M | 778M | 747M | 747.71M | 748.95M | 694.63M | 694.63M |
| Basic Shares Outstanding | 815M | 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% | - | - |
Subscriber Acquisition Cost Volatility
According to quarterly financial data, ADT's revenue growth has decelerated from a peak of 7.4% in 2024Q4 to a modest 0.9% in 2026Q1, reflecting the challenges of maintaining subscriber expansion in a saturated residential security market while navigating the recent divestiture of its commercial business unit.
The transition toward a pure-play residential model appears to have constrained top-line momentum, as the company sheds non-core segments. Investors should monitor whether the current low-single-digit growth rate represents a structural ceiling or if the partnership with State Farm can eventually catalyze a new phase of customer acquisition.
As reported in recent income statements, ADT's gross margin fluctuated from a high of 52.1% in 2023Q4 to 54.0% in 2026Q1, though the intervening periods show a persistent compression toward the 49% level, suggesting ongoing pressure from hardware subsidies and rising field service labor costs.
The volatility in gross margins suggests that the company's pricing power may be limited by the competitive threat of lower-cost DIY alternatives. The recent expansion to 54% in 2026Q1 warrants further investigation to determine if this is a sustainable shift in product mix or a temporary benefit from reduced hardware deployment.
Based on the provided income statement figures, ADT has maintained operating margins in the 24% to 26% range, indicating that management has successfully scaled operating expenses in alignment with gross profit despite the significant structural changes resulting from the divestiture of the commercial and solar segments.
The ability to keep operating margins stable while revenue growth remains muted suggests a disciplined approach to SG&A management. This operational efficiency appears to be a critical buffer, allowing the company to preserve profitability even as the costs of acquiring and retaining subscribers remain a significant headwind.
Analysis of the reported net income reveals significant quarterly fluctuations, with EPS ranging from $0.09 to $0.20 over the last two years, a trend that appears heavily influenced by non-operating items and the complex amortization of subscriber acquisition costs inherent in the security services business model.
The inconsistency in bottom-line performance suggests that GAAP net income may not fully capture the underlying cash-generating capacity of the subscriber base. Investors should be cautious of relying on headline EPS, as the heavy amortization of intangible assets often obscures the true economic return on customer cohorts.
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.