What is the revenue and EPS growth rate for ADT year over year?

What is ADT's gross profit margin?

What were the key takeaways from ADT's earnings call?

What does ADT do and what are its main business segments?

What is ADT's latest dividend and current dividend yield?

What guidance did ADT's management provide for the next earnings period?

Did ADT beat or miss consensus estimates last quarter?

What were the key takeaways from ADT’s earnings call?

- **Financial Resilience**: Q3 revenue up 4% to $1.3 billion, with adjusted EPS of $0.23 (+15% YoY) and $709M free cash flow year-to-date.
- **ADT+ Growth**: 25% of new customers adopt ADT+, boosting retention and installation revenue; AI-driven customer service resolves 50% of chats without human intervention.
- **Debt Optimization**: Refinanced $1.3B high-cost debt, lowering borrowing costs to 4.3%, with $800M undrawn revolver for flexibility.
- **Strategic Shifts**: Pivoted State Farm partnership to digital relocation focus and reduced bulk purchases to prioritize quality over quantity.
- **2025 Guidance**: Tightened targets for revenue ($5.075-5.175B), EPS ($0.85-0.89), and EBITDA ($2.665-2.715B), reflecting disciplined execution and cost savings.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue of $1.3 billion, up 4% year-over-year. Adjusted EBITDA rose 3% to $676 million, with adjusted EPS of $0.23, up 15% YoY.
- **Cash Flow Strength**: Adjusted free cash flow reached $709 million year-to-date, with $746 million returned to shareholders via buybacks and dividends.
- **ADT+ Platform Expansion**: 25% of new customers use ADT+, driving higher installation revenue and retention. Launched ADT+ Alarm Range Extender and AI-driven testing for faster app releases.
- **Attrition Management**: Attrition rate ticked up to 13% due to nonpayment cancels, but AI initiatives (e.g., 50% chat resolutions via AI) aim to improve customer retention.
- **State Farm Pivot**: Shifted from traditional sales to a digital relocation-focused approach, with early-stage testing underway.

**【CFO Financial Commentary】**
- **Cash Flow Performance**: Q3 free cash flow of $208 million, up 32% YoY. Full-year guidance for adjusted free cash flow remains $800-900 million, reflecting disciplined SAC spending and bulk account evaluations.
- **Debt Optimization**: Refinanced $1.3 billion in high-cost debt, lowering borrowing costs to 4.3%. Liquidity remains strong with $800 million undrawn revolver.
- **2025 Outlook**: Tightened guidance for total revenue ($5.075-5.175 billion), adjusted EPS ($0.85-0.89), and EBITDA ($2.665-2.715 billion), driven by operational efficiency and cost control.

**【Q&A Highlights】**
- **SAC Discipline**: Reduced bulk purchases (15,000 Q3 vs. 49,000 last year) to focus on high-quality adds, impacting RMR growth but improving SAC efficiency.
- **AI and Hardware Savings**: AI initiatives in customer service (e.g., 20% voice calls resolved by AI) and hardware portfolio optimization (e.g., Google Nest cameras) expected to yield savings in 2026.
- **Tariff Mitigation**: Working with suppliers to reduce tariff exposure, with minimal impact on 2025 margins.
- **Share Repurchases**: $500 million authorization fully utilized; future buybacks contingent on market conditions and debt maturities.


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