EarningsQ2 2026 Earnings Report
DE:541 Q2 2026 EPS Results
Actual EPS€0.21
Consensus EPS€0.20
Beat/MissBeat by +<€0.01
One Year Ago EPS€0.21
DE:541 Q2 2026 Revenue Results
Actual Revenue€1.17B
Expected Revenue€1.15B
Beat/MissBeat by +€21.00M
YoY Revenue Growth+1.96%
Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeBefore Open
Conference CallThursday, July 30, 2026
DE:541 Upcoming Earnings
Adt's next earnings date is estimated for November 10, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:541 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a largely positive picture driven by very strong free cash flow generation, disciplined capital allocation (notably large share repurchases), product innovation (ADT Plus, ADT Blue, presence sensing) and measurable AI-driven service efficiencies. These positives were balanced by softer gross additions (largely due to fewer bulk purchases and dealer/affiliate softness), a slight decline in monitoring revenue, and the caution that some cash benefits were timing-related and that higher cash taxes and interest are expected in 2027. Management raised 2026 guidance modestly and reiterated focus on margin and retention improvements as dealer migration and AI initiatives scale.Company Guidance
Very Strong Free Cash Flow Generation
Adjusted free cash flow (including interest rate swaps) was $406M in Q2, up $133M or 48% year-over-year. Year-to-date adjusted free cash flow was $820M, up more than $300M or ~64% versus prior year, driven by working capital timing, lower cash taxes and interest, and reduced subscriber acquisition spend.
Modest Revenue Growth and Stable Recurring Revenue
Total Q2 revenue grew 2% to $1.3B. Ending recurring monthly revenue (RMR) was $360M. Monitoring & services revenue was down 1% (impacted by prior multifamily divestiture), while installation revenue increased meaningfully.
Installation and Outright Equipment Sales Acceleration
Installation revenue was $230M, up 17% year-over-year. Outright equipment sales grew ~30%, reflecting a strategic shift toward customer equipment ownership and higher installation revenue per unit.
Profitability and EPS
Adjusted EBITDA for the quarter was $671M and adjusted income from continuing operations was $180M. Adjusted diluted EPS was $0.23 (flat to prior year). Year-to-date adjusted EPS was $0.47, up $0.03.
Subscriber Growth and Unit Economics
Added 190k gross new subscribers in the quarter with $11.9M of RMR additions. Net cash SAC was $345M, down 7% year-over-year (driven primarily by fewer bulk purchases), and revenue payback remained ~2.3 years.
Capital Allocation and Share Repurchases
Returned $684M to shareholders in H1 (including $594M to repurchase and retire ~86M shares and $90M of dividends). Through the week repurchased ~89M shares; $885M remains under the $1.5B repurchase authorization.
Balance Sheet and Leverage Position
Ended the quarter with net debt of ~ $7.4B, leverage of 2.8x adjusted EBITDA and a weighted average cost ~4.3%. Management reiterated comfort with capital structure and a target to reduce leverage to ~2.5x.
Product and Platform Innovation (ADT Plus & ADT Blue)
30% of new customer additions were on the ADT Plus platform. Launched ADT Blue (lower-cost, self-install solution) with early positive customer receptivity; initial adoption shows many customers selecting the fully monitored $35+ package. Development advanced on WiFi-based presence sensing (pilots this fall; planned launch early 2027).
AI-Driven Service Efficiency Gains
AI-driven call routing combined with virtual agents reduced customer contacts handled by human agents by nearly 20% and similarly reduced service tickets, while improving customer satisfaction. Plans to expand AI (call transcription, SMS virtual agents, fleet safety) to drive further retention, sales conversion and cost savings.
Raised Full-Year 2026 Outlook
Management modestly raised 2026 outlook: expects total revenue to grow ~2%, adjusted EPS to grow ~2%, and adjusted free cash flow to grow ~30%, citing year-to-date performance and share repurchases.
DE:541 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed