Management is transitioning ADT from reactive alarm monitoring to “ambient intelligence” by integrating Origin AI’s Wi-Fi detection technology into the proprietary ADT Plus platform.

Performance in 2025 was driven by growth in monitoring and services revenue along with higher revenue per facility unit, which helped double adjusted free cash flow from 2021.

The company is intentionally changing its go-to-market model to favor low-cost acquisition channels such as e-commerce and direct-to-consumer while streamlining high-cost affiliate and distributor partnerships.

Operational efficiency is being scaled through “virtual service” initiatives, which now resolve approximately 50% of service calls through remote diagnostics instead of physical truck roads.

The strategic positioning is focused on “protection that follows people”, expanding beyond property security into aging in place, health monitoring and mobile security through the MySafety app.

The Origin AI acquisition provides a “sixth sense” for the home, using Wi-Fi signal deflection to detect falls or breathing patterns without cameras, addressing consumer privacy concerns.

2026 is designated as a transition year with revenue and EPS expected to be roughly flat due to the divestment of the multifamily business and the near-term disruption of channel rationalization.

Management is targeting a long-term financial framework of 5% revenue CAGR and 10% EPS CAGR, supported by a target of adding 1,000,000 more subscribers by 2030.

The Company anticipates approximately $45,000,000 in additional subscriber acquisition costs during 2026, specifically due to the uncertain rate environment.

A new three-year share repurchase authorization of $1,500,000,000 reflects management’s view that the current share price does not capture the intrinsic value of the recurring income base.

Commercialization of Origin AI technology across the entire ADT Plus platform is scheduled to begin in 2027, following a pilot program scheduled for 2026.

The October 2024 divestment of the multi-family business wiped out approximately $2.6 million in RMR and 200,000 subscribers, creating a year-over-year revenue headwind.

Attrition ended 2025 at 13.1%, slightly higher than historical lows due to high unpaid disconnections, although management is targeting a reduction to 11% by 2030.

Signed a five-year deal with Verisure, valued at a minimum of $30,000,000 plus fees, to scale Origin AI technology across its footprint in Europe and Latin America.

The company plans to invest approximately $50,000,000 by 2026 in product technology, AI infrastructure and the launch of the value-conscious “ADT Blue” product line.