ADT Inc. (ADT) Reports Strong Financial Gains, Cash Generation in Q3

ADT Inc. (NYSE:ADT) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 4, the company reported financial results for the third quarter of fiscal 2025, with revenue climbing 4% year-over-year to $1.3 billion, amid stable end-of-period recurring monthly revenue (RMR), which grew at a modest 1%.

Adjusted net income stood at $187 million, translating to an EPS of $0.23, which was 15% higher than the prior year and beat expectations by one cent. Another highlight of the quarter was the company’s adjusted free cash flow, which increased 32% year-over-year to $208 million.

ADT Inc. (NYSE:ADT) credited the strong results to the business’s overall efficiency, coupled with top-line growth that has created a conducive environment for future-oriented investments. The company’s CFO, Jeffrey Likosar, attributed the improved earnings to the firm’s sound capital structure and cash generation.

Following the results, the firm said it was on track to meet its full-year guidance for fiscal 2025 and was tightening the ranges slightly to reflect this confidence. It now anticipates an annual revenue between $5.075 billion and $5.175 billion, and adjusted EPS in the range of $0.85 to $0.89.

On the downside, attrition rose slightly by 13 basis points during the quarter to 13%, amid cautious consumer sentiment and relocations. However, ADT Inc. (NYSE:ADT) was hopeful of driving retention ahead, due to offerings such as ADT+ and efforts to improve customer service through AI, which should drive engagement.

Additionally, during the earnings call, the company also apprised of the transactions that had helped slash the cost of debt to 4.3%. The firm’s balance sheet reflects strong liquidity as it ended the quarter with $63 million in cash and an $800 million revolving facility.

The stock has returned 19.68% year-to-date, as of the close of business on November 7.

ADT Inc. (NYSE:ADT) provides secure, smart, and sustainable solutions to homes and businesses across the United States.

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