# ADT Inc. (ADT) Informational only - not investment advice. CIK: 0001703056 SIC: 7381 Services-Detective, Guard & Armored Car Services SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7381 Services-Detective, Guard & Armored Car Services](/industry/7381/) Latest 10-K filed: 2026-03-02 SEC page: https://www.sec.gov/edgar/browse/?CIK=1703056 Filing source: https://www.sec.gov/Archives/edgar/data/1703056/000170305626000022/adt-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 5128607000 | USD | 2025 | 2026-03-02 | | Net income | 595951000 | USD | 2025 | 2026-03-02 | | Assets | 15818511000 | USD | 2025 | 2026-03-02 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001703056.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | 5,125,657,000 | 5,314,787,000 | 4,202,723,000 | 4,381,904,000 | 4,652,824,000 | 4,898,446,000 | 5,128,607,000 | | Net income | -536,587,000 | 342,627,000 | -609,155,000 | -424,150,000 | -632,193,000 | -340,820,000 | 132,663,000 | 463,009,000 | 501,053,000 | 595,951,000 | | Operating income | -229,315,000 | 282,439,000 | 277,840,000 | 196,444,000 | 40,640,000 | 9,791,000 | 725,094,000 | 1,178,961,000 | 1,208,064,000 | 1,308,901,000 | | Assets | | 17,014,820,000 | 17,208,608,000 | 16,083,652,000 | 16,116,936,000 | 16,894,351,000 | 17,821,236,000 | 15,964,094,000 | 16,050,957,000 | 15,818,511,000 | | Liabilities | | 13,581,708,000 | 12,983,803,000 | 12,899,283,000 | 13,077,600,000 | 13,645,632,000 | 14,428,088,000 | 12,175,448,000 | 12,250,156,000 | 12,039,901,000 | | Stockholders' equity | 3,804,976,000 | 3,433,112,000 | 4,224,805,000 | 3,184,369,000 | 3,039,336,000 | 3,248,719,000 | 3,393,148,000 | 3,788,646,000 | 3,800,801,000 | 3,778,610,000 | | Cash and cash equivalents | 75,891,000 | 122,899,000 | 363,177,000 | 48,736,000 | 204,998,000 | 24,453,000 | 257,223,000 | 14,621,000 | 96,212,000 | 80,817,000 | | Net margin | | | | -8.28% | -11.89% | -8.11% | 3.03% | 9.95% | 10.23% | 11.62% | | Operating margin | | | | 3.83% | 0.76% | 0.23% | 16.55% | 25.34% | 24.66% | 25.52% | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001703056.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2023-Q2 | 2023-06-30 | 1,593,128,000 | 92,211,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 1,237,484,000 | -86,237,000 | | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 1,222,255,000 | 575,872,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 1,209,311,000 | 91,551,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 1,204,559,000 | 92,394,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 1,243,836,000 | 127,151,000 | | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 1,260,379,000 | 189,957,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 1,267,491,000 | 140,246,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 1,287,035,000 | 165,179,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 1,297,954,000 | 145,132,000 | | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 1,276,127,000 | 145,394,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 1,278,529,000 | 168,374,000 | | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1703056/000170305626000059/adt-20260331.htm Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high Filing date: 2026-04-30 Report date: 2026-03-31 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Table of Contents •Introduction •Business and Basis of Presentation •Key Performance Indicators •Trends, Uncertainties, and Factors Affecting Operating Results •Results of Operations •Non-GAAP Measures •Liquidity and Capital Resources •Critical Accounting Estimates •Cautionary Statements Regarding Forward-Looking Statements INTRODUCTION The following section contains forward-looking statements about our business, operations, and financial performance based on current plans and estimates that involve risks, uncertainties, and assumptions, which could differ materially from actual results. Factors that could cause such differences are discussed in the sections of this Quarterly Report on Form 10-Q titled “Cautionary Statements Regarding Forward-Looking Statements” and Item 1A “Risk Factors.” The discussion and analysis below focuses on significant or material items to the Company. To obtain a more comprehensive understanding of our financial condition, changes in financial condition, and results of operations, the following discussion and analysis should be read in conjunction with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and the related notes included in our 2025 Annual Report. BUSINESS AND BASIS OF PRESENTATION Our Business ADT (or “we,” “our,” and “us”), provides security, interactive, and smart home solutions to consumer and small business customers in the U.S. Our mission is to empower people to protect and connect what matters most with safe, smart, and sustainable solutions, delivered through innovative offerings, unrivaled safety, and a premium experience because we believe that everyone deserves to feel safe. Basis of Presentation We report our results as a single operating and reportable segment. All financial information presented in this section has been prepared in U.S. dollars in accordance with GAAP, excluding any non-GAAP measures, and includes the accounts of ADT Inc. and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. Results of our former Solar and Commercial businesses are presented within discontinued operations for current and historical periods, as applicable. KEY PERFORMANCE INDICATORS We evaluate our results using certain key performance indicators, including operating metrics such as recurring monthly revenue and gross customer revenue attrition, as well as GAAP total revenue and the non-GAAP measures Adjusted Earnings per Share (“Adjusted EPS”) and Adjusted EBITDA (“Adjusted EBITDA”), both from continuing operations. Computations of our key performance indicators may not be comparable to other similarly titled measures reported by other companies. 28 Table of Contents Certain operating metrics are approximated, as there may be variations to reported results due to certain adjustments we might make in connection with the integration over several periods of acquired companies that calculated these metrics differently or periodic reassessments and refinements in the ordinary course of business, including changes due to system conversions or historical methodology differences in legacy systems. End-of-Period Recurring Monthly Revenue (“RMR”) RMR is generated by contractual recurring fees for monitoring and other recurring services provided to our customers, including contracts monitored but not owned. We use RMR to evaluate our overall sales, installation, and retention performance. Additionally, we believe the presentation of RMR is useful to investors because it measures the volume of revenue under contract at a given point in time, which is useful for forecasting future revenue performance as the majority of our revenue comes from recurring sources. Gross Customer Revenue Attrition Gross customer revenue attrition is defined as RMR lost as a result of customer attrition, net of dealer charge-backs and reinstated customers, excluding contracts monitored but not owned and self set-up/do-it-yourself (“DIY”) customers. Customer sites are considered canceled when all services are terminated. Dealer charge-backs represent customer cancellations charged back to the dealers because the customer canceled service during the charge-back period, which is generally thirteen months. Gross customer revenue attrition is calculated on a trailing twelve-month basis, the numerator of which is the RMR lost during the period due to attrition, net of dealer charge-backs and reinstated customers, and the denominator of which is total annualized RMR based on an average of RMR under contract at the beginning of each month during the period, in each case, excluding contracts monitored but not owned and self set-up/DIY customers. We use gross customer revenue attrition to evaluate our retention and customer satisfaction performance, as well as evaluate subscriber trends by vintage year. Additionally, we believe the presentation of gross customer revenue attrition is useful to investors as it provides a means to evaluate drivers of customer attrition and the impact of retention initiatives. Total Revenue Management and the Board use total revenue, which is calculated in accordance with GAAP, to evaluate the performance of employees (including members of management) and the Company as a whole, as well as to allocate resources. Refer to the section titled “Results of Operations—Revenue” for additional information. Adjusted EPS Adjusted EPS (from continuing operations) is a non-GAAP measure. Our definition of Adjusted EPS, a reconciliation of Adjusted EPS to diluted income (loss) from continuing operations per share (the most directly comparable GAAP measure), and additional information, including a description of the limitations relating to the use of Adjusted EPS, are provided under “Results of Operations—Non-GAAP Measures.” Adjusted EBITDA Adjusted EBITDA (from continuing operations) is a non-GAAP measure. Our definition of Adjusted EBITDA, a reconciliation of Adjusted EBITDA to income (loss) from continuing operations (the most directly comparable GAAP measure), and additional information, including a description of the limitations relating to the use of Adjusted EBITDA, are provided under “Results of Operations—Non-GAAP Measures.” 29 Table of Contents TRENDS, UNCERTAINTIES, AND FACTORS AFFECTING OPERATING RESULTS The information described herein could have a material effect on our business, financial condition, results of operations, cash flows, and key performance indicators. Subscribers As of March 31, 2026, we served approximately 6.1 million security monitoring service subscribers. Generally, a significant upfront investment is required to acquire new subscribers that in turn provide ongoing and predictable recurring revenue (RMR) generated from our monitoring services and other subscriber-based offerings. Although the economics of each installation may vary depending on the customer type, acquisition channel, and product and service offerings, we generally achieve revenue break-even in approximately two years. New subscriber additions and customer attrition have a direct impact on our financial results, including revenue, operating income, and cash flows. A portion of our recurring subscriber base can be expected to cancel its service each year for a variety of reasons, including relocation, cost, loss to competition, or service issues, or we may disconnect service due to non-payment. A 100 basis point change in customer attrition typically has approximately a $40 million impact on recurring revenue on an annualized basis. As of March 31, 2026, gross customer revenue attrition was 13.1%, as compared to 12.6% in the prior year, driven by higher non-payment disconnects slightly offset by fewer relocations and voluntary disconnects. Relocations are sensitive to changes in the residential housing market, and fewer relocations generally lead to improvements in customer attrition, but fewer subscriber additions. Additionally, non-payment disconnects generally increase in a weaker macroeconomic environment. We may experience fluctuations in these or other trends in the future as changes in the general macroeconomic environment or housing market develop. Revenue and Offerings The mix, price, offerings, sales and distribution channel, and equipment ownership of transactions impacts our results. For example, our results are impacted by the mix of transactions accounted for under a Company-owned equipment model versus a customer-owned equipment model (referred to as outright sales), as there are different accounting treatments applicable to each model, as discussed in Note 2 “Revenue and Receivables.” Historically, the majority of professional installation transactions occurred under a Company-owned model. However, since the second quarter of 2024, a growing percentage of our direct channel new subscriber adds are outright sales in connection with the national launch of our ADT+ platform. As a result, we have continued to experience an increase in both security installation, product, and other revenue and related costs due to the transition to our ADT+ platform, in which the equipment is sold outright to the customer. Currently, approximately 30% of new subscribers are outright sales. In early 2026, the Company refined its go-to-market approach for certain non-ADT+ residential transactions and transitioned such transactions to an outright sales model where equipment will be customer owned, which aligns with the equipment ownership model for ADT+ transactions. Accordingly, we expect this to continue to result in an increase in security installation, product, and other revenue and cost of revenue recognized in the statements of operations in subsequent periods. The mix of professional installation solutions versus self set-up solutions may impact our results in future periods, as professional installation solutions typically have higher contractual fees than our self set-up solutions as a result of differences in pricing, offer tactics, and level of products and services. As we refine our go-to-market approach and explore additional sales channels, we may experience an increase in the proportion of ADT self set-up customers, which are considered outright sales. Although the DIY market typically has lower monthly recurring fees than our professional installations, we believe this approach will allow us to grow our subscriber base. Changes in our recurring revenue base, including subscriber count, price escalations, or change in offerings, can also impact our results. As of March 31, 2026, RMR was $359 million, as compared to $360 million in the prior year period, primarily reflecting lower recurring monthly revenue due to the sale of our multifamily business in October 2025 (the “Multifamily Divestiture”), partially offset by an increase in average prices. 30 Table of Contents Macroeconomic and Other Trends and Uncertainties We may also experience an increase in other costs associated with factors such as (i) offering a wider variety of products and services; (ii) providing a greater mix of interactive and smart home solutions; (iii) replacing or upgrading certain system components due to technological advancements, cybersecurity upgrades, software or hardware end-of-life or otherwise; (iv) supply chain disruptions or other impacts such as tariffs or trade restrictions; (v) inflationary pressures on costs such as materials, labor, and fuel including those related to the ongoing conflict in the Middle East; and (vi) other changes in prices, interest rates, or terms from our suppliers, vendors, or third-party lenders. We are currently monitoring, and will continue to monitor, macroeconomic trends and uncertainties such as the ongoing global memory chip sho [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Table of Contents •Introduction •Business and Basis of Presentation •Key Performance Indicators •Trends, Uncertainties, and Factors Affecting Operating Results •Results of Operations •Non-GAAP Measures •Liquidity and Capital Resources •Critical Accounting Estimates •Accounting Pronouncements INTRODUCTION The following section should be read in conjunction with our consolidated financial statements and the related notes thereto included elsewhere in this Annual Report. This section is intended to (i) provide material information relevant to the assessment of our results of operations and cash flows; (ii) enhance the understanding of our financial condition, changes in financial condition, and results of operations; and (iii) discuss material events and uncertainties known to management that are reasonably likely to cause reported financial information not to be necessarily indicative of future performance or of future financial condition. Included below are year-over-year comparisons between 2025 and 2024. For information on year-over-year comparisons between 2024 and 2023, refer to Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 27, 2025 (the “2024 Annual Report”). We are including the explanation of Adjusted Earnings per share (“EPS”) for 2024 as compared to 2023 below as we began presenting Adjusted EPS as a key performance indicator in the first quarter of 2025. The following section contains forward-looking statements about our business, operations, and financial performance based on current plans and estimates involving risks, uncertainties, and assumptions, which could differ materially from actual results. Factors that could cause such differences are discussed in the sections of this Annual Report titled Item 1A “Risk Factors” and “Cautionary Statements Regarding Forward-Looking Statements.” Unless otherwise noted, the discussions below relate to our continuing operations. BUSINESS AND BASIS OF PRESENTATION ADT is a leading provider of security, interactive, and smart home solutions serving residential and small business customers in the U.S. Our mission is to empower people to protect and connect what matters most with safe, smart, and sustainable solutions, delivered through innovative offerings, unrivaled safety, and a premium experience because we believe that everyone deserves to feel safe. Our vision is to: •provide protection that is always on, always ready, powered by artificial intelligence and our expert team; •enable real time and split-second response, with deeper information and context during emergencies and all the times in between; •deliver a personalized experience that lives and evolves with the customer, tailored to lifestyles and life stages; and •offer solutions for everyone, across all U.S. households, small businesses, and families through a variety of use cases—protection that follows people, not just properties. As technology continues to get smarter and more capable, we are evolving toward a platform-centric software-as-a-product model. Our efforts are increasingly centered on our proprietary ADT+ application, which is designed to serve as a foundational ecosystem for both professionally installed and self-installed solutions, integrating human expertise with ambient sensing capabilities. 50 Table of Contents All financial information presented in this section has been prepared in U.S. dollars and in accordance with generally accepted accounting principles in the United States of America (“GAAP”), excluding our Non-GAAP measures, and includes the accounts of ADT Inc. and its subsidiaries. All intercompany transactions have been eliminated. As a result of the Commercial Divestiture and ADT Solar Exit, unless otherwise noted, we report current and historical financial and operating information for our one remaining segment. For a more detailed discussion of our business and basis of presentation, refer to Item 1 “Business” and Note 1 “Description of Business and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements in Item 15 “Exhibit and Financial Statement Schedules.” KEY PERFORMANCE INDICATORS We evaluate our results using certain key performance indicators, including the operating metrics end-of-period recurring monthly revenue (“RMR”) and gross customer revenue attrition, as well as GAAP total revenue and the non-GAAP measures Adjusted EPS and Adjusted EBITDA (“Adjusted EBITDA”), both from continuing operations. Computations of our key performance indicators may not be comparable to other similarly titled measures reported by other companies. Certain operating metrics are approximated, as there may be variations to reported results due to certain adjustments we might make in connection with the integration over several periods of acquired companies that calculated these metrics differently or periodic reassessments and refinements in the ordinary course of business, including changes due to system conversions or historical methodology differences in legacy systems. RMR and gross customer revenue attrition, as discussed below, exclude the former Commercial Business during 2023. The definition of these metrics has historically excluded activity related to the Solar Business and as such, these metrics were not impacted by the presentation of the Solar Business as a discontinued operation. Adjusted EBITDA reflects our continuing operations for all periods presented. Total Revenue Management and the Board of Directors use total revenue, which is calculated in accordance with GAAP, to evaluate the performance of employees (including members of management) and the Company as a whole, as well as to allocate resources. Refer to the section titled “Results of Operations—Revenue” for additional information. RMR RMR is generated by contractual recurring fees for monitoring and other recurring services provided to our customers, including contracts monitored but not owned. We use RMR to evaluate our overall sales, installation, and retention performance. Additionally, we believe the presentation of RMR is useful to investors because it measures the volume of revenue under contract at a given point in time, which is a useful measure for forecasting future revenue performance as the majority of our revenue comes from recurring sources. Gross Customer Revenue Attrition Gross customer revenue attrition is defined as RMR lost as a result of customer attrition, net of dealer charge-backs and reinstated customers, excluding contracts monitored but not owned and self-setup/DIY customers. Customer sites are considered canceled when all services are terminated. Dealer charge-backs represent customer cancellations charged back to the dealers because the customer canceled service during the charge-back period, which is generally thirteen months. Gross customer revenue attrition is calculated on a trailing twelve-month basis, the numerator of which is the RMR lost during the period due to attrition, net of dealer charge-backs and reinstated customers, and the denominator of which is total annualized RMR based on an average of RMR under contract at the beginning of each month during the period, in each case, excluding contracts monitored but not owned and self set-up/DIY customers. We use gross customer revenue attrition to evaluate our retention and customer satisfaction performance, as well as evaluate subscriber trends by vintage year. Additionally, we believe the presentation of gross customer revenue attrition is useful to investors as it provides a means to evaluate drivers of customer attrition and the impact of retention initiatives. 51 Table of Contents Adjusted EPS Adjusted EPS (from continuing operations) is a non-GAAP measure. Our definition of Adjusted EPS, a reconciliation of Adjusted EPS to diluted income (loss) from continuing operations per share (the most directly comparable GAAP measure), and additional information, including a description of the limitations relating to the use of Adjusted EPS, are provided under “Results of Operations—Non-GAAP Measures.” Adjusted EBITDA Adjusted EBITDA (from continuing operations) is a non-GAAP measure. Our definition of Adjusted EBITDA, a reconciliation of Adjusted EBITDA to income (loss) from continuing operations (the most comparable GAAP measure), and additional information, including a description of the limitations relating to the use of Adjusted EBITDA, are provided under “Results of Operations—Non-GAAP Measures.” TRENDS, UNCERTAINTIES, AND FACTORS AFFECTING OPERATING RESULTS The information described herein could have a material adverse effect on our business, financial condition, results of operations, cash flows, and/or key performance indicators. Subscribers As of December 31, 2025, we served approximately 6.1 million security monitoring service subscribers, which excludes customers from the divested Multifamily business. Generally, a significant upfront investment is required to acquire new subscribers, that in turn provide ongoing and predictable RMR generated from our monitoring services and other subscriber-based offerings. Although the economics of each installation may vary depending on the customer type, acquisition channel, and product and service offerings, we generally achieve revenue break-even in approximately two years. The prices we are able to charge for our products and services are impacted by the type and complexity of the offerings that we provide, quality of our products and services; the introduction of additional features and offerings that increase value to the customer; and the microeconomic and macroeconomic environments in which we operate. Demand for our offerings may be impacted by the (i) overall economic conditions in the geographies in which we operate; (ii) type, price and quality of our offerings compared to those of our competitors; (iii) changes in competition such as from the acquisition, disposition, or exiting of similar businesses by us or our competitors; (iv) overall state of the housing market; (v) perceived threat of crime; (vi) occurrence of significant life events such as the birth of a child or opening of a new business; and (vii) advancements or changes in technology. New subscriber additions and customer attrition have a direct impact on our financial results, including revenue, operating income, and cash flows. A portion of our recurring subscriber base can be expected to cancel services each year for a variety of reasons including, but not limited to, relocation, loss to competition, cost, or service issues, or we may disconnect service due to non-payment. For example, a 1% change in customer attrition typically has approximately a $40 million impact on recurring revenue on an annualized basis. As of December 31, 2025, gross customer revenue attrition was 13.1%, as compared to 12.7% in the prior year, driven by higher non-payment and voluntary disconnects partially offset by fewer relocations. Relocations are sensitive to changes in the residential housing market, and fewer relocations generally lead to improvements in customer attrition, but fewer subscriber additions. Additionally, non-payment disconnects generally increase in a weaker macroeconomic environment. Furthermore, as we focus our newest offerings on our ADT+ platform, we face a heightened risk of attrition among legacy subscribers using systems that are not currently compatible with that platform without significant hardware upgrades. We may experience fluctuations in these or other trends in the future as changes in the general macroeconomic environment or housing market develop. We have made significant progress toward increasing the variety of our offerings to accommodate increased consumer interest in automated security and other mobile technology applications due to advancements in technology, younger generations of consumers, and shifts to de-urbanization. Advances in technology are also helping us to improve our offerings and reduce certain costs. For example, our Remote Assistance Program provides our customers the ability to troubleshoot and resolve certain service issues, as well as other functions, through a live video stream with our skilled technicians. This provides customers with more options for receiving certain services that best fit their lifestyles while reducing our costs and eliminating thousands of vehicle trips. 52 Table of Contents We also market to customers through retail and e-commerce channels, including our website, and we have been supplementing existing channels to meet consumers where they prefer to shop. We believe adding additional sales channels will help drive subscriber growth. Revenue and Offerings The mix, price, offerings, sales and distribution channel, and equipment ownership of transactions impacts our results. For example, our results are impacted by the mix of transactions accounted for under a Company-owned equipment model versus an outright sales equipment model (referred to as outright sales). This is due to different accounting treatments applicable to each model, which are discussed in Note 2 “Revenue and Receivables.” Historically, the majority of professional installation transactions occurred under a Company-owned model. However, since the second quarter of 2024, a growing percentage of our direct channel new subscriber adds are outright sales in connection with the national launch of our new ADT+ platform. During 2025, we experienced an increase in both security installation, product, and other revenue and related costs due to the transition to our ADT+ platform, in which the equipment is sold outright to the customer. Currently, approximately 25% of new direct subscribers are outright sales. Beginning in early 2026, the Company expects to refine its go-to-market approach for certain non-ADT+ residential transactions and will transition such transactions to an outright sales model where equipment will be customer owned, which aligns with the equipment ownership model for ADT+ transactions. Accordingly, we expect this to result in an increase in security installation, product, and other revenue and cost of revenue recognized in the statements of operations in subsequent periods. The mix of professional installation solutions versus self set-up solutions may impact our results in future periods, as professional installation solutions typically have higher contractual fees than our self set-up solutions as a result of differences in pricing, offer tactics, and level of products and services. As we refine our go-to-market approach and explore additional sales channels, we may experience an increase in the proportion of ADT self set-up customers, which are considered outright sales. Although the DIY market typically has lower monthly recurring fees than our professional installations, we believe this approach will allow us to grow our subscriber base. Changes in our recurring revenue base, including subscriber count, price changes, or changes in the mix of offerings as discussed above, may impact our operating results. As of December 31, 2025, RMR was $359 million, consistent with the prior year, reflecting the sale of our Multifamily Business, offset by an increase in average prices. Macroeconomic and Other Trends and Uncertainties We may also experience an increase in other costs associated with factors such as (i) offering a wider variety of products and services; (ii) providing a greater mix of interactive and smart home solutions; (iii) replacing or upgrading certain system components due to technological advancements, cybersecurity upgrades, software or hardware end-of-life, or otherwise; (iv) supply chain disruptions or other impacts such as tariffs or trade restrictions; (v) inflationary pressures on costs such as materials, labor, and fuel; and (vi) other changes in prices, interest rates, or terms from our suppliers or vendors, or third party lenders. We aim to continuously evaluate and respond to changes in the above to drive efficiencies and meet customer demands. We are currently monitoring, and will continue to monitor, macroeconomic trends and uncertainties such as the ongoing global memory chip shortage, key components of inflation, the status and effects of recently implemented or threatened tariffs and other trade restrictions, as well as potential changes to these tariffs or the imposition of reciprocal or other tariffs or trade restrictions by other countries. Any of these may have negative consequences for our supply chain due to price increases from our vendors or suppliers, or supply chain delays. At this time, we do not anticipate material negative impacts that cannot be mitigated through arrangements with our vendors and suppliers, price increases to our customers, or other actions, but there is no guarantee that we will be able to successfully mitigate the negative effects of any such macroeconomic trends and uncertainties. We are also unable at this time to determine any future negative impacts from reduced consumer spending as a result of inflationary or other pressures or uncertainty that may result from the imposition of current or future tariffs or other trade restrictions. As part of our response to changes or pressures in the current macroeconomic environment, we have been evaluating, and continue to evaluate, cost-saving opportunities such as reducing headcount or our physical facilities footprint when appropriate, and reducing non-essential spend. While we have experienced some increase in costs as a result of inflation, we have, for the most part, been able to offset the rising costs through cost-saving opportunities, as well as price increases to our customers. In addition, hurricanes, wildfires, and other natural disasters impacting certain areas in which we operate may result in service, sales, and installation disruptions to certain of our customers. As such, we evaluate the financial and business impacts these events have or may have in the future. We have not experienced any material losses related to natural disasters during the periods presented. 53 Table of Contents Tax Matters During 2023, we utilized a significant portion of our NOLs to offset the gain generated from the sale of the Commercial Business. In 2024, we utilized the remaining NOLs and became a federal cash taxpayer in 2025. Federal Tax Legislation The OBBBA was signed into law in July 2025. It includes a broad range of tax reform provisions, some of which were favorable in 2025 to cash taxes. We evaluated the impact of the OBBBA on future periods and expect that the impact on cash taxes will likely be neutral. Potential for Future Valuation Allowance The valuation allowance for deferred tax assets relates to the uncertainty of the utilization of certain U.S. federal and state deferred tax assets. In evaluating our ability to recover our deferred tax assets, we consider all available positive and negative evidence, including enacted legislation such as the updates described above, which impact our assessment of whether a valuation allowance is needed. We believe that our deferred tax asset for disallowed interest under IRC Section 163(j) will continue to grow from its current level. There is currently significant uncertainty in the matters we consider when evaluating our valuation allowance needs. Any material change to our valuation allowance in subsequent periods could materially and adversely impact our operating results. Other Tax Matters As a result of Apollo selling shares of our Common Stock (as discussed in Note 16 “Related Party Transactions”) and our share repurchase program, an ownership change (as defined under Sections 382 and 383 of the Internal Revenue Code) occurred during the second quarter of 2025. Generally, an ownership change occurs when the aggregate ownership of certain shareholders shifts, for federal income tax purposes, by more than 50 percentage points in total over a rolling three-year period. An ownership change imposes annual limitations on a corporation’s ability to utilize its tax attributes to offset future U.S. taxable income. Our tax attributes that are subject to the limitations primarily consist of disallowed interest carryforwards. However, the limitation as a result of the ownership change significantly exceeded the value of these attributes. As such, we currently do not expect a material impact to our results from this ownership change. Other Business Updates Origin AI Acquisition On February 20, 2026, ADT acquired Origin AI, a provider of AI‑enabled presence detection and ambient sensing technology. Origin AI’s technology uses artificial intelligence and radio frequency signals to detect and classify human presence and activity within the home without the use of cameras, audio, or wearable devices. This technology is expected to enhance our ability to deliver improved alarm verification, reduce false alarms, and support new intelligent security and smart home use cases over time. The purchase price was $170 million in cash, subject to customary purchase price adjustments. Origin AI is now an indirect wholly owned subsidiary of ADT. ADT Solar Exit The results of operations and financial position of the Solar Business are classified as discontinued operations in the Company’s Consolidated Statements of Operations and Consolidated Balance Sheets, respectively, for all periods presented. Additionally, the cash flows and comprehensive income (loss) of the Solar Business have not been segregated and are included in the Consolidated Statements of Cash Flows and Consolidated Statements of Comprehensive Income (Loss), respectively. Exit charges incurred and paid were not material in 2025. We do not expect the remaining estimated charges and cash expenditures to be material; however, various factors including unknown or unforeseen costs may cause additional charges or cash expenditures to be incurred. Refer to Note 4 “Divestitures” in the Notes to Consolidated Financial Statements. 54 Table of Contents Google Update We were reimbursed $30 million for each of the years 2025 and 2024 from the Google Success Funds primarily for certain joint marketing and customer acquisition expenses we incurred. Refer to Note 13 “Commitments and Contingencies” in the Notes to Consolidated Financial Statements. State Farm Update The State Farm Development Agreement expired on October 13, 2025. On October 24, 2025, we repaid to State Farm approximately $78 million of the balance of the Opportunity Fund held by us. State Farm has no obligation to fund the Opportunity Fund in the future. In addition, we ended our State Farm partnership programs in existing states in connection with the expiration of the State Farm Development Agreement. Refer to Note 10 “Equity” and Note 16 “Related Party Transactions” in the Notes to Consolidated Financial Statements. 55 Table of Contents RESULTS OF OPERATIONS (in thousands, except as otherwise indicated) Years Ended December 31, $ Change Results of Operations: 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Revenue: Monitoring and related services $ 4,354,087 $ 4,293,477 $ 4,178,998 $ 60,610 $ 114,479 Security installation, product, and other 774,520 604,969 473,826 169,551 131,143 Total revenue 5,128,607 4,898,446 4,652,824 230,161 245,622 Cost of revenue (excluding depreciation and amortization): Monitoring and related services 642,270 617,386 604,368 24,884 13,018 Security installation, product, and other 340,702 229,728 147,314 110,974 82,414 Total cost of revenue 982,972 847,114 751,682 135,858 95,432 Selling, general, and administrative expenses 1,469,518 1,500,470 1,386,697 (30,952) 113,773 Depreciation and intangible asset amortization 1,367,216 1,342,798 1,335,484 24,418 7,314 Operating income (loss) 1,308,901 1,208,064 1,178,961 100,837 29,103 Interest expense, net (459,266) (441,031) (569,915) (18,235) 128,884 Other income (expense) (15,823) 48,137 (4,663) (63,960) 52,800 Income (loss) from continuing operations before income taxes 833,812 815,170 604,383 18,642 210,787 Income tax benefit (expense) (233,294) (195,780) (160,585) (37,514) (35,195) Income (loss) from continuing operations before equity in net earnings (losses) of equity method investee 600,518 619,390 443,798 (18,872) 175,592 Equity in net earnings (losses) of equity method investee — — 6,572 — (6,572) Income (loss) from continuing operations 600,518 619,390 450,370 (18,872) 169,020 Income (loss) from discontinued operations, net of tax (4,567) (118,337) 12,639 113,770 (130,976) Net income (loss) $ 595,951 $ 501,053 $ 463,009 $ 94,898 $ 38,044 Diluted income (loss) from continuing operations per share of Common Stock $ 0.68  $ 0.66  $ 0.47  $ 0.02  $ 0.19  Diluted weighted-average shares outstanding of Common Stock 841,176 908,700 919,149 (67,524) (10,449) Key Performance Indicators:(1) RMR $ 358,657 $ 359,450 $ 353,064 $ (793) $ 6,386  Gross customer revenue attrition (percentage) 13.1  % 12.7  % 12.9  % N/A N/A Adjusted EPS (2) $ 0.89 $ 0.75 $ 0.60 $ 0.14 $ 0.15 Adjusted EBITDA(2) $ 2,680,376 $ 2,578,195 $ 2,481,305 $ 102,181  $ 96,890  _______________________ (1)Refer to the “Key Performance Indicators” section for the definitions of these key performance indicators. (2)Refer to the “Non-GAAP Measures” section for the definitions of these non-GAAP measures and reconciliations to the most comparable GAAP measures. N/A—Not applicable. Unless otherwise noted, our results of operations discussed below relate to continuing operations. 56 Table of Contents Revenue Monitoring and related services revenue (“M&S Revenue”) primarily comprises revenue generated from providing recurring monthly monitoring and other services, as well as revenue from time and materials billings. Security installation, product, and other revenue comprises installation revenue from the sale and installation of our security systems sold under an outright sales model, as well as the recognition of revenue that is deferred upon initiation of a monitoring contract in transactions occurring under a Company-owned model (amortization of deferred subscriber acquisition revenue). Revenue during 2025, as compared to the prior year period, primarily reflects: •M&S Revenue: (i) higher recurring revenue of $39 million primarily driven by an increase in average prices of $113 million, partially offset by a decrease in volume of $53 million, and (ii) higher revenue of $20 million attributable to time and materials billings resulting from increased volume. •Security installation, product, and other revenue: higher installation revenue of $157 million primarily driven by a higher mix of professionally installed systems under the outright sales model. Cost of Revenue Monitoring and related services costs (“M&S Costs”) primarily includes field service and call center costs incurred from providing recurring monthly monitoring and other services. Security installation, product, and other costs primarily includes costs incurred from the installation and sale of our security systems sold under the outright sales model. Cost of revenue during 2025, as compared to the prior year period, primarily reflects: •M&S Costs: higher M&S Costs of $25 million, primarily due to an increase in interactive fees. •Security installation, product, and other costs: higher installation and product costs of $111 million, primarily due to a higher mix of professionally installed outright sales transactions. Selling, General, and Administrative Expenses (“SG&A”) The decrease in SG&A during 2025, as compared to the prior year period, was primarily driven by: •a decrease in general and administrative costs of $66 million primarily as a result of lower internal and external labor costs and lower costs attributable to legal settlements, partially offset by •an increase in the amortization of deferred subscriber acquisition costs of $28 million. Depreciation and Intangible Asset Amortization (“D&A”) The increase in D&A during 2025, as compared to the prior year period, primarily reflects an increase of $22 million in the amortization of customer contracts acquired under our authorized dealer program and from other third parties. Interest Expense, net The increase in interest expense, net during 2025, as compared to the prior year period, primarily reflects an increase in the unrealized loss on interest rate swaps of $29 million partially offset by a decrease of $11 million on our long-term debt primarily related to reductions in interest rates. Other Income (Expense) Other income (expense) during 2025, as compared to the prior year period, primarily reflects lower income from the Commercial transition services agreement (“TSA”) of $37 million and higher loss on extinguishment of debt of $14 million. Income Tax Benefit (Expense) Income tax expense during 2025 was $233 million, resulting in an effective tax rate for the period of 28.0%. The effective tax rate primarily represents the federal statutory rate of 21.0%, state income taxes, net of federal benefits, of 4.8%, permanently non-deductible items of 1.3%, and an increase in unrecognized tax benefits of 0.8%. Income tax expense during 2024 was $196 million, resulting in an effective tax rate for the period of 24.0%. The effective tax rate primarily represents the federal statutory rate of 21.0%, state income taxes, net of federal benefits, of 5.4%, and 57 Table of Contents unfavorable impacts from dispositions of 1.2% and permanently non-deductible items of 0.8%, partially offset by favorable impacts from a decrease in unrecognized tax benefits of 4.0%. Refer to Note 9 “Income Taxes” in the Notes to Consolidated Financial Statements for details on our effective tax rate. NON-GAAP MEASURES To provide investors with additional information in connection with our results as determined in accordance with GAAP, we disclose the following non-GAAP measures. These measures are not financial measures calculated in accordance with GAAP, and should not be considered as a substitute for net income, operating income, or their respective per share amounts as applicable, or any other measure calculated in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies. Adjusted EPS We define Adjusted EPS as diluted income (loss) from continuing operations per share adjusted for the per share amounts related to (i) share-based compensation expense; (ii) merger, restructuring, integration, and other items; (iii) impairment charges; (iv) unrealized (gains) or losses on interest rate swaps; (v) other non-cash or non-routine adjustments not necessary to operate our business; and (vi) the impact these items have on taxes. The diluted weighted average shares outstanding used in Adjusted EPS is equal to diluted weighted average shares outstanding of Common Stock calculated in accordance with GAAP. We believe Adjusted EPS is a benchmark used by analysts and investors in our industry to compare our performance against the performance of other companies, although this measure may not be directly comparable to similar measures reported by other companies. We believe the presentation of Adjusted EPS is useful to investors as it provides additional information about how our management evaluates the business. Beginning in 2025, management and the Board of Directors also use Adjusted EPS to evaluate the performance of employees (including members of management) and the Company as a whole, as well as to allocate resources. There are material limitations to using Adjusted EPS as it does not include certain significant items, including the adjustments discussed above, which directly affect our diluted income (loss) from continuing operations per share (the most comparable GAAP measure). These limitations are best addressed by considering the economic effects of the excluded items independently and by considering Adjusted EPS in conjunction with diluted income (loss) from continuing operations per share as calculated in accordance with GAAP. The table below reconciles Adjusted EPS to diluted income (loss) from continuing operations per share of Common Stock: Years Ended December 31, $ Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Diluted income (loss) from continuing operations per share of Common Stock $ 0.68  $ 0.66  $ 0.47  $ 0.02  $ 0.19  Share-based compensation expense 0.06  0.05  0.04  0.01  0.01  Merger, restructuring, integration, and other(1) 0.02  0.03  0.04  (0.01) (0.01) Goodwill impairment(2) 0.01  —  —  0.01  —  Interest rate swaps, net(3) 0.08  0.05  0.07  0.03  (0.02) Loss on extinguishment of debt 0.02  0.01  0.02  0.01  (0.01) Other, net 0.04  0.01  (0.04) 0.03  0.05  Tax impact on adjustments(4) (0.04) (0.07) (0.03) 0.03  (0.04) Adjusted EPS(5) $ 0.89  $ 0.75  $ 0.60  $ 0.14  $ 0.15  ________________ (1)During 2025 and 2024, primarily relates to restructuring costs. During 2023, primarily includes integration and third-party strategic optimization costs, as well as restructuring costs. (2)Represents a goodwill impairment charge associated with the Multifamily Divestiture. Refer to Note 6 “Goodwill and Other Intangible Assets” in the Notes to Consolidated Financial Statements. (3)Represents unrealized gains or losses on interest rate swaps presented in interest expense, net and other income (expense). (4)Represents the tax impact on adjustments using the federal and state blended statutory rate. During the fourth quarter of 2024, also includes tax reserve releases of approximately $30 million associated with The ADT Security Company's separation from Tyco. (5)Amounts may not sum in this table due to rounding. 58 Table of Contents The increase in Adjusted EPS in 2025, as compared to 2024, was primarily due to approximately: •$0.11 per share due to higher revenue, net of the related costs, •$0.07 per share due to lower general and administrative costs, and •$0.07 per share due to a decrease in our diluted weighted average shares outstanding as a result of share repurchases, partially offset by •$(0.05) per share of other income (expense) primarily due to lower Commercial TSA income, •$(0.03) per share due to higher amortization of deferred subscriber acquisition costs, and •$(0.03) per share due to higher depreciation and amortization expense. The increase in Adjusted EPS in 2024, as compared to 2023, was primarily due to approximately: •$0.17 per share due to higher revenue, net of the related costs, •$0.12 per share related to higher interest, •$0.05 per share of other income (expense) primarily due to higher Commercial TSA income, •$0.03 per share due to lower advertising costs, and •$0.01 per share due to a decrease in our diluted weighted average shares outstanding as a result of share repurchases, partially offset by •$(0.08) per share due to higher income tax expense, •$(0.06) per share due to increased allowance for credit losses, •$(0.04) per share due to higher amortization of deferred subscriber acquisition costs, and •$(0.04) per share due to higher general and administrative costs. The factors listed above exclude amounts that are outside of our definition of Adjusted EPS. Refer to the discussions above under “—Results of Operations” for further details. Adjusted EBITDA We define Adjusted EBITDA as income (loss) from continuing operations adjusted for (i) interest; (ii) taxes; (iii) depreciation and amortization, including depreciation of subscriber system assets and other fixed assets and amortization of dealer and other intangible assets; (iv) amortization of deferred costs and deferred revenue associated with subscriber acquisitions; (v) share-based compensation expense; (vi) merger, restructuring, integration, and other items; (vii) impairment charges; and (viii) other non-cash or non-routine adjustments not necessary to operate our business. We believe Adjusted EBITDA is useful to investors to measure the operational strength and performance of our business. We believe the presentation of Adjusted EBITDA is useful as it provides investors additional information about our operating profitability adjusted for certain non-cash items, non-routine items we do not expect to continue at the same level in the future, as well as other items not core to our operations. Further, we believe Adjusted EBITDA provides a meaningful measure of operating profitability because we use it for evaluating our business performance, making budgeting decisions, and comparing our performance against other peer companies using similar measures, although this measure may not be directly comparable to similar measures reported by other companies. There are material limitations to using Adjusted EBITDA. Adjusted EBITDA does not take into account certain significant items, including depreciation and amortization, interest, taxes, and other adjustments which directly affect our income (loss) from continuing operations. These limitations are best addressed by considering the economic effects of the excluded items independently and by considering Adjusted EBITDA in conjunction with income (loss) from continuing operations as calculated in accordance with GAAP. 59 Table of Contents The table below reconciles Adjusted EBITDA to income (loss) from continuing operations: Years Ended December 31, $ Change (in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Income (loss) from continuing operations $ 600,518  $ 619,390  $ 450,370  $ (18,872) $ 169,020  Interest expense, net 459,266  441,031  569,915  18,235  (128,884) Income tax expense (benefit) 233,294  195,780  160,585  37,514  35,195  Depreciation and intangible asset amortization 1,367,216  1,342,798  1,335,484  24,418  7,314  Amortization of deferred subscriber acquisition costs 252,553  224,647  188,222  27,906  36,425  Amortization of deferred subscriber acquisition revenue (358,413) (346,209) (301,708) (12,204) (44,501) Share-based compensation expense 54,553  48,745  38,626  5,808  10,119  Merger, restructuring, integration, and other(1) 13,145  24,124  38,959  (10,979) (14,835) Goodwill impairment(2) 12,023  —  —  12,023  —  Unrealized (gain) loss on interest rate swaps(3) 15,461  17,996  16,511  (2,535) 1,485  Loss on extinguishment of debt 18,850  4,802  16,621  14,048  (11,819) Other, net(4) 11,910  5,091  (32,280) 6,819  37,371  Adjusted EBITDA $ 2,680,376  $ 2,578,195  $ 2,481,305  $ 102,181  $ 96,890  ___________________ (1)During 2025 and 2024, primarily relates to restructuring costs. During 2023, primarily includes integration and third-party strategic optimization costs, as well as restructuring costs. (2)Represents a goodwill impairment charge associated with the Multifamily Divestiture. Refer to Note 6 “Goodwill and Other Intangible Assets” in the Notes to Consolidated Financial Statements. (3)Includes the unrealized gain or loss on interest rate swaps presented in other income (expense). (4)During 2023, primarily represents the gain on sale of a business and other investment. The drivers listed below exclude amounts that are outside of our definition of Adjusted EBITDA. Refer to the discussions above under “—Results of Operations” for further details. The increase in Adjusted EBITDA, as compared to the prior year period, was primarily due to: •lower general and administrative expenses of $61 million, •higher installation revenue, net of the associated costs and commissions, of $50 million, and •higher M&S Revenue, net of the associated costs, of $36 million, partially offset by •lower TSA income of $37 million. LIQUIDITY AND CAPITAL RESOURCES Liquidity and capital resources, along with our outstanding debt, primarily consist of the following: (in thousands) December 31, 2025 Cash and cash equivalents $ 80,817  Restricted cash and restricted cash equivalents $ 27,723  Availability under First Lien Revolving Credit Facility $ 800,000  Uncommitted available borrowing capacity under 2020 Receivables Facility $ 106,942  Carrying amount of total debt outstanding $ 7,689,634  Liquidity We expect our ongoing sources of liquidity to include cash generated from operations, borrowings under our credit facilities, and the issuance of equity and/or debt securities as appropriate given market conditions. Our future cash needs are expected to include cash for operating activities, working capital, capital expenditures, principal and interest payments on our debt, income tax payments, capital expenditures, expected dividend payments to our stockholders, potential share repurchases, and other business initiatives as they arise. Our principal liquidity requirements are to finance current operations, invest in acquiring and retaining customers, purchase property and equipment, service our debt, invest in our information technology infrastructure, and return money to shareholders through dividends and share repurchases. 60 Table of Contents Our liquidity requirements are primarily funded by our cash flows from operations. Cash inflows from operations primarily include cash received from customers related to monthly recurring revenue from providing monitoring and other services, as well as cash from the sale and installation of our security systems. Cash outflows from operations primarily relate to providing services to our customers, general and administrative costs, certain costs associated with acquiring new customers, interest payments, and taxes. We are a highly leveraged company with significant debt service requirements and have both fixed-rate and variable-rate debt. We also entered into, and may continue to enter into, interest rate swaps to manage interest on our debt. Further, cash outflows for interest payments are not consistent between quarters, with larger outflows occurring in the first and third quarters, and may vary as a result of our variable rate debt and interest rate swaps. We may periodically seek to repay, redeem, repurchase, or refinance our indebtedness, or seek to repurchase and retire our outstanding securities through cash purchases in the open market, privately negotiated transactions, a 10b5-1 repurchase plan, or otherwise, and any such transactions may involve material amounts. We are closely monitoring the impact of any inflationary pressures and changes in interest rates on our cash position. However, we believe our cash position, borrowing capacity available under our First Lien Revolving Credit Facility and 2020 Receivables Facility, and cash provided by operating activities are, and will continue to be, adequate to meet our operational and business needs in the next twelve months, as well as our long-term liquidity needs. Material Cash Requirements Our cash requirements within the next twelve months primarily include current maturities and interest on our long-term debt and leases, accounts payable and other current liabilities, purchase commitments and other obligations entered into in the ordinary course of business, dividends on our Common Stock, and potential share repurchases under our approved plan. As of December 31, 2025, our significant short-term and long-term cash requirements, excluding cash required for operations, under our various contractual obligations and commitments primarily included: •Debt principal – As of December 31, 2025, our expected future debt principal payments, excluding finance leases, totaled approximately $7.8 billion, with $288 million due in 2026 primarily related to payments on our 2020 Receivables Facility, our first lien notes due 2026 (the “First Lien Notes due 2026”), and required quarterly amortization payments. As of December 31, 2025, our next debt maturity will occur in April 2026 with respect to the remaining outstanding balance of $75 million of our First Lien Notes due 2026. We intend, and believe that we will have the ability through use of our ongoing sources of liquidity, to redeem these notes before or at maturity. Refer to Note 7 “Debt” in the Notes to Consolidated Financial Statements for further details of our debt and the timing of expected future principal payments. •Interest payments – Future interest payments on our fixed-rate debt are based on the contractual terms. Future interest payments on our variable-rate debt and the effects of our interest rate swaps are based on SOFR, plus the applicable margin in effect as of December 31, 2025. During 2025, we paid net cash interest of $409 million, including interest on interest rate swaps and leases. As of December 31, 2025, expected future interest payments totaled approximately $2.0 billion through 2042, with approximately $340 million due in 2026. Additionally, we expect to incur annual interest payments of approximately $260 - $355 million during each of the years 2027 - 2030 and a total of approximately $380 million thereafter. •Leases – As of December 31, 2025, our expected future operating and finance lease payments, including interest of $23 million, totaled $169 million, with $47 million due in 2026. Refer to Note 14 “Leases” in the Notes to Consolidated Financial Statements for further details of our obligations and the timing of expected future payments. 61 Table of Contents •Purchase obligations – Our material cash requirements for purchases of goods or services entered into in the ordinary course of business, including purchase orders and contractual obligations, primarily consist of information technology services and equipment, including investments in our information technology infrastructure and telecommunication services, and direct materials. Our future purchase obligations may be impacted by changes in our business or other internal or external factors. As our business continues to grow organically or through acquisitions, our obligations may grow as well. As of December 31, 2025, our contractual obligations entered into in the ordinary course of business, including agreements that are enforceable and legally binding and have a remaining term in excess of one year, totaled approximately $448 million, with approximately $273 million expected to be paid in 2026. In addition, as of December 31, 2025, we had outstanding purchase orders of approximately $136 million primarily related to direct materials and information technology and marketing services, which are expected to be materially satisfied in 2026. Refer to Note 13 “Commitments and Contingencies” in the Notes to Consolidated Financial Statements for the amounts and timing of such payments. •Google Success Funds – The Google Commercial Agreement requires us and Google to each contribute $150 million toward certain joint commercial efforts. Additionally, during 2022 we entered into the Google Commercial Agreement Amendment in which Google agreed to commit an additional $150 million. While the timing of these contributions is still uncertain, we expect to contribute the majority of our $150 million commitment under the Google Commercial Agreement by the end of 2026. As of December 31, 2025, we have incurred life-to-date expenses of approximately $100 million related to the initiatives funded from the initial segment of the Google Success Funds and had received $90 million of reimbursement from the Google Success Funds, with the remaining $10 million reimbursed during January 2026. •Google Cloud Agreement Addendum – Since December 2023, we are obligated to make purchases from Google totaling $200 million over a seven-year period (through December 2030), with an aggregate of $35 million in the first two years, an aggregate of $65 million in the next two years after that, and an aggregate of $100 million in the last three years of the commitment. As of December 31, 2025, we continue to work to meet this commitment. •Customer account purchases – Our indirect channel customers are generated mainly through our ADT Authorized Dealer Program. As opportunities arise, we may engage in selective third-party account purchases, which typically involve the purchase of a set of customer accounts from other security service providers. For example, we paid initial cash at closings of $115 million for customer accounts from third parties during 2025. •Taxes – While we have historically made cash tax payments to certain states, starting in the second quarter of 2025, we began making federal cash tax payments. The specific payment amounts may fluctuate each quarter based on our financial results and tax positions taken. In addition, we have $57 million of unrecognized tax benefits, excluding interest and penalties, related to various tax positions we have taken. These liabilities may increase or decrease over time primarily as a result of tax examinations, and given the status of the examinations, we cannot reliably estimate the period of any cash settlement with the respective taxing authorities. Refer to Note 9 “Income Taxes” in the Notes to Consolidated Financial Statements. •Share Repurchases – On February 20, 2026, our Board of Directors authorized a three-year share repurchase plan (the “2026 Share Repurchase Plan”), pursuant to which we are authorized to repurchase, through April 30, 2029, up to a maximum aggregate amount of $1.5 billion of shares of our Common Stock. As of the date of this 2025 Annual Report, we have not made any repurchases under the 2026 Share Repurchase Plan. •Dividends – Stockholders are entitled to receive dividends when, as, and if declared by our Board of Directors out of funds legally available for that purpose. On March 2, 2026, we announced a dividend of $0.055 per share to holders of Common Stock and Class B Common Stock of record on March 12, 2026, which will be distributed on or about April 2, 2026. Refer to Note 10 “Equity” in the Notes to Consolidated Financial Statements for dividends declared and paid during the periods presented. 62 Table of Contents •Off-balance sheet arrangements – As of December 31, 2025, we had guarantees primarily related to standby letters of credit on our insurance programs totaling $48 million. We do not have any other arrangements giving rise to material obligations that are not reported in our consolidated balance sheets, as described in Item 303 of SEC Regulation S-K. Cash Flow Analysis The following table is a summary of our cash flow activity for the periods presented: Years Ended December 31, $ Change (in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Net cash provided by (used in): Operating activities $ 1,884,163  $ 1,884,899  $ 1,657,726  $ (736) $ 227,173  Investing activities $ (1,117,774) $ (1,295,428) $ 242,493  $ 177,654  $ (1,537,921) Financing activities $ (861,914) $ (515,356) $ (2,143,849) $ (346,558) $ 1,628,493  The discussion below includes cash flows from both continuing operations and discontinued operations consistent with the presentation on the Consolidated Statements of Cash Flows. Cash Flows from Operating Activities Net cash provided by operating activities was flat for 2025 as compared to 2024, and primarily reflects an increase in cash tax payments, a higher proportion of outright sales transactions, and higher variable payroll-related payments. These items were partially offset by improved operating performance, changes in assets and liabilities due to the volume and timing of other operating cash receipts and payments with respect to when the transactions are reflected in earnings, and the benefit of lower outflows in the current year related to our former Solar Business. Refer to the discussions above under “—Results of Operations” for further details. Cash Flows from Investing Activities The decrease in net cash used in investing activities for 2025 compared to 2024 was due to a decrease in subscriber system assets expenditures of $127 million primarily due to a higher proportion of outright sales in the current year. In addition, in the fourth quarter of 2025, we received proceeds from our Multifamily Divestiture in the amount of $51 million. Cash Flows from Financing Activities The increase in net cash used in financing activities for 2025 compared to 2024 was primarily due to: •higher share repurchases of $366 million and •repayment of the Opportunity Fund in the amount of $78 million in connection with the expiration of the State Farm Development Agreement, partially offset by •an increase in net borrowings on our 2020 Receivables Facility of $63 million due to timing of proceeds and the amendment in March 2025, and •a decrease in net repayments on long-term debt of $57 million primarily due to scheduled quarterly amortization payments, as well as other repayments and borrowings, during the current period (as discussed below under the heading “Long-Term Debt”), compared to the repayment of the First Lien Notes due 2024 during the prior period. 63 Table of Contents Long-Term Debt As of December 31, 2025, our debt (excluding finance leases and any deferred financing costs, discounts, premiums, or fair value adjustments) consisted of the following (in thousands): Debt Description Issued Maturity Interest Rate Interest Payable Principal First Lien Term Loan B due 2030 10/13/2023 10/13/2030 Term SOFR + 2.00% Quarterly $ 1,764,249  First Lien Term Loan B-2 due 2032 3/7/2025 3/7/2032 Term SOFR + 1.75% Quarterly 1,441,989  First Lien Term Loan A due 2030 10/28/2025 10/28/2030 Term SOFR + 1.50% Quarterly 325,000  First Lien Notes due 2026 4/4/2019 4/15/2026 5.750% 3/15 and 9/15 75,000  First Lien Notes due 2027 8/20/2020 8/31/2027 3.375% 6/15 and 12/15 1,000,000  First Lien Notes due 2029 7/29/2021 8/1/2029 4.125% 2/1 and 8/1 1,000,000  First Lien Notes due 2033 10/15/2025 10/15/2033 5.875% 1/15 and 7/15 1,000,000  ADT Notes due 2032 5/2/2016 7/15/2032 4.875% 1/15 and 7/15 728,016  ADT Notes due 2042 7/5/2012 7/15/2042 4.875% 1/15 and 7/15 21,896  2020 Receivables Facility 3/5/2020 11/20/2030 Various Monthly 443,058  Total $ 7,799,208  The following discussion relates to significant changes to our debt agreements and activity during 2025. Refer to Note 7 “Debt” in the Notes to Consolidated Financial Statements for further details of our debt agreements, including interest rates, covenants, and other descriptions of these agreements. First Lien Credit Agreement Our first lien credit agreement dated as of July 1, 2015 (together with subsequent amendments and restatements, the “First Lien Credit Agreement”) provides for term loans (the “First Lien Term Loan B due 2030” and “First Lien Term Loan B-2 due 2032,” together, the “First Lien Term Loan Bs”) and a first lien revolving credit facility (the “First Lien Revolving Credit Facility”). Below is a summary of key events related to the First Lien Credit Agreement in 2025: •March 2025 - We amended and restated the First Lien Credit Agreement, which provided for the issuance of a new $600 million First Lien Term Loan B-2 due 2032, and received net proceeds of $597 million. We used the net proceeds to redeem $500 million of the First Lien Notes due 2026. The First Lien Term Loan B-2 due 2032 is subject to a springing maturity of 91 days prior to the maturity date of certain long-term indebtedness of Prime Security Services Borrower, LLC and its subsidiaries if, on such date, the aggregate principal amount of such indebtedness equals or exceeds $1 billion. Loans under the First Lien Term Loan B-2 due 2032 are treated as a separate class from the existing loans under the First Lien Term Loan B due 2030. •July 2025 - We amended and restated the First Lien Credit Agreement, which provided for the issuance of $550 million of incremental borrowings under the First Lien Term Loan B-2 due 2032, and received net proceeds of $545 million. We used the net proceeds and cash on hand to redeem $550 million of the First Lien Notes due 2026. •October 2025 - We amended and restated the First Lien Credit Agreement, which provided for the issuance of $300 million of incremental borrowings under the First Lien Term Loan B-2 due 2032, and received net proceeds of $297 million. We used the proceeds to partially redeem the Second Lien Notes due 2028. •October 2025 - We redeemed $200 million of the First Lien Term Loan B due 2030 using proceeds from the First Lien Term Loan A due 2030 (defined below). In addition, during 2025, we borrowed and repaid $198 million under the First Lien Revolving Credit Facility. We are required to make scheduled quarterly principal payments on the First Lien Term Loan Bs, with the remaining balances payable at maturity. We may make voluntary prepayments on the First Lien Term Loan Bs at any time prior to maturity at par. 64 Table of Contents Additionally, based on certain specified net first lien leverage ratios, we may be required to make annual prepayments on the outstanding First Lien Term Loan B due 2030 with a percentage of our excess cash flow, as defined in the First Lien Credit Agreement, if our excess cash flow exceeds a certain specified threshold, which is 0% if our net first lien leverage ratio is less than or equal to 2.20 to 1.00. As of December 31, 2025, we were not required to make any annual prepayments based on our excess cash flow. We may also be required to make a 1.00% prepayment premium on the First Lien Term Loan B-2 due 2032 in the event of certain specified refinancing events during the first six months after the most recent amendment. As of December 31, 2025, we were not required to make such prepayments. First Lien Term Loan A due 2030 In October 2025, we entered into a term loan credit agreement (together with subsequent amendments and restatements, the “Term Loan Credit Agreement”) for an aggregate principal amount of $325 million of term loans under a senior secured term loan A facility (the “First Lien Term Loan A due 2030”). We used the proceeds for general corporate purposes and to redeem $200 million of the First Lien Term Loan B due 2030. The First Lien Term Loan A due 2030 requires scheduled amortization payments, commencing on March 31, 2026, in annual amounts equal to (a) prior to March 31, 2028, 2.5% of its original principal amount and (b) on or after March 31, 2028, 5.0% of its original principal amount, payable quarterly, with the balance payable at maturity. We may make voluntary prepayments of the First Lien Term Loan A due 2030 at any time prior to maturity at par. The First Lien Term Loan A due 2030 bears interest at a rate equal to, at our option, either (a) a Term SOFR rate with a floor of zero or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50% per annum, (ii) the rate of interest per annum last quoted by The Wall Street Journal as the “Prime Rate” in the United States and (iii) the one-month adjusted term SOFR plus 1.00% per annum, in each case, plus an applicable margin of 1.50% per annum for Term SOFR loans and 0.50% per annum for Base Rate loans, subject to adjustments based on certain specified net first lien leverage ratios. We have elected the Term SOFR alternative to apply to borrowings of the First Lien Term Loan A due 2030. Additionally, the Term Loan Credit Agreement includes customary mandatory prepayment provisions, covenants and restrictions, including a financial maintenance covenant requiring us to comply as of the last day of each fiscal quarter, beginning with the fiscal quarter ending March 31, 2026, with a specified maximum consolidated net first lien leverage ratio. First Lien Notes due 2026 Partial Redemptions The First Lien Notes due 2026 are due at maturity, and may be redeemed, in whole or in part, at any time at a make-whole premium plus accrued and unpaid interest to, but excluding, the redemption date. As discussed above, partial redemptions of the First Lien Notes due 2026 were as follows: •March 2025 - We redeemed $500 million of the First Lien Notes due 2026, excluding accrued and unpaid interest, for a total redemption price of $506 million, which includes a make-whole payment, using proceeds from our March 2025 issuance of the First Lien Term Loan B-2 due 2032. •July 2025 - We redeemed $550 million of the First Lien Notes due 2026, excluding accrued and unpaid interest, for a total redemption price of $554 million, which includes a make-whole payment, using proceeds from our July 2025 issuance of the First Lien Term Loan B-2 due 2032 and cash on hand. •December 2025 - We redeemed $225 million of the First Lien Notes due 2026, excluding accrued and unpaid interest, for a total redemption price of $226 million, which includes a make-whole payment, using cash on hand. We intend to redeem the remaining outstanding balance of $75 million of the First Lien Notes due 2026 on or before maturity. 65 Table of Contents First Lien Notes due 2033 In October 2025, we issued $1.0 billion aggregate principal amount of 5.875% first-priority senior secured notes due 2033 (the “First Lien Notes due 2033”). The First Lien Notes due 2033 will mature on October 15, 2033, with semi-annual interest payment dates of January 15 and July 15 of each year, beginning January 15, 2026, and may be redeemed at our option as follows: •Prior to October 15, 2032, in whole at any time or in part from time to time, at a redemption price equal to the greater of (i) 100% of the principal amount of the First Lien Notes due 2033 to be redeemed and (ii) the sum of the present values of the aggregate principal amount of the First Lien Notes due 2033 to be redeemed and the remaining scheduled interest payments due on any date after the redemption date, to and including October 15, 2032, discounted at an adjusted treasury rate plus 50 basis points, plus, in either case accrued and unpaid interest as of, but excluding, the redemption date. •On or after October 15, 2032, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the First Lien Notes due 2033 to be redeemed and accrued and unpaid interest as of, but excluding, the redemption date. Second Lien Notes due 2028 Redemption In October 2025, we redeemed the entire outstanding balance of $1.3 billion of the Second Lien Notes due 2028 using proceeds from the First Lien Notes due 2033, incremental borrowings under the First Lien Term Loan B-2 due 2032, and cash on hand. 2020 Receivables Facility Below is a summary of significant amendments to the 2020 Receivables Facility in 2025: •March 2025 - We amended the agreement governing the 2020 Receivables Facility to extend the uncommitted revolving period to March 2026, reduce the interest rate on outstanding borrowings, and increase the advance rate on pledged collateral. We service the transferred retail installment contract receivables and are responsible for ensuring related collections are remitted to a segregated account in the SPE’s name. On a monthly basis, the segregated bank account is utilized to make required principal, interest, and other payments due under the 2020 Receivables Facility. The segregated account is considered restricted cash in our Consolidated Balance Sheets. During 2025, we borrowed $269 million and repaid $234 million under the 2020 Receivables Facility. Debt Covenants Our credit agreements and indentures associated with the borrowings above contain certain covenants and restrictions that limit our ability to, among other things, incur additional debt or issue certain preferred equity interests; create liens on certain assets; make certain loans or investments (including acquisitions); pay dividends on or make distributions in respect of the capital stock or make other restricted payments; consolidate, merge, sell, or otherwise dispose of all or substantially all of our assets; sell assets; enter into certain transactions with affiliates; enter into sale-leaseback transactions; restrict dividends from our subsidiaries or restrict liens; change our fiscal year; and modify the terms of certain debt or organizational agreements. We are also subject to a springing financial maintenance covenant under the First Lien Credit Agreement, which requires us to not exceed a specified first lien leverage ratio at the end of each fiscal quarter if the testing conditions are satisfied. The covenant is tested if the outstanding loans under the First Lien Revolving Credit Facility, subject to certain exceptions, exceed 30% of the total commitments under the First Lien Revolving Credit Facility at the testing date (i.e., the last day of any fiscal quarter). As of December 31, 2025, we were in compliance with all financial covenant and other maintenance tests for all our debt obligations, and we do not believe there is a material risk of future noncompliance with our financial covenant and other maintenance tests. 66 Table of Contents CRITICAL ACCOUNTING ESTIMATES The accompanying consolidated financial statements are prepared in accordance with GAAP, which requires us to select accounting policies and make estimates that affect amounts reported in the financial statements and the accompanying notes. Management’s estimates are based on the relevant information available at the end of each period. Actual results could differ materially from these estimates under different assumptions or market conditions. The following discussion includes estimates prepared in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations, and are based on, among other things, estimates, assumptions, and judgments made by management that include inherent risks and uncertainties. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Refer to the Notes to Consolidated Financial Statements included in this Annual Report for further discussion of our significant accounting policies and the effect on our financial statements. Revenue Recognition We generate revenue through contractual monthly recurring fees received for monitoring and related services provided to customers as well as the sale and installation of security systems. Prior to the ADT Solar Exit, we also generated revenue through the sale and installation of solar systems. We allocate the transaction price to each performance obligation in contracts with our customers using estimates of standalone selling price. We use judgment to determine the standalone selling prices for our performance obligations. If a standalone selling price is not directly observable, we may use other observable internal and external pricing, profitability, and certain operational metrics. Estimated Life of Customer Relationships A significant portion of our depreciation and amortization is based on the expected life of our customer relationships. We periodically perform lifing studies to (i) estimate the expected life of our customer relationships and the attrition pattern of our customers; (ii) establish the amortization rates of our customer account pools discussed below in order to reflect the pattern of future economic benefit; and (iii) assess the continued reasonableness of our existing depreciation and amortization policies. The results of the lifing studies are based on historical customer terminations. The lifing studies indicate that we can expect attrition to be the greatest in the initial years of asset life. Therefore, to align our depreciation and amortization to the pattern in which the related economic benefits are consumed, we use an accelerated method that best matches the future amortization cost with the estimated revenue stream from these customer pools. Subscriber System Assets and Deferred Subscriber Acquisition Costs - Subscriber system assets and any related deferred subscriber acquisition costs are accounted for on a pooled basis based on the month and year of acquisition. We depreciate and amortize these assets using an accelerated method over the estimated life of the customer relationship, which is 15 years, using an average declining balance rate of approximately 250% that converts to straight-line methodology when the resulting charge is greater than that from the accelerated method. This results in an average charge of approximately 55% of the pool within the first five years, 25% within the second five years, and 20% within the final five years. Customer Account Purchases - Purchases of contracts with customers under the ADT Authorized Dealer Program, or from other third parties, are considered asset acquisitions and are recognized based on the cost to acquire the assets, which may include cash consideration, non-cash consideration, contingent consideration, and directly-attributable transaction costs. These assets are accounted for on a pooled basis based on the month and year of acquisition. Based on the results of our lifing studies, we amortize our pooled contracts with customers using an accelerated method over the estimated life of the customer relationship, which is generally 15 years using an average declining balance rate of approximately 300% that converts to straight-line methodology when the resulting amortization charge is greater than that from the accelerated method. This results in an average amortization of approximately 65% of the pool within the first five years, 25% within the second five years, and 10% within the final five years. The accelerated methods and estimated lives used to calculate depreciation and amortization expense have not changed during the periods presented. Additionally, these estimates remain relatively consistent year over year due to the large and homogenous nature of our customer pools. Significant changes in our business model, such as a reduction in the number of customers under multi-year contracts, or a prolonged shift in our attrition patterns, could impact the expected life of our customer relationships. 67 Table of Contents Goodwill Goodwill and indefinite-lived intangible assets (as discussed below) are not amortized and are tested for impairment at least annually as of the first day of the fourth quarter of each year and more often if an event occurs or circumstances change which indicate it is more-likely-than-not that fair value is less than carrying amount. Under a qualitative approach, we assess whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying amount. Under a quantitative approach, we estimate the fair value of a reporting unit and compare it to its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized. On October 1, 2025, we completed our annual goodwill impairment test by qualitatively testing the goodwill assigned to the Company’s reporting unit. Based on the results of the qualitative test, we concluded that it is more likely than not that the fair value of the Company’s reporting unit exceeds its carrying value and no impairment was recognized. During the third quarter of 2025, we recorded a goodwill impairment charge of $12 million in connection with the Multifamily Divestiture, which is reflected in SG&A, and derecognized the remaining $6 million of goodwill upon completion of the divestiture on October 1, 2025. Refer to Note 4 “Divestitures” in the Notes to Consolidated Financial Statements. We also had previously recorded goodwill impairment charges associated with the Solar reporting unit, which are now presented in income (loss) from discontinued operations, net of tax. In prior years’ quantitative impairment tests, we estimated the fair value of the reporting unit using the income approach, which discounts projected cash flows using market participant assumptions. The income approach includes significant assumptions including, but not limited to, forecasted revenue, operating profit margins, Adjusted EBITDA margins, operating expenses, cash flows, perpetual growth rates, and discount rates. In developing these assumptions, we rely on various factors including operating results, business plans, economic projections, anticipated future cash flows, and other market data. The estimated fair value of a reporting unit calculated using the income approach is sensitive to changes in the underlying assumptions. Examples of events or circumstances that could reasonably be expected to negatively affect the underlying judgments and factors and ultimately impact the estimated fair value determinations may include such items as a prolonged downturn in the business environment, changes in economic conditions that significantly differ from our assumptions in timing or degree, volatility in equity and debt markets resulting in higher discount rates, and unexpected regulatory changes. As a result, there are inherent uncertainties related to these judgments and factors in applying them to the goodwill impairment tests. Indefinite-Lived Intangible Assets As of December 31, 2025, our only indefinite-lived intangible asset is the ADT trade name, which has a carrying value of $1.3 billion. The ADT trade name was acquired in connection with the ADT Acquisition in May 2016. When performing a quantitative impairment test, the fair value of the ADT trade name is determined using a relief from royalty method, which is an income approach that estimates the cost savings that accrue to us that we would otherwise have to pay in the form of royalties or license fees on revenue earned through the use of the asset. The utilization of the relief from royalty method requires us to make significant assumptions including revenue growth rates, the implied royalty rate, and the discount rate. We performed a quantitative impairment test over the ADT trade name as of October 1, 2025 and 2024, and the fair value of the ADT trade name substantially exceeded its carrying value as of each testing date. In connection with our quantitative impairment test, we perform a sensitivity analysis on the key assumptions used to determine the fair value of the ADT trade name. During the periods presented, the results of our sensitivity analysis did not have a material impact on the conclusions reached. We may, in future periods, perform a qualitative testing approach, where we assess whether it is more-likely-than-not that the ADT trade name’s fair value is less than its carrying amount. Business Combinations We account for the acquisitions of businesses using the acquisition method of accounting. The assets acquired and liabilities assumed in connection with business acquisitions are recorded at the date of acquisition at their estimated fair values, with any excess of the purchase price over the estimated fair values of the net assets acquired recorded as goodwill. We use various methods to determine fair value depending on the type of assets acquired and liabilities assumed. We make estimates and assumptions about projected future cash flows including, but not limited to, forecasted revenue, Adjusted EBITDA margins, operating expenses, cash flows, perpetual growth rates, and discount rates. 68 Table of Contents Significant judgment is required in estimating the fair value of assets acquired and liabilities assumed and in assigning useful lives to certain definite-lived intangible and tangible assets. Accordingly, we may engage third-party valuation specialists to assist in these determinations. The fair value estimates are based on information available as of the acquisition date and assumptions deemed reasonable by management but are inherently uncertain. Customer Relationships - Customer relationships acquired as part of business acquisitions are generally amortized over a period of up to 15 years based on management estimates about the amounts and timing of estimated future revenue from customer accounts and average customer account life that existed at the time of the related business acquisition. The majority of our customer relationships acquired in business combinations that originated from the Formation Transactions and the ADT Acquisition were fully amortized during 2023. Dealer Relationships - Dealer relationships originated from the Formation Transactions and the ADT Acquisition and are primarily amortized on a straight-line basis over 19 years based on management estimates about the longevity of the underlying dealer network and the attrition of those respective dealers that existed at the time of the related business acquisition. During 2025, 2024, and 2023, other definite-lived intangible assets acquired in business acquisitions were not material, and we have not recorded any material measurement period adjustments to purchase price allocations. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the temporary differences between the recognition of revenue and expenses for income tax and financial reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. We record the effect of a tax rate or law change on our deferred tax assets and liabilities in the period of enactment. Future tax rate or law changes could have a material effect on our results of operations, financial condition, or cash flows. In evaluating our ability to recover our deferred tax assets, we consider all available positive and negative evidence, including our past operating results, the existence of cumulative losses in the most recent years, and our forecast of future taxable income. In estimating future taxable income, we develop assumptions related to the amount of future pre-tax operating income, the timing and amount of the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates we are using to manage our underlying businesses. We recognize positions taken or expected to be taken in a tax return in the consolidated financial statements when it is more-likely-than-not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit with greater than 50% likelihood of being realized upon ultimate settlement. We record liabilities for positions that have been taken but do not meet the more-likely-than-not recognition threshold. We adjust the liabilities for unrecognized tax benefits in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a change to the estimated liabilities, along with impacts to the effective tax rate and cash tax. Refer to Note 9 “Income Taxes” in the Notes to Consolidated Financial Statements for details on our valuation allowances and unrecognized tax benefits. ACCOUNTING PRONOUNCEMENTS Refer to Note 1 “Description of Business and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements.