Detailed financial statements for ADT Inc. (ADT): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Headquartered in Boca Raton, Florida, ADT Inc. has been a leading provider of security, automation, and smart home solutions for consumers and businesses throughout the United States since its founding in 1874. The company delivers a broad spectrum of services, including fire detection and suppression, video surveillance, and access control systems, tailored for residential, commercial, and multi-site clients.
Analysis Summary
ADT Inc. reported revenue of $5.13B in the most recent fiscal year, growing at a 5-year CAGR of -0.7%.
Trailing-twelve-month margins: gross margin 51.4%, operating margin 25.0%, net margin 12.0%. Free cash flow grew at 10.6% CAGR over 5 years.
At $9.86 (closing price, October 30, 2026), ADT trades at a P/E of 14.09 and an ROE of 16.83%. Market capitalisation stands at $6.7B.
Balance sheet quality for ADT: debt-to-equity ratio of 2.21, current ratio of 0.69 over the last 12 months, net debt of $7.61B at the end of the last fiscal year. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $1.31B represents 220% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.95B | $4.32B | $4.58B | $5.13B | $5.31B | $5.31B | $5.17B | $4.65B | $4.90B | $5.13B |
| Cost of Revenue | $1.95B | $2.76B | $2.97B | $3.46B | $3.53B | $3.59B | $2.97B | $2.28B | $2.41B | $2.60B |
| Gross Profit | $996.4M | $1.56B | $1.61B | $1.67B | $1.79B | $1.72B | $2.20B | $2.38B | $2.48B | $2.53B |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $831.9M | $1.21B | $1.26B | $1.33B | $1.63B | $1.66B | $1.51B | $1.16B | $1.25B | $1.19B |
| Operating Expenses | $831.9M | $1.21B | $1.26B | $1.33B | $1.63B | $1.66B | $1.51B | $1.16B | $1.25B | $1.19B |
| Operating Income | $164.5M | $347.3M | $352.5M | $339.8M | $161.6M | $53.1M | $689.2M | $1.22B | $1.23B | $1.33B |
| EBITDA | $951.7M | $2.17B | $1.96B | $2.09B | $1.84B | $2.12B | $2.44B | $2.56B | $2.58B | $2.61B |
| Interest Expense | $521.5M | $733.0M | $663.0M | $619.6M | $708.2M | $456.8M | $263.1M | $569.9M | $441.0M | $410.6M |
| Pre-tax Income | -$802.7M | -$421.7M | -$632.6M | -$522.2M | -$778.9M | -$471.2M | $144.5M | $611.0M | $815.2M | $833.8M |
| Income Tax | -$266.2M | -$764.3M | -$23.5M | -$98.0M | -$146.7M | -$130.4M | $37.7M | $160.6M | $195.8M | $233.3M |
| Net Income | -$536.6M | $342.6M | -$609.2M | -$424.1M | -$632.2M | -$340.8M | $132.7M | -$167.0M | $501.1M | $596.0M |
| EPS | -$0.77 | $0.46 | -$0.81 | -$0.57 | -$0.82 | -$0.41 | $0.19 | -$0.18 | $0.56 | $0.72 |
| EPS (Diluted) | -$0.77 | $0.46 | -$0.81 | -$0.57 | -$0.82 | -$0.41 | $0.19 | -$0.17 | $0.52 | $0.67 |
| Shares Outstanding (Diluted) | 694.6 M | 748.9 M | 747.7 M | 747.0 M | 778.0 M | 826.0 M | 970.0 M | 973.9 M | 963.4 M | 895.9 M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $1.30B | $1.28B | $1.28B | $1.31B |
| Gross Profit | $635.4M | $627.0M | $691.0M | $701.0M |
| Operating Income | $315.1M | $333.2M | $326.0M | $315.0M |
| EBITDA | $709.8M | $664.6M | $670.0M | $662.9M |
| Net Income | $145.1M | $145.0M | $168.0M | $161.0M |
| EPS | $0.18 | $0.18 | $0.21 | $0.20 |
| EPS (Diluted) | $0.16 | $0.16 | $0.19 | $0.19 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $75.9M | $123.0M | $363.0M | $49.0M | $205.0M | $24.0M | $257.2M | $14.6M | $204.1M | $81.0M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $135.2M | $148.8M | $245.7M | $287.2M | $336.0M | $523.8M | $488.3M | $434.7M | $412.7M | $385.0M |
| Inventory | $108.9M | $107.0M | $115.0M | $138.0M | $216.0M | $348.0M | $237.3M | $230.1M | $196.7M | $202.0M |
| Total Current Assets | $388.4M | $456.0M | $854.0M | $625.0M | $967.0M | $993.0M | $1.72B | $1.00B | $1.00B | $946.0M |
| Property, Plant & Equipment | $3.18B | $3.23B | $3.23B | $3.07B | $2.99B | $3.23B | $3.44B | $3.38B | $247.2M | $243.0M |
| Goodwill | $5.01B | $5.07B | $5.08B | $4.96B | $5.24B | $5.94B | $5.82B | $4.90B | $4.90B | $4.89B |
| Intangible Assets | $8.31B | $7.86B | $7.49B | $6.67B | $5.91B | $5.41B | $5.09B | $4.88B | $4.85B | $4.82B |
| Total Assets | $17.18B | $17.02B | $17.21B | $16.08B | $16.12B | $16.89B | $17.87B | $15.96B | $16.05B | $15.82B |
| Accounts Payable | $212.2M | $187.7M | $221.3M | $242.0M | $321.6M | $475.0M | $417.9M | $277.2M | $153.5M | $107.0M |
| Short-term Debt | $27.6M | $48.1M | $58.2M | $58.0M | $44.8M | $117.6M | $857.6M | $312.1M | $171.7M | $310.0M |
| Total Current Liabilities | $852.5M | $896.0M | $1.01B | $1.12B | $1.30B | $1.70B | $2.66B | $1.48B | $1.26B | $1.01B |
| Long-term Debt | $9.44B | $10.12B | $9.94B | $9.63B | $9.45B | $9.58B | $8.95B | $7.51B | $7.47B | $7.38B |
| Total Liabilities | $13.37B | $13.58B | $12.98B | $12.90B | $13.08B | $13.64B | $14.44B | $12.18B | $12.25B | $12.04B |
| Retained Earnings | -$590.8M | -$998.2M | -$1.68B | -$2.74B | -$3.49B | -$3.95B | -$3.91B | -$3.62B | -$3.32B | -$2.91B |
| Total Equity | $3.80B | $3.43B | $4.22B | $3.18B | $3.04B | $3.25B | $3.43B | $3.79B | $3.80B | $3.78B |
| Total Debt | $9.51B | $10.17B | $10.00B | $9.69B | $9.52B | $9.69B | $9.83B | $7.84B | $7.81B | $7.69B |
| Net Debt | $9.43B | $10.05B | $9.64B | $9.64B | $9.32B | $9.67B | $9.57B | $7.83B | $7.60B | $7.61B |
| Working Capital | -$464.2M | -$440.0M | -$158.0M | -$495.0M | -$329.0M | -$710.0M | -$939.0M | -$475.5M | -$258.9M | -$67.0M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $63.0M | $81.0M | $119.0M | $4.0M |
| Total Assets | $15.98B | $15.82B | $15.91B | $15.74B |
| Total Liabilities | $12.32B | $12.04B | $12.11B | $12.26B |
| Total Equity | $3.66B | $3.78B | $3.80B | $3.48B |
| Total Debt | $7.81B | $7.69B | $7.67B | $7.69B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | -$536.6M | $343.0M | -$609.0M | -$424.0M | -$632.0M | -$341.0M | $173.0M | $463.0M | $501.1M | $601.0M |
| Depreciation & Amortization | $1.23B | $1.86B | $1.93B | $1.99B | $1.91B | $1.91B | $1.69B | $1.39B | $1.34B | $1.37B |
| Stock-based Compensation | $4.6M | $11.0M | $135.0M | $86.0M | $96.0M | $61.2M | $66.6M | $51.1M | $48.6M | $55.0M |
| Change in Working Capital | -$2.3M | $42.0M | -$68.0M | -$37.0M | -$254.0M | $114.0M | -$150.0M | -$443.2M | -$292.0M | -$550.0M |
| Operating Cash Flow | $617.5M | $1.59B | $1.79B | $1.87B | $1.37B | $1.65B | $1.89B | $1.66B | $1.88B | $1.89B |
| Capital Expenditure | -$547.1M | -$714.0M | -$703.0M | -$701.0M | -$575.0M | -$863.0M | -$912.0M | -$806.9M | -$687.0M | -$572.0M |
| Acquisitions | -$8.50B | -$64.0M | -$353.0M | $387.0M | -$227.0M | -$162.0M | $14.0M | $1.02B | -$17.5M | -$545.0M |
| Stock Repurchased | 0 | 0 | 0 | -$149.9M | -$4,000 | 0 | -$1.20B | 0 | -$240.6M | -$607.0M |
| Dividends Paid | 0 | -$750.0M | -$79.4M | -$564.8M | -$109.3M | -$116.3M | -$127.1M | -$128.6M | -$182.3M | -$187.0M |
| Free Cash Flow | $70.4M | $878.0M | $1.08B | $1.17B | $792.0M | $787.0M | $976.0M | $850.8M | $1.20B | $1.31B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $480.0M | $374.4M | $638.0M | $666.5M |
| Capital Expenditure | -$43.0M | -$139.0M | -$49.0M | -$46.2M |
| Free Cash Flow | $437.0M | $235.5M | $589.0M | $620.3M |
| Dividends Paid | -$45.8M | -$45.2M | -$45.0M | -$44.9M |
| Stock-based Compensation | $11.0M | $12.0M | $14.0M | $18.2M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +46.3% | +6.2% | +11.9% | +3.7% | -0.1% | -2.6% | -10.0% | +5.3% | +4.7% | |
| Net Income Growth (YoY) | +163.9% | -277.8% | +30.4% | -49.0% | +46.1% | +138.9% | -225.9% | +400.1% | +18.9% | |
| EPS Growth (YoY) | +159.7% | -276.1% | +29.6% | -43.9% | +50.0% | +146.3% | -194.7% | +411.1% | +28.6% | |
| Shares Change (YoY) | +7.8% | -0.2% | -0.1% | +4.1% | +6.2% | +17.4% | +0.4% | -1.1% | -7.0% | |
| FCF Growth (YoY) | +1,146.6% | +23.6% | +8.0% | -32.4% | -0.6% | +24.0% | -12.8% | +40.8% | +9.6% | |
| Gross Margin | 33.8% | 36.1% | 35.1% | 32.5% | 33.6% | 32.3% | 42.5% | 51.1% | 50.7% | 49.3% |
| Operating Margin | 5.6% | 8.0% | 7.7% | 6.6% | 3.0% | 1.0% | 13.3% | 26.2% | 25.2% | 26.0% |
| EBITDA Margin | 32.3% | 50.4% | 42.8% | 40.7% | 34.7% | 39.9% | 47.3% | 55.0% | 52.7% | 50.9% |
| Net Margin | -18.2% | 7.9% | -13.3% | -8.3% | -11.9% | -6.4% | 2.6% | -3.6% | 10.2% | 11.6% |
| FCF Margin | 2.4% | 20.3% | 23.7% | 22.9% | 14.9% | 14.8% | 18.9% | 18.3% | 24.5% | 25.6% |
| Effective Tax Rate | 33.2% | 181.3% | 3.7% | 18.8% | 18.8% | 27.7% | 26.1% | 26.3% | 24.0% | 28.0% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.10 | $1.17 | $1.45 | $1.57 | $1.02 | $0.95 | $1.01 | $0.87 | $1.24 | $1.47 |
| Dividends Per Share | $0.00 | $1.00 | $0.11 | $0.76 | $0.14 | $0.14 | $0.13 | $0.13 | $0.19 | $0.21 |
| Shares Outstanding (Basic) | 694.6 M | 748.9 M | 747.7 M | 747.0 M | 760.0 M | 771.0 M | 848.0 M | 911.6 M | 901.3 M | 832.6 M |
What to look at in Industrials
Aerospace, defence, machinery, transport. Semi-cyclical. Key: backlog, operating margins, and FCF conversion.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — The best indicator of operational discipline in industrials
- ROIC — Quality industrials have ROIC >15% — the rest destroy capital
- FCF conversion — FCF / Net Income — in industrials good >85%
- Net debt / EBITDA — Cyclical industrials with high debt suffer hard in recessions
- Capex / Revenue — Maintaining the machinery. <4% = possible underinvestment (future decline)
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
Profitability
| Return on Equity | 16.83% |
| Return on Invested Capital | 6.27% |
| Return on Assets | 3.93% |
| Gross Margin | 51.39% |
| Operating Margin | 24.96% |
| Net Margin | 11.99% |
Financial Health
| Debt / Equity | 2.21 |
| Current Ratio | 0.69 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 0.68 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | -16.09 | 26.93 | -7.42 | -13.91 | -9.57 | -20.51 | 47.74 | -37.89 | 12.34 | 11.21 |
| P/B | 2.26 | 2.70 | 1.06 | 1.86 | 1.96 | 2.00 | 2.24 | 1.64 | 1.64 | 1.78 |
| P/S | 2.92 | 2.15 | 0.98 | 1.16 | 1.12 | 1.22 | 1.49 | 1.34 | 1.27 | 1.31 |
| Gross Margin | 33.8% | 36.1% | 35.1% | 32.5% | 33.6% | 32.3% | 42.5% | 51.1% | 50.7% | 49.3% |
| Operating Margin | 5.6% | 8.0% | 7.7% | 6.6% | 3.0% | 1.0% | 13.3% | 26.2% | 25.2% | 26.0% |
| Net Margin | -18.2% | 7.9% | -13.3% | -8.3% | -11.9% | -6.4% | 2.6% | -3.6% | 10.2% | 11.6% |
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Explore sector: Industrials · Security & Protection Services
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