Commercial and Solar in rear view as ADT pivots hard to smart home

BOCA RATON, Fla. — ADT President and CEO Jim DeVries recommitted to the company’s decision to bow out of its solar business and go all in on its security and smart home during a recent webcast to discuss financial results. 

“As a reminder, following the wind down of our solar operation in 2024, ADT is now completely focused on our core security and smart home business,” he said. “This market is large and growing to what analysts project at $23 billion in consumer spending within four years. We're also excited at the incremental opportunity in the close adjacencies of standalone devices and aging in place within residential, as well as growing our footprint in small business.” 

During the webcast, ADT highlighted several successes and contributions to the company’s lineup over 2024, including the roll out of its ADT+ platform. DeVries noted expansions made to the platform with a strong emphasis on residential professional install customers, which drove momentum at the end of 2024 and leading into 2025. Previously, in the third quarter of 2024, ADT earned a considerable bump in customer numbers courtesy of some savvy bulk account acquisitions. 

ADT also highlighted its trusted neighbor service, which provides secure, temporary access to homes via the app, and noted it was the first company to adopt and implement the Alarm Validation Scoring Standard (AVS-01) at the national level. 

Add in a gaggle of awards won and a strong balance sheet and ADT made a strong showing in 2024, following the sale of its commercial division and the closure of its solar business, DeVries said. 

“ADT delivered very strong top- and bottom-line results for the fourth quarter and the full year 2024 consistent with our objectives,” he said. “I especially want to highlight our record high recurring monthly revenue balance, our record customer retention, and our very strong cash generation.” 

That success, combined with ADT’s significant debt and leverage reduction, prompted the company to announce a 2025 share repurchase plan of up to $500 million in common stock. 

“We believe our stock is very attractively valued at recent prices and our share repurchase plan enables us to return capital directly to our shareholders,” DeVries said. 

Financials at a glance: 

Fourth Quarter 2024 

• Total revenue increased by 8% to $1.3 billion and end-of-period recurring monthly revenue (RMR)  

• increased 2% to $359 million ($4.3 billion on an annualized basis) 

• Record customer retention with gross revenue attrition of 12.7%; revenue payback at 2.2 years 

• GAAP income from continuing operations of $197 million, or $0.21 per diluted share, up $90 million 

• Adjusted income from continuing operations of $176 million, or $0.20 per diluted share, up $8 million 

Full Year 2024 

• GAAP income from continuing operations of $619 million, or $0.66 per diluted share, up $169 million 

• Adjusted income from continuing operations of $685 million, or $0.75 per diluted share, up $136 million 

• Net cash provided by operating activities of $1.9 billion, up 14%; Adjusted Free Cash Flow (including interest rate swaps) of $744 million, up 42%