ADT: Recurring Customer Base Is Still Weak
ADT Inc. remains rated a hold as recurring customer metrics weaken despite improved free cash flow and modestly raised FY2026 guidance. In Q2 2026, revenue rose 2% but core monitoring services declined, subscriber attrition climbed to 13.1%, and gross additions fell sharply, with organic growth failing to offset reduced affiliate and bulk acquisitions.
Why it matters — ADT watchers would care because continuing subscriber attrition and declining additions signal a weakening core customer base even as the company reports improving free cash flow.