ADT Agrees to $10.00 Cash Sale to Thrive Holdings

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue rose 4% to $1.35 billion as the security firm withdrew guidance after the all-cash deal.

ADT Inc. (ADT), a provider of security, interactive, and smart home solutions for U.S. residential and small-business customers, agreed to be acquired by Thrive Holdings in an all-cash transaction of $10.00 a share, a deal the company said is expected to close in the first quarter of 2027.

The board unanimously approved the agreement, which is subject to stockholder approval and U.S. antitrust clearance. Until it closes, ADT said it will continue to operate independently as a public company; afterward, the stock will cease trading on the New York Stock Exchange. In consideration of the pending sale, the company is not providing financial guidance and is withdrawing previously issued guidance.

The announcement came with third-quarter results that showed a modest acceleration in top-line growth. Total revenue rose 4% to $1,349 million, after a 2% increase in the second quarter and a 1% increase in the first.

The lift came from security installation, product, and other revenue, which increased 32% to $265 million. The company said the increase was primarily driven by a higher mix of professionally installed systems under the outright sales model. Monitoring and related services revenue fell 1% to $1,084 million, reflecting lower sales volume including the revenue loss from the October 2025 divestiture of the multifamily business, partially offset by higher average prices.

GAAP income from continuing operations was $153 million, or $0.20 a share, up $9 million from a year earlier. The company said the increase was driven by higher revenue, net of related costs, partially offset by higher selling, general, and administrative expenses, including the impact of a prior-year goodwill impairment related to the multifamily divestiture. Income from continuing operations also benefited from lower interest, including the impact of interest rate swaps.

Adjusted income from continuing operations was $176 million, or $0.24 a share, down $11 million. Adjusted EBITDA from continuing operations declined 2% to $665 million. Earnings-per-share metrics benefited from a lower weighted-average diluted share count as a result of share repurchases.

Core operating metrics were little changed. End-of-period recurring monthly revenue was $360 million, down 1% from $362 million a year earlier. Gross revenue attrition was 13.1% and trailing twelve-month revenue payback was 2.3 years, matching the second-quarter levels.

Net cash provided by operating activities was $440 million, down $40 million. The company said the decline primarily reflected higher net subscriber acquisition spend related to outright sales transactions, higher general and administrative expenses, and lower monitoring and related services margins, partially offset by lower cash taxes and favorable working capital timing. Adjusted Free Cash Flow including interest rate swaps was $217 million, up $8 million.

In the quarter, ADT repurchased and retired 3 million shares for $23 million and paid $41 million in dividends, returning $64 million of capital. Year to date it had repurchased 89 million shares for $617 million and returned $748 million through repurchases and dividends. The company completed a bulk purchase of approximately 8,000 customer accounts for $9 million cash and secured $100 million of incremental borrowings under its First Lien Term Loan A due 2030. Cash and cash equivalents were $228 million as of September 30, 2026, with no amounts outstanding under the First Lien Revolving Credit Facility.

Chairman, President and CEO Jim DeVries said ADT delivered solid third-quarter results with revenue growth, strong year-to-date cash generation and stable core operating metrics. The company said it is advancing AI, next-generation sensing, and expanded digital and retail distribution, including Unusual Activity Alerts in ADT+, Origin AI-powered presence sensing with commercialization planning for a 2027 launch, ADT Blu on Walmart.com, and ADT Partner Services, which will install and service select products for Apple Retail beginning this fall.

Until the Thrive Holdings transaction closes, ADT will remain a public company and will continue to operate independently.