What changed in this filing

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Item 1. Financial Statements

2026-04-30 compared with 2025-11-04 · 270 added, 335 removed, 606 unchanged (50% of the section changed)

3 unchanged sentences

(in thousands, except share and per share data)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Current assets:

19 unchanged sentences

Accrued expenses and other current liabilities 397,108 352,040

Current liabilities of discontinued operations

24,359 31,763

Total current liabilities 1,066,503 1,012,948

3 unchanged sentences

Other liabilities 320,517 296,614

Noncurrent liabilities of discontinued operations

Total liabilities 12,112,856 12,039,901

2 unchanged sentences

Preferred stock—authorized 1,000,000 shares of $ 0.01 par value;

zero issued and outstanding as of September 30, 2025 and December 31, 2024

zero issued and outstanding as of March 31, 2026 and December 31, 2025

Common stock—authorized 3,999,000,000 shares of $ 0.01 par value;

issued and outstanding shares of 764,979,025 and 836,589,761 as of September 30, 2025 and December 31, 2024, respectively

issued and outstanding shares of 750,259,236 and 765,201,157 as of March 31, 2026 and December 31, 2025, respectively

Class B common stock—authorized 100,000,000 shares of $ 0.01 par value;

issued and outstanding shares of 54,744,525 as of September 30, 2025 and December 31, 2024

issued and outstanding shares of 54,744,525 as of March 31, 2026 and December 31, 2025

Additional paid-in capital 6,563,279 6,679,222

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Monitoring and related services $ 1,080,476 $ 1,083,104

34 unchanged sentences

(in thousands)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Net income (loss) $ 168,374 $ 140,246

1 unchanged sentence

Cash flow hedges and other

( 1,379 ) 1,430 ( 1,293 ) 4,665

Comprehensive income (loss) $ 182,736 $ 141,590

3 unchanged sentences

(in thousands)

Three Months Ended September 30, 2025

Number of Common Shares Number of Class B Common Shares Common Stock Class B Common Stock Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders' Equity

Beginning balance 777,957 54,745 $ 7,780 $ 547 $ 6,764,716 $ ( 3,106,714 ) $ ( 6,950 ) $ 3,659,379

Net income (loss) — — — — — 145,132 — 145,132

Other comprehensive income (loss), net of tax — — — — — — ( 1,379 ) ( 1,379 )

Dividends — — — — — ( 45,091 ) — ( 45,091 )

Share-based compensation expense — — — — 10,716 — — 10,716

Repurchases of common stock (including excise tax) ( 13,399 ) — ( 134 ) — ( 111,373 ) — — ( 111,507 )

Transactions related to employee share-based compensation plans and other 421 — 4 — 1,995 ( 465 ) — 1,534

Ending balance 764,979 54,745 $ 7,650 $ 547 $ 6,666,054 $ ( 3,007,138 ) $ ( 8,329 ) $ 3,658,784

Three Months Ended September 30, 2024

Beginning balance 857,053 54,745 $ 8,571 $ 547 $ 7,347,061 $ ( 3,535,042 ) $ ( 12,927 ) $ 3,808,210

Net income (loss) — — — — — 127,151 — 127,151

Other comprehensive income (loss), net of tax — — — — — — 1,430 1,430

Dividends — — — — — ( 50,157 ) — ( 50,157 )

Share-based compensation expense — — — — 9,942 — — 9,942

Transactions related to employee share-based compensation plans and other 197 — 2 — 1,238 ( 531 ) — 709

Ending balance 857,250 54,745 $ 8,573 $ 547 $ 7,358,241 $ ( 3,458,579 ) $ ( 11,497 ) $ 3,897,285

See Notes to Condensed Consolidated Financial Statements

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

7 unchanged sentences

Ending balance 750,259 54,745 $ 7,503 $ 547 $ 6,563,279 $ ( 2,784,340 ) $ 12,803 $ 3,799,792

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

11 unchanged sentences

(in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities:

8 unchanged sentences

Loss on extinguishment of debt — 6,443

Goodwill, intangible, and other asset impairments

15,094 21,296

Unrealized (gain) loss on interest rate swap contracts 7,554 25,041

9 unchanged sentences

Purchases of property and equipment ( 48,929 ) ( 45,420 )

Proceeds (payments) from divestiture of businesses

Acquisition of businesses, net of cash acquired ( 163,990 ) —

Proceeds (payments) from interest rate swaps

( 2,030 ) ( 6,675 )

Other investing, net ( 282 ) 264

23 unchanged sentences

Business and Organization

ADT Inc., together with its wholly-owned subsidiaries (collectively, “ADT” or the “Company”), provides security, interactive, and smart home solutions to consumer and small business customers in the United States (“U.S.”).

As of September 30, 2025, certain entities managed by affiliates of Apollo Global Management, Inc.

(“Apollo”) owned approximately 12.4 % of the Company’s outstanding Common Stock, including shares of Class B common stock (“Class B Common Stock”) (on an as-converted basis).

Refer to Note 14 “Related Party Transactions” for further information.

ADT Inc., together with its wholly-owned subsidiaries (collectively, “ADT” or the “Company”), is a leading provider of security, interactive, and smart home solutions serving consumer and small business customers in the United States (“U.S.”).

Basis of Presentation

10 unchanged sentences

Certain prior period amounts have been reclassified to conform with the current period presentation.

Beginning in the first quarter of 2025, amounts previously disclosed under the caption merger, restructuring, integration, and other are presented within selling, general, and administrative expenses (“SG&A”) in the Condensed Consolidated Statements of Operations as they are no longer material for the periods presented.

Use of Estimates

3 unchanged sentences

Segment Information

The Company evaluates and reports information based on the manner in which our chief operating decision maker (“CODM”) evaluates performance and allocates resources.

The Company evaluates and reports information based on the manner in which the chief operating decision maker (the “CODM”) evaluates performance and allocates resources.

The CODM manages the business on a consolidated basis, and as such, the Company reports results in a single operating and reportable segment.

Refer to Note 3 “Segment Information.”

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Discontinued Operations

The Company’s exit in 2024 from the residential solar business (the “Solar Business”) (the “ADT Solar Exit”) and the sale in 2023 of its commercial business (the “Commercial Business”) (the “Commercial Divestiture”) represented strategic shifts that had major effects on the Company’s operations and financial results.

As applicable, the results of operations and financial position of these businesses are classified as discontinued operations in the Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets, respectively.

The Condensed Consolidated Statements of Cash Flows and Condensed Consolidated Statements of Comprehensive Income (Loss) present both continuing and discontinued operations, as applicable.

Refer to Note 4 “Divestitures.”

Unless otherwise noted, the following Notes to Condensed Consolidated Financial Statements refer to the Company’s continuing operations only.

As applicable, the results of operations and financial position of these businesses are classified as discontinued operations and is not material.

The Condensed Consolidated Statements of Cash Flows and Condensed Consolidated Statements of Comprehensive Income (Loss) present continuing and discontinued operations combined, as applicable .

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Accounting Standards Updates (“ASUs”)

Recently Adopted

Measurement of Credit Losses for Accounts Receivable and Contract Assets - ASU 2025-05, Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets, provides entities a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets, permitting the use of current conditions as of the balance sheet date when developing related forecasts and assumptions.

The Company adopted this guidance, effective January 1, 2026, on a prospective basis and will apply the practical expedient where applicable.

The adoption did not have a material impact on the Company’s consolidated financial statements or disclosures.

Recently Issued

Interim Reporting - ASU 2025-11, Narrow-Scope Improvements (Topic 270):

Interim Reporting is intended to improve navigability of the required interim disclosures and clarify when the guidance is applicable.

The amendments also include additional guidance on what disclosures should be provided in interim reporting periods.

The amendment adds to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

This guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The Company is evaluating the impact of this guidance on its disclosures.

Targeted Improvements to the Accounting for Internal-Use Software - ASU 2025-06, Intangibles — Goodwill and Other (Subtopic 350-40):

10 unchanged sentences

The Company is currently evaluating the impact of this guidance on its financial statements and disclosures.

Improvements to Income Tax Disclosures - ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , focuses on improvements to income tax disclosures, primarily related to the rate reconciliation and income tax paid information.

In addition, the update includes certain other amendments to improve the effectiveness of income tax disclosures.

The guidance is effective for annual reporting periods beginning after December 15, 2024, and should be applied prospectively, with retrospective application also a permitted option.

The Company is currently evaluating the impact of this guidance on its financial statements and disclosures and will include required disclosures in the Annual Report on Form 10-K for the year ended December 31, 2025.

Disclosure Improvements - ASU 2023-06, Disclosure Improvements:

8 unchanged sentences

The following table reconciles the amounts below reported in the Condensed Consolidated Balance Sheets to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows:

(in thousands) September 30, 2025 December 31, 2024

(in thousands) March 31, 2026 December 31, 2025

Cash and cash equivalents $ 119,328 $ 80,817

3 unchanged sentences

_______________

(1) Primarily includes the Opportunity Fund in connection with the State Farm Development Agreement (both as defined and discussed in Note 14 “Related Party Transactions”).

Use of the funds must be agreed to by State Farm Fire & Casualty Company (“State Farm”) and the Company.

Substantially all of the balance of the Opportunity Fund was subsequently repaid to State Farm on October 24, 2025 in connection with the expiration of this agreement.

The remaining restricted cash and restricted cash equivalents relate to the Company’s uncommitted receivables securitization financing agreement (the “ 2020 Receivables Facility”) (refer to Note 6 “Debt”).

(1) Restricted cash and restricted cash equivalents relate to the Company’s uncommitted receivables securitization financing agreement (the “ 2020 Receivables Facility”) (refer to Note 6 “Debt”).

Supplementary Cash Flow Information

During the three months ended March 31, 2026, the Company capitalized approximately $ 42 million of contract costs incurred in connection with a long-term software agreement, which were unpaid as of March 31, 2026.

These amounts are considered non-cash investing activities for the three months ended March 31, 2026.

Inventories, net

1 unchanged sentence

Work-in-progress is not material.

Prepaid Expenses and Other Current Assets

(in thousands) March 31, 2026 December 31, 2025

Prepaid expenses

$ 46,452 $ 52,992

Contract assets (see Note 2 “Revenue and Receivables”) 22,863 28,758

Fair value of interest rate swaps (see Note 7 “Derivative Financial Instruments”)

35,351 38,264

Tax receivables 22,387 73,201

Other current assets 63,581 57,110

Prepaid expenses and other current assets $ 190,634 $ 250,325

Subscriber System Assets, net and Deferred Subscriber Acquisition Costs, net

1 unchanged sentence

Deferred subscriber acquisition costs represent selling expenses (primarily commissions) that are incremental to acquiring customers.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Subscriber system assets and any related deferred subscriber acquisition costs are accounted for on a pooled basis based on the month and year of customer acquisition.

The Company depreciates and amortizes these pooled costs using an accelerated method over the estimated life of the customer relationship, which is 15 years.

(in thousands) September 30, 2025 December 31, 2024

Subscriber system assets are reflected in the Condensed Consolidated Balance Sheets as follows:

(in thousands) March 31, 2026 December 31, 2025

Gross carrying amount $ 7,209,144 $ 7,145,662

1 unchanged sentence

Subscriber system assets, net $ 2,748,691 $ 2,790,879

Depreciation of subscriber system assets and amortization of deferred subscriber acquisition costs are reflected in depreciation and intangible asset amortization and SG&A, respectively, as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Depreciation of subscriber system assets and amortization of deferred subscriber acquisition costs are reflected in depreciation and intangible asset amortization and selling, general, and administrative expenses (“SG&A”), respectively, as follows:

Three Months Ended March 31,

(in thousands) 2026 2025

2 unchanged sentences

$ 67,445 $ 60,358

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Accrued Expenses and Other Current Liabilities

(in thousands) September 30, 2025 December 31, 2024

(in thousands) March 31, 2026 December 31, 2025

Accrued interest $ 53,312 $ 56,523

Payroll-related accruals 75,788 59,045

Opportunity Fund (see Note 14 “Related Party Transactions”)

81,643 84,516

Accrued dividends 44,916 44,992

Physically settled forward share repurchase liabilities (see Note 9 “Equity”)

Other accrued liabilities 223,092 191,480

5 unchanged sentences

These investments are generally classified as Level 1 fair value measurements, which represent unadjusted quoted prices in active markets for identical assets or liabilities.

As of September 30, 2025 and December 31, 2024, investments in money market mutual funds were $ 50 million and $ 90 million, respectively.

As of March 31, 2026 and December 31, 2025, investments in money market mutual funds were $ 56 million and $ 1 million, respectively.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Long-Term Debt Instruments - The fair values of the Company’s long-term debt instruments are determined using broker-quoted market prices, which represent quoted prices for similar assets or liabilities as well as other observable market data, and are classified as Level 2 fair value measurements.

1 unchanged sentence

Refer to Note 6 “Debt.”

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(in thousands) Carrying

4 unchanged sentences

(1) Excludes finance leases.

Derivative Financial Instruments - Derivative financial instruments are reported at fair value as either assets or liabilities that are primarily calculated using discounted cash flow models utilizing observable inputs, such as quoted forward interest rates, and incorporate credit risk adjustments to reflect the risk of default by the counterparty or the Company.

Derivative Financial Instruments - Derivative financial instruments are reflected in the Condensed Consolidated Balance Sheets as either assets or liabilities at their fair values, which are primarily calculated using discounted cash flow models utilizing observable inputs, such as quoted forward interest rates, and incorporate credit risk adjustments to reflect the risk of default by the counterparty or the Company.

The resulting fair values are classified as Level 2 fair value measurements.

2 unchanged sentences

Refer to Note 2 “Revenue and Receivables.”

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(in thousands) Carrying

1 unchanged sentence

Retail installment contract receivables, net $ 635,348 $ 515,638 $ 651,811 $ 513,325

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

REVENUE AND RECEIVABLES

The Company generates revenue from contractual monthly recurring fees received for monitoring and related services, as well as the sale and installation of security systems.

The Company primarily generates revenue from contractual monthly recurring fees received for monitoring and related services, as well as the sale and installation of security systems.

The Company’s revenue-generating contracts are entered into primarily through its main operating entity and wholly-owned subsidiary, ADT LLC.

Disaggregated Revenue

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

( in thousands )

2025 2024 2025 2024

Sources of Revenue:

5 unchanged sentences

1,080,476 1,083,104

Installation revenue

Installation and other revenue

108,458 95,516

4 unchanged sentences

The Company allocates the transaction price to each performance obligation based on the relative standalone selling price, which is determined using observable internal and external pricing, profitability, and operational metrics.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Customer-Owned Transactions - In transactions involving security systems sold outright to the customer (referred to as outright sales ), the Company’s performance obligations generally include the sale and installation of the security system, which is primarily recognized at a point in time based upon the nature of the transaction and contractual terms, and any monitoring and related services, which are recognized when these services are provided to the customer.

2 unchanged sentences

Remaining Performance Obligations

As of September 30, 2025, the Company’s total remaining unsatisfied performance obligations relating to the provision of monitoring and related services are as follows (in thousands) :

As of March 31, 2026, the Company’s total remaining unsatisfied performance obligations relating to the provision of monitoring and related services are as follows (in thousands) :

$ 1,918,583 $ 1,057,369 $ 507,860 $ 220,849 $ 3,704,661

1 unchanged sentence

The Company evaluates its allowance for credit losses on accounts receivable in pools based on customer type.

For each customer pool, the allowance for credit losses is estimated based on the delinquency status of the underlying receivables and the related historical loss experience, as adjusted for current and expected future conditions, if applicable.

For each customer pool, the allowance for credit losses is estimated based on the delinquency status of the underlying receivables and the related historical loss experience.

The allowance for credit losses is not material for the individual pools of customers.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2026 2025

12 unchanged sentences

Subsequent to origination, the Company monitors the delinquency status of the RICs as the key credit quality indicator.

Delinquent billed RICs are not a material portion of the Company’s RICs.

The allowance for credit losses relates to RICs from outright sales transactions and is not material.

The allowance for credit losses relates to RICs from outright sales transactions.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following is a summary of unbilled retail installment contract receivables, net:

(in thousands) September 30, 2025 December 31, 2024

(in thousands) March 31, 2026 December 31, 2025

Retail installment contract receivables, gross $ 688,436 $ 689,023

5 unchanged sentences

Retail installment contract receivables, net $ 635,348 $ 651,811

As of September 30, 2025 and December 31, 2024, RICs, net, for which the Company grants a security interest as collateral for borrowings under the 2020 Receivables Facility were $ 593 million and $ 575 million, respectively.

As of March 31, 2026 and December 31, 2025, RICs, net, for which the Company grants a security interest as collateral for borrowings under the 2020 Receivables Facility were $ 575 million and $ 593 million, respectively.

Refer to Note 6 “Debt” for further discussion regarding the 2020 Receivables Facility.

Credit Quality

Upon origination of a RIC, the Company assigns an internal credit grade derived from external credit data obtained from a nationally recognized credit reporting provider to evaluate customer credit quality and establish contract eligibility.

Subsequent to origination, the Company monitors the delinquency status of the RICs as the key credit quality indicator.

Delinquent billed RICs are not a material portion of the Company’s RICs.

The following tables present credit quality information related to the Company’s RICs, including short-term receivables related to three-month payment plans, as of the periods presented:

Loan Origination Year

(in thousands)

2026 2025 2024 2023 2022 All preceding years

Credit Quality Indicator:

High $ 53,585 $ 182,942 $ 108,619 $ 66,084 $ 37,071 $ 5,130

34,202 80,155 37,991 17,675 8,301 1,225

Low 7,989 26,842 12,431 5,560 2,285 349

Total RICs as of March 31, 2026

$ 95,776 $ 289,939 $ 159,041 $ 89,319 $ 47,657 $ 6,704

Current year gross write-offs $ 52 $ 12,202 $ 5,560 $ 2,349 $ 983 $ 263

Loan Origination Year

(in thousands) 2025 2024 2023 2022 2021 All preceding years

Credit Quality Indicator:

High $ 201,419 $ 122,031 $ 78,706 $ 45,519 $ 9,234 $ 1

97,692 43,839 21,801 10,286 2,277 7

Low 31,684 14,341 6,664 2,870 652 —

Total RICs as of December 31, 2025

$ 330,795 $ 180,211 $ 107,171 $ 58,675 $ 12,163 $ 8

Contract Assets

1 unchanged sentence

The contract asset is reclassified to accounts receivable as additional services are performed and billed, which is when the Company’s right to the consideration becomes unconditional.

The Company has the right to bill customers as services are provided over time, which generally occurs over the course of a 12-, 24-, 36-, or 60-month period as additional services are performed and billed.

There is no significant financing component.

Gross contract assets recognized were not material for the periods presented.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands) September 30, 2025 December 31, 2024

There is no significant financing component.

(in thousands) March 31, 2026 December 31, 2025

Contract assets, gross $ 66,235 $ 69,506

5 unchanged sentences

Contract assets, net $ 59,419 $ 62,915

Changes in contract assets for the three months ended March 31, 2026 and March 31, 2025 were not material.

Increases in contract assets arise from revenue recognized in excess of contractual billings under outright sales transactions.

Decreases primarily reflect the reclassification to accounts receivable as the Company’s right to consideration becomes unconditional and, to a lesser extent, contract asset write‑offs and impairment.

Contract Liabilities

The Company’s primary contract liabilities are deferred subscriber acquisition revenue and deferred revenue as presented on the balance sheet.

Contract liabilities primarily represent amounts billed or collected in advance of the Company’s fulfillment of performance obligations under customer contracts.

Contract liabilities also include consideration received in advance for products or services that have not yet been transferred to the customer, including deferred revenue associated with the allocation of the transaction price to future performance obligations.

Contract liabilities are recognized as revenue when the related performance obligations are satisfied, which typically occurs over the term of the customer’s service agreement or upon completion of installation or product delivery.

For the three months ended March 31, 2026, customer contract liabilities remained relatively flat.

Revenue recognized from the amounts included in the beginning contract liability balance totaled approximately $ 290 million and $ 278 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

Additional contract liabilities recognized for the three months ended March 31, 2026 and March 31, 2025 were approximately $ 263 million and $ 276 million, respectively.

Other changes in the contract liabilities were not material.

SEGMENT INFORMATION

8 unchanged sentences

The following presents a reconciliation to the Company’s net income (loss) as reported in the Condensed Consolidated Statements of Operations and includes segment revenues, significant segment expenses that are regularly provided to or easily computed from information regularly provided to the CODM, other segment expenses, and adjustments to reconcile to net income (loss).

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2026 2025

31 unchanged sentences

( 2,767 ) 2,573

1,771 ( 19,623 ) 1,465 ( 52,781 )

Total other segment items

25,561 ( 19,716 ) 34,723 ( 31,427 )

Reconciliation of profit or loss:

(Income) loss from discontinued operations, net of tax (4)

( 1,620 ) 4,869 3,665 111,000

Net income (loss) $ 168,374 $ 140,246

5 unchanged sentences

(4) Represents activity related to the Commercial and Solar Businesses (as applicable during the periods), which are presented as discontinued operations.

ADT Solar Exit

As discussed in Note 1 “Description of Business and Summary of Significant Accounting Policies,” the Solar Business is presented as a discontinued operation in the Company’s Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets for all periods presented.

Exit charges incurred and paid were not material in 2025.

During the nine months ended September 30, 2024, the Company paid approximately $ 21 million associated with the ADT Solar Exit primarily related to employee separation and other restructuring costs.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

During the three months ended September 30, 2024, aggregate exit charges were not material.

During the nine months ended September 30, 2024, the Company incurred aggregate exit charges of $ 88 million, which have been recognized within income (loss) from discontinued operations, net of tax related to (i) $ 34 million associated with the write-down and disposition of inventory and asset impairments, (ii) $ 29 million associated with the disposition of the then existing installation pipeline, (iii) $ 13 million associated with employee separation costs, and (iv) $ 11 million associated with contract termination and other charges.

The following reconciliations represent the major classes of line items of the Solar Business presented within discontinued operations.

Cash flows related to discontinued operations were not significant during the nine months ended September 30, 2025 and September 30, 2024.

Balance Sheet Information

There were no material assets of discontinued operations as of September 30, 2025 and December 31, 2024.

(in thousands) September 30, 2025 December 31, 2024

Current maturities of long-term debt $ — $ 22

Accounts payable 4,980 6,953

Accrued expenses and other current liabilities 19,379 24,788

Total current liabilities of discontinued operations

24,359 31,763

Long-term debt — 32

Other liabilities 9,604 15,857

Total liabilities of discontinued operations $ 33,963 $ 47,652

Statements of Operations Information

Three Months Ended September 30, Nine Months Ended September 30,

(in thousands) 2025 2024 2025 2024

Revenue $ — $ 65 $ — $ 21,360

Cost of revenue

( 1,283 ) 1,091 1,305 62,450

Selling, general, and administrative expenses ( 915 ) 3,919 3,042 93,837

Depreciation and intangible asset amortization — 55 18 1,872

Other (income) and expense items

Income (loss) from discontinued operations before income taxes 2,198 ( 5,005 ) ( 4,407 ) ( 138,277 )

Income tax benefit (expense) ( 578 ) 475 1,162 35,851

Income (loss) from discontinued operations, net of tax $ 1,620 $ ( 4,530 ) $ ( 3,245 ) $ ( 102,426 )

Commercial Divestiture

During the periods presented, activity reflected in discontinued operations, net of tax, relating to the Commercial Divestiture was not material.

During the nine months ended September 30, 2024, the Company paid the purchaser of the Commercial Business $ 21 million related to the settlement of post-closing adjustments.

In connection with the Commercial Divestiture, the Company entered into a Transition Services Agreement (the “Commercial TSA”).

During the three and nine months ended September 30, 2025, Commercial TSA income was not material.

During the three and nine months ended September 30, 2024, the Company recognized $ 14 million and $ 36 million, respectively, of Commercial TSA income, which is reflected in other income (expense) within continuing operations.

ACQUISITIONS AND DIVESTITURES

From time to time, the Company may pursue business acquisitions that either strategically fit with the Company’s existing core business or expand the Company’s products and services in new and attractive adjacent markets.

The Company accounts for business acquisitions under 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.

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, the Company may engage third-party valuation specialists to assist in these determinations.

The fair value estimates are based on available information as of the acquisition date and on future expectations and assumptions deemed reasonable by management, but are inherently uncertain.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Multifamily Divestiture

On September 12, 2025, the Company entered into an Asset Purchase Agreement to sell substantially all of the assets and certain specified liabilities of its multifamily business (the “Multifamily Divestiture”).

As a result, the disposal group was classified and reflected as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2025, including $ 58 million of other assets.

The remaining balances were not material and are presented in prepaid expenses and other current assets, accrued expenses and other current liabilities, and other liabilities, as applicable.

Additionally, in connection with the classification of the disposal group as held for sale, the Company recorded various impairment charges and other adjustments as of September 30, 2025, which were not material.

The condensed consolidated financial statements reflect the results of an acquired business starting from the effective date of the acquisition.

Origin AI Acquisition

On February 20, 2026, the Company acquired a 100 % equity ownership interest in Origin Wireless, Inc.

(“Origin AI”), a provider of patented AI‑enabled presence detection and ambient sensing technology (the “Origin AI Acquisition”).

By utilizing artificial intelligence and proprietary algorithms to analyze ubiquitous radio frequency signals, this newly acquired technology detects and classifies human presence and activity within the home or other premises without the use of cameras, audio, or wearable devices.

This technology is expected to enhance the Company’s ability to improve alarm verification, reduce false alarms, and support new intelligent security and smart home use cases over time.

Total consideration transferred in connection with the Origin AI Acquisition was $ 164 million, paid in cash.

The Company recognized $ 61 million of technology intangible assets and $ 2 million of customer relationships, which are amortized on a straight-line basis over 7 years and 5 years, respectively.

The fair value of these intangible assets was estimated using the excess earnings method.

The excess earnings method is an income approach that estimates the amount of residual (or excess) cash flows generated by an asset, which are reduced by certain contributory asset charges that represent the charges for the use of the asset.

The Company also recognized $ 114 million of goodwill, which is not deductible for tax purposes, and allocated the goodwill to the consolidated operating and reporting unit.

The goodwill recognized as a result of the Origin AI Acquisition reflects the strategic value of Origin’s technology and its anticipated integration into the Company’s existing and future product offerings.

Refer to Note 5 “Goodwill and Other Intangible Assets.”

Subsequent event - On October 1, 2025, the Company completed the Multifamily Divestiture for a purchase price of approximately $ 56 million, subject to certain customary post-closing adjustments.

Other assets acquired and liabilities assumed were not material.

The purchase price allocation reflects preliminary fair value estimates which may be subject to changes during the measurement period.

Acquisition costs were not material.

Subsequent to the close of the Origin AI Acquisition, the Company issued share-based compensation awards as a material inducement for certain key employees of Origin AI to remain employed with the Company following the Origin AI Acquisition (the “Origin AI Retention Awards”).

Refer to Note 10 “Share-Based Compensation” for additional information.

GOODWILL AND OTHER INTANGIBLE ASSETS

During the three months ended September 30, 2025, the Company recorded a goodwill impairment charge of $ 12 million in connection with the Multifamily Divestiture, which is reflected in SG&A, and reclassified the remaining $ 6 million of goodwill to held for sale.

Refer to Note 4 “Divestitures.”

During the three months ended March 31, 2026, the Company recognized goodwill of $ 114 million in connection with the Origin AI Acquisition.

Refer to Note 4 “Acquisitions and Divestitures.”

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Other Intangible Assets

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(in thousands) Gross Carrying

6 unchanged sentences

Contracts and related customer relationships

$ 6,860,389 $ ( 4,151,033 ) $ 2,709,356 $ 6,754,810 $ ( 4,012,248 ) $ 2,742,562

Dealer relationships 1,518,020 ( 796,186 ) 721,834 1,518,020 ( 776,413 ) 741,607

Other 199,973 ( 198,802 ) 1,171 209,773 ( 202,793 ) 6,980

265,903 ( 200,641 ) 65,262 199,973 ( 199,146 ) 827

Total definite-lived intangible assets 8,644,312 ( 5,147,860 ) 3,496,452 8,472,803 ( 4,987,807 ) 3,484,996

2 unchanged sentences

Intangible assets $ 9,977,312 $ ( 5,147,860 ) $ 4,829,452 $ 9,805,803 $ ( 4,987,807 ) $ 4,817,996

________________

(1) March 31, 2026 includes the technology intangible related to the Origin AI Acquisition.

The change in the net carrying amount of contracts and related customer relationships during the period was as follows:

2 unchanged sentences

Customer contract additions, net of dealer charge-backs (1)

Origin AI Acquisition customer relationships

Amortization ( 138,785 )

Balance as of September 30, 2025 $ 2,771,936

Balance as of March 31, 2026 $ 2,709,356

________________

1 unchanged sentence

Payments for customer contract additions under the Company’s authorized dealer program and from other third parties are reflected as dealer generated customer accounts and bulk account purchases on the Condensed Consolidated Statements of Cash Flows.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

During the nine months ended September 30, 2025, the Company completed multiple bulk customer account purchases for an aggregate contractual purchase price of $ 132 million, subject to reductions based on customer retention, and paid total cash at the closings of $ 115 million.

Definite-Lived Intangible Asset Amortization Expense

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2026 2025

Definite-lived intangible asset amortization expense $ 160,053 $ 154,676

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company’s debt is comprised of the following (in thousands) :

Interest Payable Balance as of

Description Issued Maturity Interest Rate (1)

Interest Payable September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

First Lien Term Loan B due 2030 10/13/2023 10/13/2030 Term SOFR + 2.00 %

$ 1,759,289 $ 1,764,249

First Lien Term Loan B-2 due 2032

1 unchanged sentence

Quarterly 1,438,357 1,441,989

First Lien Term Loan B-2 due 2032 3/7/2025 3/7/2032 Term SOFR + 1.75 %

Quarterly 1,145,622 —

First Lien Revolving Credit Facility

3/16/2018 10/1/2029 Term SOFR + 2.00 %

First Lien Term Loan A due 2030 10/28/2025 10/28/2030 Term SOFR + 1.50 %

Quarterly 322,969 325,000

First Lien Notes due 2026 4/4/2019 4/15/2026 5.750 % 3/15 and 9/15 75,000 75,000

1 unchanged sentence

First Lien Notes due 2029 7/29/2021 8/1/2029 4.125 % 2/1 and 8/1 1,000,000 1,000,000

Second Lien Notes due 2028 1/28/2020 1/15/2028 6.250 % 1/15 and 7/15 1,300,000 1,300,000

First Lien Notes due 2033 10/15/2025 10/15/2033 5.875 % 1/15 and 7/15 1,000,000 1,000,000

ADT Notes due 2032 5/2/2016 7/15/2032 4.875 % 1/15 and 7/15 728,016 728,016

1 unchanged sentence

2020 Receivables Facility (2)

3/5/2020 8/20/2030 Various Monthly 441,090 407,901

3/5/2020 2/20/2031 Various

Monthly 432,608 443,058

Total debt principal, excluding finance leases 7,778,135 7,799,208

12 unchanged sentences

_________________

(1) Interest rate as of September 30, 2025.

(1) Interest rate as of March 31, 2026.

Interest on the 2020 Receivables Facility is primarily based on the Secured Overnight Financing Rate (“SOFR”) + 0.95 % and Lender Cost of Funds + 0.85 %.

1 unchanged sentence

(3) Refer to Note 13 “Leases” for additional information regarding the Company’s finance leases.

As of September 30, 2025, the Company was in compliance with all financial covenant and other maintenance tests for all of its debt obligations.

As of March 31, 2026, the Company was in compliance with all financial covenant and other maintenance tests for all of its debt obligations.

First Lien Credit Agreement

The Company’s first lien credit agreement, dated as of July 1, 2015 (together with subsequent amendments and restatements, the “First Lien Credit Agreement”), consists of term loans (the “First Lien Term Loan B due 2030” and “First Lien Term Loan B-2 due 2032” as defined below, together, the “First Lien Term Loan Bs”) and the First Lien Revolving Credit Facility.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

During the nine months ended September 30, 2025, the Company borrowed and repaid $ 198 million under the First Lien Revolving Credit Facility.

As of September 30, 2025, the available borrowing capacity was $ 800 million.

During the nine months ended September 30, 2024, the Company borrowed and repaid $ 325 million under the First Lien Revolving Credit Facility.

Significant activity since December 31, 2024 is as follows:

• March 2025 - The Company amended and restated the First Lien Credit Agreement, which provided for the issuance of a new $ 600 million first lien seven-year term loan (the “First Lien Term Loan B-2 due 2032”) (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), and received net proceeds of $ 597 million.

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.

The First Lien Term Loan B-2 due 2032 requires scheduled quarterly amortization payments, which commenced on June 30, 2025, equal to 0.25 % of the original principal amount of the First Lien Term Loan B-2 due 2032, with the remaining balance payable at maturity.

The Company may make voluntary prepayments on the First Lien Term Loan B-2 due 2032 at any time prior to maturity at par, however, such prepayment will be subject to a 1.00 % prepayment premium in the event of certain specified refinancing events during the first six months after the most recent amendment.

Additionally, the Company used the net proceeds to redeem $ 500 million of the First Lien Notes due 2026.

• July 2025 - The Company 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.

These incremental borrowings have the same terms as existing loans under the First Lien Term Loan B-2 due 2032.

Additionally, the Company used the net proceeds and cash on hand to redeem $ 550 million of the First Lien Notes due 2026.

Debt issuance costs incurred as a result of the transactions above were not material during the period.

Other than as described above, the term loans under the amended and restated First Lien Credit Agreement continue to have the same terms as provided under the existing First Lien Credit Agreement, and the parties to the amended and restated First Lien Credit Agreement continue to have the same obligations set forth in the existing First Lien Credit Agreement.

Subsequent Events - In October 2025, the Company 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.

The Company used the proceeds to partially redeem the Second Lien Notes due 2028.

Also in October 2025, the Company partially redeemed $ 200 million of the First Lien Term Loan B due 2030 with proceeds from the Term Loan A due 2030.

Term Loan A due 2030

Subsequent event - In October 2025, the Company entered into a term loan credit agreement for an aggregate principal amount of $ 325 million of term loans under a senior secured term loan A facility (the “Term Loan A due 2030”).

The Company used a portion of the proceeds to redeem $ 200 million of the First Lien Term Loan B due 2030 and intends to use the remaining proceeds for additional debt redemption.

First Lien Notes due 2033

Subsequent event - In October 2025, the Company issued $ 1 billion aggregate principal amount of 5.875 % first-priority senior secured notes due 2033 (the “First Lien Notes due 2033”).

The Company used the proceeds to redeem the majority of the Second Lien Notes due 2028.

The Company’s first lien credit agreement, dated as of July 1, 2015 (together with subsequent amendments and restatements, the “First Lien Credit Agreement”), consists of term loans (the “First Lien Term Loan B due 2030” and the “First Lien Term Loan B-2 due 2032,” together, the “First Lien Term Loan Bs”) and the First Lien Revolving Credit Facility.

First Lien Revolving Credit Facility

During the three months ended March 31, 2026, the Company did not make any borrowings or repayments under the First Lien Revolving Credit Facility.

As of March 31, 2026, the available borrowing capacity was $ 800 million.

During the three months ended March 31, 2025, the Company borrowed $ 40 million under the First Lien Revolving Credit Facility.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

First Lien Notes due 2026 Partial Redemptions

Significant activity since December 31, 2024 is as follows:

• March 2025 - The Company 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 the Company’s March 2025 issuance of the First Lien Term Loan B-2 due 2032.

• July 2025 - The Company 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 the Company’s July 2025 issuance of the First Lien Term Loan B-2 due 2032 and cash on hand.

Loss on extinguishment of debt was not material during the period.

Second Lien Notes due 2028 Redemption

Subsequent event - In October, 2025, the Company redeemed 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.

First Lien Notes due 2026 Redemption

Subsequent event - In April 2026, the Company redeemed the remaining outstanding balance of the First Lien Notes due 2026 at maturity for a redemption price of $ 75 million using cash on hand.

2020 Receivables Facility

1 unchanged sentence

Significant activity since December 31, 2025 is as follows:

• March 2025 - The Company 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.

As of September 30, 2025, the Company had an uncommitted available borrowing capacity under the 2020 Receivables Facility of approximately $ 109 million.

• March 2026 - The Company amended the agreement governing the 2020 Receivables Facility to extend the uncommitted revolving period to April 2026.

• Subsequent event - In April 2026, the Company amended the agreement governing the 2020 Receivables Facility to extend the uncommitted revolving period to April 2027, among other things.

As of March 31, 2026, the Company had an uncommitted available borrowing capacity under the 2020 Receivables Facility of approximately $ 117 million.

Variable Interest Entity

7 unchanged sentences

All interest rate swap contracts are reported at fair value in the Condensed Consolidated Balance Sheets.

Derivative instruments designated as cash flow hedges were highly effective at inception and are expected to continue to be highly effective.

For interest rate swap contracts that are:

• Not designated as cash flow hedges:

Unrealized gains and losses are recognized in interest expense, net, and other income (expense) depending on the nature of the underlying that the swaps are economically hedging.

Unrealized gains and losses are recognized in interest expense, net, or other income (expense) depending on the nature of the underlying.

• Designated as cash flow hedges:

Unrealized gains and losses are recognized as a component of accumulated other comprehensive income (loss) (“AOCI”) and are reclassified into interest expense, net, in the same period in which the related interest on debt affects earnings.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For interest rate swap contracts that have been de-designated as cash flow hedges and for which forecasted cash flows are:

3 unchanged sentences

Unrealized gains and losses previously recognized as a component of AOCI are immediately reclassified into interest expense, net.

The cash flows associated with certain of the Company’s interest rate swap contracts that were entered into with the intention of offsetting the economic overhedged position of a portion of the Company’s existing interest rate swaps are reflected as cash flows from investing activities.

The cash flows associated with certain of the Company’s interest rate swap contracts that included an other-than-insignificant financing element at inception are reflected as cash flows from financing activities.

The cash flows associated with certain of the Company’s interest rate swap contracts that are designated as cash flow hedges are reflected as cash flows from operating activities.

The Company’s derivative instruments were entered into with the objective of reducing the variability in future expected interest payments on a portion of the Company’s First Lien Term Loan Bs or their replacement.

Derivative instruments designated as cash flow hedges were highly effective at inception and are expected to continue to be highly effective.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Cash flows associated with the Company’s derivatives are reflected as follows:

• Operating activities:

Includes cash flows associated with the Company’s interest rate swap contracts that are designated as cash flow hedges.

• Investing activities:

Includes cash flows associated with the Company’s interest rate swap contracts that were entered into with the intention of offsetting the economic overhedged position of a portion of the Company’s existing interest rate swaps.

• Financing activities:

Includes cash flows associated with the Company’s interest rate swap contracts that included an other-than-insignificant financing element at inception.

The Company’s interest rate swaps consist of the following (notional amounts in thousands) :

Execution Maturity Designation September 30, 2025 December 31, 2024

October 2019 September 2026 Not designated $ 2,800,000 $ 2,800,000

Execution Maturity Designation March 31, 2026 December 31, 2025

October 2019 (1)(2)

September 2026 Not designated $ 2,800,000 $ 2,800,000

March 2023 March 2028 Not designated 100,000 100,000

April 2023 March 2028 Not designated 200,000 200,000

December 2023 September 2026 Not designated 700,000 700,000

December 2023 (2)

September 2026 Not designated 700,000 700,000

June 2025 (3)

Cash flow hedge

550,000 550,000

July 2025 (3)

Cash flow hedge

500,000 500,000

July 2025 March 2032

Not designated 100,000 100,000

1 unchanged sentence

Cash flow hedge

200,000 200,000

October 2025 (3)

December 2030

Cash flow hedge

100,000 100,000

October 2025 (3)

March 2032 Cash flow hedge

200,000 200,000

October 2025 (4)

December 2027 Cash flow hedge

1,400,000 1,400,000

Total notional amount $ 6,850,000 $ 6,850,000

Subsequent event - During October 2025, the Company entered into derivative instruments with a notional amount of $ 1.7 billion with the objective of reducing the variability in future expected interest payments on a portion of the Company’s term loans under its First Lien Credit Agreement or their replacement.

___________________

(1) These swaps contain an other-than-insignificant financing element due to their off-market terms at inception.

Prior to March 2020, these swaps were designated as cash flow hedges.

(2) The December 2023 swaps were entered into to offset the excess notional interest rate swaps as a result of the partial redemption of the then outstanding First Lien Term Loan B due 2026 in connection with the Commercial Divestiture.

The changes in fair value associated with these swaps and a portion of the October 2019 swaps are reflected in other income (expense).

(3) These swaps were entered into to hedge the interest rate variability on the Company’s First Lien Term Loan B-2 due 2032 or its direct replacement.

(4) These forward-starting swaps were entered into to hedge the interest rate variability on the Company’s First Lien Term Loan B due 2030 or its direct replacement with the swap settlement periods commencing in September 2026.

Balance Sheet Classification (in thousands)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Prepaid expenses and other current assets $ 35,351 $ 38,264

7 unchanged sentences

Unrealized gains (losses) on the Company’s derivatives not classified as cash flow hedges that were recognized in the Statements of Operations were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

Classification (in thousands)

2025 2024 2025 2024

Interest expense, net $ ( 3,845 ) $ ( 21,009 )

Other income (expense) $ ( 3,709 ) $ ( 4,032 )

The following table includes reclassifications related to previously designated cash flow hedges and unrealized gains (losses) on interest rate swaps designated as cash flow hedges:

Three Months Ended September 30, Nine Months Ended September 30,

The following table includes unrealized gains (losses) on interest rate swaps designated as cash flow hedges and reclassifications related to previously designated cash flow hedges:

Three Months Ended March 31,

Changes in AOCI (in thousands)

Pre-tax current period change

$ 18,919 $ 1,786

Interest expense, net $ ( 1,822 ) $ 1,943 $ ( 1,627 ) $ 6,057

Income tax (benefit) expense $ ( 4,557 ) $ ( 432 )

As of September 30, 2025 and December 31, 2024, AOCI, net of tax, related to previously designated cash flow hedges was not material.

Unrecognized Tax Benefits

The Company’s unrecognized tax benefits relate to tax years that remain subject to audit by the taxing authorities in the U.S.

federal, state and local, and foreign jurisdictions.

During the nine months ended September 30, 2025, the Company recorded an increase to its unrecognized tax benefits of $ 11 million related to prior year tax positions.

Based on the current tax statutes and current status of its income tax audits, the Company does not expect unrecognized tax benefits to change significantly in the next twelve months.

As of March 31, 2026 and December 31, 2025, AOCI, net of tax, related to previously designated cash flow hedges was not material.

Effective Tax Rate

1 unchanged sentence

The discussion below is based on the continuing operations of the Company.

The Company’s income tax expense for the three months ended September 30, 2025 was $ 55 million, resulting in an effective tax rate for the period of 27.7 %.

The effective tax rate primarily represents the federal statutory rate of 21.0 %, a state tax rate, net of federal benefits, of 5.2 %, and an unfavorable impact from a non-deductible goodwill impairment charge of 1.5 %.

The Company’s income tax expense for the three months ended September 30, 2024 was $ 50 million, resulting in an effective tax rate for the period of 27.6 %.

The Company’s income tax expense for the three months ended March 31, 2026 was $ 58 million, resulting in an effective tax rate for the period of 25.5 %.

The effective tax rate primarily represents the federal statutory tax rate of 21.0 %, and a state tax rate, net of federal benefits, of 4.9 %.

The Company’s income tax expense for the nine months ended September 30, 2025 was $ 165 million, resulting in an effective tax rate for the period of 26.6 %.

The effective tax rate primarily represents the federal statutory rate of 21.0 %, and a state tax rate, net of federal benefits, of 5.2 %.

The Company’s income tax expense for the nine months ended September 30, 2024 was $ 167 million, resulting in an effective tax rate for the period of 28.3 %.

The effective tax rate primarily represents the federal statutory tax rate of 21.0 %, a state tax rate, net of federal benefits, of 5.8 %, and an unfavorable impact from dispositions of 1.6 %.

Other Tax Matters

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which includes a broad range of tax reform provisions, some of which may be favorable in 2025 to cash taxes.

The Company is currently evaluating the impact of the OBBBA on future periods.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company’s income tax expense for the three months ended March 31, 2025 was $ 51 million, resulting in an effective tax rate for the period of 26.4 %.

The effective tax rate primarily represents the federal statutory tax rate of 21.0 %, and a state tax rate, net of federal benefits, of 5.6 %.

Common Stock and Class B Common Stock

The Company has two classes of common stock, which comprises Common Stock and Class B Common Stock.

The Company has two classes of common stock, which comprises common stock (“Common Stock”) and Class B common stock (“Class B Common Stock”).

Share Issuances

During the three and nine months ended September 30, 2025, shares issued resulted from the vesting of restricted stock units (“RSUs”) and stock option exercises related to fully vested share-based compensation awards as presented on the Condensed Consolidated Statements of Stockholders’ Equity.

During the periods presented, shares issued resulted from the vesting of restricted stock units (“RSUs”) and stock option exercises related to fully vested share-based compensation awards as presented on the Condensed Consolidated Statements of Stockholders’ Equity.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Share Repurchases

The Company’s share repurchase plans discussed below allow the Company to purchase Common Stock, from time to time, in one or more open market or privately negotiated transactions, including pursuant to Rule 10b5-1 or Rule 10b-18 of the Exchange Act, or pursuant to one or more accelerated share repurchase agreements, subject to certain requirements and other factors.

The Company is not obligated to repurchase any of its shares of Common Stock, and the timing and amount of any repurchases depends on legal requirements, market conditions, stock price, the availability of the safe harbor provided by Rule 10b-18 under the Exchange Act, alternative uses of capital, and other factors.

2026 Share Repurchase Plan

In January 2024, the Company's Board of Directors announced a share repurchase plan (the “2024 Share Repurchase Plan”), pursuant to which the Company was authorized to repurchase, through January 29, 2025, up to a maximum aggregate amount of $ 350 million of shares of the Company's Common Stock.

In March 2024, the Company repurchased, and subsequently retired, 15 million shares of its Common Stock under the 2024 Share Repurchase Plan for $ 93 million (or $ 6.22 per share) in connection with a secondary offering of the Company’s Common Stock by Apollo.

Refer to Note 14 “Related Party Transactions” for further information.

In addition, the Company entered into an agreement in December 2024 to repurchase 15 million shares of Common Stock from a non-affiliate individual at a price per share of $ 6.95 for a total of $ 104 million under the 2024 Share Repurchase Plan.

The transaction settled in January 2025, and the Company retired the shares.

The 2024 Share Repurchase Plan expired in January 2025 with $ 5 million in authorized repurchases remaining.

In February 2026, the Company's Board of Directors approved a three-year share repurchase plan (the “2026 Share Repurchase Plan”), pursuant to which the Company is authorized to repurchase, through April 30, 2029, up to a maximum aggregate amount of $ 1.5 billion of shares of the Company's Common Stock.

During the first quarter of 2026, the Company repurchased, and subsequently retired, 18 million shares in the open market pursuant to Rule 10b5-1 and Rule 10b-18 of the Exchange Act under the 2026 Share Repurchase Plan in multiple transactions for a total of $ 116 million (or $ 6.57 per share).

As of March 31, 2026, the Company had $ 1.4 billion remaining under the 2026 Share Repurchase Plan.

Subsequent event - In April 2026, the Company repurchased, and subsequently retired, 17 million shares of its Common Stock in the open market pursuant to Rule 10b5-1 and Rule 10b-18 of the Exchange Act under the 2026 Share Repurchase Plan in multiple transactions for a total of $ 114 million (or $ 6.92 per share).

After these repurchases, the Company had $ 1.3 billion remaining under the 2026 Share Repurchase Plan.

2025 Share Repurchase Plan

In February 2025, the Company's Board of Directors announced a new share repurchase plan (the “2025 Share Repurchase Plan”), pursuant to which the Company was authorized to repurchase, through April 30, 2026, up to a maximum aggregate amount of $ 500 million of shares of the Company's Common Stock.

The 2025 Share Repurchase Plan allowed the Company to purchase Common Stock, from time to time, in one or more open market or privately negotiated transactions, including pursuant to Rule 10b5-1 or Rule 10b-18 of the Exchange Act, or pursuant to one or more accelerated share repurchase agreements, subject to certain requirements and other factors.

The Company was not obligated to repurchase any of its shares of Common Stock, and the timing and amount of any repurchases depended on legal requirements, market conditions, stock price, the availability of the safe harbor provided by Rule 10b-18 under the Exchange Act, alternative uses of capital, and other factors.

In March 2025, the Company repurchased, and subsequently retired, 20 million shares of its Common Stock under the 2025 Share Repurchase Plan for $ 152 million (or $ 7.62 per share) in connection with a secondary offering of the Company’s Common Stock by Apollo.

In February 2025, the Company's Board of Directors announced a share repurchase plan (the “2025 Share Repurchase Plan”), pursuant to which the Company was authorized to repurchase, through April 30, 2026, up to a maximum aggregate amount of $ 500 million of shares of the Company's Common Stock.

The Company exhausted the 2025 Share Repurchase Plan in July 2025.

During the first quarter of 2025, the Company repurchased, and subsequently retired, 20 million shares of its Common Stock under the 2025 Share Repurchase Plan for $ 152 million (or $ 7.62 per share) in connection with a secondary offering of the Company’s Common Stock by Apollo Global Management, Inc.

(“Apollo”) in March 2025.

Refer to Note 14 “Related Party Transactions” for further information.

Additionally, in March 2025, the Company repurchased, and subsequently retired, an additional 18 million shares in the open market pursuant to Rule 10b5-1 and Rule 10b-18 of the Exchange Act in multiple transactions for $ 140 million (or $ 7.79 per share).

Throughout the second quarter of 2025, the Company repurchased, and subsequently retired, 12 million shares in the open market pursuant to Rule 10b5-1 and Rule 10b-18 of the Exchange Act under the 2025 Share Repurchase Plan in multiple transactions for a total of $ 96 million (or $ 8.14 per share).

In July 2025, the Company repurchased, and subsequently retired, 11 million shares of its Common Stock under the 2025 Share Repurchase Plan for $ 93 million (or $ 8.31 per share) in connection with a secondary offering of the Company’s Common Stock by Apollo.

The Company also repurchased, and subsequently retired, an additional 2 million shares in the open market pursuant to Rule 10b5-1 and Rule 10b-18 of the Exchange Act under the 2025 Share Repurchase Plan in multiple transactions for a total of $ 19 million (or $ 8.45 per share).

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2025, the Company had no authorized amounts remaining under the 2025 Share Repurchase Plan.

Additionally, during the first quarter of 2025, the Company repurchased, and subsequently retired, an additional 18 million shares in the open market pursuant to Rule 10b5-1 and Rule 10b-18 of the Exchange Act in multiple transactions for a total of $ 140 million (or $ 7.79 per share).

(in thousands, except per share data)

1 unchanged sentence

Declaration Date Record Date Payment Date Per Share Aggregate Per Share Aggregate

During the Nine Months Ended September 30, 2025

2/27/2025 3/13/2025 4/3/2025 $ 0.055 $ 44,175 $ 0.055 $ 3,011

4/24/2025 6/12/2025 7/8/2025 0.055 42,884 0.055 3,011

7/24/2025 9/11/2025 10/2/2025 0.055 42,080 0.055 3,011

Total $ 0.165 $ 129,139 $ 0.165 $ 9,033

During the Nine Months Ended September 30, 2024

1/24/2024 3/14/2024 4/4/2024 $ 0.055 $ 47,059 $ 0.055 $ 3,011

During the Three Months Ended March 31, 2026

3/2/2026 3/12/2026 4/2/2026 $ 0.055 $ 42,011 $ 0.055 $ 3,011

During the Three Months Ended March 31, 2025

2/27/2025 3/13/2025 4/3/2025 $ 0.055 $ 44,175 $ 0.055 $ 3,011

Total $ 0.165 $ 141,342 $ 0.165 $ 9,033

Subsequent Event - On November 4, 2025, the Company announced a dividend of $ 0.055 per share to holders of Common Stock and Class B Common Stock of record on December 11, 2025, which will be paid on January 8, 2026.

Subsequent Event - On April 30, 2026, the Company announced a dividend of $ 0.055 per share to holders of Common Stock and Class B Common Stock of record on June 11, 2026, which will be paid on July 7, 2026.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Accumulated Other Comprehensive Income (Loss)

During the three and nine months ended September 30, 2025, there were no material reclassifications out of AOCI.

During the three months ended March 31, 2026, there were no material reclassifications out of AOCI.

Refer to Note 7 “Derivative Financial Instruments.”

SHARE-BASED COMPENSATION

During the first quarter of 2025, the Company completed its annual long-term incentive plan equity award (the “2025 Annual Grant”) to employees and granted approximately 3.4 million RSUs under its 2018 Omnibus Incentive Plan, as amended (the “2018 Plan”), with a grant date fair value of $ 7.59 , which is equal to the closing price per share of the Company’s Common Stock on the date of grant.

During the first quarter of 2026, the Company completed its annual long-term incentive plan equity awards (the “2026 Annual Grant”) to employees by granting approximately 4 million RSUs under its 2018 Omnibus Incentive Plan, as amended (the “2018 Plan”), with a grant date fair value of $ 6.74 per share, which is equal to the closing price per share of the Company’s Common Stock on the date of grant.

These RSUs are service-based awards with a three-year graded vesting period from the date of grant.

During the first quarter of 2025, the Company granted approximately 8.3 million options under the 2018 Plan as part of the 2025 Annual Grant.

These options are service-based awards with a three-year graded vesting period from the date of grant and have an exercise price of $ 7.59 , which is equal to the closing price per share of the Company’s Common Stock on the date of grant, and a contractual term of ten years from the grant date.

The weighted-average grant date fair value for the options granted during the period was $ 2.65 .

During the first quarter of 2026, the Company granted approximately 9 million options to its executive officers under the 2018 Plan as part of the 2026 Annual Grant.

These options are service-based awards with a three-year graded vesting period from the date of grant and have an exercise price of $ 6.74 per share, which is equal to the closing price per share of the Company’s Common Stock on the date of grant, and a contractual term of ten years from the grant date.

The weighted-average grant date fair value for the options granted during the period was $ 2.23 per share.

The Company used a binomial lattice model to determine the grant date fair value for options granted and included the following assumptions:

Expected exercise term (years)

Expected exercise term

Expected volatility (1)

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Treasury yield curve.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Origin AI Retention Awards

The Company registered on Form S-8 approximately 8 million shares of Common Stock issuable upon vesting and settlement of the Origin AI Retention Awards (as discussed in Note 4 “Acquisitions and Divestitures”), including dividend equivalent units (“DEUs”), which are subject to the same vesting and forfeiture conditions as the underlying awards.

These awards include approximately 3 million service-based awards with a three-year graded vesting period from the date of grant and approximately 5 million awards subject to both service requirements and performance conditions tied to the completion of certain milestones, and have a grant date fair value of $ 7.91 per share.

During the first quarter of 2025, the Company modified certain share-based compensation awards and recorded additional share-based compensation expense of $ 11 million associated with these modifications.

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The Company applies the two-class method for computing and presenting earnings per share for each class of common stock, which allocates current period income (losses) to each class of common stock and participating securities based on dividends declared and participation rights in the remaining undistributed earnings or losses.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Basic earnings per share is computed by dividing the income (losses) allocated to each class of common stock by the related weighted-average number of shares outstanding during the period.

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Potential shares of Common Stock include (i) incremental shares related to the vesting or exercise of share-based compensation awards, warrants, and other options to purchase additional shares of the Company’s Common Stock calculated using the treasury stock method and (ii) incremental shares of Common Stock issuable upon the conversion of Class B Common Stock.

Additionally, the basic and diluted earnings per share computations for Common Stock for the periods presented exclude unvested shares of approximately 4 million and 7 million, respectively, as their vesting is contingent upon achievement of certain performance requirements.

Three Months Ended September 30, Nine Months Ended September 30,

Additionally, the basic and diluted earnings per share computations for Common Stock for the periods presented exclude unvested shares of approximately 4 million as their vesting is contingent upon achievement of certain performance requirements.

Three Months Ended March 31,

in thousands, except per share amounts

2025 2024 2025 2024

Allocation of income (loss) from continuing operations - basic $ 157,970 $ 133,446

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Income (loss) from discontinued operations, net of tax, per share - basic

$ — $ ( 0.01 ) $ — $ ( 0.12 )

Income (loss) from discontinued operations, net of tax, per share - diluted

_________________

(1) During the three and nine months ended September 30, 2025, 21 million shares of Common Stock, respectively, that would be dilutive were excluded from the diluted earnings per share calculations because their effects would have been anti-dilutive.

During the three and nine months ended September 30, 2024, 21 million shares and 20 million shares of Common Stock, respectively, that would be dilutive were excluded from the diluted earnings per share calculations because their effects would have been anti-dilutive.

(1) During the three months ended March 31, 2026 and March 31, 2025, 28 million and 19 million shares of Common Stock, respectively, that would be dilutive were excluded from the diluted earnings per share calculations because their effects would have been anti-dilutive.

AND SUBSIDIARIES

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Class B Common Stock

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

in thousands, except per share amounts

2025 2024 2025 2024

Allocation of income (loss) from continuing operations - basic

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Income (loss) from discontinued operations, net of tax, per share - basic

$ — $ ( 0.01 ) $ — $ ( 0.12 )

Income (loss) from discontinued operations, net of tax, per share - diluted

________________

(1) There were no potential shares of Class B Common Stock during the periods presented.

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Google Commercial Agreement

In July 2020, the Company and Google LLC (“Google”) entered into a Master Supply, Distribution, and Marketing Agreement (as amended, the “Google Commercial Agreement”), which, among other things, specifies that each party shall contribute $ 150 million toward joint marketing, customer acquisition, training of the Company’s employees, and product technology updates related to the Google Devices and Services.

In August 2022, the Company and Google executed an amendment to the Google Commercial Agreement, pursuant to which Google has agreed to commit an additional $ 150 million to fund growth, data and insights, product innovation and technology advancements, customer acquisition, and marketing, as mutually agreed by the Company and Google, (together with the initial amounts, the “Google Success Funds”).

During the nine months ended September 30, 2025, $ 20 million of the Google Success Funds were reimbursed to the Company primarily for certain joint marketing and customer acquisition expenses incurred by the Company, substantially all of which was recorded as a reduction to advertising expenses.

In July 2020, the Company and Google LLC (“Google”) entered into a Master Supply, Distribution, and Marketing Agreement (as amended, the “Google Commercial Agreement”), pursuant to which, among other things, each party agreed to contribute $ 150 million towards joint marketing, customer acquisition, training of the Company’s employees, and product technology updates related to the Google Devices and Services.

In August 2022, the Company and Google executed an amendment to the Google Commercial Agreement, pursuant to which Google agreed to commit an additional $ 150 million to fund growth, data and insights, product innovation and technology advancements, customer acquisition, and marketing, as mutually agreed by the Company and Google, (together with the initial amounts, the “Google Success Funds”).

During the three months ended March 31, 2026, approximately $ 7.5 million of the Google Success Funds were approved for reimbursement to the Company, primarily for certain joint marketing and customer acquisition expenses incurred.

Substantially all the reimbursement was recorded as a reduction to advertising expenses.

AND SUBSIDIARIES

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The Company may elect to cancel the commitment in return for a cancellation fee of 30 % of the total remaining commitment amount and loss of any discounts, remaining credits, or other incentives provided under the Google Cloud Agreement Addendum.

As of September 30, 2025, the Company continues to work to meet this commitment.

Other Commitments

The Company is party to an agreement with one of its vendors to purchase at least $ 370 million of security system equipment and components through December 2025.

This commitment is also satisfied through purchases made by the Company’s dealer network.

As of December 31, 2024, the remaining amount under this commitment was $ 172 million.

During the nine months ended September 30, 2025, purchases toward this commitment were approximately $ 140 million.

As of March 31, 2026, the Company continues to work to meet this commitment.

In the normal course of business, the Company is liable for contract completion and product performance.

As of September 30, 2025 and December 31, 2024, the Company’s guarantees primarily relate to standby letters of credit related to its insurance programs and totaled $ 48 million and $ 74 million, respectively.

As of March 31, 2026 and December 31, 2025, the Company’s guarantees primarily relate to standby letters of credit related to its insurance programs and totaled $ 48 million for both periods, respectively.

The Company does not believe such obligations will materially affect its financial position, results of operations, or cash flows.

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The Company has not accrued for any losses for which the likelihood of loss cannot be assessed, is less than probable, or the range of possible loss cannot be estimated.

As of September 30, 2025 and December 31, 2024, the Company’s accrual for ongoing claims and lawsuits within the scope of an insurance program, including certain amounts related to discontinued operations, totaled $ 90 million and $ 94 million, respectively.

As of March 31, 2026 and December 31, 2025, the Company’s accrual for ongoing claims and lawsuits within the scope of an insurance program, including certain amounts related to discontinued operations, totaled $ 90 million and $ 86 million, respectively.

The Company’s accrual related to ongoing claims and lawsuits not within the scope of an insurance program is not material.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Company as Lessee

As part of normal operations, the Company leases real estate, vehicles, and equipment primarily through its main operating entity and wholly-owned subsidiary, ADT LLC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Right-of-Use Assets and Lease Liabilities

(in thousands)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Presentation and Classification:

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_________________

(1) Finance lease right-of-use assets are recorded net of accumulated depreciation, which was approximately $ 83 million and $ 66 million as of September 30, 2025 and December 31, 2024, respectively.

Three Months Ended September 30, Nine Months Ended September 30,

(1) Finance lease right-of-use assets are recorded net of accumulated depreciation, which was approximately $ 90 million and $ 87 million as of March 31, 2026 and December 31, 2025, respectively.

Three Months Ended March 31,

( in thousands )

2025 2024 2025 2024

Operating lease cost $ 6,299 $ 6,317

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Lease Liabilities Arising from Obtaining Right-of-Use Assets (1)

Nine Months Ended September 30,

Three Months Ended March 31,

( in thousands )

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The Company is a lessor in certain Company-owned transactions as the Company has identified a lease component associated with the right-of-use of the security system and a non-lease component associated with the monitoring and related services.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For transactions in which (i) the timing and pattern of transfer is the same for the lease and non-lease components and (ii) the lease component would be classified as an operating lease if accounted for separately, the Company applies the practical expedient to aggregate the lease and non-lease components and accounts for the combined transaction based upon its predominant characteristic, which is the non-lease component.

The Company accounts for the combined component as a single performance obligation under the applicable revenue guidance and recognizes the underlying assets within subscriber system assets, net.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

RELATED PARTY TRANSACTIONS

The Company’s related party transactions primarily relate to products and services received from, or monitoring and related services provided to, other entities affiliated with Apollo, and, from time to time, certain transactions with Apollo or State Farm.

There were no notable related party transactions during the periods presented other than as described below.

March 2025 Offering and Share Repurchase

On March 3, 2025, the Company and certain entities managed by affiliates of Apollo Global Management, Inc.

(the “Selling Stockholders”) entered into an underwriting agreement with Barclays Capital Inc.

and Citigroup Capital Markets Inc., as representatives of the underwriters named therein, including Apollo Global Securities, LLC, an affiliate of Apollo (collectively, the “March 2025 Underwriters”), in connection with the offer and sale by the Selling Stockholders of 70 million shares of the Company’s Common Stock (plus an additional 10.5 million shares at the option of the March 2025 Underwriters) (the “March 2025 Offering”).

As part of the March 2025 Offering, the Company repurchased, and subsequently retired, 20 million shares of its Common Stock under its 2025 Share Repurchase Plan from the March 2025 Underwriters (the “March 2025 Share Repurchase”) for an aggregate purchase price of $ 152 million (or approximately $ 7.62 per share), which was the same per share price paid by the March 2025 Underwriters to the Selling Stockholders.

The repurchase is reflected as a reduction to additional paid-in-capital and as a financing cash outflow.

The March 2025 Offering and the March 2025 Share Repurchase closed on March 4, 2025.

On March 7, 2025, the March 2025 Underwriters exercised the March 2025 Underwriters’ Option in full, which subsequently closed on March 11, 2025.

June 2025 Apollo Sale

During the second quarter of 2025, the Selling Stockholders sold an aggregate of 45 million shares of the Company’s Common Stock in the open market at a price of $ 8.27 per share (the “June 2025 Apollo Sale”).

Immediately following the June 2025 Apollo Sale, Apollo owned less than 25 % of the Company’s outstanding Common Stock and, as a result, the Company’s Amended and Restated Management Investor Rights Agreement terminated.

The consent rights described in Section 4.1 of the Amended and Restated Stockholders Agreement also terminated following the June 2025 Apollo Sale.

Additionally, the margin loan as defined and discussed in the 2024 Annual Report was paid off in full following the June 2025 Apollo Sale.

July 2025 Offering and Share Repurchase

During the third quarter of 2025, the Selling Stockholders sold 71 million shares of the Company’s Common Stock (plus an additional 10.65 million shares at the option of the underwriters) (the “July 2025 Offering”).

In connection with the July 2025 Offering, the Company repurchased, and subsequently retired, 11 million shares of its Common Stock under the 2025 Share Repurchase Plan for an aggregate purchase price of $ 93 million (or approximately $ 8.31 per share).

March 2024 Offering and Share Repurchase

During the first quarter of 2024, the Selling Stockholders sold 65 million shares of the Company’s Common Stock (plus an additional 9.75 million shares at the option of the underwriters) (the “March 2024 Offering”).

During the first quarter of 2025, certain entities managed by affiliates of Apollo sold 80.5 million shares (including shares sold pursuant to the underwriters overallotment option) of the Company’s Common Stock (the “March 2025 Offering”).

In connection with the March 2025 Offering, the Company repurchased, and subsequently retired, 20 million shares of its Common Stock under the 2025 Share Repurchase Plan for an aggregate purchase price of $ 152 million (or approximately $ 7.62 per share).

The shares in the above offerings were sold by the Selling Stockholders;

and the Company did not receive any of the proceeds from the sale of shares by the Selling Stockholders.

In addition, the Company did not pay any underwriting fees, including on behalf of the Selling Stockholders or otherwise.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Other Transactions with Apollo

During the nine months ended September 30, 2025 and 2024, other fees incurred to Apollo were not material.

State Farm owns more than 10 % of the Company’s issued and outstanding common stock, and as a result, is a related party.

In October 2022, the Company, ADT LLC (an indirect wholly owned subsidiary of the Company), and State Farm entered into a development agreement (the “State Farm Development Agreement”) in connection with State Farm’s strategic investment in ADT.

Pursuant to the State Farm Development Agreement, State Farm committed up to $ 300 million to fund certain initiatives as agreed to between the Company and State Farm related to the partnership (the “Opportunity Fund”), of which the Company received $ 100 million during 2022.

Amounts held by the Company in the Opportunity Fund are restricted until the Company uses the funds, as agreed upon with State Farm, in accordance with the State Farm Development Agreement.

As of September 30, 2025 and December 31, 2024, the balance of the portion of the Opportunity Fund held by the Company was $ 82 million and $ 85 million, respectively, which is presented in restricted cash and restricted cash equivalents and the corresponding liability is presented in accrued expenses and other current liabilities.

During the nine months ended September 30, 2025 and 2024, the Company made payments from the Opportunity Fund of $ 6 million and $ 10 million, respectively.

Interest earned on the Opportunity Fund was not material.

Subsequent event - The State Farm Development Agreement expired on October 13, 2025.

On October 24, 2025, the Company repaid to State Farm substantially all of the balance of the Opportunity Fund held by the Company.

State Farm has no obligation to fund the Opportunity Fund in the future.

In addition, the Company ended its State Farm partnership programs in existing states in connection with the expiration of the State Farm Development Agreement.

During the three months ended March 31, 2026 and 2025, other fees incurred to Apollo were not material.

Fleet Management Agreement

During the second quarter of 2025, the Company entered into an agreement with a vendor affiliated with Apollo for fleet management and related services through 2030.

The impact to the Company was not material during the periods presented.

During the three months ended March 31, 2026, the Company incurred fees to the vendor of approximately $ 3 million (inclusive of pass-through costs).

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements