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REVENUE AND RECEIVABLES
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE AND RECEIVABLES REVENUE AND RECEIVABLES
Revenue
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’s revenue-generating contracts are entered into primarily through its main operating entity and wholly-owned subsidiary, ADT LLC.
Disaggregated Revenue
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)
2025202420252024
Sources of Revenue:
Recurring monthly revenue
$1,056,527 $1,040,205 $2,109,326 $2,077,071 
Other related services
33,714 27,860 64,019 53,646 
Monitoring and related services
1,090,241 1,068,065 2,173,345 2,130,717 
Installation revenue
$107,176 $50,312 $202,692 $93,956 
Amortization of deferred subscriber acquisition revenue
89,618 86,182 178,489 169,558 
Security installation, product, and other196,794 136,494 381,181 263,514 
Total revenue$1,287,035 $1,204,559 $2,554,526 $2,394,231 
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.
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.
Company-Owned Transactions - In transactions in which the Company provides monitoring and related services but retains ownership of the security system, the Company’s performance obligations primarily include (i) monitoring and related services, which are recognized when these services are provided to the customer, and (ii) a material right associated with the one-time non-refundable fees in connection with the initiation of a monitoring contract which the customer will not be required to pay again upon a renewal of the contract (referred to as deferred subscriber acquisition revenue).
Deferred subscriber acquisition revenue is amortized on a pooled basis over the estimated life of the customer relationship using an accelerated method consistent with the treatment of subscriber system assets and deferred subscriber acquisition costs.
Remaining Performance Obligations
As of June 30, 2025, the Company’s total remaining unsatisfied performance obligations relating to the provision of monitoring and related services are as follows (in thousands):
0-12 Months
13-24 Months
25-36 Months
Thereafter
Total
$1,880,624 $1,041,664 $486,956 $256,900 $3,666,144 
Allowance for Credit Losses
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. The allowance for credit losses is not material for the individual pools of customers.
Six Months Ended June 30,
(in thousands)20252024
Beginning balance$57,795 $46,850 
Provision for credit losses76,974 73,707 
Write-offs, net of recoveries(1)
(67,929)(63,341)
Ending balance$66,840 $57,216 
________________
(1)Recoveries were not material for the periods presented. As such, write-offs are presented net of recoveries.
Retail Installment Contract Receivables, Net
The Company’s RICs allow qualifying residential customers to pay the fees due at installation over a 12-, 24-, 36-, or 60-month interest-free period. The financing component is not significant.
Upon origination of a RIC, the Company utilizes external credit scores to assess customer credit quality and determine eligibility. Subsequent to origination, the Company monitors the delinquency status of the RICs as the key credit quality indicator. Delinquent billed RICs are not material.
The allowance for credit losses relates to RICs from outright sales transactions and is not material.
The following is a summary of unbilled retail installment contract receivables, net:
(in thousands)June 30, 2025December 31, 2024
Retail installment contract receivables, gross$688,151 $678,174 
Allowance for credit losses(29,843)(8,848)
Retail installment contract receivables, net$658,308 $669,326 
Balance Sheet Classification:
Accounts receivable, net$264,565 $260,224 
Other assets393,743 409,102 
Retail installment contract receivables, net$658,308 $669,326 
As of June 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 $594 million and $575 million, respectively. Refer to Note 6 “Debt” for further discussion regarding the 2020 Receivables Facility.
Contract Assets
Contract assets represent the Company’s right to consideration in exchange for goods or services transferred to the customer. 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.
(in thousands)June 30, 2025December 31, 2024
Contract assets, gross$58,390 $46,031 
Allowance for credit losses(5,823)(5,221)
Contract assets, net$52,567 $40,810 
Balance Sheet Classification:
Prepaid expenses and other current assets$25,417 $19,164 
Other assets27,150 21,646 
Contract assets, net$52,567 $40,810