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REVENUE AND RECEIVABLES
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE AND RECEIVABLES REVENUE AND RECEIVABLES
Revenue
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 June 30,Six Months Ended June 30,
(in thousands)
2026202520262025
Sources of Revenue:
Recurring monthly revenue
$1,045,164 $1,056,527 $2,090,885 $2,109,326 
Other related services
36,947 33,714 71,702 64,019 
Monitoring and related services
1,082,111 1,090,241 2,162,587 2,173,345 
Installation and other revenue
$140,637 $107,176 $249,095 $202,692 
Amortization of deferred subscriber acquisition revenue
89,537 89,618 179,132 178,489 
Security installation, product, and other230,174 196,794 428,227 381,181 
Total revenue$1,312,285 $1,287,035 $2,590,814 $2,554,526 
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, 2026, 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
$1,920,910 $1,057,830 $509,460 $200,314 $3,688,514 
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. The allowance for credit losses is not material for the individual pools of customers.

Six Months Ended June 30,
(in thousands)20262025
Beginning balance$63,841 $57,795 
Provision for credit losses98,572 76,974 
Write-offs, net of recoveries(1)
(88,857)(67,929)
Ending balance$73,556 $66,840 
________________
(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.
The allowance for credit losses relates to RICs from outright sales transactions.
The following is a summary of unbilled retail installment contract receivables, net:
(in thousands)June 30, 2026December 31, 2025
Retail installment contract receivables, gross$677,895 $689,023 
Allowance for credit losses(61,902)(37,212)
Retail installment contract receivables, net$615,993 $651,811 
Balance Sheet Classification:
Accounts receivable, net$262,844 $268,552 
Other assets353,149 383,259 
Retail installment contract receivables, net$615,993 $651,811 
As of June 30, 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 $561 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)
20262025202420232022All preceding years
Credit Quality Indicator:
High$104,083 $163,871 $93,883 $54,008 $28,381 $2,139 
Medium
60,531 66,944 31,345 13,797 6,220 492 
Low14,739 21,112 10,172 4,357 1,684 137 
Total RICs as of June 30, 2026
$179,353 $251,927 $135,400 $72,162 $36,285 $2,768 
Current year gross write-offs$319 $23,108 $9,481 $4,052 $1,698 $441 
Loan Origination Year
(in thousands)20252024202320222021All preceding years
Credit Quality Indicator:
High$201,419 $122,031 $78,706 $45,519 $9,234 $1 
Medium
97,692 43,839 21,801 10,286 2,277 7 
Low31,684 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
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.
(in thousands)June 30, 2026December 31, 2025
Contract assets, gross$76,014 $69,506 
Allowance for credit losses(8,239)(6,591)
Contract assets, net$67,775 $62,915 
Balance Sheet Classification:
Prepaid expenses and other current assets$27,851 $28,758 
Other assets39,924 34,157 
Contract assets, net$67,775 $62,915 
Changes in contract assets for the three and six months ended June 30, 2026 and June 30, 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 six months ended June 30, 2026 and June 30, 2025, customer contract liabilities decreased by approximately $19 million and increased by approximately $29 million, respectively.
Revenue recognized from the amounts included in the beginning contract liability balance totaled approximately $378 million and $366 million for the six months ended June 30, 2026 and June 30, 2025, respectively.
Additional contract liabilities recognized for the six months ended June 30, 2026 and June 30, 2025 were approximately $341 million and $374 million, respectively.
Other changes in the contract liabilities were not material.