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Third Quarter 2026 Earnings Presentation November 3, 2026
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Forward-Looking Statements and Non-GAAP Measures 2 ADT has made statements in this presentation that are forward-looking and therefore subject to risks and uncertainties, including those described below. All statements, other than statements of historical fact, included in this document are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, the Company’s capital allocation priorities and commitments; the Company’s partnership programs and the bulk purchase of customer accounts; initiatives with respect to the Company’s products and services, including ADT+, ADT Blu, Origin AI’s presence sensing technology, and the expected benefits and capabilities of such products and services; the Company’s ability to successfully execute and scale its DIY offerings, including through the expansion of its retail and e-commerce distribution channels; the Company’s development, deployment, and integration of AI in its products, services, and operations, including AI-driven customer interactions, virtual agents, operational efficiencies, and home intelligence capabilities; and the expectations, plans and objectives of management; any stated or implied outcomes with regard to the foregoing; and other matters. Without limiting the generality of the preceding sentences, any time we use the words “ongoing,” “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “possible,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “potential,” “outlook,” “goals,” “objectives,” “targets,” “planned,” “projects,” and, in each case, their negative or other various or comparable terminology, and similar expressions, we intend to clearly express that the information deals with possible future events and is forward-looking in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. These forward- looking statements are based on management’s current beliefs and assumptions and on information currently available to management. We caution that these statements are subject to risks and uncertainties, many of which are outside of the Company’s control and could cause future events or results to be materially different from those stated or implied in this presentation, including, among others, the risk that the proposed transaction with Thrive Holdings announced on October 29, 2026 (the "Proposed Merger") may not be completed in a timely manner or at all; the failure to receive, on a timely basis or otherwise, the required approvals of the Proposed Merger by the Company’s stockholders; the possibility that any or all of the various conditions to the consummation of the Proposed Merger may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals); the possibility that competing offers or acquisition proposals for the Company will be made; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the Proposed Merger, including in circumstances which would require the Company to pay a termination fee; the effect of the announcement or pendency of the Proposed Merger on the Company’s ability to attract, motivate or retain key executives and employees, its ability to maintain relationships with its customers, suppliers and other business counterparties, or its operating results and business generally; risks related to the Proposed Merger diverting management’s attention from the Company’s ongoing business operations; the risk of stockholder litigation in connection with the Proposed Merger, including resulting expense or delay; risks and uncertainties related to the Company’s divestiture of its commercial business (the “Commercial Divestiture”) and the Company’s exit from its residential solar business (the “ADT Solar Exit”); the Company’s ability to successfully integrate the acquisition of Origin AI and realize expected benefits of the acquisition; the Company’s ability to execute on transformation initiatives, including technology initiatives related to artificial intelligence and whole-home intelligence; the Company’s ability to maintain and grow the Company’s existing customer base, including the conversion of customers who continue to utilize outdated technology, and to integrate strategic bulk purchases of customer accounts; the impact of cyber attacks or related breaches with respect to information technology systems, cybersecurity, or data security involving the Company, our business partners, or other third parties whose systems are interconnected with ours, and any future or still undetected attacks or incidents; any material changes to the valuation allowances the Company takes with respect to its deferred tax assets; any changes in regulations or laws, global, economic, sovereign, political, or financial conditions, including labor and tax law changes or any impacts on the global economy or consumer discretionary spending due to tariffs or otherwise, changes to privacy requirements, changes to telemarketing, email marketing and similar consumer protection laws, interest rate volatility, and trade tariffs and restrictions applicable to the products we sell; the Company’s dependence on third-party providers, suppliers, dealers, and retail partners to enable it to produce and distribute its products and services in a cost-effective manner that protects the Company’s brand; the Company’s ability to effectively implement its strategic partnership with, and utilize any of the amounts invested by, Google; the Company’s ability to expand ADT+ and achieve expected adoption and customer engagement; risks related to the Company's use of AI in its products, services, and operations, including evolving legal and regulatory requirements, technological limitations, potential liability, and reputational concerns; the expected shift in the Company's transaction mix (including increased outright equipment sales) and the related effects on the timing and mix of revenue and costs; and risks that are described in the Company’s most recently filed Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in those reports, and in the Company’s other filings with the SEC. Any forward-looking statement made in this presentation speaks only as of the date on which it is made. ADT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, unless required by law. Note: The Company's former commercial and solar segments are classified as discontinued operations in accordance with GAAP. Except for Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash Flow (including interest rate swaps) and unless otherwise noted, non-GAAP and other measures herein have been recast to reflect the results of the Company’s continuing operations. Non-GAAP Measures: To provide investors with additional information in connection with our results as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we disclose certain non-GAAP measures including, for example, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Income (Loss) from continuing operations, Adjusted EPS, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Free Cash Flow (including interest rate swaps), and Net Leverage Ratio. Reconciliations from GAAP to these non-GAAP financial measures for reported results can be found in the appendix. Non-GAAP measures should not be considered a substitute for, or superior to, our reported GAAP results. Amounts on subsequent pages may not sum due to rounding. Operating Metrics: Operating metrics such as Gross Customer Revenue Attrition, Ending Subscriber Count, RMR, Gross RMR Additions, Gross Unit Additions, Net Cash SAC, and Revenue Payback are approximated as there may be variations to reported results in each period due to certain adjustments made in connection with the integration over several periods of acquired companies that calculated these metrics differently, or otherwise, including periodic reassessments and refinements in the ordinary course of business. These refinements, for example, may include changes due to systems conversion or historical methodology differences in legacy systems. Metrics referencing record performance reflect measurements made since the formation of ADT Inc. in 2015.
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3Q26 financial highlights 3 Note: All financial measures and metrics pertain to 3Q26, unless otherwise noted. All variances are on a year-over-year basis. Reconciliations for the Non-GAAP measures Adjusted EPS, Net Leverage Ratio, and Adjusted Free Cash Flow (incl. interest rate swaps) are available at the end of this presentation. • Continued strong cash generation with YTD Adj. Free Cash Flow (incl. swaps) of $1,037 million • Durable recurring revenue base, supported by $4.3 billion of annualized RMR • Continued solid core operating metrics, with gross revenue attrition of 13.1% and revenue payback at 2.3 years • Strong balance sheet and financial flexibility with net leverage of 2.7x • Returned $748 million to shareholders YTD through share repurchases and dividends $1.3B Total Revenue Up 4% $0.24 Adjusted EPS Up 4% $217M Adjusted Free Cash Flow (incl. interest rate swaps) Up 4%
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Key quarterly financials 4 TOTAL REVENUE $ in millions $2,578 $2,680 Note: Reconciliations for the Non-GAAP measures Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, and Adjusted Free Cash Flow (incl. interest rate swaps) are available at the end of this presentation. 52.1% 54.9% ADJUSTED EBITDA & MARGIN ADJUSTED FREE CASH FLOW ADJUSTED EPS $ in millions (incl. interest rate swaps) $ in millions Financials from FP&A 10/26 $1,083 $1,080 $676 3Q’25 $665 3Q’26 -2% $0.23 $0.24 3Q’25 3Q’26 +4% $208 3Q’25 $217 3Q’26 +4% $1,098 $200 3Q’25 $1,084 $265 3Q’26 $1,298 $1,349 +4% Monitoring and Related Services Security Installation, Product, and Other • Increase in revenue primarily due to mix of pro install outright sales and higher average prices, partially offset by lower volume and prior year Multifamily Divestiture • Adjusted EBITDA affected by higher G&A costs including technology investments, partially offset by higher installation revenue • Adjusted EPS benefited from share repurchases • Strong cash generation due to lower cash taxes and working capital management 52.1% 49.3%
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Key year to date financials 5 TOTAL REVENUE $ in millions $2,578 $2,680 Note: Reconciliations for the Non-GAAP measures Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, and Adjusted Free Cash Flow (incl. interest rate swaps) are available at the end of this presentation. 52.1% 54.9% ADJUSTED EBITDA & MARGIN ADJUSTED FREE CASH FLOW ADJUSTED EPS $ in millions (incl. interest rate swaps) $ in millions Financials from FP&A 10/12 $1,083 $1,080 $2,010 YTD 3Q’25 $2,009 YTD 3Q’26 Flat $0.67 $0.71 YTD 3Q’25 YTD 3Q’26 +6% $709 YTD 3Q’25 $1,037 YTD 3Q’26 +46% $3,271 $582 YTD 3Q’25 $3,246 $693 YTD 3Q’26 $3,852 $3,940 +2% Monitoring and Related Services Security Installation, Product, and Other 52.2% 51.0%
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Additional key metrics 6 3Q’26 3Q’25 Y/Y % Ending Subscriber Count 6.0M 6.3M (5%) End of Period RMR including wholesale $360M $362M (1%) Gross RMR Additions $12.1M $12.5M (3%) Gross Unit Additions 195K 210K (7%) Gross Revenue Attrition 13.1% 13.0% 10 bps LTM Revenue Payback 2.3x 2.3x -- Net Cash SAC $355M $355M -- Note: Operating metrics presented exclude wholesale customers who outsource their monitoring to ADT unless otherwise noted. Gross Unit Additions represent Residential and Small Business. Gross Revenue Attrition also excludes self set-up customers. Net Cash Subscriber Acquisition Costs (SAC) represents the estimated cash expenditures for sales and installation, net of inflows received. Prior year metrics include legacy multifamily business, which was divested on October 1, 2025. • Subscriber count and ending RMR decrease primarily due to Multifamily Divestiture • Direct unit and RMR additions improved versus prior year, offset by fewer dealer and bulk purchases • Elevated attrition driven by non- pay cancellations partially offset by fewer voluntary disconnects
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ADT is well-positioned for future innovation 7 • Most trusted brand in smart home security • Stable recurring subscriber base generates significant durable and resilient recurring revenue • National footprint and scale with industry-leading monitoring and service infrastructure • Proprietary technology platform enables expanded and unique use cases and features • Differentiated with innovative offerings, unrivaled safety, and premium customer experience • Significant free cash flow generation and efficient capital structure
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Additional Financial Information & Non-GAAP Reconciliations Appendix
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For the Three Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, ($ in millions, except per share data) 2026 2026 2026 2025 2025 Financial Measures Monitoring and related services $1,084 $1,082 $1,080 $1,083 $1,098 Security installation, product, and other $265 $230 $198 $193 $200 Total Revenue $1,349 $1,312 $1,279 $1,276 $1,298 Adjusted EBITDA $665 $671 $674 $670 $676 Adjusted EBITDA Margin (% Revenue) 49.3% 51.1% 52.7% 52.5% 52.1% Adjusted Income (Loss) from continuing operations $176 $180 $191 $186 $187 Adjusted EPS $0.24 $0.23 $0.23 $0.23 $0.23 GAAP Income (Loss) from continuing operations $153 $155 $169 $146 $144 GAAP EPS $0.20 $0.19 $0.20 $0.17 $0.17 Operating Measures Gross RMR Additions $12.1 $11.9 $10.1 $10.3 $12.5 Gross Unit Additions 195K 190K 161K 169K 210K LTM Gross Customer Revenue Attrition 13.1% 13.1% 13.1% 13.1% 13.0% LTM Revenue Payback (in years) 2.3x 2.3x 2.3x 2.3x 2.3x End of Period RMR (including Wholesale) $360 $360 $359 $359 $362 End of Period RMR (excluding Wholesale) $355 $355 $354 $354 $358 Financial & Operating Measures 9Note: Operating measures exclude wholesale customers who outsource their monitoring to ADT, unless otherwise noted. Gross Unit Additions represent Residential and Small Business. 1. LTM Revenue Payback measures the approximate time, in years, required to recover our net SAC through contractual monthly recurring fees. (1) FP&A - 10/20
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For the Three Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, ($ in millions) 2026 2026 2026 2025 2025 Adjusted Free Cash Flow Adjusted EBITDA $665 $671 $674 $670 $676 Net Expensed SAC $41 $40 $45 $46 $61 Net Cash SAC ($355) ($345) ($287) ($277) ($355) Cash Taxes ($20) ($10) ($1) ($4) ($41) Cash Interest (excl. interest rate swaps) ($125) ($73) ($98) ($126) ($129) Capital and Software Expenditures ($56) ($57) ($57) ($60) ($53) Working Capital & Other $52 $167 $125 ($112) $35 Adjusted Free Cash Flow $201 $394 $401 $139 $192 Interest Rate Swaps $15 $13 $13 $15 $16 Adjusted Free Cash Flow (incl. interest rate swaps) $217 $406 $414 $154 $208 Selected Items Detail Non-capitalized Net SAC $93 $77 $51 $38 $59 Capitalized Net SAC $262 $269 $236 $238 $296 Net Cash SAC $355 $345 $287 $277 $355 memo: Net Expensed SAC $41 $40 $45 $46 $61 Adjusted Free Cash Flow Detail 10 (2) (1) (1) Note: 1. Differs from contractual amounts, due to the timing of cash receipts and repayments under the terms of our consumer financing program, as well as other non-cash add-backs. 2. Capital expenditures include software investments presented in operating cash flow in GAAP cash flow statement and exclude special items primarily related to third-party costs that are one-time or unusual in nature. Financials from FP&A 10/12
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Net Subscriber Acquisition Cost Calculation 11Note: Upfront cash proceeds in non-capitalized SAC differ from contractual amounts, due to the timing of cash receipts and repayments under the terms of our consumer financing program, as well as other non-cash add-backs. Financials from FP&A 10/12 For the three months ended For the twelve months ended September 30, 2026 September 30, 2026 ($ in millions) Capitalized Non-capitalized Total Total Selling, Advertising, and Commissions $115 $84 $199 $694 Security Installation, Product, and Other Cost - $133 $133 $409 Capitalized Direct SAC $65 - $65 $323 Capitalized Dealer SAC $124 - $124 $471 Upfront Cash Proceeds ($41) ($125) ($166) ($633) Net Cash SAC $262 $93 $355 $1,264
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Sep. 30, Sep. 30, 2026 2025 Net Debt / Adjusted EBITDA 2.7x 2.8x Net Debt / Adjusted EBITDA prior to subscriber acquisition 2.6x 2.6x Net Debt / Annualized RMR 1.7x 1.7x ($ in millions) Revolver - - First Lien Term Loans 3,697 3,115 First Lien Notes 3,750 3,050 Second Lien Notes - 1,300 Finance Leases and Other 69 54 Total Debt 7,516 7,518 Cash and Cash Equivalents (228) (63) Net Debt 7,288 7,455 Capital Structure and Maturity Profile 12 Note: 1. LTM Adjusted EBITDA reflects continuing operations only. The leverage ratio under our credit agreement includes certain defined adjustments and may differ from the ratio presented above. Reconciliations for the Non- GAAP measures Net Debt and Net Leverage Ratios are available at the end of this presentation. 2. Excludes annual mandatory amortization on Term Loans ($46M in 2026; $47M-$61M/year in 2027-2030; $15M in 2031, receivables facility, and finance leases). Debt Maturity P rofile2Leverage Ratios and Net Debt1 1,000 1,000 728 1,000 22 1,670 1,355 428 2026 2027 2028 2029 2030 2031 2032 2033 … 2042 1st Lien Notes 1st Lien Term Loan B 1st Lien Term Loan A Treasury - 10/12 9:47AM
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Statements of Operations 13 (in millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 $ Change % Change 2026 2025 $ Change % Change Revenue: Monitoring and related services $ 1,084 $ 1,098 $ (14) (1)% $ 3,246 $ 3,271 $ (25) (1)% Security installation, product, and other 265 200 65 32% 693 582 112 19% Total revenue 1,349 1,298 51 4% 3,940 3,852 87 2% Cost of revenue (exclusive of depreciation and amortization shown separately below): Monitoring and related services 160 162 (2) (1)% 472 482 (10) (2)% Security installation, product, and other 133 89 44 50% 327 259 68 26% Total cost of revenue 293 251 42 17% 799 741 58 8% Selling, general, and administrative expenses 400 384 16 4% 1,151 1,109 42 4% Depreciation and intangible asset amortization 345 348 (3) (1)% 1,038 1,026 12 1% Operating income (loss) 311 315 (5) (1)% 952 976 (24) (3)% Interest expense, net (102) (113) 11 (10)% (302) (349) 47 (13)% Other income (expense) — (4) 4 N/M 3 (8) 11 N/M Income (loss) from continuing operations before income taxes 209 199 11 5% 653 619 34 5% Income tax benefit (expense) (57) (55) (1) 3% (175) (165) (11) 6% Income (loss) from continuing operations 153 144 9 7% 477 454 23 5% Income (loss) from discontinued operations, net of tax (2) 2 (4) N/M (4) (4) (1) 22% Net income (loss) $ 151 $ 145 $ 5 4% $ 473 $ 451 $ 22 5% Common Stock: Income (loss) from continuing operations per share - basic $ 0.21 $ 0.18 $ 0.62 $ 0.54 Income (loss) from continuing operations per share - diluted $ 0.20 $ 0.17 $ 0.59 $ 0.51 Net income (loss) per share - basic $ 0.21 $ 0.18 $ 0.62 $ 0.54 Net income (loss) per share - diluted $ 0.19 $ 0.16 $ 0.57 $ 0.50 Weighted-average shares outstanding - basic 676 765 714 783 Weighted-average shares outstanding - diluted 737 828 774 846 Class B Common Stock: Income (loss) from continuing operations per share - basic $ 0.21 $ 0.18 $ 0.62 $ 0.54 Income (loss) from continuing operations per share - diluted $ 0.20 $ 0.17 $ 0.59 $ 0.51 Net income (loss) per share - basic $ 0.21 $ 0.18 $ 0.62 $ 0.54 Net income (loss) per share - diluted $ 0.19 $ 0.16 $ 0.57 $ 0.50 Weighted-average shares outstanding - basic 55 55 55 55 Weighted-average shares outstanding - diluted 55 55 55 55 Updated 10/28
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Note: Amounts may not sum due to rounding. Balance Sheets 14 in millions September 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 228 $ 81 Restricted cash and restricted cash equivalents 26 28 Accounts receivable, net 373 385 Inventories, net 177 202 Prepaid expenses and other current assets 163 250 Total current assets 967 946 Property and equipment, net 288 243 Subscriber system assets, net 2,630 2,791 Intangible assets, net 4,769 4,818 Goodwill 4,992 4,886 Deferred subscriber acquisition costs, net 1,553 1,452 Other assets 753 683 Total assets $ 15,953 $ 15,819 Liabilities and stockholders' equity Current liabilities: Current maturities of long-term debt $ 1,242 $ 310 Accounts payable 163 107 Deferred revenue 245 244 Accrued expenses and other current liabilities 423 352 Total current liabilities 2,073 1,013 Long-term debt 6,539 7,379 Deferred subscriber acquisition revenue 2,028 2,084 Deferred tax liabilities 1,316 1,267 Other liabilities 358 297 Total liabilities 12,312 12,040 Total stockholders' equity 3,640 3,779 Total liabilities and stockholders' equity $ 15,953 $ 15,819
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Statements of Cash Flows 15Note: Amounts may not sum due to rounding. Three Months Ended September 30, Nine Months Ended September 30, in millions 2026 2025 2026 2025 Cash flows from operating activities: Net income (loss) $ 151 $ 145 $ 473 $ 451 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and intangible asset amortization 345 348 1,038 1,026 Amortization of deferred subscriber acquisition costs 71 64 207 187 Amortization of deferred subscriber acquisition revenue (88) (90) (267) (268) Share-based compensation expense 19 11 51 43 Deferred income taxes 7 44 24 46 Provision for losses on receivables and inventory 52 55 170 156 Loss on extinguishment of debt — 5 — 11 Goodwill, intangible, and other asset impairments — 14 — 15 Unrealized (gain) loss on interest rate swap contracts 9 15 26 57 Other non-cash items, net 22 14 55 53 Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Deferred subscriber acquisition costs (115) (99) (309) (288) Deferred subscriber acquisition revenue 41 58 139 173 Other, net (72) (103) 137 (151) Net cash provided by (used in) operating activities 440 480 1,745 1,511 Cash flows from investing activities: Dealer generated customer accounts and bulk account purchases (124) (157) (363) (488) Subscriber system asset expenditures (65) (98) (234) (307) Purchases of property and equipment (46) (43) (141) (126) Acquisition of businesses, net of cash acquired — — (164) — Proceeds (payments) from interest rate swaps 1 (1) 2 (2) Other investing, net — — — 2 Net cash provided by (used in) investing activities (233) (298) (900) (921) Cash flows from financing activities: Proceeds from long-term borrowings 115 610 364 1,340 Repayment of long-term borrowings, including call premiums (27) (627) (274) (1,278) Proceeds from receivables facility 51 60 155 207 Repayment of receivables facility (63) (59) (193) (174) Proceeds (payments) from interest rate swaps 15 17 39 51 Repurchases of common stock, including excise tax (23) (112) (623) (607) Dividends on common stock (41) (46) (130) (142) Payments on finance leases (8) (6) (23) (21) Other financing, net — — (13) — Net cash provided by (used in) financing activities 19 (163) (699) (623) Cash and cash equivalents and restricted cash and restricted cash equivalents: Net increase (decrease) 227 19 146 (33) Beginning balance 28 152 109 204 Ending balance $ 255 $ 171 $ 255 $ 171
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GAAP to Non-GAAP Reconciliations 16 ADT sometimes uses information (“non-GAAP financial measures”) that is derived from the consolidated financial statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under SEC rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The following information includes definitions of the Company's non-GAAP financial measures used in this presentation, reasons management believes these measures are useful to investors regarding the Company's financial condition and results of operations, additional purposes, if any, for which management uses the non-GAAP financial measures, and limitations to using these non-GAAP financial measures, as well as reconciliations of these non-GAAP financial measures to the most comparable GAAP measures. Each non-GAAP financial measure is presented following the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The limitations of non-GAAP financial measures are best addressed by considering these measures in conjunction with the appropriate GAAP measures. In addition, computations of these non-GAAP measures may not be comparable to other similarly titled measures reported by other companies. Unless otherwise noted, non-GAAP measures herein reflect the results of the Company’s continuing operations.
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1. During 2026, primarily includes payments related to the Origin AI Acquisition. 2. During 2025, primarily includes net outflows related to the former Solar Business and third-party costs associated with implementation of a new ERP system that the Company will not continue to incur once the ERP system is fully implemented. GAAP to Non-GAAP Reconciliations 17 Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash Flow including interest rate swaps The Company defines Free Cash Flow as cash flows from operating activities less cash outlays related to capital expenditures. The Company defines capital expenditures to include accounts purchased through the Company's network of authorized dealers or third parties outside of the authorized dealer network, subscriber system asset expenditures, and purchases of property and equipment. These items are subtracted from cash flows from operating activities because they represent long-term investments that are required for normal business activities. The Company defines Adjusted Free Cash Flow as Free Cash Flow adjusted for net cash flows related to (i) net proceeds or payments from the Company’s consumer receivables facility; (ii) restructuring and integration payments; (iii) integration-related capital expenditures; and (iv) transaction costs and other payments or receipts that may mask operating results or business trends. Adjusted Free Cash Flow including interest rate swaps reflects Adjusted Free Cash Flow plus net cash settlements on interest rate swaps presented outside of net cash provided by (used in) operating activities. The Company believes the presentations of these non-GAAP measures are appropriate to provide investors with useful information about the Company's ability to repay debt, pay dividends, repurchase shares, and make other investments. The Company believes the presentation of Adjusted Free Cash Flow is also a useful measure of the cash flow attributable to normal business activities, inclusive of the net cash flows associated with the acquisition of subscribers, as well as the Company's ability to repay debt, pay dividends, repurchase shares, and make other investments. Further, Adjusted Free Cash Flow including interest rate swaps is a useful measure of Adjusted Free Cash Flow inclusive of all cash interest. There are material limitations to using these non-GAAP measures. These non-GAAP measures adjust for cash items that are ultimately within management’s discretion to direct, and therefore, may imply that there is less or more cash available than the most comparable GAAP measure. These non-GAAP measures are not intended to represent residual cash flow for discretionary expenditures since debt repayment requirements and other non-discretionary expenditures are not deducted. The non-GAAP measures in the table below include cash flows associated with both continuing and discontinued operations, as applicable during the periods presented, consistent with the GAAP presentation on the Statement of Cash Flows. Three Months Ended Nine Months Ended Twelve Months Ended (in millions) Sep. 30, 2026 Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Dec. 31, 2025 Net cash provided by (used in): Operating activities $ 440 $ 666 $ 638 $ 374 $ 480 $ 1,745 $ 1,511 $ 1,884 Investing activities $ (233) $ (261) $ (406) $ (197) $ (298) $ (900) $ (921) $ (1,118) Financing activities $ 19 $ (529) $ (189) $ (239) $ (163) $ (699) $ (623) $ (862) Net cash provided by (used in) operating activities $ 440 $ 666 $ 638 $ 374 $ 480 $ 1,745 $ 1,511 $ 1,884 Dealer generated customer accounts and bulk account purchases (124) (137) (102) (109) (157) (363) (488) (596) Subscriber system asset expenditures (65) (79) (91) (89) (98) (234) (307) (396) Purchases of property and equipment (46) (46) (49) (50) (43) (141) (126) (176) Free Cash Flow $ 206 $ 404 $ 396 $ 126 $ 182 $ 1,007 $ 590 $ 716 Net proceeds (payments) from receivables facility (11) (17) (11) 2 1 (38) 33 35 Merger, restructuring and integration payments(1) 4 1 12 2 2 17 10 12 Other, net(2) 3 5 3 9 6 10 26 35 Adjusted Free Cash Flow $ 201 $ 394 $ 401 $ 139 $ 192 $ 996 $ 659 $ 798 Interest rate swaps presented outside operating activities 15 13 13 15 16 41 49 65 Adjusted Free Cash Flow (including interest rate swaps) $ 217 $ 406 $ 414 $ 154 $ 208 $ 1,037 $ 709 $ 863 Note: Amounts may not sum due to rounding.
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GAAP to Non-GAAP Reconciliations 18 Adjusted EBITDA from Continuing Operations ("Adjusted EBITDA") and Adjusted EBITDA Margin from Continuing Operations ("Adjust ed EBITDA Margin") The Company defines Adjusted EBITDA as income (loss) from continuing operations adjusted for (i) interest; (ii) taxes; (iii) depreciation and amortization, including depreciation of subscriber system assets and other fixed assets and amortization of dealer and other intangible assets; (iv) amortization of deferred costs and deferred revenue associated with subscriber acquisitions; (v) share-based compensation expense; (vi) merger, restructuring, integration, and other items; (vii) impairment charges; and (viii) other non-cash or non-routine adjustments not necessary to operate the business. The Company believes the presentation of Adjusted EBITDA is useful to investors to measure the operational strength and performance of its business. The Company believes Adjusted EBITDA is useful as it provides investors additional information about operating profitability adjusted for certain non-cash items, non-routine items the Company does not expect to continue at the same level in the future, as well as other items not core to its operations. Further, the Company believes Adjusted EBITDA provides a meaningful measure of operating profitability because the Company uses it for evaluating business performance, making budgeting decisions, and comparing performance against other peer companies using similar measures. There are material limitations to using Adjusted EBITDA as it does not include certain significant items which directly affect income (loss) from continuing operations (the most comparable GAAP measure). The discussion above is also applicable to Adjusted EBITDA margin, which is calculated as Adjusted EBITDA as a percentage of total revenue. Three Months Ended Nine Months Ended Twelve Months Ended (in millions unless otherwise noted) Sep. 30, 2026 Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Dec. 31, 2025 Income (loss) from continuing operations $ 153 $ 155 $ 169 $ 146 $ 144 $ 477 $ 454 $ 624 $ 652 $ 601 Interest expense, net 102 102 98 110 113 302 349 412 431 459 Income tax expense (benefit) 57 61 58 68 55 175 165 244 194 233 Depreciation and intangible asset amortization 345 347 345 341 348 1,038 1,026 1,379 1,367 1,367 Amortization of deferred subscriber acquisition costs 71 69 67 66 64 207 187 273 246 253 Amortization of deferred subscriber acquisition revenue (88) (90) (90) (90) (90) (267) (268) (357) (357) (358) Share-based compensation expense 19 19 14 12 11 51 43 63 52 55 Merger, restructuring, integration, and other(1) 2 5 7 — 6 13 13 13 22 13 Goodwill impairment(2) — — — — 12 — 12 — 12 12 Unrealized gain (loss) on interest rate swaps(3) 5 4 4 4 4 12 12 16 15 15 Loss on extinguishment of debt — — — 8 5 — 11 8 12 19 Other, net(4) 1 (1) 1 5 5 — 7 5 18 12 Adjusted EBITDA $ 665 $ 671 $ 674 $ 670 $ 676 $ 2,009 $ 2,010 $ 2,680 $ 2,663 $ 2,680 Selling (incl. commissions) and advertising 292 275 281 Security installations costs 404 337 341 Security installation revenue (525) (400) (416) Adjusted EBITDA prior to subscriber acquisition $ 2,851 $ 2,875 $ 2,886 Income (loss) from continuing operations to total revenue ratio 11% 12% 13% 11% 11% 12% 12% 12% 13% 12% Adjusted EBITDA Margin (as % of total revenue) 49% 51% 53% 53% 52% 51% 52% 51% 52% 52% Total revenue 1,349 1,312 1,279 1,276 1,298 3,940 3,852 5,216 5,113 5,129 Note: Amounts may not sum due to rounding. 1. During 2026, primarily relates to the Origin AI Acquisition and restructuring expenses. 2. Represents a goodwill impairment charge associated with the Multifamily Divestiture. 3. Represents unrealized gain / loss related to interest rate swaps presented in other income (expense). 4. During 2025, primarily includes one-time costs associated with debt transactions.
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GAAP to Non-GAAP Reconciliations 19 Adjusted Income (Loss) from Continuing Operations (“Adjusted Income (Loss)”) and Adjusted Diluted Income (Loss) per Share from Continuing Operations (“Adjusted Diluted Income (Loss) per Share” or “Adjusted EPS”) The Company defines Adjusted Income (Loss) as income (loss) from continuing operations adjusted for (i) share-based compensation expense; (ii) merger, restructuring, integration, and other items; (iii) impairment charges; (iv) unrealized (gains) or losses on interest rate swaps; (v) other non-cash or non-routine adjustments not necessary to operate our business; and (vi) the impact these items have on taxes. The Company defines Adjusted EPS as diluted income (loss) from continuing operations per share adjusted for the per share amounts related to (i) share-based compensation expense; (ii) merger, restructuring, integration, and other items; (iii) impairment charges; (iv) unrealized (gains) or losses on interest rate swaps; (v) other non-cash or non-routine adjustments not necessary to operate our business; and (vi) the impact these items have on taxes. Adjusted EPS equals Adjusted Income (Loss) divided by diluted weighted-average shares outstanding of common stock as calculated in accordance with GAAP. When the control number for the GAAP calculation is negative, diluted weighted-average shares outstanding of common stock does not include the assumed conversion of Class B common stock and other potential shares, such as share-based compensation awards, to shares of common stock. The Company believes Adjusted Income (Loss) and Adjusted EPS are benchmarks used by analysts and investors who follow the industry for comparison of its performance with other companies in the industry, although these measures may not be directly comparable to similar measures reported by other companies. The Company believes the presentation of Adjusted EPS is useful to investors as it provides additional information about how our management evaluates the business. Management and the Board also use Adjusted EPS to evaluate the performance of employees (including members of management) and the Company as a whole, as well as to allocate resources. There are material limitations to using these measures, as they do not reflect certain significant items which directly affect income (loss) from continuing operations and related per share amounts (the most comparable GAAP measures). Note: Amounts may not sum due to rounding. 1. During 2026, primarily relates to the Origin AI Acquisition and restructuring expenses. 2. Represents a goodwill impairment charge associated with the Multifamily Divestiture. 3. Primarily includes the unrealized (gains) or losses on interest rate swaps presented in interest expense, net and other income (expense). 4. Represents the tax impact on adjustments, using the federal and state blended statutory rate. 5. Refer to the Company’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K for further discussion regarding the computation of diluted weighted-average shares outstanding of common stock. 6. Other includes the impact related to the two-class method for EPS. Refer to the Company’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. (in millions, except per share data) Three Months Ended Nine Months Ended Twelve Months Ended Sep. 30, 2026 Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Dec. 31, 2025 Income (loss) from continuing operations $ 153 $ 155 $ 169 $ 146 $ 144 $ 477 $ 454 $ 601 Share-based compensation expense 19 19 14 12 11 51 43 55 Merger, restructuring, integration, and other(1) 2 5 7 — 6 13 13 13 Goodwill impairment(2) — — — — 12 — 12 12 Interest rate swaps, net(3) 9 10 8 14 15 26 57 71 Loss on extinguishment of debt — — — 8 5 — 11 19 Other, net 1 (1) 1 5 5 — 7 12 Tax adjustments(4) (7) (7) (7) 1 (11) (21) (33) (32) Adjusted Income (Loss) from continuing operations $ 176 $ 180 $ 191 $ 186 $ 187 $ 547 $ 564 $ 750 Diluted weighted-average shares outstanding of Common Stock(5): 737 765 822 825 828 774 846 841 Diluted income (loss) from continuing operations per share of Common Stock $ 0.20 $ 0.19 $ 0.20 $ 0.17 $ 0.17 $ 0.59 $ 0.51 $ 0.68 Share-based compensation expense 0.03 0.02 0.02 0.01 0.01 0.07 0.05 0.06 Merger, restructuring, integration, and other(1) — 0.01 0.01 — 0.01 0.02 0.02 0.02 Goodwill impairment(2) — — — — 0.01 — 0.01 0.01 Interest rate swaps, net(3) 0.01 0.01 0.01 0.02 0.02 0.03 0.07 0.08 Loss on extinguishment of debt — — — 0.01 0.01 — 0.01 0.02 Other, net(6) 0.01 0.01 — 0.01 0.01 0.03 0.01 0.04 Tax adjustments(4) (0.01) (0.01) (0.01) — (0.01) (0.03) (0.04) (0.04) Adjusted EPS $ 0.24 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.71 $ 0.67 $ 0.89
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GAAP to Non-GAAP Reconciliations 20 Net Leverage Ratio, Net Leverage Ratio prior to subscriber acquisition, and Net Debt / Annualized RMR are calculated as the ratio of net debt to last twelve months (“LTM”) Adjusted EBITDA from continuing operations, LTM Adjusted EBITDA from continuing operations prior to subscriber acquisition, and annualized RMR, respectively. Net debt is calculated as total debt excluding the Receivables Facility, including capital leases, minus cash and cash equivalents. Refer to the discussion on Adjusted EBITDA for descriptions of the differences between Adjusted EBITDA and income (loss) from continuing operations, which is the most comparable GAAP measure. The Company believes these measures are useful measures of the Company's credit position. There are material limitations to using these measures as the Company may not always be able to use cash to repay debt on a dollar-for-dollar basis. Note: Amounts may not sum due to rounding. 1. Debt instruments are stated at face value. (in millions) Sep. 30, 2026 Sep. 30, 2025 Total debt (book value) $ 7,781 $ 7,806 LTM Income (loss) from continuing operations $ 624 $ 652 Debt to income (loss) from continuing operations ratio 12.5x 12.0x (in millions) Sep. 30, 2026 Sep. 30, 2025 Revolver $ — $ — Term loans 3,697 3,115 First lien and ADT notes 3,750 3,050 Receivables facility 405 441 Finance leases and other 69 54 Total first lien debt $ 7,921 $ 6,659 Second lien notes — 1,300 Total debt(1) $ 7,921 $ 7,959 Less: Cash and cash equivalents (228) (63) Less: Receivables Facility (405) (441) Net debt $ 7,288 $ 7,455 LTM Adjusted EBITDA from continuing operations $ 2,680 $ 2,663 Net leverage ratio 2.7x 2.8x LTM Adjusted EBITDA from continuing operations prior to subscriber acquisition $ 2,851 $ 2,875 Net leverage ratio prior to subscriber acquisition 2.6x 2.6x Annualized RMR $ 4,317 $ 4,349 Net Debt / Annualized RMR 1.7x 1.7x Leverage Ratios
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