ADT (ADT) Remains Well-placed to Achieve FY 2025 Guidance

ADT Inc. (NYSE:ADT) is one of the Most Undervalued Stocks Under $10 to Buy Now. During Q1 2025, the company delivered a record recurring monthly revenue balance and customer retention, highlighting the strong demand for its innovative offerings. ADT Inc. (NYSE:ADT) remains well-placed to achieve FY 2025 guidance with strong growth in cash flow and EPS, while making investments in expanded capabilities to grow. For FY 2025, the company expects total revenue of between $5,025 million – $5,225 million, and adjusted EBITDA of $2,650 million – $2,750 million.

ADT (ADT) Remains Well-placed to Achieve FY 2025 Guidance

A technician demonstrating a security solution for a corporate office.

ADT Inc. (NYSE:ADT) continues to roll out its new proprietary ADT+ platform, which is a next-generation smart home security offering integrating professional monitoring with Google Nest devices. The company has been increasing customer penetration as a percentage of new adds. ADT Inc. (NYSE:ADT) launched ADT+ Translator, converting signals from legacy sensors into a format that ADT+ can process. This offers a faster, lower-cost transition from older equipment that has been designed to function seamlessly with the ADT+ platform.

ADT Inc. (NYSE:ADT)’s total revenue in Q1 2025 came in at $1,267 million, up 7%. Monitoring and related services (M&S) revenue growth was mainly aided by higher average prices, partially offset by lower volume.

ADT Inc. (NYSE:ADT) offers security, interactive, and smart home solutions.

Ariel Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Leading provider of automated security solutions ADT Inc. (NYSE:ADT) also traded higher on solid earnings results. Despite the challenging macro backdrop, the company is demonstrating pricing power, a historically low attrition rate and growing free cash flow generation. Notably, ADT continues to improve its balance sheet through significant debt reduction. Management expects to maintain this momentum into 2025 with strong cash flow growth as well as a new share repurchase plan. With ADT’s industry-leading brand and national presence, coupled with its Google and State Farm strategic partnerships, the company is well-positioned to be a prime beneficiary of growing demand for smart home technologies, including fully monitored residential security.”

While we acknowledge the potential of ADT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.