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ADT Inc. (ADT) Reports Strong Financial Gains, Cash Generation in Q3

ADT Inc. (NYSE:ADT) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 4, the company reported financial results for the third quarter of fiscal 2025, with revenue climbing 4% year-over-year to $1.3 billion, amid stable end-of-period recurring monthly revenue (RMR), which grew at a modest 1%.

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Adjusted net income stood at $187 million, translating to an EPS of $0.23, which was 15% higher than the prior year and beat expectations by one cent. Another highlight of the quarter was the company’s adjusted free cash flow, which increased 32% year-over-year to $208 million.

ADT Inc. (NYSE:ADT) credited the strong results to the business’s overall efficiency, coupled with top-line growth that has created a conducive environment for future-oriented investments. The company’s CFO, Jeffrey Likosar, attributed the improved earnings to the firm’s sound capital structure and cash generation.

Following the results, the firm said it was on track to meet its full-year guidance for fiscal 2025 and was tightening the ranges slightly to reflect this confidence. It now anticipates an annual revenue between $5.075 billion and $5.175 billion, and adjusted EPS in the range of $0.85 to $0.89.

On the downside, attrition rose slightly by 13 basis points during the quarter to 13%, amid cautious consumer sentiment and relocations. However, ADT Inc. (NYSE:ADT) was hopeful of driving retention ahead, due to offerings such as ADT+ and efforts to improve customer service through AI, which should drive engagement.

Additionally, during the earnings call, the company also apprised of the transactions that had helped slash the cost of debt to 4.3%. The firm’s balance sheet reflects strong liquidity as it ended the quarter with $63 million in cash and an $800 million revolving facility.

The stock has returned 19.68% year-to-date, as of the close of business on November 7.

ADT Inc. (NYSE:ADT) provides secure, smart, and sustainable solutions to homes and businesses across the United States.

While we acknowledge the risk and potential of ADT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: ChatGPT Stock Advice: Top 8 Defense Stocks and 10 Largest Defense Stocks in 2025.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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