ADT Inc. (ADT) Stock Analysis

ADT’s principal competitive advantage is its scale and brand strength. With over 6 million subscribers and 98% brand awareness, ADT is the most recognized and trusted name in U.S. home security. This reputation is reinforced by a national footprint, a network of 250+ sales and service offices, and a 24/7 professional monitoring infrastructure that rivals such as Vivint, Brinks, and SimpliSafe cannot match in breadth or redundancy.

ADT’s business model is anchored by recurring monthly revenue (RMR), which reached $4.3 billion annualized in 2025—far exceeding peers. Customer retention is high, with a gross revenue attrition rate of 13.0% and average customer tenure of 8 years, reflecting both switching costs and service reliability. The company’s proprietary ADT+ platform, integrating Google Nest devices, and features like Alarm Messenger and Trusted Neighbor, further differentiate its offering and support higher installation revenue per unit ($1,300 in 2024, more than double 2019 levels).

Strategic partnerships with Google and State Farm provide ADT with technology, marketing, and distribution advantages unavailable to most competitors. The company’s scale also enables cost efficiencies and capital access, supporting a 25% operating margin and a 2.8x net leverage ratio—both superior to most industry peers.

Potential threats include rising competition from DIY entrants (e.g., Ring, SimpliSafe) and technology shifts, but ADT’s entrenched brand, service infrastructure, and integrated ecosystem remain significant barriers to entry.