Key Points
Thrive Holdings will acquire ADT for $10 per share in cash.
Year-to-date free cash flow exceeded $1 billion through three quarters.
ADT will install and service products for Apple Retail.
On its third-quarter 2026 earnings call, held on Nov. 3, 2026, ADT (NYSE:ADT) discussed its definitive agreement to be acquired by private equity firm Thrive Holdings for $10 per share in cash. The deal, which was announced on Oct. 29, values the business at $7.6 billion in equity and gives shareholders a clear exit price if regulators and investors approve the buyout.
Three takeaways from management's comments explain what matters most for shareholders.
1. Thrive Holdings Agrees to Buy ADT for $10 per Share
The buyout offer provides an immediate cash premium to recent trading levels while the ADT's Board of Directors explores alternative offers through Nov. 28. Management expects the acquisition to close in the first quarter of 2027.
Under the terms of the agreement, which our Board of Directors unanimously approved, ADT stockholders will receive $10 per share in cash upon completion. $10 represents a premium of 46% to ADT's unaffected closing share price on October 27th and 52% to our 30-day volume-weighted average share price ending on that date.
-- Jim DeVries, Chairman, President, and CEO
2. Cash Generation Exceeds $1 Billion Through Three Quarters
Operational efficiency expanded adjusted free cash flow, which measures net cash from operations minus capital expenditures and swap impacts, past last year's full-year total. Lower interest costs and tight working capital control drove the cash surge.
On a year-to-date basis, we're up 46%, having generated more than $1 billion through the first three quarters, in excess of last year's full-year level.
-- Jeff Likosar, Chief Financial Officer
3. New Partnerships Expand Service Reach Into Retail
ADT Partner Services, an initiative providing professional installation and field support, extends distribution into mass retail channels. The division handles hardware setup and technical support directly for partner storefronts, such as Walmart and Apple.
We introduced Unusual Activity Alerts in ADT+, advanced pilots of our Origin AI presence sensing technology, expanded ADT Blu to Walmart.com, and launched ADT Partner Services, through which we will install and service select products for Apple Retail and its customers beginning later this month.
-- Jim DeVries, Chairman, President, and CEO
Looking Ahead
Quarterly performance met targets through higher professional installation sales, and leadership isn't hiding its satisfaction about it. National installation networks and deep service scale provide lasting advantages as management prioritizes debt reduction and retail partnerships.
In summary, I'm very pleased to report that ADT again delivered strong results with continued revenue growth, solid earnings, and robust cash generation, all in line with our expectations.
-- Jeff Likosar, Chief Financial Officer
Pending buyout approvals will take time, but daily operations move forward under existing privacy policies. Strategic execution centers on protecting recurring monitoring revenue and maintaining dealer network alignment.
Until the transaction closes, ADT will continue to operate independently as a public company. Importantly, with this transaction, ADT's focus has not changed. We remain committed to serving our customers, supporting our dealers and partners, and executing our key initiatives.
-- Jim DeVries, Chairman, President, and CEO
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