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REVENUE AND RECEIVABLES | 6 Months Ended
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Jun. 30, 2025
Revenue from Contract with Customer [Abstract] |
REVENUE AND RECEIVABLES | REVENUE AND RECEIVABLES Revenue The Company generates revenue from contractual monthly recurring fees received for monitoring and related services, as well as the sale and installation of security systems. The Company’s revenue-generating contracts are entered into primarily through its main operating entity and wholly-owned subsidiary, ADT LLC. Disaggregated Revenue
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(in thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Sources of Revenue: |  |  |  |  |  |  |  |
Recurring monthly revenue |  | $ | 1,056,527 |  |  | $ | 1,040,205 |  |  | $ | 2,109,326 |  |  | $ | 2,077,071 |
Other related services |  | 33,714 |  |  | 27,860 |  |  | 64,019 |  |  | 53,646 |
Monitoring and related services |  | 1,090,241 |  |  | 1,068,065 |  |  | 2,173,345 |  |  | 2,130,717 |
Installation revenue |  | $ | 107,176 |  |  | $ | 50,312 |  |  | $ | 202,692 |  |  | $ | 93,956 |
Amortization of deferred subscriber acquisition revenue |  | 89,618 |  |  | 86,182 |  |  | 178,489 |  |  | 169,558 |
Security installation, product, and other |  | 196,794 |  |  | 136,494 |  |  | 381,181 |  |  | 263,514 |
Total revenue |  | $ | 1,287,035 |  |  | $ | 1,204,559 |  |  | $ | 2,554,526 |  |  | $ | 2,394,231 |
The Company allocates the transaction price to each performance obligation based on the relative standalone selling price, which is determined using observable internal and external pricing, profitability, and operational metrics. Customer-Owned Transactions - In transactions involving security systems sold outright to the customer (referred to as outright sales), the Company’s performance obligations generally include the sale and installation of the security system, which is primarily recognized at a point in time based upon the nature of the transaction and contractual terms, and any monitoring and related services, which are recognized when these services are provided to the customer. Company-Owned Transactions - In transactions in which the Company provides monitoring and related services but retains ownership of the security system, the Company’s performance obligations primarily include (i) monitoring and related services, which are recognized when these services are provided to the customer, and (ii) a material right associated with the one-time non-refundable fees in connection with the initiation of a monitoring contract which the customer will not be required to pay again upon a renewal of the contract (referred to as deferred subscriber acquisition revenue). Deferred subscriber acquisition revenue is amortized on a pooled basis over the estimated life of the customer relationship using an accelerated method consistent with the treatment of subscriber system assets and deferred subscriber acquisition costs. Remaining Performance Obligations As of June 30, 2025, the Company’s total remaining unsatisfied performance obligations relating to the provision of monitoring and related services are as follows (in thousands):
0-12 Months |  | 13-24 Months |  | 25-36 Months |  | Thereafter |  | Total
$ | 1,880,624 |  |  | $ | 1,041,664 |  |  | $ | 486,956 |  |  | $ | 256,900 |  |  | $ | 3,666,144 |
Allowance for Credit Losses The Company evaluates its allowance for credit losses on accounts receivable in pools based on customer type. For each customer pool, the allowance for credit losses is estimated based on the delinquency status of the underlying receivables and the related historical loss experience, as adjusted for current and expected future conditions, if applicable. The allowance for credit losses is not material for the individual pools of customers.
| Six Months Ended June 30,
(in thousands) | 2025 |  | 2024
Beginning balance | $ | 57,795 |  |  | $ | 46,850 |
Provision for credit losses | 76,974 |  |  | 73,707 |
Write-offs, net of recoveries(1) | (67,929) |  |  | (63,341) |
Ending balance | $ | 66,840 |  |  | $ | 57,216 |
________________ (1)Recoveries were not material for the periods presented. As such, write-offs are presented net of recoveries. Retail Installment Contract Receivables, Net The Company’s RICs allow qualifying residential customers to pay the fees due at installation over a 12-, 24-, 36-, or 60-month interest-free period. The financing component is not significant. Upon origination of a RIC, the Company utilizes external credit scores to assess customer credit quality and determine eligibility. Subsequent to origination, the Company monitors the delinquency status of the RICs as the key credit quality indicator. Delinquent billed RICs are not material. The allowance for credit losses relates to RICs from outright sales transactions and is not material. The following is a summary of unbilled retail installment contract receivables, net:
(in thousands) |  | June 30, 2025 |  | December 31, 2024
Retail installment contract receivables, gross |  | $ | 688,151 |  |  | $ | 678,174 |
Allowance for credit losses |  | (29,843) |  |  | (8,848) |
Retail installment contract receivables, net |  | $ | 658,308 |  |  | $ | 669,326 |
Balance Sheet Classification: |  |  |  |
Accounts receivable, net |  | $ | 264,565 |  |  | $ | 260,224 |
Other assets |  | 393,743 |  |  | 409,102 |
Retail installment contract receivables, net |  | $ | 658,308 |  |  | $ | 669,326 |
As of June 30, 2025 and December 31, 2024, RICs, net, for which the Company grants a security interest as collateral for borrowings under the 2020 Receivables Facility were $594 million and $575 million, respectively. Refer to Note 6 “Debt” for further discussion regarding the 2020 Receivables Facility. Contract Assets Contract assets represent the Company’s right to consideration in exchange for goods or services transferred to the customer. The contract asset is reclassified to accounts receivable as additional services are performed and billed, which is when the Company’s right to the consideration becomes unconditional. The Company has the right to bill customers as services are provided over time, which generally occurs over the course of a 12-, 24-, 36-, or 60-month period as additional services are performed and billed. There is no significant financing component. Gross contract assets recognized were not material for the periods presented.
(in thousands) |  | June 30, 2025 |  | December 31, 2024
Contract assets, gross |  | $ | 58,390 |  |  | $ | 46,031 |
Allowance for credit losses |  | (5,823) |  |  | (5,221) |
Contract assets, net |  | $ | 52,567 |  |  | $ | 40,810 |
Balance Sheet Classification: |  |  |  |
Prepaid expenses and other current assets |  | $ | 25,417 |  |  | $ | 19,164 |
Other assets |  | 27,150 |  |  | 21,646 |
Contract assets, net |  | $ | 52,567 |  |  | $ | 40,810 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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