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Revenue and Receivables | 12 Months Ended
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Dec. 31, 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. Revenue is recognized in the Consolidated Statements of Operations net of sales and other taxes. Amounts collected from customers for sales and other taxes are reported as a liability net of the related amounts remitted. When customers terminate a monitoring contract early, contract termination charges are assessed in accordance with the contract terms and are recognized in monitoring and related services revenue when collectability is probable. Disaggregated Revenue
|  | Years Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Sources of Revenue: |  |  |  |  |  |
Recurring monthly revenue |  | $ | 4,216,374 |  |  | $ | 4,177,428 |  |  | $ | 4,069,921 |
Other related services |  | 137,713 |  |  | 116,049 |  |  | 109,077 |
Monitoring and related services |  | 4,354,087 |  |  | 4,293,477 |  |  | 4,178,998 |
Amortization of deferred subscriber acquisition revenue |  | 358,413 |  |  | 346,209 |  |  | 301,708 |
Installation revenue |  | 416,107 |  |  | 258,760 |  |  | 172,118 |
Security installation, product, and other |  | 774,520 |  |  | 604,969 |  |  | 473,826 |
Total revenue |  | $ | 5,128,607 |  |  | $ | 4,898,446 |  |  | $ | 4,652,824 |
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. The Company’s performance obligations generally include monitoring, related services (such as maintenance agreements), as well as the sale and installation of a security system in outright sales transactions or a material right in transactions in which the Company retains ownership of the security system. 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 December 31, 2025, the Company’s total remaining unsatisfied performance obligation relating to the provision of monitoring and related services is as follows (in thousands):
|  |  | 0-12 Months |  | 13-24 Months |  | 25-36 Months |  | Thereafter |  | Total
|  |  | $ | 1,898,084 |  |  | $ | 1,045,811 |  |  | $ | 497,642 |  |  | $ | 239,784 |  |  | $ | 3,681,321 |
Deferred Revenue Deferred revenue represents customer billings for services not yet rendered and is primarily related to recurring monitoring and related services. In addition, payments received for the sale and installation of a system after the agreement is signed but before performance obligations are satisfied are recorded as deferred revenue. These amounts are recorded as current deferred revenue, as the Company expects to satisfy any remaining performance obligations, as well as recognize the related revenue, within the next twelve months when performance obligations are satisfied. Accounts Receivable Accounts receivable represent unconditional rights to consideration from customers in the ordinary course of business and are generally due in one year or less. The Company’s accounts receivable are recorded at amortized cost less an allowance for credit losses not expected to be recovered. The allowance for credit losses is recognized at inception and reassessed each reporting period. The Company evaluates its allowance for credit losses on accounts receivable in pools based on customer type. The allowance for credit losses primarily relates to residential customers. 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. Changes in the Allowance for Credit Losses
| Years Ended December 31,
(in thousands) | 2025 |  | 2024 |  | 2023
Beginning balance | $ | 57,795 |  |  | $ | 46,850 |  |  | $ | 27,815 |
Provision for credit losses | 167,189 |  |  | 158,346 |  |  | 130,407 |
Write-offs, net of recoveries(1) | (161,143) |  |  | (147,401) |  |  | (111,372) |
Ending balance | $ | 63,841 |  |  | $ | 57,795 |  |  | $ | 46,850 |
________________ (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. The Company’s RICs are recorded at amortized cost less an allowance for credit losses not expected to be recovered. The allowance for credit losses is recognized at inception and reassessed each reporting period. The allowance for credit losses relates to RICs from outright sales transactions. The following is a summary of unbilled retail installment contract receivables, net:
|  | December 31,
(in thousands) |  | 2025 |  | 2024
Retail installment contract receivables, gross |  | $ | 689,023 |  |  | $ | 678,174 |
Allowance for credit losses |  | (37,212) |  |  | (8,848) |
Retail installment contract receivables, net |  | $ | 651,811 |  |  | $ | 669,326 |
Balance Sheet Classification: |  |  |  |
Accounts receivable, net |  | $ | 268,552 |  |  | $ | 260,224 |
Other assets |  | 383,259 |  |  | 409,102 |
Retail installment contract receivables, net |  | $ | 651,811 |  |  | $ | 669,326 |
As of December 31, 2025 and 2024, RICs, net, for which the Company grants a security interest as collateral for borrowings under the 2020 Receivables Facility were $593 million and $575 million, respectively. Refer to Note 7 “Debt” for further discussion regarding the 2020 Receivables Facility. Credit Quality Upon origination of a RIC, the Company assigns an internal credit grade derived from external credit data obtained from a nationally recognized credit reporting provider to evaluate customer credit quality and establish contract eligibility. Subsequent to origination, the Company monitors the delinquency status of the RICs as the key credit quality indicator. Delinquent billed RICs are not a material portion of the Company’s RICs. The following table presents the gross amortized cost basis segregated by credit quality indicator and current year write-offs of the Company’s RICs by year of origination for the preceding five fiscal years as of December 31, 2025:
(in thousands) |  |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | All preceding years
High |  |  | $ | 201,419 |  |  | $ | 122,031 |  |  | $ | 78,706 |  |  | $ | 45,519 |  |  | $ | 9,234 |  |  | $ | 1 |
Medium(1) |  |  | 97,692 |  |  | 43,839 |  |  | 21,801 |  |  | 10,286 |  |  | 2,277 |  |  | 7 |
Low |  |  | 31,684 |  |  | 14,341 |  |  | 6,664 |  |  | 2,870 |  |  | 652 |  |  | — |
Total |  |  | $ | 330,795 |  |  | $ | 180,211 |  |  | $ | 107,171 |  |  | $ | 58,675 |  |  | $ | 12,163 |  |  | $ | 8 |
Current year gross write-offs |  |  | $ | 10,770 |  |  | $ | 38,739 |  |  | $ | 16,598 |  |  | $ | 6,583 |  |  | $ | 1,965 |  |  | $ | 256 |
________________ (1)Includes short-term receivables related to three-month payment plans. 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. This balance is primarily comprised of satisfied performance obligations related to the sale and installation of a system under an outright sale transaction. 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. The Company records an allowance for credit losses against its contract assets for amounts not expected to be recovered. The allowance is recognized at inception and is reassessed each reporting period. The allowance for credit losses on contract assets was not material for the periods presented.
|  |  | December 31,
(in thousands) |  |  | 2025 |  | 2024
Contract assets, gross |  |  | $ | 69,506 |  |  | $ | 46,031 |
Allowance for credit losses |  |  | (6,591) |  |  | (5,221) |
Contract assets, net |  |  | $ | 62,915 |  |  | $ | 40,810 |
Balance Sheet Classification: |  |  |  |  |
Prepaid expenses and other current assets |  |  | $ | 28,758 |  |  | $ | 19,164 |
Other assets |  |  | 34,157 |  |  | 21,646 |
Contract assets, net |  |  | $ | 62,915 |  |  | $ | 40,810 |
The changes in the contract asset balance during 2025 and 2024 were not material. Contract Liabilities The Company’s primary contract liabilities are deferred subscriber acquisition revenue and deferred revenue as presented on the balance sheet. Contract liabilities primarily represent amounts billed or collected in advance of the Company’s fulfillment of performance obligations under customer contracts. Contract liabilities also include consideration received in advance for products or services that have not yet been transferred to the customer, including deferred revenue associated with the allocation of the transaction price to future performance obligations. Contract liabilities are recognized as revenue when the related performance obligations are satisfied, which typically occurs over the term of the customer’s service agreement or upon completion of installation or product delivery. During 2025 and 2024, customer contract liabilities increased by approximately $16 million and $149 million, respectively, primarily due to new billings and customer prepayments for monitoring, installation, and other subscription-based services. Revenue recognized from the amounts included in the beginning contract liability balance totaled approximately $560 million and $478 million for the years ended December 31, 2025 and 2024, respectively. Additional contract liabilities recognized during the years ended December 31, 2025 and 2024 were approximately $530 million and $640 million, respectively. Other changes in the contract liabilities were not material.

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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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