XML 53 R22.htm IDEA: XBRL DOCUMENT
v3.25.4

Leases | 12 Months Ended
--- | ---
Dec. 31, 2025
Leases [Abstract] |
Leases | LEASES Company as Lessee As part of normal operations, the Company leases real estate, vehicles, and equipment from various counterparties with lease terms and maturities through 2034, primarily through its main operating entity and wholly-owned subsidiary, ADT LLC. For these transactions, the Company applies the practical expedient to not separate the lease and non-lease components and accounts for the combined component as a lease. Additionally, the Company’s right-of-use assets and lease liabilities include leases with initial lease terms of 12 months or less. The Company’s right-of-use assets and lease liabilities primarily represent lease payments that are fixed at the commencement of a lease and variable lease payments that are dependent on an index or rate. Lease payments are recognized as lease cost on a straight-line basis over the lease term, which is determined as the non-cancelable period, including periods in which termination options are reasonably certain of not being exercised and periods in which renewal options are reasonably certain of being exercised. The discount rate is determined using the Company’s incremental borrowing rate coinciding with the lease term at the commencement of a lease. The incremental borrowing rate is estimated based on publicly available data for the Company’s debt instruments and other instruments with similar characteristics. Lease payments that are neither fixed nor dependent on an index or rate and vary because of changes in usage or other factors are included in variable lease costs. Variable lease costs are recorded in the period in which the obligation is incurred and primarily relate to fuel, repair, and maintenance payments as they vary based on the usage of leased vehicles and buildings. The Company’s leases do not contain material residual value guarantees or restrictive covenants. The Company’s subleases are not material. Right-of-Use Assets and Lease Liabilities
(in thousands) |  |  |  |  |  | December 31,
Presentation and Classification: |  |  |  | 2025 |  | 2024
Operating |  | Current |  | Prepaid expenses and other current assets |  | $ | 92 |  |  | $ | 80 |
Operating |  | Non-current |  | Other assets |  | 83,910 |  |  | 80,768 |
Finance |  | Non-current |  | Property and equipment, net(1) |  | 41,317 |  |  | 61,827 |
Total right-of-use assets |  | $ | 125,319 |  |  | $ | 142,675 |
Operating |  | Current |  | Accrued expenses and other current liabilities |  | $ | 16,841 |  |  | $ | 18,811 |
Finance |  | Current |  | Current maturities of long-term debt |  | 22,674 |  |  | 25,593 |
Operating |  | Non-current |  | Other liabilities |  | 81,290 |  |  | 77,884 |
Finance |  | Non-current |  | Long-term debt |  | 25,091 |  |  | 43,849 |
Total lease liabilities |  | $ | 145,896 |  |  | $ | 166,137 |
_________________ (1) Finance lease right-of-use assets are recorded net of accumulated depreciation which was approximately $87 million and $66 million as of December 31, 2025 and 2024, respectively. Lease Cost
|  | Years Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Operating lease cost |  | $ | 24,875 |  |  | $ | 27,615 |  |  | $ | 31,756 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets |  | 22,210 |  |  | 21,661 |  |  | 14,432 |
Interest on lease liabilities |  | 3,302 |  |  | 4,528 |  |  | 2,466 |
Variable lease costs |  | 39,884 |  |  | 35,017 |  |  | 36,273 |
Total lease cost |  | $ | 90,271 |  |  | $ | 88,821 |  |  | $ | 84,927 |
Cash Flow and Supplemental Information(1)
|  | Years Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating leases: |  |  |  |  |  |
Operating cash flows |  | $ | 27,640 |  |  | $ | 23,574 |  |  | $ | 42,883 |
Finance Leases: |  |  |  |  |  |
Operating cash flows |  | $ | 3,302 |  |  | $ | 4,686 |  |  | $ | 4,940 |
Financing cash flows |  | $ | 30,209 |  |  | $ | 29,023 |  |  | $ | 43,733 |
Right-of-use assets obtained in exchange for lease obligations |  |  |  |  |  |
Operating leases |  | $ | 22,857 |  |  | $ | 20,127 |  |  | $ | 41,338 |
Finance leases |  | $ | 12,868 |  |  | $ | 35,451 |  |  | $ | 79,273 |
__________________ (1)Includes both continuing and discontinued operations as applicable. Lease Term and Discount Rate
|  | December 31,
|  | 2025 |  | 2024
Weighted-average remaining lease term (years): |  |  |  |
Operating leases |  | 5.4 |  | 5.4
Finance leases |  | 2.2 |  | 2.7
Weighted-average discount rate: |  |  |  |
Operating leases |  | 6.2 | % |  | 6.2 | %
Finance leases |  | 6.2 | % |  | 6.1 | %
Maturity of Lease Liabilities
|  | December 31, 2025
(in thousands) |  | Operating Leases |  | Finance Leases
2026 |  | $ | 20,026 |  |  | $ | 26,836 |
2027 |  | 24,653 |  |  | 17,851 |
2028 |  | 21,334 |  |  | 4,675 |
2029 |  | 16,592 |  |  | 1,296 |
2030 |  | 11,723 |  |  | 8 |
Thereafter |  | 23,624 |  |  | — |
Total lease payments (including interest) |  | $ | 117,952 |  |  | $ | 50,666 |
Less interest |  | 19,821 |  |  | 2,901 |
Total |  | $ | 98,131 |  |  | $ | 47,765 |
Company as Lessor The Company is a lessor in certain Company-owned transactions as the Company has identified a lease component associated with the right-of-use of the security system and a non-lease component associated with the monitoring and related services. For transactions in which (i) the timing and pattern of transfer is the same for the lease and non-lease components, and (ii) the lease component would be classified as an operating lease if accounted for separately, the Company applies the practical expedient to aggregate the lease and non-lease components and accounts for the combined transaction based upon its predominant characteristic, which is the non-lease component. The Company accounts for the combined component as a single performance obligation under the applicable revenue guidance, and recognizes the underlying assets within subscriber system assets, net, in the Consolidated Balance Sheets.
Leases | LEASES Company as Lessee As part of normal operations, the Company leases real estate, vehicles, and equipment from various counterparties with lease terms and maturities through 2034, primarily through its main operating entity and wholly-owned subsidiary, ADT LLC. For these transactions, the Company applies the practical expedient to not separate the lease and non-lease components and accounts for the combined component as a lease. Additionally, the Company’s right-of-use assets and lease liabilities include leases with initial lease terms of 12 months or less. The Company’s right-of-use assets and lease liabilities primarily represent lease payments that are fixed at the commencement of a lease and variable lease payments that are dependent on an index or rate. Lease payments are recognized as lease cost on a straight-line basis over the lease term, which is determined as the non-cancelable period, including periods in which termination options are reasonably certain of not being exercised and periods in which renewal options are reasonably certain of being exercised. The discount rate is determined using the Company’s incremental borrowing rate coinciding with the lease term at the commencement of a lease. The incremental borrowing rate is estimated based on publicly available data for the Company’s debt instruments and other instruments with similar characteristics. Lease payments that are neither fixed nor dependent on an index or rate and vary because of changes in usage or other factors are included in variable lease costs. Variable lease costs are recorded in the period in which the obligation is incurred and primarily relate to fuel, repair, and maintenance payments as they vary based on the usage of leased vehicles and buildings. The Company’s leases do not contain material residual value guarantees or restrictive covenants. The Company’s subleases are not material. Right-of-Use Assets and Lease Liabilities
(in thousands) |  |  |  |  |  | December 31,
Presentation and Classification: |  |  |  | 2025 |  | 2024
Operating |  | Current |  | Prepaid expenses and other current assets |  | $ | 92 |  |  | $ | 80 |
Operating |  | Non-current |  | Other assets |  | 83,910 |  |  | 80,768 |
Finance |  | Non-current |  | Property and equipment, net(1) |  | 41,317 |  |  | 61,827 |
Total right-of-use assets |  | $ | 125,319 |  |  | $ | 142,675 |
Operating |  | Current |  | Accrued expenses and other current liabilities |  | $ | 16,841 |  |  | $ | 18,811 |
Finance |  | Current |  | Current maturities of long-term debt |  | 22,674 |  |  | 25,593 |
Operating |  | Non-current |  | Other liabilities |  | 81,290 |  |  | 77,884 |
Finance |  | Non-current |  | Long-term debt |  | 25,091 |  |  | 43,849 |
Total lease liabilities |  | $ | 145,896 |  |  | $ | 166,137 |
_________________ (1) Finance lease right-of-use assets are recorded net of accumulated depreciation which was approximately $87 million and $66 million as of December 31, 2025 and 2024, respectively. Lease Cost
|  | Years Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Operating lease cost |  | $ | 24,875 |  |  | $ | 27,615 |  |  | $ | 31,756 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets |  | 22,210 |  |  | 21,661 |  |  | 14,432 |
Interest on lease liabilities |  | 3,302 |  |  | 4,528 |  |  | 2,466 |
Variable lease costs |  | 39,884 |  |  | 35,017 |  |  | 36,273 |
Total lease cost |  | $ | 90,271 |  |  | $ | 88,821 |  |  | $ | 84,927 |
Cash Flow and Supplemental Information(1)
|  | Years Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating leases: |  |  |  |  |  |
Operating cash flows |  | $ | 27,640 |  |  | $ | 23,574 |  |  | $ | 42,883 |
Finance Leases: |  |  |  |  |  |
Operating cash flows |  | $ | 3,302 |  |  | $ | 4,686 |  |  | $ | 4,940 |
Financing cash flows |  | $ | 30,209 |  |  | $ | 29,023 |  |  | $ | 43,733 |
Right-of-use assets obtained in exchange for lease obligations |  |  |  |  |  |
Operating leases |  | $ | 22,857 |  |  | $ | 20,127 |  |  | $ | 41,338 |
Finance leases |  | $ | 12,868 |  |  | $ | 35,451 |  |  | $ | 79,273 |
__________________ (1)Includes both continuing and discontinued operations as applicable. Lease Term and Discount Rate
|  | December 31,
|  | 2025 |  | 2024
Weighted-average remaining lease term (years): |  |  |  |
Operating leases |  | 5.4 |  | 5.4
Finance leases |  | 2.2 |  | 2.7
Weighted-average discount rate: |  |  |  |
Operating leases |  | 6.2 | % |  | 6.2 | %
Finance leases |  | 6.2 | % |  | 6.1 | %
Maturity of Lease Liabilities
|  | December 31, 2025
(in thousands) |  | Operating Leases |  | Finance Leases
2026 |  | $ | 20,026 |  |  | $ | 26,836 |
2027 |  | 24,653 |  |  | 17,851 |
2028 |  | 21,334 |  |  | 4,675 |
2029 |  | 16,592 |  |  | 1,296 |
2030 |  | 11,723 |  |  | 8 |
Thereafter |  | 23,624 |  |  | — |
Total lease payments (including interest) |  | $ | 117,952 |  |  | $ | 50,666 |
Less interest |  | 19,821 |  |  | 2,901 |
Total |  | $ | 98,131 |  |  | $ | 47,765 |
Company as Lessor The Company is a lessor in certain Company-owned transactions as the Company has identified a lease component associated with the right-of-use of the security system and a non-lease component associated with the monitoring and related services. For transactions in which (i) the timing and pattern of transfer is the same for the lease and non-lease components, and (ii) the lease component would be classified as an operating lease if accounted for separately, the Company applies the practical expedient to aggregate the lease and non-lease components and accounts for the combined transaction based upon its predominant characteristic, which is the non-lease component. The Company accounts for the combined component as a single performance obligation under the applicable revenue guidance, and recognizes the underlying assets within subscriber system assets, net, in the Consolidated Balance Sheets.
Lessee | LEASES Company as Lessee As part of normal operations, the Company leases real estate, vehicles, and equipment from various counterparties with lease terms and maturities through 2034, primarily through its main operating entity and wholly-owned subsidiary, ADT LLC. For these transactions, the Company applies the practical expedient to not separate the lease and non-lease components and accounts for the combined component as a lease. Additionally, the Company’s right-of-use assets and lease liabilities include leases with initial lease terms of 12 months or less. The Company’s right-of-use assets and lease liabilities primarily represent lease payments that are fixed at the commencement of a lease and variable lease payments that are dependent on an index or rate. Lease payments are recognized as lease cost on a straight-line basis over the lease term, which is determined as the non-cancelable period, including periods in which termination options are reasonably certain of not being exercised and periods in which renewal options are reasonably certain of being exercised. The discount rate is determined using the Company’s incremental borrowing rate coinciding with the lease term at the commencement of a lease. The incremental borrowing rate is estimated based on publicly available data for the Company’s debt instruments and other instruments with similar characteristics. Lease payments that are neither fixed nor dependent on an index or rate and vary because of changes in usage or other factors are included in variable lease costs. Variable lease costs are recorded in the period in which the obligation is incurred and primarily relate to fuel, repair, and maintenance payments as they vary based on the usage of leased vehicles and buildings. The Company’s leases do not contain material residual value guarantees or restrictive covenants. The Company’s subleases are not material. Right-of-Use Assets and Lease Liabilities
(in thousands) |  |  |  |  |  | December 31,
Presentation and Classification: |  |  |  | 2025 |  | 2024
Operating |  | Current |  | Prepaid expenses and other current assets |  | $ | 92 |  |  | $ | 80 |
Operating |  | Non-current |  | Other assets |  | 83,910 |  |  | 80,768 |
Finance |  | Non-current |  | Property and equipment, net(1) |  | 41,317 |  |  | 61,827 |
Total right-of-use assets |  | $ | 125,319 |  |  | $ | 142,675 |
Operating |  | Current |  | Accrued expenses and other current liabilities |  | $ | 16,841 |  |  | $ | 18,811 |
Finance |  | Current |  | Current maturities of long-term debt |  | 22,674 |  |  | 25,593 |
Operating |  | Non-current |  | Other liabilities |  | 81,290 |  |  | 77,884 |
Finance |  | Non-current |  | Long-term debt |  | 25,091 |  |  | 43,849 |
Total lease liabilities |  | $ | 145,896 |  |  | $ | 166,137 |
_________________ (1) Finance lease right-of-use assets are recorded net of accumulated depreciation which was approximately $87 million and $66 million as of December 31, 2025 and 2024, respectively. Lease Cost
|  | Years Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Operating lease cost |  | $ | 24,875 |  |  | $ | 27,615 |  |  | $ | 31,756 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets |  | 22,210 |  |  | 21,661 |  |  | 14,432 |
Interest on lease liabilities |  | 3,302 |  |  | 4,528 |  |  | 2,466 |
Variable lease costs |  | 39,884 |  |  | 35,017 |  |  | 36,273 |
Total lease cost |  | $ | 90,271 |  |  | $ | 88,821 |  |  | $ | 84,927 |
Cash Flow and Supplemental Information(1)
|  | Years Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating leases: |  |  |  |  |  |
Operating cash flows |  | $ | 27,640 |  |  | $ | 23,574 |  |  | $ | 42,883 |
Finance Leases: |  |  |  |  |  |
Operating cash flows |  | $ | 3,302 |  |  | $ | 4,686 |  |  | $ | 4,940 |
Financing cash flows |  | $ | 30,209 |  |  | $ | 29,023 |  |  | $ | 43,733 |
Right-of-use assets obtained in exchange for lease obligations |  |  |  |  |  |
Operating leases |  | $ | 22,857 |  |  | $ | 20,127 |  |  | $ | 41,338 |
Finance leases |  | $ | 12,868 |  |  | $ | 35,451 |  |  | $ | 79,273 |
__________________ (1)Includes both continuing and discontinued operations as applicable. Lease Term and Discount Rate
|  | December 31,
|  | 2025 |  | 2024
Weighted-average remaining lease term (years): |  |  |  |
Operating leases |  | 5.4 |  | 5.4
Finance leases |  | 2.2 |  | 2.7
Weighted-average discount rate: |  |  |  |
Operating leases |  | 6.2 | % |  | 6.2 | %
Finance leases |  | 6.2 | % |  | 6.1 | %
Maturity of Lease Liabilities
|  | December 31, 2025
(in thousands) |  | Operating Leases |  | Finance Leases
2026 |  | $ | 20,026 |  |  | $ | 26,836 |
2027 |  | 24,653 |  |  | 17,851 |
2028 |  | 21,334 |  |  | 4,675 |
2029 |  | 16,592 |  |  | 1,296 |
2030 |  | 11,723 |  |  | 8 |
Thereafter |  | 23,624 |  |  | — |
Total lease payments (including interest) |  | $ | 117,952 |  |  | $ | 50,666 |
Less interest |  | 19,821 |  |  | 2,901 |
Total |  | $ | 98,131 |  |  | $ | 47,765 |
Company as Lessor The Company is a lessor in certain Company-owned transactions as the Company has identified a lease component associated with the right-of-use of the security system and a non-lease component associated with the monitoring and related services. For transactions in which (i) the timing and pattern of transfer is the same for the lease and non-lease components, and (ii) the lease component would be classified as an operating lease if accounted for separately, the Company applies the practical expedient to aggregate the lease and non-lease components and accounts for the combined transaction based upon its predominant characteristic, which is the non-lease component. The Company accounts for the combined component as a single performance obligation under the applicable revenue guidance, and recognizes the underlying assets within subscriber system assets, net, in the Consolidated Balance Sheets.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration