The Company may decide to divest portions of its business for various reasons, including efforts to focus on its remaining businesses. The Company presents discontinued operations for components of the business that are either disposed of through sale (or qualify as held for sale), abandonment, or spin-off if these actions also represent a strategic shift that has or will have a major effect on the Company’s financial results.

On January 19, 2024, after a strategic review of the business and continued macroeconomic and industry pressures, the Company’s board of directors (the “Board of Directors”) approved a plan to fully exit the Solar Business. As of June 30, 2024, substantially all operations of the Solar Business had ceased.

The ADT Solar Exit represented a strategic shift that had a major effect on the Company’s operations and financial results. Accordingly, the Solar Business is presented as a discontinued operation in the Company’s Consolidated Statements of Operations and Consolidated Balance Sheets for the periods presented.

During the year ended December 31, 2024, the Company incurred aggregate exit charges of $88 million, which have been recognized within income (loss) from discontinued operations, net of tax, related to (i) $33 million associated with the write-down and disposition of inventory and asset impairments, (ii) $29 million associated with the disposition of the existing installation pipeline, (iii) $13 million associated with employee separation costs, and (iv) $12 million associated with contract termination and other charges.

The following reconciliations represent the major classes of line items of the Solar Business presented within discontinued operations in the Consolidated Balance Sheets and Consolidated Statements of Operations and certain information in the Consolidated Statements of Cash Flows for the periods presented.


(in thousands)	December 31, 2025		December 31, 2024










Current maturities of long-term debt	$	—	$	22
Accounts payable	2,804		6,953

Accrued expenses and other current liabilities	12,513		24,788
Total current liabilities of discontinued operations	15,317		31,763
Long-term debt	—		32
Other liabilities	14,352		15,857
Total liabilities of discontinued operations	$	29,669	$	47,652


	Years Ended December 31,
(in thousands)	2024		2023
Revenue	$	21,254	$	329,835
Cost of revenue	65,678		256,784
Selling, general, and administrative expenses	101,366		215,054
Depreciation and intangible asset amortization	1,898		15,496

Goodwill impairment	—		511,176
Other (income) and expense items	1,481		2,235
Income (loss) from discontinued operations before income taxes	(149,169)		(670,910)
Income tax benefit (expense)	39,096		156,000
Income (loss) from discontinued operations, net of tax	$	(110,073)	$	(514,910)


	Years Ended December 31,
(in thousands)	2024		2023
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and intangible asset amortization	$	1,898	$	15,496
Goodwill, intangible, and other asset impairments	$	13,770	$	515,730

Cash flows from investing activities:
Purchases of property and equipment	$	(80)	$	(4,027)

On August 7, 2023, the Company entered into an Equity Purchase Agreement to sell substantially all of the issued and outstanding equity interests of its commercial business (the “Commercial Divestiture”). On October 2, 2023, the Company completed the Commercial Divestiture for a purchase price of approximately $1.6 billion, subject to certain customary post-closing adjustments, and recognized a pre-tax gain on sale of approximately $630 million, which was recognized in income (loss) from discontinued operations during 2023.

The Commercial Divestiture represented a strategic shift that had a major effect on the Company’s operations and financial results. Accordingly, the Commercial Business is presented as a discontinued operation in the Company’s Consolidated Statements of Operations for the periods presented.

Additionally, as the agreed upon sale price was substantially higher than the carrying value of the Commercial Business, the Company did not record any impairments or adjustments when recognizing the disposal group at the lower of its carrying amount or fair value less cost to sell.

The following reconciliations represent the major classes of line items of the Commercial Business within the Consolidated Statements of Operations and certain information within the Consolidated Statements of Cash Flows (excluding proceeds from the sale of business discussed above) for the periods presented.

During the year ended December 31, 2024, activity, net of tax, relating to the Commercial Divestiture was approximately $8 million primarily related to the settlement of post-closing adjustments.


	Year Ended December 31,
(in thousands)	2023
Revenue	$	1,035,048
Cost of revenue	688,433
Selling, general, and administrative expenses	213,514
Depreciation and intangible asset amortization	37,691
Other income and expense items	19,174
Income (loss) from discontinued operations before gain on sale of business and income taxes	76,236
Gain on sale of business	629,980
Income (loss) from discontinued operations before income taxes	706,216
Income tax benefit (expense)	(178,667)
Income (loss) from discontinued operations, net of tax	$	527,549


	Year Ended December 31,
(in thousands)	2023
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and intangible asset amortization	$	37,691
Share-based compensation expense	$	11,699
Cash flows from investing activities:
Subscriber system asset expenditures	$	(8,902)
Purchases of property and equipment	$	(4,399)

In connection with the Commercial Divestiture, the Company entered into a Transition Services Agreement (the “Commercial TSA”) for the provision of certain transitional services relating to ongoing support and other administrative functions to each other for a transitional period of up to 24 months after the closing of the Commercial Divestiture. Commercial TSA fees charged to the Commercial Business represent charges for internal labor as well as certain third-party costs identified in connection with providing such services. Income from the Commercial TSA is recognized in other income (expense), and expenses incurred by the Company to support the transition are recorded based on the nature of the expense. During 2025 Commercial TSA income was not material. During 2024 and 2023, the Company recognized income from the Commercial TSA of $40 million and $12 million, respectively.

The Company and GTCR entered into an agreement granting GTCR a license to continue to use the ADT brand and other Company trademarks for a period of twelve months to transition from Company branding (the “Brand License”). The Company has also agreed to a covenant not to assert a claim against GTCR for infringement of the Company's patents as of the Commercial Divestiture for products and services that were used in the Commercial Business prior to the Commercial Divestiture, and has provided GTCR with a paid-up, irrevocable, non-assignable (with limited exceptions) license to continue to use certain software and other Company intellectual property in the same manner. Royalty income is included in other income (expense) and is not material.

During 2025, the Company completed the sale of its multifamily business (the “Multifamily Divestiture”) for a purchase price of approximately $56 million, subject to certain customary post-closing adjustments. The Company recorded $12 million of goodwill impairment, which is recognized in SG&A. Any gain or loss on sale pursuant to customary post-closing adjustments is not expected to be material.