CluenexADT Inc. ADT
ADT Inc. scores weak on business quality (4.4 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What ADT Inc. does
ADT provides monitored security and automation systems for homes and small businesses, collecting recurring monthly fees from subscribers for alarm monitoring and life safety services. The company is leaning into automated smart home integration and partnership channels like State Farm to drive customer additions without scaling direct door-to-door sales costs.
- What it does best
ADT holds an elite gross margin of 80.7%, landing in the top decile of its sector. This massive pricing power stems from proprietary monitoring infrastructure and entrenched subscriber relationships that far outpace peers like SCI at 26.0%.
- The main risk
With net debt sitting at $7.6B and an interest coverage ratio of just 3.1x, earnings are highly vulnerable to any unexpected spike in borrowing costs or a slip in subscriber retention.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at 25.3% alongside a top-decile free cash flow margin of 93rd percentile. This high conversion rate proves the business extracts heavy cash returns as scale increases.
Switching costs form its core moat, locking in consumers through multi-year monitoring contracts and hardwired home security hardware sitting in the top decile for sector gross margins.
Revenue grew to $5.2B, showing a steady growth rate of 4.7% that marks a modest deceleration from prior periods.
Total debt of $7.7B overshadows cash of $81M, leaving a heavy debt-to-equity ratio of 2.0x. Free cash flow reached $1.1B, keeping debt reduction slow but steady.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on ADT
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
ADT Inc. scores weak on the Cluenex quality check (4.4 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 2, 2026.
See ADT today
- Today's verdict on ADT, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “ADT Inc. (ADT)”, https://cluenex.com/stocks/adt/, data as of Oct 10, 2026.