ADT Co., Ltd. 2025 Q1 Report

As of April17, 2025, there were781,765,950shares outstanding of the registrant’s common stock, $0.01 par value per share, and54,744,525sharesoutstanding of the registrant’s Class B common stock, $0.01 par value per share. Part IFinancial Information Item 1.Financial Statements Part IIOther InformationItem 1.Legal ProceedingsItem 1A.Risk FactorsItem 2.Unregistered Sales of Equity Securities and Use of ProceedsItem 3.Defaults Upon Senior SecuritiesItem 4.Mine Safety DisclosuresItem 5.Other InformationItem 6.ExhibitsSignatures PART I. FINANCIAL INFORMATION ADT INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS ADT INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) 1.DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Organization ADT Inc., together with its wholly-owned subsidiaries (collectively, “ADT” or the “Company”), provides security, interactive, andsmart home solutions to consumer and small business customers in the United States (“U.S.”). During the first quarter of 2024, the Company ceased to be a “controlled company” under the New York Stock Exchange (the“NYSE”) rules following a registered secondary offering of the Company’s common stock (“Common Stock”) by certain entitiesmanaged by affiliates of Apollo Global Management, Inc. (“Apollo”). Following subsequent registered secondary offerings by Apollo,as of March31, 2025, Apollo owned approximately33% of the Company’s outstanding Common Stock, including shares of Class B Basis of Presentation The condensed consolidated financial statements included herein: •have been prepared in U.S. dollars in accordance with generally accepted accounting principles in the United States ofAmerica (“GAAP”);•are comprised of the consolidated results of ADT Inc. and its wholly-owned subsidiaries for which all intercompany The Condensed Consolidated Balance Sheet as of December31, 2024 included herein was derived from the audited consolidatedfinancial statements as of that date. Certain information and footnote disclosures required in the annual consolidated financialstatements have been omitted as appropriate. For a more comprehensive understanding of the Company and its interim results, these Certain prior period amounts have been reclassified to conform with the current period presentation. Amounts previously disclosedunder the caption merger, restructuring, integration, and other are now presented within selling, general, and administrative expenses Use of Estimates The preparation of these condensed consolidated financial statements in accordance with GAAP requires the Company to selectaccounting policies and make estimates that affect amounts reported in the condensed consolidated financial statements and the Segment Information The Company evaluates and reports information based on the manner in which our chief operating decision maker (“CODM”)evaluates performance and allocates resources. The CODM manages the business on a consolidated basis, and as such, the Company Refer to Note 3 “Segment Information.” ADT INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) Discontinued Operations The Company’s exit in 2024 from the residential solar business (the “Solar Business”) (the “ADT Solar Exit”) and the sale in 2023 ofits commercial business (the “Commercial Business”) (the “Commercial Divestiture”) represented strategic shifts that had majoreffects on the Company’s operations and financial results. Accordingly, the results of operations and financial position of these Refer to Note 4 “Divestitures.” Unless otherwise noted, the following Notes to Condensed Consolidated Financial Statements refer to the Company’s continuingoperations only. Accounting Standards Updates (“ASU”) Recently Issued Disaggregation of Income Statement Expenses-ASU 2024-03, Income Statement — Reporting Comprehensive Income — ExpenseDisaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,requires additional disclosure in thefootnotes at each interim and annual reporting period about specific types of expenses included in the expense captions presented on The guidance is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15,2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Improvements to Income Tax Disclosures- ASU 2023-09,Income Taxes (Topic 740): Improvements to Income Tax Disclosures,focuses on improvements to income tax disclosures, primarily related to the rate reconciliation and income tax paid information. In The guidance is effective for annual periods beginning after December 15, 2024, and should be applied prospectively, withretrospective application also a permitted option. Early adoption is permitted. The Company is currently evaluating the impact of this Disclosure Improvem