What Happened?
Shares of security technology and services company ADT (NYSE: ADT) jumped 3.1% in the afternoon session after the company reported strong second-quarter 2025 financial results that showed growth in both revenue and earnings. The security company announced a 7% year-over-year increase in total revenue to $1.3 billion, while its adjusted earnings per share surged 35% to $0.23. A key factor in this performance was a 2% rise in end-of-period recurring monthly revenue (RMR), a crucial metric that reflects stable income from customer subscriptions. In a sign of confidence, ADT also declared a cash dividend of $0.055 per share and continued its share buyback program, repurchasing $96 million worth of its stock. The company reiterated its full-year 2025 financial guidance, suggesting a stable outlook.
After the initial pop the shares cooled down to $8.66, up 2.7% from previous close.
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What Is The Market Telling Us
ADT’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
ADT is up 24% since the beginning of the year, and at $8.66 per share, has set a new 52-week high. Investors who bought $1,000 worth of ADT’s shares 5 years ago would now be looking at an investment worth $1,087.
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