ADT delivered a solid third quarter of 2025, with total revenue up 4% to $1.3 billion and adjusted EPS of $0.23, up 15% year-over-year, alongside standout cash generation of $208 million in adjusted free cash flow (up 32%). Management emphasized ADT+ momentum, expanding AI-driven customer service, and a major refinancing that repaid the company's most expensive debt and cut borrowing costs to 4.3%. Attrition ticked up to 13%, above budget, and subscriber and RMR adds were lower amid disciplined SAC spending and cautious consumer sentiment.
Good morning, and thank you for joining us to discuss ADT's third quarter 2025 results. Today's speakers are Jim DeVries, ADT's Chairman, President, and CEO, and Jeff Likosar, our CFO. After their prepared remarks, we'll open the call for analyst questions. This morning, we issued a press release and presentation summarizing our financial results. Both are available at investor.adt.com. We'll reference our non-GAAP financial measures today. Reconciliations to the most comparable GAAP measures are included in the earnings presentation on our website. Unless noted otherwise, all financials and metrics discussed reflect continuing operations. Non-GAAP cash flow measures include amounts related to our former solar business through 2Q 2024. Forward-looking statements included in today's remarks are subject to risks and uncertainties. Actual results may differ materially. Please refer to our SEC filings for more details, and now I'm happy to turn it over to Jim.
Thank you, Elizabeth, and good morning, everyone. I'm very pleased to report that ADT delivered another quarter of solid revenue growth, robust cash flow, and very strong earnings per share, collectively reflecting the resilience of our business model and our team's continued execution of our 2025 strategy. Let me start with a few key financial highlights. Total revenue grew 4% to $1.3 billion. Adjusted EBITDA grew 3% to $676 million, with adjusted earnings per diluted share of $0.23, up a strong 15% year-over-year. Cash flow continues to be a highlight, with Adjusted Free Cash Flow, including interest rate swaps, reaching $709 million year-to-date. Additionally, year-to-date, we have returned $746 million to ADT shareholders through share repurchases and dividends. We ended the third quarter with a recurring monthly revenue balance of $362 million, up 1% year-over-year.
Turning to attrition, earlier this year, ADT achieved record levels, and this quarter, we ticked up to 13%. While above our budget, our teams are focused on plans to continue improving customer retention, and those actions are underway. As we've executed in prior quarters, during Q3, we completed a small bulk account purchase of 15,000 accounts for $24 million. Overall, consumer sentiment remains cautious, and relocations continue at low levels. We have remained disciplined in our SAC spending, which resulted in lower new subscriber and RMR adds. Jeff will provide more specific details about our results and full-year outlook later in our call. I'd like to spend the next few minutes updating you on ADT's 2025 progress and strategic focus areas, which continue to build on the priorities we've shared throughout this year. ADT's commitment remains unchanged, delivering safety and peace of mind to our residential and small business customers.
Our strategy is anchored in three core pillars: unrivaled safety, innovative offerings, and a premium, best-in-class customer experience. Unrivaled safety is at the heart of everything we do at ADT, as it has been throughout our entire 150-year history. We are constantly strengthening the ways we protect ADT customers and provide them with confidence in their security, delivering peace of mind. As we execute on our near-term financial goals, we're also investing in our product and experience ecosystem, expanding and enhancing our differentiated offerings. These efforts give customers even more reasons to choose ADT and to remain loyal to our brand. Our ADT+ platform continues to gain traction, enhancing the safety, convenience, and experience we deliver to our customers. Our product and engineering teams are firing on all cylinders in coordination with our strategic partners to drive a continued pipeline of innovative releases.
Our product roadmap is robust, and we expect to continue expanding our suite of unrivaled offerings every quarter to continue to gain share within the smart home. An increasing percentage of our new customers are now enjoying ADT+, and many of these customers are opting for larger, more comprehensive ADT systems, leading to increased installation revenue, and we anticipate contributing to even stronger retention over time. During 2025, approximately 25% of our new customer additions have been installed with the ADT+ platform, and we are continuing to expand to more categories of customers and channels. This quarter, we launched the ADT+ Alarm Range Extender, further enhancing the capabilities, performance, and dependability of the ADT+ platform. This device expands coverage between the ADT+ base and other connected devices in larger or more complex homes with a 24-hour battery backup and tamper alerts.
We also introduced new automation and AI-driven testing capabilities to streamline app development, reduce the need for manual testing, and deliver faster, high-quality releases. These innovations help ensure a smoother, more reliable experience for our ADT+ customers. We are actively evaluating new features, use cases, and economic models, and will continue to share additional information as these come to market. I also have a few updates regarding our efforts to optimize our hardware portfolio. While we don't expect hardware savings to be material in 2025, we view this as a meaningful source of savings going into 2026. Beginning October 15th, ADT refreshed our smart home security portfolio, and we now offer five new Google Nest camera models, reflecting the continued expansion of our partnership with Google, and we are working closely with our suppliers to mitigate our tariff exposure, which we do not expect to be material during 2025.
On the customer service front, we remain pleased with our progress with ADT's remote assistance program, which has eliminated approximately half of our in-home service calls, reducing truck rolls and field service costs. Our current AI efforts remain focused on our customer care operations, with an emphasis on improving the customer service experience for both our customers and our employee agents, while also improving overall efficiency. These AI initiatives continue to deliver positive results, with an increasing number of customer service chats processed by AI agents, with nearly half of those successfully resolved without live agent intervention. We're also continuing to expand the rollout of AI agents for voice calls, and early results are promising for both customer satisfaction and cost efficiency. AI-driven cost savings are beginning to materialize, particularly in our call center operations, and we expect to provide more quantitative detail as these benefits scale.
Turning for a moment to State Farm. As mentioned during our last call, we have pivoted away from the past selling program, and we're exploring new opportunities for a digital, relocation-focused approach to jointly pursue new customers. Despite some ongoing macroeconomic uncertainty, including tariff pressures and elevated interest rates, ADT's business model remains resilient and very well positioned for the future. In closing, we remain focused on execution, operational excellence, and positioning ADT for long-term value creation. I remain confident in ADT's outlook and our ability to deliver on our commitments for 2025. I want to thank our employees, partners, and customers for their dedication and trust in ADT. I'm proud of our team's performance and excited for the opportunities ahead. With that, I'll turn the call over to Jeff.
Thanks, Jim, and good morning, everyone. I will take the next few minutes to share some additional details on our third quarter and year-to-date results and our outlook for the rest of the year. As Jim mentioned, cash flow remains a significant highlight. In the third quarter, we generated $208 million of Adjusted Free Cash Flow, including swaps, up 32%, and we have generated $709 million year-to-date, up 36%. Adjusted net income for the quarter was also very strong at $187 million or $0.23 per share. Year-to-date, we have generated adjusted earnings per share of $0.67, up 20%. Adjusted EBITDA for the quarter was $676 million, up 3% in the quarter and up 4% on a year-to-date basis. This strong performance is driven by revenue growth, the associated margins, and our overall efficiency, enabling continued investments for the future while delivering these results.
Adjusted earnings per share also benefited from our repurchases enabled by our strong cash generation and our efficient capital structure. On the top line, we delivered total revenue of $1.3 billion in the quarter, up 4%. Monitoring and services revenue was up 2%, with an ending RMR balance of $362 million. Installation revenue was $200 million, up 21%, reflecting our continued mix shift to outright sales at higher average prices as more customers choose our ADT+ offerings. Gross subscriber additions were 210,000 in the quarter, adding $12.5 million in RMR. Our adds were down year-over-year, driven mainly by fewer bulk account purchases, approximately 49,000 accounts last year versus approximately 15,000 this year. I will note that our third quarter results still include the multifamily business, which we divested on October 1st. This business is comprised of customers who own or operate residential rental housing facilities such as apartment complexes.
Its characteristics are akin to the commercial business we divested in late 2023, generating meaningfully lower EBITDA and cash flow margins than our core residential subscriber base. We are consequently pleased with the $56 million sale price for this relatively small portfolio of approximately 200,000 subscribers and $2.6 million in RMR. We have also continued to return significant capital to shareholders while strengthening our balance sheet. As Jim mentioned, we have returned $746 million so far this year from the repurchase of 78 million shares and our quarterly dividend distributions. We remain very comfortable with our leverage at 2.8x adjusted EBITDA, with net debt of $7.5 billion at the end of the third quarter. In October, we closed on a new eight-year $1 billion bond and a $300 million add-on to our 2032 term loan B.
We used the proceeds to fully repay our $1.3 billion 2028 second lien notes, which was our most expensive debt. We also closed on a new $325 million term loan A last week, with those proceeds designated to repay some of our 2030 term loan B and our April 2026 notes. In all cases, we were able to price the new facilities below the rates of the debt they replaced. Together with transactions from earlier in the year, we have extended almost $2.5 billion of upcoming maturities and lowered our borrowing cost to 4.3%. We also enjoy a continued strong liquidity position with an undrawn $800 million revolving facility and $63 million of cash on hand at the end of the quarter. I'll close with a couple of comments on our outlook.
With two months to go, we remain on track to deliver results consistent with the guidance we shared early this year. Reflecting this confidence, we have tightened and adjusted our guidance ranges, largely maintaining prior midpoints. We now expect total revenue of between $5.075 billion and $5.175 billion. With the midpoint consistent with our original guidance. Our refresh ranges include a slightly higher Adjusted EPS midpoint with an offset to the Adjusted EBITDA midpoint. This is in consideration of the mix between expense and capitalized SAC and other factors, including a delayed planned legal recovery. We now expect Adjusted EPS in a range of $0.85-$0.89, and we expect Adjusted EBITDA to be in the range of $2.665 billion-$2.715 billion. Finally, we are maintaining our $800 million-$900 million range for Adjusted Free Cash Flow, including swaps, as we evaluate a handful of fourth quarter opportunities, including bulk account purchases.
In summary, we are very pleased with our progress during the first three quarters of 2025. As we look towards the remainder of the year, we are confident in our ability to deliver on our commitments. We remain focused on driving operational efficiency, investing in innovation, and generating long-term value for our stakeholders. Thank you for your continued support. Operator, please open the line for questions.