ADT Inc.ADT
ADT Inc. Earnings Per Share Disclosure
EARNINGS PER SHARE
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The Company applies the two-class method for computing and presenting earnings per share for each class of common stock, which allocates current period income (losses) to each class of common stock and participating securities based on dividends declared and participation rights in the remaining undistributed earnings or losses.
Basic earnings per share is computed by dividing the income (losses) allocated to each class of common stock by the related weighted-average number of shares outstanding during the period. Diluted earnings per share gives effect to all securities representing potential common shares that were dilutive and outstanding during the period for each class of common stock and excludes potentially dilutive securities whose effect would have been anti-dilutive.
Common Stock
Potential shares of Common Stock include (i) incremental shares related to the vesting or exercise of share-based compensation awards, warrants, and other options to purchase additional shares of the Company’s Common Stock calculated using the treasury stock method and (ii) incremental shares of Common Stock issuable upon the conversion of Class B Common Stock.
| Years Ended December 31, | ||||||||||||||||||||
| (in thousands, except per share amounts) | 2025 | 2024 | 2023 | |||||||||||||||||
Allocation of income (loss) from continuing operations - basic | $ | 560,977 | $ | 581,980 | $ | 423,503 | ||||||||||||||
Dilutive effect(1) | 13,988 | 13,671 | 8,885 | |||||||||||||||||
Allocation of income (loss) from continuing operations - diluted | $ | 574,965 | $ | 595,651 | $ | 432,388 | ||||||||||||||
| Allocation of income (loss) from discontinued operations, net of tax - basic | $ | (4,267) | $ | (111,197) | $ | 11,885 | ||||||||||||||
Dilutive effect(1) | — | — | — | |||||||||||||||||
| Allocation of income (loss) from discontinued operations, net of tax - diluted | $ | (4,267) | $ | (111,197) | $ | 11,885 | ||||||||||||||
| Weighted-average shares outstanding - basic | 777,822 | 846,521 | 856,843 | |||||||||||||||||
Dilutive effect(1) | 63,354 | 62,179 | 62,306 | |||||||||||||||||
| Weighted-average shares outstanding - diluted | 841,176 | 908,700 | 919,149 | |||||||||||||||||
Income (loss) from continuing operations per share - basic | $ | 0.72 | $ | 0.69 | $ | 0.49 | ||||||||||||||
Income (loss) from continuing operations per share - diluted | $ | 0.68 | $ | 0.66 | $ | 0.47 | ||||||||||||||
Income (loss) from discontinued operations, net of tax, per share - basic | $ | (0.01) | $ | (0.13) | $ | 0.01 | ||||||||||||||
Income (loss) from discontinued operations, net of tax, per share - diluted | $ | (0.01) | $ | (0.12) | $ | 0.01 | ||||||||||||||
(1) Includes conversion of Class B Common Stock. 21 million, 20 million, and 17 million potential shares of Common Stock were excluded during 2025, 2024, and 2023, respectively, from the diluted earnings per share calculations because their effects would have been anti-dilutive.
The basic and diluted earnings per share computations for Common Stock exclude approximately 4 million, 7 million, and 9 million unvested shares during 2025, 2024, and 2023, respectively, as their vesting is contingent upon achievement of certain performance requirements which had not been met during the respective periods.
Class B Common Stock
| Years Ended December 31, | ||||||||||||||||||||
| (in thousands, except per share amounts) | 2025 | 2024 | 2023 | |||||||||||||||||
Allocation of income (loss) from continuing operations - basic | $ | 39,541 | $ | 37,410 | $ | 26,867 | ||||||||||||||
Dilutive effect(1) | (1,944) | (1,627) | (1,221) | |||||||||||||||||
Allocation of income (loss) from continuing operations - diluted | $ | 37,597 | $ | 35,783 | $ | 25,646 | ||||||||||||||
| Allocation of income (loss) from discontinued operations, net of tax - basic | $ | (300) | $ | (7,140) | $ | 754 | ||||||||||||||
Dilutive effect(1) | — | — | — | |||||||||||||||||
Allocation of income (loss) from discontinued operations, net of tax - diluted | $ | (300) | $ | (7,140) | $ | 754 | ||||||||||||||
| Weighted-average shares outstanding - basic | 54,745 | 54,745 | 54,745 | |||||||||||||||||
Dilutive effect(1) | — | — | — | |||||||||||||||||
| Weighted-average shares outstanding - diluted | 54,745 | 54,745 | 54,745 | |||||||||||||||||
Income (loss) from continuing operations per share - basic | $ | 0.72 | $ | 0.69 | $ | 0.49 | ||||||||||||||
Income (loss) from continuing operations per share - diluted | $ | 0.68 | $ | 0.66 | $ | 0.47 | ||||||||||||||
Income (loss) from discontinued operations, net of tax, per share - basic | $ | (0.01) | $ | (0.13) | $ | 0.01 | ||||||||||||||
Income (loss) from discontinued operations, net of tax, per share - diluted | $ | (0.01) | $ | (0.12) | $ | 0.01 | ||||||||||||||
(1) There were no potential shares of Class B Common Stock during the periods presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.