LEASES

3 Months Ended

Mar. 31, 2026

Leases [Abstract]

LEASES

LEASES

Lessee

We have operating and finance leases for corporate offices, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years. Some of the leases include options to extend the leases and some include options to terminate the lease within 1 year. Operating leases and finance leases are included separately in the Condensed Consolidated Balance Sheets.

On December 16, 2025, ADT entered into three purchase and sale agreements with Custom Capital Strategies, Inc. (“Custom Capital”), pursuant to which the parties agreed to consummate three sale and leaseback transaction of three different properties in Texas, Utah, and Wyoming.

On February 27, 2026, the property located at 101-107 Pasture Drive, Evanston, Wyoming, was sold for a total purchase price of $1.7 million, subject to adjustment for taxes and other charges and assessments. Thereafter, Custom Capital assigned their rights to buy the property to their affiliate, Pasture Drive Holdings, LLC (the “ADT Wyoming Buyer”).

On March 27, 2026 the property located at 3601 N County Rd 1148, Midland, Texas, was sold for a total purchase price of $1.1 million, and the property located at 1377 East 1500 South, Vernal, Utah was sold for a total purchase price of $0.6 million. Both purchase prices are subject to adjustment for taxes and other charges and assessments. Immediately prior to the closings Custom Capital assigned their rights to buy the property to, Alliance Texas and Utah, LLC (the “ADT Property Buyer”).

Simultaneously with the consummation of the above sales, ADT entered into three commercial single-tenant triple net leases with the ADT Wyoming Buyer and the ADT Property Buyer, guaranteed by the Company, pursuant to which ADT leased back from the ADT Wyoming Buyer and the ADT Property Buyer the above properties sold for terms commencing on February 27, 2026 and on March 27, 2026, respectively, and ending on the 20th anniversaries thereof, unless earlier terminated or extended for four additional five year periods. Pursuant to the terms of the lease agreements, ADT will be responsible for rent and all monthly expenses related to the properties, including insurance premiums, taxes, utilities, and other expenses.

These sale leasebacks meet the qualification of operating leases under ASC 842, “Leases” in that (i) they do not automatically transfer title to the lessee at the end of the lease term; (ii) they do not contain a bargain purchase option; (iii) the lease term is not for a major part of the estimated remaining useful life of the asset; (iv) the present value of the lease payments does not represent substantially all of the fair value of the underlying assets; and (v) the underlying assets are not of such a specialized nature that are assumed to have no alternative use to the lessor at the end of the lease term. Accordingly, the Company recognized the resulting gain on sale of $37 in full in “Other income (expense), net” in the period in which the buyer obtained control of the assets, representing the excess of the aggregate sale proceeds of $3,211 net of closing fees over the aggregate carrying value of the properties of $3,174, and no portion of the gain was deferred. The related right‑of‑use assets and lease liabilities arising from the sale leasebacks are accounted for in accordance with ASC 842 and are presented within operating lease right‑of‑use assets and operating lease liabilities on the Condensed Consolidated Balance Sheets.

We used our incremental borrowing rate as the discount rate for these sale leaseback transactions, as the rate implicit in the lease is not readily determinable. We estimated our incremental borrowing rate based on our Company credit rating, adjusted for the lease’s term and the collateralized nature of the lease obligations. Lease extensions are not reasonably certain of being exercised. As such, we have not included such extensions in determining our incremental borrowing rate or in our initial valuation of the lease assets and liabilities.

The components of lease expense are as follows:

	Three Months Ended  March 31,
	2026		2025
Operating lease cost	$	712	$	284
Finance lease cost:
Amortization of finance lease assets	$	10	$	—
Interest on finance lease liabilities	—		—
Total finance lease cost	$	10	$	—

Supplemental cash flow information related to leases was as follows:

	Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	599	$	205
Operating cash flows from finance leases	$	—	N/A
Financing cash flows from finance leases	$	5	N/A
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	2,494	$	—

Supplemental balance sheet information related to leases was as follows:

	March 31, 2026		December 31, 2025
Weighted average remaining lease term (in years)
Operating leases	14.8		13.8
Finance leases	0.8		0.9
Weighted average discount rate
Operating leases	12.81	%	12.80	%
Finance leases	5.74	%	5.76	%

We are committed to making future cash payments on non-cancelable operating leases and finance leases (including interest). The future minimum lease payments due under both non-cancelable operating leases and finance leases having initial or remaining lease terms in excess of one year as of March 31, 2026 were as follows:

	Operating Leases		Finance Leases
2026 (for the remainder of the year)	$	1,846	$	11
2027	2,363		3
2028	2,109		—
2029	2,113		—
2030	1,924		—
2031 and thereafter	24,855		—
Total future minimum lease payments	35,210		14
Less amounts representing interest	(20,854)		(1)
Present value of lease obligations	$	14,356	$	13

LEASES

LEASES

Lessee

We have operating and finance leases for corporate offices, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years. Some of the leases include options to extend the leases and some include options to terminate the lease within 1 year. Operating leases and finance leases are included separately in the Condensed Consolidated Balance Sheets.

On December 16, 2025, ADT entered into three purchase and sale agreements with Custom Capital Strategies, Inc. (“Custom Capital”), pursuant to which the parties agreed to consummate three sale and leaseback transaction of three different properties in Texas, Utah, and Wyoming.

On February 27, 2026, the property located at 101-107 Pasture Drive, Evanston, Wyoming, was sold for a total purchase price of $1.7 million, subject to adjustment for taxes and other charges and assessments. Thereafter, Custom Capital assigned their rights to buy the property to their affiliate, Pasture Drive Holdings, LLC (the “ADT Wyoming Buyer”).

On March 27, 2026 the property located at 3601 N County Rd 1148, Midland, Texas, was sold for a total purchase price of $1.1 million, and the property located at 1377 East 1500 South, Vernal, Utah was sold for a total purchase price of $0.6 million. Both purchase prices are subject to adjustment for taxes and other charges and assessments. Immediately prior to the closings Custom Capital assigned their rights to buy the property to, Alliance Texas and Utah, LLC (the “ADT Property Buyer”).

Simultaneously with the consummation of the above sales, ADT entered into three commercial single-tenant triple net leases with the ADT Wyoming Buyer and the ADT Property Buyer, guaranteed by the Company, pursuant to which ADT leased back from the ADT Wyoming Buyer and the ADT Property Buyer the above properties sold for terms commencing on February 27, 2026 and on March 27, 2026, respectively, and ending on the 20th anniversaries thereof, unless earlier terminated or extended for four additional five year periods. Pursuant to the terms of the lease agreements, ADT will be responsible for rent and all monthly expenses related to the properties, including insurance premiums, taxes, utilities, and other expenses.

These sale leasebacks meet the qualification of operating leases under ASC 842, “Leases” in that (i) they do not automatically transfer title to the lessee at the end of the lease term; (ii) they do not contain a bargain purchase option; (iii) the lease term is not for a major part of the estimated remaining useful life of the asset; (iv) the present value of the lease payments does not represent substantially all of the fair value of the underlying assets; and (v) the underlying assets are not of such a specialized nature that are assumed to have no alternative use to the lessor at the end of the lease term. Accordingly, the Company recognized the resulting gain on sale of $37 in full in “Other income (expense), net” in the period in which the buyer obtained control of the assets, representing the excess of the aggregate sale proceeds of $3,211 net of closing fees over the aggregate carrying value of the properties of $3,174, and no portion of the gain was deferred. The related right‑of‑use assets and lease liabilities arising from the sale leasebacks are accounted for in accordance with ASC 842 and are presented within operating lease right‑of‑use assets and operating lease liabilities on the Condensed Consolidated Balance Sheets.

We used our incremental borrowing rate as the discount rate for these sale leaseback transactions, as the rate implicit in the lease is not readily determinable. We estimated our incremental borrowing rate based on our Company credit rating, adjusted for the lease’s term and the collateralized nature of the lease obligations. Lease extensions are not reasonably certain of being exercised. As such, we have not included such extensions in determining our incremental borrowing rate or in our initial valuation of the lease assets and liabilities.

The components of lease expense are as follows:

	Three Months Ended  March 31,
	2026		2025
Operating lease cost	$	712	$	284
Finance lease cost:
Amortization of finance lease assets	$	10	$	—
Interest on finance lease liabilities	—		—
Total finance lease cost	$	10	$	—

Supplemental cash flow information related to leases was as follows:

	Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	599	$	205
Operating cash flows from finance leases	$	—	N/A
Financing cash flows from finance leases	$	5	N/A
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	2,494	$	—

Supplemental balance sheet information related to leases was as follows:

	March 31, 2026		December 31, 2025
Weighted average remaining lease term (in years)
Operating leases	14.8		13.8
Finance leases	0.8		0.9
Weighted average discount rate
Operating leases	12.81	%	12.80	%
Finance leases	5.74	%	5.76	%

We are committed to making future cash payments on non-cancelable operating leases and finance leases (including interest). The future minimum lease payments due under both non-cancelable operating leases and finance leases having initial or remaining lease terms in excess of one year as of March 31, 2026 were as follows:

	Operating Leases		Finance Leases
2026 (for the remainder of the year)	$	1,846	$	11
2027	2,363		3
2028	2,109		—
2029	2,113		—
2030	1,924		—
2031 and thereafter	24,855		—
Total future minimum lease payments	35,210		14
Less amounts representing interest	(20,854)		(1)
Present value of lease obligations	$	14,356	$	13