ADT shares rise 8% after report of Thrive Capital talks to take company private
Key Facts
ADT shares rose 8% on October 28, 2026, after Seeking Alpha reported that Thrive Capital, the firm founded by Josh Kushner, is in talks to take the company private. The report cited a post on X by Octus, which said a private loan that could be "record-setting" was under discussion. The report also said bank financing was being explored. But it said no definitive agreement had been reached, leaving the talks and potential financing unresolved. The published information did not include a target share price or a potential value for the company in the deal.
According to Seeking Alpha, discussion of the private loan concerns a potential financing option, not financing that has been secured or an announced offer. The exploration of bank financing also does not mean lenders have agreed to provide it or that the deal structure is complete. The report explicitly said there was no definitive deal. The available news therefore remains tied to talks attributed to Thrive Capital, without details on their terms or a timetable for completion. The report did not cite an expected premium or a specific explanation for the share rise.
ADT's second-quarter 2026 results provide context on the company's financial performance ahead of its next results. Total revenue was $1.312 billion, up 2% year over year. By contrast, monitoring and related services revenue fell 1% to $1.082 billion, from $1.090 billion in the second quarter of 2025. These figures show a divergence between growth in total revenue and a decline in recurring revenue tied to monitoring during the period. CEO Jim DeVries said the company "continues to focus on improving customer attrition trends" amid a changing competitive environment.
The company also reported higher cash flows in the second quarter. Net cash provided by operating activities was $666 million, up $102 million from the same period a year earlier. Adjusted free cash flow, including interest rate swaps, was $406 million, up $133 million year over year. During the same quarter, ADT returned $523 million to shareholders, including $478 million in share repurchases and $45 million in dividends. These results show the cash the company generated and how it returned part of it to shareholders, without its statement linking these figures to the Thrive Capital talks.
ADT raised its 2026 outlook, expecting growth of about 30% in adjusted free cash flow, including interest rate swaps, and growth of about 2% in total revenue and adjusted earnings per share, compared with 2025. The outlook sets the company's performance targets for the current year, alongside second-quarter results that recorded annual growth in total revenue and a decline in monitoring and related services revenue. The company is due to report its next results on November 3. The date is the next opportunity to update investors on performance and the outlook, and may offer a chance to learn whether management will comment on the report about the talks.