ADT (ADT) will likely deliver in-line Q2 results and reiterate its 2026 outlook even as it moves away from affiliate and dealer channels to a direct-to-consumer model, RBC Capital Markets said in a note Monday. The Q2 results are due July 30.

RBC said it expects ADT to post low-single-digit revenue increase as installation revenue growth of about 7% will likely be partly offset by a "modest" decline in the company's monitoring and related services segment.

Also, ADT's key performance indicators like attrition and payback period are expected to stay stable sequentially, the note said.

The report said ADT is rationalizing its highest-cost customer acquisition channels to strengthen long-term unit economics and drive acquisition cost efficiency.

"ADT's disciplined customer acquisition approach, combined with higher pricing on new units driven by favorable product mix and operational cost efficiencies, should drive robust FCF growth in 2026," the report said.

RBC has a sector perform rating on ADT and a $9 price target.

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