Financial research concept

Security Monitoring Gross Customer Revenue Attrition

measures trailing-twelve-month recurring monthly revenue lost from customer cancellations under the issuer's stated exclusions and adjustments.

By Lee BaileyPublished Sep 26, 2026

Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date: Sep 26, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 17 connected conceptsPart of the reviewed Security Monitoring Subscription Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

The numerator is lost RMR, not lost customer count
The denominator is an annualized average RMR base
Some customer populations are excluded
Part of the Security Monitoring Subscription Economics
See It in Company Research
Continue Research

Security monitoring gross customer revenue attrition measures recurring monthly revenue lost to customer cancellations over the trailing twelve months.

ADT reported 13.1% gross customer revenue attrition at December 31, 2025, up from 12.7% a year earlier.

The numerator is lost RMR, not lost customer count

ADT calculates the numerator from RMR lost because of attrition, net of dealer charge-backs and reinstated customers.

A high-RMR customer therefore has more weight in this metric than a low-RMR customer. The percentage should not be interpreted as a simple share of customers who canceled.

The denominator is an annualized average RMR base

ADT divides lost RMR by total annualized RMR based on the average RMR under contract at the beginning of each month during the period.

That construction aligns a trailing-twelve-month revenue-loss numerator with a period-average recurring revenue base rather than a single year-end RMR snapshot.

Some customer populations are excluded

ADT excludes contracts it monitors but does not own and self-setup or DIY customers from the KPI.

The company also treats a site as canceled only when all services are terminated.

Those issuer-specific rules matter when comparing ADT's attrition percentage with another subscription or monitoring business.

Primary source: ADT 2025 Form 10-K.

Part of the Security Monitoring Subscription Economics

Connects monitoring subscriber scale and retention with recurring revenue, subscriber-acquisition investment, company-owned system economics, and the deferred and contracted revenue created by long-duration monitoring relationships.

Browse the full operating model in Company Analysis →

Where this concept fits

Subscriber base, recurring revenue, retention, and paybackCurrent relationship
Subscriber count supplies the installed base, RMR and recognized recurring revenue describe monetization, attrition measures recurring revenue lost, and payback connects the upfront acquisition investment to the revenue stream that recovers it.
End-of-Period RMRGross Customer Revenue AttritionCurrent conceptMonitoring and Related Services Revenue Recurring Monthly Revenue Revenue Payback Period Monitoring Subscriber Count
Subscriber acquisition and company-owned system investment
Dealer account purchases and contract additions acquire customer relationships, while subscriber system assets and deferred acquisition costs capitalize different parts of the investment required to create and support monitoring subscribers.
Customer Contract Additions Dealer-Generated Account Purchases Deferred Acquisition Cost Amortization Deferred Subscriber Acquisition Costs Subscriber System Asset Depreciation Subscriber System Asset Expenditures Subscriber System Assets
Installation, deferred fees, and contracted future service revenue
Outright-sale installation revenue is recognized differently from company-owned upfront fees, while deferred subscriber acquisition revenue and remaining performance obligations show how existing customer contracts feed later revenue recognition.
Deferred Subscriber Acquisition Revenue Deferred Acquisition Revenue Amortization Installation Revenue Monitoring Remaining Performance Obligations

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

ADTOpen operating-model research →17 of 17 reviewed concepts in Security Monitoring Subscription EconomicsSubscriber base, recurring revenue, retention, and payback6 of 6 bridge concepts supportedContinue through this bridge:End-of-Period RMR Monitoring and Related Services Revenue Monitoring Subscriber Count Recurring Monthly Revenue Revenue Payback Period

Continue Research

Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.

Compare stocks

Compare revenue retention

Compare recurring revenue lost to cancellations while preserving issuer exclusions, charge-backs, reinstatements, and denominator methodology.

Continue research

Explore more topics in the Financial Research Encyclopedia.