Frontdoor (FTDR) Company Report

Frontdoor anticipates its ending member count will turn positive sometime in 2026, with 3% organic revenue growth expected in 2025 and further expansion in 2026, alongside projected EBITDA dollar growth in 2026.
The company, holding approximately 40% market share in home warranties, has achieved its first quarter of organic growth in the real estate channel in five years and continues to see strong performance in its direct-to-consumer business.
Frontdoor is expanding its non-warranty offerings, starting with HVAC (guided at $125 million from a standing start) and planning a nationwide rollout of appliances in 2026, aiming to increase "share of wallet" with existing members.
The company reports record margin levels, attributing durability to its dynamic pricing model, strong contractor relationships, and effective management of inflation at low single digits (3-4%).
Frontdoor is actively leveraging AI to enhance marketing strategies (including integration with large language models for search), accelerate service authorization processes, and empower sales agents with real-time objection handling.

Nov 18, 2025, 7:00 PM

Transcript

Frontdoor Discusses Growth Outlook, Non-Warranty Expansion, and Capital Allocation

FTDR

Revenue Acceleration/Inflection

New Projects/Investments

Share Buyback

Frontdoor expects 3% organic revenue growth this year, with further expansion in 2026 and 2027, and anticipates EBITDA dollar growth in 2026. The company projects its ending member count to turn positive sometime in 2026.
The direct-to-consumer (DTC) business has grown units for five consecutive quarters, and the real estate channel recently achieved its first organic growth in five years. Retention rates have improved by approximately 300 basis points over the last several years.
The non-warranty business, currently guided at $125 million for HVAC, plans to roll out appliances nationwide in 2026 to increase share of wallet with existing members.
Capital allocation priorities include growth, maintaining a strong balance sheet, and returning cash to shareholders, with a current focus on share repurchases. The integration of 2-10 is ahead of schedule, having achieved half of the projected $30 million+ synergies by 2028.

Nov 18, 2025, 7:00 PM

Transcript

Frontdoor Discusses Member Growth Outlook, Revenue Expansion, and Strategic Initiatives at Wells Fargo Summit

FTDR

Guidance Update

New Projects/Investments

M&A

Jason Bailey was recently promoted to CFO, bringing experience from public accounting and M&A.
Frontdoor anticipates its ending member count will turn positive sometime in 2026, driven by organic growth in the real estate channel (first time in five years) and continued strength in the direct-to-consumer business.
The company projects 3% organic revenue growth this year (2025), with expectations to expand on this in 2026 and 2027, and confirms that EBITDA dollars will grow in 2026.
Frontdoor is expanding its non-warranty business, currently at a $125 million guide for HVAC, with plans to roll out appliances nationwide in 2026. This strategy aims to increase share of wallet with existing members and is a profitable venture from an EBITDA margin perspective.
The company is focused on capital allocation, prioritizing growth, maintaining a strong balance sheet, and returning cash to shareholders, with a current emphasis on share repurchases due to valuation. Integration of the 2-10 acquisition is progressing well, with $15 million in synergies already realized.

Nov 18, 2025, 7:00 PM

Transcript

Frontdoor Reports Strong Q3 2025 Results, Raises Full-Year Outlook, and Announces CFO Change

FTDR

Earnings

Guidance Update

CFO Change

Frontdoor (FTDR) reported strong Q3 2025 financial results, with revenue increasing 14% to $618 million and Adjusted EBITDA growing 18% to $195 million. The gross profit margin expanded by 60 basis points to 57%, and adjusted earnings per share grew 15% to $1.58.
The company raised its full-year 2025 outlook, now expecting revenue between $2.075 billion and $2.085 billion and Adjusted EBITDA between $545 million and $550 million.
Key growth drivers included an 8% increase in first-year organic direct-to-consumer (DTC) ending member count and the first sequential growth in real estate member count in five years. The full-year outlook for new HVAC revenue was also raised to $125 million, a 44% increase over 2024.
Frontdoor announced that Jessica Ross resigned as CFO, effective November 10, 2025, and will be succeeded by Jason Bailey. The company is also reevaluating its long-term margin targets due to successful margin improvements.

Nov 5, 2025, 1:30 PM

Transcript

Frontdoor Announces Strong Q3 2025 Financial Results and Revised Full-Year Outlook

FTDR

Earnings

Guidance Update

Share Buyback

Frontdoor reported Q3 2025 revenue of $618 million, a 14% increase year-over-year, with Net Income of $106 million and Adjusted EBITDA of $195 million, up 5% and 18% respectively.
The company achieved a Gross Profit Margin of 57% in Q3 2025, an increase of 60 basis points compared to the prior year period.
Diluted Earnings Per Share (EPS) was $1.42, while Adjusted Diluted EPS reached $1.58 for Q3 2025.
Frontdoor repurchased $215 million of shares year-to-date through October 31, 2025.
For the full year 2025, Frontdoor revised its outlook, expecting revenue between $2.075 billion and $2.085 billion and Adjusted EBITDA between $545 million and $550 million.

Nov 5, 2025, 1:30 PM

Presentation

Frontdoor Reports Strong Q3 2025 Results, Raises Full-Year Outlook, and Announces CFO Transition

FTDR

Earnings

Guidance Update

CFO Change

Frontdoor (FTDR) reported strong Q3 2025 financial results, with revenue increasing 14% to $618 million and Adjusted EBITDA growing 18% to $195 million. Net income rose 5% to $106 million, and adjusted earnings per share increased 15% to $1.58.
Operational highlights include an 8% growth in organic Direct-to-Consumer (DTC) ending member count and sequential growth in the real estate channel. The full-year outlook for new HVAC revenue was raised to $125 million, representing a 44% increase over 2024.
The company raised its full-year 2025 revenue outlook to $2.075-$2.085 billion and its Adjusted EBITDA outlook to $545-$550 million.
Frontdoor repurchased $215 million worth of shares through October 31.
Jessica Ross resigned as CFO and will be succeeded by Jason Bailey effective November 10, 2025.

Nov 5, 2025, 1:30 PM

Transcript

Frontdoor, Inc. Reports Strong Q3 2025 Financial Results and Raises Full-Year Guidance

FTDR

Earnings

Guidance Update

Share Buyback

Frontdoor, Inc. reported Q3 2025 revenue of $618 million, marking a 14% increase from the prior year.
Net income for Q3 2025 rose 5% to $106 million, and diluted earnings per share increased 9% to $1.42.
Adjusted EBITDA for Q3 2025 grew 18% to $195 million.
The company repurchased $215 million of shares year-to-date through October 2025.
Frontdoor, Inc. increased its full-year 2025 revenue guidance to a range of $2.075 billion to $2.085 billion and its Adjusted EBITDA guidance to a range of $545 million to $550 million.

Nov 5, 2025, 12:05 PM

8-K

Frontdoor Announces Strong Third-Quarter 2025 Financial Results and Raised Full-Year Guidance

FTDR

Earnings

Guidance Update

Share Buyback

Frontdoor reported third-quarter 2025 revenue of $618 million, a 14% increase compared to the prior year, and net income of $106 million, up 5%.
Adjusted EBITDA for Q3 2025 increased 18% to $195 million, and diluted earnings per share rose 9% to $1.42.
The company repurchased $215 million of shares year-to-date through October 2025.
Frontdoor increased its full-year 2025 revenue guidance to $2.075 billion to $2.085 billion and Adjusted EBITDA guidance to $545 million to $550 million.

Nov 5, 2025, 12:00 PM

Press Release

Frontdoor Reports Strong Q2 2025 Results

FTDR

Earnings

Guidance Update

Frontdoor reported strong Q2 2025 results, with earnings per share of $1.63 and GAAP revenue of $617 million, both surpassing analyst estimates.
The company achieved year-over-year revenue growth of 13.8% to 14% and a record gross margin of 58% in the quarter.
Operating margin rose to 29.8% and free cash flow margin improved to 19.4%.
Frontdoor raised its full-year revenue guidance to $2.07 billion and set EBITDA guidance at $540 million at the midpoint, both above analyst estimates.

Aug 5, 2025, 11:37 AM

Morningstar

Frontdoor Inc Refocuses on Core Home Warranty and Expands Service Offerings

FTDR

M&A

Share Buyback

Revenue Acceleration/Inflection

Operational refocus on the core home warranty business has driven record profitability, improved customer retention, and enhanced contractor relationships, positioning the company as a cash generator.
Expansion into non-warranty services such as HVAC—with plans to extend to water heaters, appliances, and roof repair—has yielded strong discounting initiatives and a guided $100M business in 2025.
Strategic acquisition of 2-10 has provided access to a new home structural warranty market and delivered initial synergies of $10M, with integration efforts targeting $30M in the next few years.
Capital allocation strategy emphasizes growth through increased SG&A spending, robust liquidity (over $500M in cash), and an enhanced share repurchase program (raised repurchase guide from $180M to over $200M), while maintaining a leverage ratio near 1.9x.

May 13, 2025, 7:51 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Frontdoor.

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