Revenue

Q3 2025

$600M–$605M "

$605M–$615M, expected 13% YoY " "

raised

Adjusted EBITDA

Q3 2025

$185M–$190M "

$180M–$190M, expected 12% growth " "

lowered

Revenue

FY 2025

$2.03B–$2.05B "

$2.055B–$2.075B, increased by $25M "

raised

Gross Profit Margin

FY 2025

54%–55% " "

55%–56% "

raised

SG&A

FY 2025

$650M–$670M "

$660M–$670M "

raised

Adjusted EBITDA

FY 2025

$500M–$520M "

$530M–$550M "

raised

Share Repurchases

FY 2025

At least $200M "

Approximately $250M "

raised

Effective Tax Rate

FY 2025

no prior guidance

24% "

no prior guidance

Capital Expenditures

FY 2025

no prior guidance

$35M "

no prior guidance

Enhanced Two Ten Synergies and Integration

Q3 2024: Integration progress described as a “heavy lift” with regulatory approval pending and initial excitement for synergies. " " Q1 2025: Integration on track with strategic priority, contributing to revenue growth and improved real estate performance. " " "

Q2 2025: Increased synergy expectations from $10 million to $15 million, smooth integration with strong operational performance and reaffirmed long‐term goals. " " " "

Enhanced synergy performance with improved cost reductions and a more optimistic integration outlook. " " "

Robust HVAC Upgrade and Sales Program

Q3 2024: Strong revenue contribution expected with market expansion and contractor onboarding. " " " Q1 2025: Demand growth with raised revenue outlook to $105 million, effective management of equipment transition noted. " "

Q2 2025: Exceptional performance with a nearly 40% higher revenue year-over-year, raised outlook to $120 million, introduction of a new financing option boosting usage by 75%, and exploration of expansion into additional product areas. " " "

Continued robust growth with new financing enhancements and further revenue expansion potential. " "

Structural and Home Buyers Warranty Integration

Q3 2024: Integration in progress with regulatory approval pending for closing in Q4 2024. " " Q1 2025: Integration on track, significantly contributing to the real estate channel with 11% revenue impact and improved service requests. " " " "

Q2 2025: Integration ahead of schedule with enhanced cost synergies (increased from $10 million to $15 million), smoother operational transition of the combined sales teams, and positive structural warranty revenue contributions. " " "

Improved operational integration with higher synergy expectations and stronger cross‐selling opportunities. " " "

Direct-to-Consumer Channel Strategies and Discounting

Q3 2024: Strong marketing campaigns boosted brand and ad awareness; discounting drove demand while increasing conversion. " " " Q1 2025: DTC channel growth with a 15% increase in members achieved through targeted campaigns and strategic discounting despite revenue trade-offs. " "

Q2 2025: Continued organic growth in the DTC channel with a 9% increase in home warranties, record high brand awareness achieved through refined marketing and discounting strategies, albeit with lower price realization. " "

Consistent focus on DTC growth with evolving discounting strategies to support new member acquisition. " "

Cost Management, Supply Chain Agility, and Tariff Impacts

Q3 2024: Emphasis on cost reduction through lower claims costs, optimized contractor usage via bulk purchasing, and flat inflation with no discussion of tariffs. " Q1 2025: Proactive cost management via dynamic pricing and supply chain optimization with careful monitoring of tariff risks. " " "

Q2 2025: Continued process improvements, leveraging scale and preferred contractors, and benefiting from a more favorable macro environment—including lower than anticipated tariff impacts—which boosted gross margins. " "

Sustained focus on cost management enhanced by improved supply chain agility and a favorable tariff environment. " "

Equipment Transition to New Refrigerant Standards

Q1 2025: Effective management of the transition with securing old equipment and a smooth shift to new, compliant systems highlighted, supporting raised guidance. "

Not mentioned

Topic no longer mentioned in the current period [N/A].

On-Demand Business Expansion and Partnership Growth

Q3 2024: Expansion initiatives discussed through key partnerships with AARP and Moen, with on-demand revenue projections over $100 million and strategic channel diversification. " " " "

Not mentioned

Topic is not mentioned in the current period, indicating a discontinuation of focus compared to Q3 2024 [N/A].

Declining Real Estate Channel Attach Rates

Q3 2024: Industry-wide decline noted with attach rates falling from the high 20s/30% to the teens, reflecting a broader market challenge. " " Q1 2025: Continued headwinds in the real estate channel with a 6% decline in first‐year organic member count. " "

Q2 2025: Ongoing challenges with a 63% decline in real estate home warranty units over five years; however, optimism is indicated by an 18% increase in unsold inventory suggesting a shift toward a buyer's market. " "

Persistent concerns over declining attach rates with cautious optimism due to improving inventory signals. " "

Sustainability of Record Gross Margins and External Conditions

Q3 2024: Record gross margins of 57% achieved due to favorable price increases, weather, and operational efficiencies, though concerns remained over the sustainability of these factors. " " Q1 2025: Record margins supported by dynamic pricing and cost management, with external risks such as tariffs noted. " "

Q2 2025: Gross margins reached 58%, driven by process improvements, low cost inflation, and effective supplier negotiations, with improved external conditions contributing to an optimistic full‐year outlook. " "

Incremental margin improvements with strong operational control, albeit with ongoing external dependencies. " "