Frontdoor (NASDAQ:FTDR) Issues Earnings Results

Frontdoor (NASDAQ:FTDR) posted its earnings results on Thursday. The company reported $1.93 EPS for the quarter, topping analysts’ consensus estimates of $1.76 by $0.17, FiscalAI reports. The business had revenue of $645.00 million during the quarter, compared to the consensus estimate of $643.40 million. Frontdoor had a net margin of 12.72% and a return on equity of 120.90%. The firm’s revenue was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.63 EPS.

Here are the key takeaways from Frontdoor’s conference call:

• Member growth returned: Total ending members increased 1% year over year, marking the first organic growth since 2021. Direct-to-consumer members rose 5% and real estate members grew 7%, despite a difficult housing market.
• Strong financial performance and raised guidance: Second-quarter revenue increased 5% to $645 million, adjusted EBITDA rose 10% to $220 million, and adjusted EPS grew nearly 20%. Frontdoor raised full-year revenue guidance to $2.19 billion–$2.21 billion and adjusted EBITDA guidance to $585 million–$600 million.
• Margins and retention remain robust: Gross margin expanded 100 basis points to 59%, while adjusted EBITDA margin reached 34%. Renewal retention was near a record at 79.6%, supported by improved member service, greater app usage, and 85% AutoPay enrollment.
• Non-warranty growth is scaling: Non-warranty and other revenue grew 19%, led by the HVAC upgrade program, which management expects to generate $170 million in annual revenue. The company is expanding into appliance sales and sees substantial runway given only 3% penetration of its member base so far.
• Second-half comparisons include headwinds: Management expects the approximately $5 million second-quarter weather benefit to largely reverse in the third quarter, while increasing marketing investment by more than $10 million. Existing home sales remain sluggish, and full-year direct-to-consumer revenue is expected to decline by a low-single-digit percentage.

Frontdoor Stock Performance

NASDAQ:FTDR traded up $0.91 during mid-day trading on Friday, hitting $90.83. 847,496 shares of the company traded hands, compared to its average volume of 488,418. The company has a quick ratio of 1.47, a current ratio of 1.59 and a debt-to-equity ratio of 3.98. The stock’s fifty day moving average price is $72.99 and its 200-day moving average price is $64.73. The firm has a market cap of $6.38 billion, a price-to-earnings ratio of 24.09 and a beta of 1.47. Frontdoor has a one year low of $48.47 and a one year high of $93.43.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in FTDR. Snowden Capital Advisors LLC lifted its holdings in shares of Frontdoor by 4.1% during the 2nd quarter. Snowden Capital Advisors LLC now owns 6,407 shares of the company’s stock valued at $378,000 after purchasing an additional 250 shares during the last quarter. Bank of Montreal Can boosted its position in shares of Frontdoor by 5.0% in the 4th quarter. Bank of Montreal Can now owns 5,296 shares of the company’s stock worth $306,000 after purchasing an additional 254 shares in the last quarter. Summit Global Investments grew its stake in Frontdoor by 1.5% during the 4th quarter. Summit Global Investments now owns 20,310 shares of the company’s stock worth $1,172,000 after buying an additional 298 shares during the last quarter. Corient Private Wealth LLC increased its position in Frontdoor by 6.0% during the 4th quarter. Corient Private Wealth LLC now owns 5,282 shares of the company’s stock valued at $305,000 after buying an additional 300 shares in the last quarter. Finally, Vanguard Personalized Indexing Management LLC increased its position in Frontdoor by 4.8% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 6,608 shares of the company’s stock valued at $381,000 after buying an additional 303 shares in the last quarter.

Trending Headlines about Frontdoor

Here are the key news stories impacting Frontdoor this week:

• Positive Sentiment: Q2 earnings beat expectations: Frontdoor reported adjusted earnings of $1.93 per share, above the $1.76–$1.78 analyst estimates and up from $1.63 a year ago. Revenue increased 4.5% year over year to $645 million, modestly ahead of the $643.4 million consensus. Frontdoor Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Guidance and operating trends improved: Management raised its full-year revenue outlook to approximately $2.19 billion–$2.21 billion. The outlook reflects returning membership growth and margin expansion, while third-quarter revenue guidance of $642 million–$652 million is above the $641.1 million consensus. FTDR Q2 Deep Dive
• Positive Sentiment: Shareholder returns support sentiment: Frontdoor plans to repurchase up to $330 million of its shares in 2026, which could reduce the share count and provide additional support for earnings per share. Frontdoor Plans 2026 Buybacks
• Positive Sentiment: Analysts became more bullish: Benchmark raised its price target from $80 to $96 and assigned a Buy rating, while Truist increased its target from $82 to $105 and also rated the stock Buy. The revisions indicate greater confidence in Frontdoor’s earnings outlook following the quarterly results. Benzinga analyst updates

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on FTDR shares. Oppenheimer raised their price target on Frontdoor from $70.00 to $100.00 and gave the stock an “outperform” rating in a research note on Friday. The Goldman Sachs Group reiterated a “neutral” rating on shares of Frontdoor in a research report on Friday. Weiss Ratings downgraded Frontdoor from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, May 21st. Benchmark raised their target price on Frontdoor from $80.00 to $96.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Truist Financial boosted their price target on Frontdoor from $82.00 to $105.00 and gave the company a “buy” rating in a research note on Friday. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Frontdoor currently has a consensus rating of “Moderate Buy” and a consensus target price of $92.00.

About Frontdoor

Frontdoor, Inc (NASDAQ:FTDR) is a leading provider of home service plans and repair solutions for residential property owners. The company offers contract-based coverage that helps homeowners manage the cost of repairing and replacing essential household systems and appliances, including heating and cooling, plumbing, electrical wiring, water heaters, washers, dryers, refrigerators and other major kitchen equipment.

Frontdoor delivers its services through a nationwide network of independent service professionals and contractors, leveraging a cloud-based platform and call center infrastructure to coordinate service visits and process claims.