Frontdoor (NASDAQ:FTDR) Releases Earnings Results, Beats Expectations By $0.12 EPS

Frontdoor (NASDAQ:FTDR) released its earnings results on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.12, Briefing.com reports. Frontdoor had a net margin of 12.87% and a return on equity of 122.74%. The firm had revenue of $433.00 million during the quarter, compared to analyst estimates of $421.62 million. During the same period last year, the business earned $0.27 earnings per share. The business’s revenue was up 13.1% on a year-over-year basis.

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

• Frontdoor says it stabilized membership in 2025 and expects ending member count to grow in 2026, driven by ~5% first‑year channel growth and improving DTC and real‑estate momentum.
• Strong 2025 results: revenue up 14% to nearly $2.1B, gross margin a record 55%, and Adjusted EBITDA up 25% to $553M, with management raising its long‑term Adjusted EBITDA margin target to the mid‑20% range.
• Non‑warranty is scaling fast — the new HVAC program grew 48% to $128M in 2025, Frontdoor expects non‑warranty of $220M–$240M in 2026 and has launched an appliance pilot and third‑party partnerships to expand share of wallet.
• The business is highly cash generative: record free cash flow of $390M in 2025 and $280M of share repurchases, with management on track to complete the current repurchase authorization ahead of schedule.
• Management flags a near‑term headwind as renewal member count is expected to be modestly negative in 2026 (lower prior first‑year units), and promotional pricing plus low‑single‑digit claims/tariff inflation remain execution risks to short‑term revenue and margins.

Frontdoor Stock Performance

Shares of NASDAQ:FTDR traded up $9.60 during midday trading on Thursday, reaching $65.90. The company’s stock had a trading volume of 1,213,064 shares, compared to its average volume of 527,535. The stock has a fifty day moving average of $58.09 and a 200 day moving average of $59.68. The firm has a market capitalization of $4.75 billion, a PE ratio of 18.77 and a beta of 1.34. Frontdoor has a twelve month low of $35.61 and a twelve month high of $70.14. The company has a quick ratio of 1.73, a current ratio of 1.73 and a debt-to-equity ratio of 3.64.

Key Stories Impacting Frontdoor

Here are the key news stories impacting Frontdoor this week:

• Positive Sentiment: Q4 results beat Wall Street: Frontdoor reported $0.23 EPS vs. a $0.11 consensus and revenue of $433M vs. ~$422M expected, driving the initial market rally. Frontdoor (FTDR) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Revenue momentum and strong profitability: Revenue was up ~13% year-over-year and the company reported healthy net margin and very high return on equity — items investors view as evidence of operating leverage. Why Is Frontdoor (FTDR) Stock Soaring Today
• Neutral Sentiment: Guidance roughly in line on revenue but light on detail: company gave FY‑2026 revenue guidance around $2.2B (near consensus), leaving limited upside from guidance alone. Investors are parsing the conference call for management color. Frontdoor (FTDR) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Management guidance flagged as below some expectations by market outlets, which could cap upside if investors wanted a clearer beat‑and‑raise. Frontdoor beats Q4 estimates but guides below expectations
• Negative Sentiment: Profitability vs. comparables and QoQ noise: EPS declined from $0.27 a year ago to $0.23 this quarter despite revenue growth, a datapoint some investors may view as a warning on margin sustainability. Frontdoor (FTDR) Q4 Earnings and Revenues Surpass Estimates
• Negative Sentiment: Balance‑sheet/leverage concerns: Frontdoor’s reported debt-to-equity is elevated (background data), which could worry investors if growth slows and limits financial flexibility. Frontdoor, Inc. (FTDR) Q4 2025 Earnings Call Transcript

Analysts Set New Price Targets

A number of research firms have commented on FTDR. Truist Financial set a $71.00 price target on Frontdoor in a report on Monday, January 26th. Wall Street Zen cut Frontdoor from a “buy” rating to a “hold” rating in a research report on Monday, November 24th. Weiss Ratings reissued a “hold (c+)” rating on shares of Frontdoor in a report on Monday, December 29th. Finally, Oppenheimer restated an “outperform” rating and issued a $70.00 price target on shares of Frontdoor in a research note on Thursday. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $61.50.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of FTDR. Invesco Ltd. raised its holdings in Frontdoor by 2.5% in the 4th quarter. Invesco Ltd. now owns 1,136,647 shares of the company’s stock valued at $65,573,000 after buying an additional 27,832 shares during the period. Corient Private Wealth LLC lifted its stake in Frontdoor by 6.0% in the fourth 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 during the last quarter. Mercer Global Advisors Inc. ADV grew its stake in shares of Frontdoor by 31.4% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 5,339 shares of the company’s stock valued at $308,000 after purchasing an additional 1,275 shares during the last quarter. Summit Global Investments boosted its stake in shares of Frontdoor by 1.5% in the fourth quarter. Summit Global Investments now owns 20,310 shares of the company’s stock valued at $1,172,000 after buying an additional 298 shares in the last quarter. Finally, Empowered Funds LLC boosted its position in Frontdoor by 483.4% during the fourth quarter. Empowered Funds LLC now owns 40,307 shares of the company’s stock worth $2,325,000 after purchasing an additional 33,398 shares in the last quarter.

Frontdoor Company Profile

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.