Frontdoor (NASDAQ:FTDR) Posts Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Frontdoor (NASDAQ:FTDR) released its quarterly earnings results on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 business had revenue of $433.00 million for the quarter, compared to analyst estimates of $421.62 million. During the same quarter in the previous year, the business earned $0.27 earnings per share. The firm’s revenue was up 13.1% compared to the same quarter last year.

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 Trading Up 17.0%

Shares of NASDAQ:FTDR traded up $9.60 during mid-day trading on Thursday, reaching $65.90. 1,213,064 shares of the company’s stock were exchanged, compared to its average volume of 527,535. The firm has a market capitalization of $4.75 billion, a price-to-earnings 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 business’s fifty day moving average price is $58.09 and its 200-day moving average price is $59.68. The company has a debt-to-equity ratio of 3.64, a quick ratio of 1.73 and a current ratio of 1.73.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Cerity Partners LLC purchased a new position in Frontdoor in the second quarter valued at approximately $349,000. Empowered Funds LLC lifted its stake in Frontdoor by 10.5% in the 1st quarter. Empowered Funds LLC now owns 11,008 shares of the company’s stock worth $423,000 after purchasing an additional 1,044 shares in the last quarter. Marex Group plc bought a new stake in shares of Frontdoor during the 4th quarter valued at about $266,000. Corient Private Wealth LLC bought a new position in Frontdoor in the second quarter valued at $254,000. Finally, Osaic Holdings Inc. raised its stake in shares of Frontdoor by 66.3% during the second quarter. Osaic Holdings Inc. now owns 4,143 shares of the company’s stock worth $244,000 after acquiring an additional 1,651 shares in the last quarter.

Frontdoor News Summary

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

Analyst Ratings Changes

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

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.