📈 Price History

Ratio Health

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— Good

— Average

— Poor

By Category

📊 Peer Medians

About

Frontdoor, Inc. provides home warranties and new home builder warranties in the United States. The company offers customizable home warranties that help customers to protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. Its home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as pools, spas, and pumps; and heating, ventilation, and air conditioning systems. It also offers non-warranty home services through website and application; a one-stop app experience for home repair and maintenance using video chat, augmented reality, and computer vision and machining learning. The company operates under the American Home Shield, HSA, OneGuard, Landmark, and 2-10 HBW brand names. Frontdoor, Inc. was founded in 1971 and is headquartered in Memphis, Tennessee.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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⭐ Superinvestors Holding FTDR

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	1.85M	$97.8M	0.15%	Mar 2026
Steve Cohen Point72 Asset Management	67.1K	$3.5M	0.00%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2025

Confident Specific

Management repeatedly described results as 'exceptionally well' and 'very strong', used precise figures (e.g., 14% revenue growth, 58% gross margin, 26% EBITDA growth), and raised full-year guidance for both revenue and adjusted EBITDA, indicating high conviction.

Q3 2025

Confident Specific

Management uses language like 'superior financial and operational performance', 'on track for record financial results', 'crushing it', and 'firing on all cylinders'. They provide specific metrics (8% DTC growth, 14% revenue increase, 18% adjusted EBITDA growth) and repeatedly cite strategic milestones.

Q4 2025

Confident Specific

The tone is confident and specific throughout, with management repeatedly emphasizing 'great 2025', 'record' gross margin and free cash flow, and three clear key takeaways: growing member count in 2026, raising long-term EBITDA margin target, and completing share repurchases ahead of schedule. Specific metrics like '$553 million Adjusted EBITDA', '75% renewal rate', and '$128 million new HVAC revenue' reinforce the precision.

Q1 2026 latest

Confident Specific

Management used phrases like "off to a fast start", "major milestone", "nothing short of amazing", and "very big deal" to describe member growth and operational execution. Specific metrics (attach rate 6%, renewal rates up 200 bps in 2025, promotional cohort renewal rates exceeding non-promotional) underpin the confident tone.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears stronger after this call. Frontdoor finally achieved organic member growth (expected ~1% for 2026) after years of decline, driven by improving attach rates in real estate and continued strong renewals. The core business continues to generate high margins and substantial free cash flow ($114M in Q1), supporting aggressive buybacks. The promotional pricing strategy, which was initially viewed as risky, is now validated by renewal cohorts that outperform non-promotional members. Management's decision not to raise full-year guidance despite a Q1 beat may be conservative, but it also signals macro uncertainty. Key watch items: whether member growth can sustain if the housing market remains sluggish, how cost inflation unfolds (fuel, parts, labor), and whether 2-10 renewal rates converge to AHS levels as platform integration deepens. Overall, the call reinforces that Frontdoor's execution is improving, but investors should monitor the macro backdrop and retention trends closely.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

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3-Statement Financial Model

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🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Frontdoor Q1 2026: Revenue $451M, net income +11%, member growth returning

Revenue & Profitability

Revenue was $451 million, up 6% year-over-year. Net income grew 11% to $41 million, and adjusted EBITDA increased 3% to $104 million. Adjusted diluted EPS rose 14% to $0.73. Free cash flow was $114 million for the quarter.

Outlook

Management expressed confidence in delivering full-year guidance despite a more complex geopolitical environment. They noted the real estate market remains sluggish with existing home sales near 30-year lows, but rising home inventory is creating a more favorable selling environment. Consumer demand for home warranties remains resilient, and the company expects low single-digit inflation and normal weather for the year.

Growth Drivers

Key growth drivers include the direct-to-consumer channel (6th consecutive quarter of year-over-year member growth, 3% in Q1), the real estate channel (attach rate improved to nearly 6% in March, first year ending member count +3%), and the non-warranty business (+23% revenue growth driven by HVAC Upgrades). Integration of 2-10 onto the platform is also contributing to better SEO and conversion.

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Gross profit margin held strong at 55% in Q1, driven by 5% price realization and low single-digit cost inflation. Adjusted EBITDA margin was 23%, reflecting higher marketing investments. The company maintains long-term margin targets underpinned by dynamic pricing and cost discipline, with a full-year expectation of low single-digit inflation and similar incidence rates.

Key Risks

Risks discussed include the sluggish existing home sales market (near 30-year lows), potential impact from higher oil prices on contractor fuel costs, and macro uncertainties. Retention was down slightly in Q1 due to the timing of 2-10's lower rates entering the book, but management expects retention to be relatively flat by year-end. Weather caused ~$1 million of unfavorable cost in the quarter.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-08-06

Q2 2026 saw 5% revenue growth, 13% net income growth, and record-high margins, with member count rising for the first time in five years. Raised full-year guidance reflects strong renewal rates, dynamic pricing, and continued expansion in non-warranty services.

Q1 2026 Q1 2026 2026-04-30

Revenue rose 6% to $451M with net income up 11% and adjusted EBITDA up 3%. Member count is forecast to grow 1% for 2026, the first organic increase since 2020. Guidance for the year is reaffirmed, with strong cash flow and disciplined capital allocation.

Q4 2025 Q4 2025 2026-02-26

Revenue grew 14% to $2.1B with record margins and strong cash flow. Member count stabilized and is set to grow in 2026, while non-warranty and HVAC programs drove significant expansion. Share repurchases and raised margin targets highlight confidence in long-term growth.

Q3 2025 Q3 2025 2025-11-05

Q3 2025 saw 14% revenue growth, margin expansion, and record net income, driven by strong DTC and real estate channels, non-warranty growth, and successful 2-10 integration. Full-year guidance was raised, and a CFO transition was announced.

Q2 2025 Q2 2025 2025-08-05

Q2 2025 saw revenue up 14% and net income up 21% year-over-year, with strong growth in DTC and non-warranty segments. Full-year guidance for revenue and adjusted EBITDA was raised, and 2-10 integration synergies exceeded expectations.

📊 Analysis Methodology

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