Frontdoor ( (FTDR) ) has released its Q3 earnings. Here is a breakdown of the information Frontdoor presented to its investors.
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Frontdoor, Inc. is a leading provider of home warranties and on-demand home repair services in the United States, known for its brands American Home Shield and 2-10 Home Buyers Warranty. The company has over 50 years of experience in the home warranty sector, offering comprehensive coverage for home systems and appliances.
In its third-quarter 2025 earnings report, Frontdoor announced a 14% increase in revenue, reaching $618 million, and a 5% rise in net income to $106 million. The company also reported an 18% growth in Adjusted EBITDA to $195 million, highlighting strong financial performance driven by the acquisition of 2-10 Home Buyers Warranty and improved business execution.
Key financial metrics from the report include a gross profit margin increase of 60 basis points to 57%, and a 9% rise in diluted earnings per share to $1.42. Frontdoor’s revenue growth was primarily fueled by a 12% increase in volume, with significant contributions from the real estate and direct-to-consumer channels. The company also repurchased $215 million of shares year-to-date.
Looking ahead, Frontdoor has raised its full-year 2025 revenue guidance to between $2.075 billion and $2.085 billion, and Adjusted EBITDA to between $545 million and $550 million. The company continues to focus on leveraging its attractive business model to generate cash and enhance shareholder value through strategic share repurchases.
Frontdoor’s management remains optimistic about future growth, supported by the integration of recent acquisitions and ongoing improvements in operational efficiency. The company is well-positioned to maintain its leadership in the home warranty industry while exploring new opportunities for expansion.