Want to see FTDR full AI Analyst Report?
EarningsQ2 2026 Earnings Report
FTDR Q2 2026 EPS Results
Actual EPS$1.93
Consensus EPS$1.76
Beat/MissBeat by +$0.17
One Year Ago EPS$1.63
FTDR Q2 2026 Revenue Results
Actual Revenue$645.00M
Expected Revenue$643.40M
Beat/MissBeat by +$1.60M
YoY Revenue Growth+4.54%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
FTDR Upcoming Earnings
frontdoor's next earnings date is estimated for November 5, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
FTDR Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a broadly positive operational and financial trajectory: revenue, margins, net income and adjusted EBITDA all grew and full-year guidance was raised. Management highlighted an inflection to member growth, strong retention (79.6%), rapid scaling of non-warranty programs (HVAC), robust free cash flow conversion (>60%), and an accelerated share repurchase plan. Headwinds are present but largely manageable: promotional pricing pressures in direct-to-consumer, ongoing housing-market constraints, low-single-digit cost inflation, and a Q2 weather benefit expected to reverse in Q3. Management is investing incrementally in marketing and expects SG&A step-ups, and non-warranty margins are lower today but improving with dynamic pricing. Overall, the positive operational momentum, margin expansion and capital returns materially outweigh the modest near-term challenges.Company Guidance
Revenue Growth
Total revenue grew 5% year-over-year to $645 million in Q2; first half revenue up 5% to $1.1 billion and full-year guidance raised by $25 million at the midpoint to $2.19–$2.21 billion.
Margin Expansion and Profitability
Gross margin expanded ~100 basis points to 59% in Q2; gross profit rose 5% to $378 million. Adjusted EBITDA increased 10% to $220 million with adjusted EBITDA margin up ~200 basis points to 34% for the quarter; full-year adjusted EBITDA guidance raised to $585–$600 million (approx. 27% margin at midpoint).
Net Income and EPS Strength
Net income grew 13% to $125 million in Q2. First-half net income rose 13% to $167 million and adjusted diluted EPS grew 17% to $2.66 per share year-to-date.
Member Count Inflection
Total ending member count increased 1% (first organic growth since 2021). Channel performance: direct-to-consumer members +5%, real estate channel members +7%, renewal member count stable.
Retention and Engagement Metrics
Renewal retention near all-time highs at 79.6%. Active app users up 65% year-over-year and usage of video chat with an expert more than doubled in the quarter. Autopay enrollment increased to ~85%.
Non-Warranty Acceleration
Non-warranty and other revenue increased 19% in Q2. HVAC upgrade program scaled from $13 million to an expected $170 million in four years; company expects $230–$240 million in non-warranty revenue for the full year and >20% growth in Q3 for this category.
Operational Improvements and Service Quality
Preferred contractor routing increased to ~84% of jobs (improved from ~82% three years ago). Service ratings hit record-high 5-star and record-low 1-star for the 36th consecutive month. Favorable cost controls, smarter job routing and supply chain scale were cited as drivers of improved unit economics.
Capital Allocation and Cash Generation
Converted adjusted EBITDA to free cash flow at >60% and generated $233 million free cash flow in the first half. Cash and liquidity position: $472 million unrestricted cash and $722 million total liquidity. Returned ~$900 million to shareholders via repurchases since 2021.
Accelerated Share Repurchases
Repurchased $181 million through July 31 and expect to repurchase approximately $330 million in 2026, which will complete the current authorization nearly a year ahead of schedule; repurchases have driven meaningful EPS benefit (~20% impact referenced).
Raised Guidance and Confidence
Raised full-year revenue and adjusted EBITDA guidance (revenue midpoint +$25M; EBITDA midpoint +$20M). Management reiterated long-term adjusted EBITDA margin target in the mid-20% range and noted current operations at the high end of that range.
FTDR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed