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frontdoor (FTDR) Q3 2026 Earnings Report

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FTDR Q3 2026 EPS Results

Actual EPS
$1.81
Consensus EPS
$1.77
Beat/Miss
Beat by +$0.04
One Year Ago EPS
$1.58

FTDR Q3 2026 Revenue Results

Actual Revenue
$655.00M
Expected Revenue
$647.73M
Beat/Miss
Beat by +$7.28M
YoY Revenue Growth
+5.99%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/05/2026
Time
Before Open
Conference Call
Thursday, November 5, 2026
FTDR Upcoming Earnings

frontdoor's next earnings date is estimated for March 3, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

FTDR Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 05, 2026|% Change Since:5.38%|
Earnings Call Sentiment|Positive

The call was strongly positive overall. Frontdoor delivered revenue, EBITDA, net income, and EPS growth despite significant weather-related claims pressure; member count and retention improved; non-warranty revenue expanded rapidly; cash generation and share repurchases were strong; and full-year revenue and EBITDA guidance was raised. The primary challenges were the frozen housing market, a lower real estate membership outlook, third-quarter gross margin compression, a slight decline in direct-to-consumer revenue, and limited current agentic AI adoption.

Company Guidance

Frontdoor now expects approximately $175 million of HVAC upgrade revenue this year, real estate channel ending member count to be flat by the end of 2026, and approximately 1% total member growth for 2026; full-year guidance is revenue of $2.205 billion-$2.215 billion, realized price and volume growth of approximately 4% and 2% respectively, gross margin of approximately 55%, SG&A of $685 million-$695 million, adjusted EBITDA of $590 million-$600 million, about $45 million of stock compensation and integration costs, about $20 million of interest income, CapEx of $30 million, and an effective tax rate of approximately 24%, implying fourth quarter revenue of $453 million-$463 million and adjusted EBITDA of $62 million-$72 million; the long-term adjusted EBITDA margin target is the mid-20% range, while the medium to long term growth target is mid to high s-ingle-digit, with member count growth, pricing, and non-warranty growth each contributing almost 1/3, 1/3, and 1/3d.

  • Strong Third-Quarter Financial PerformanceThird-quarter revenue grew 6% to $655 million, adjusted EBITDA grew 5% to $205 million, net income grew 10% to $116 million, and adjusted EPS grew 15% to $1.81 per share.
  • Resilient Results Despite Extreme WeatherThe company absorbed higher claims costs from the hottest summer on record, delivered adjusted EBITDA above the midpoint of its guided range, and generated revenue above the top end of its outlook.
  • Total Member Count Continued to GrowTotal ending member count increased 1% in the third quarter, with renewals, direct-to-consumer, and real estate all contributing.
  • Renewal Channel Returned to GrowthThe renewal channel ended the quarter at approximately 1.6 million members and edged back into growth. Renewals account for approximately three-quarters of the member base.
  • Improving Customer RetentionCustomer retention reached 79.7%, up 30 basis points year-over-year and increasing sequentially for three consecutive quarters.
  • Member Experience ImprovementsMembers gave the company record-high five-star ratings and record-low one-star ratings. App adoption is increasing, virtual technicians can sometimes resolve issues without a home visit, and approximately 84% of jobs continue to go to the preferred contractor network.
  • Direct-to-Consumer Member GrowthDirect-to-consumer ending member count grew 4% to approximately 330,000, marking the eighth consecutive quarter of year-over-year growth.
  • Improving Direct-to-Consumer EconomicsPromotional cohorts continue to renew at rates above non-discounted cohorts, while customer acquisition costs are trending lower as the company shifts more marketing spending toward performance channels.
  • Real Estate Member Growth in the QuarterReal estate ending member count grew 5% to approximately 220,000, and the company’s capture rate continued to exceed 5% of U.S. existing home sales in the third quarter.
  • Non-Warranty Revenue ExpansionNon-warranty and other revenue grew 32% in the third quarter, led by the HVAC upgrade program.
  • HVAC Upgrade Program ScalingThe company now expects approximately $175 million of HVAC upgrade revenue this year, up from approximately $13 million four years ago. Only about 3% of members have purchased a new HVAC system through the program since 2022, which management described as significant remaining runway within the existing member base.
  • HVAC Pricing and Contractor ModelHVAC systems are now priced essentially state by state, and the company is targeting approximately 20% gross margin, translating to a member discount generally in the neighborhood of 25%-30%. Management said the model provides value for members, contractors, and Frontdoor.
  • Expansion Beyond HVACAppliances are the next trade targeted for expansion. The rollout is underway in about half the country or somewhat more, with broader rollout planned into next year. Management said the model is working well and expects more to come in 2027.
  • Strong Cash Flow GenerationThe company generated $298 million of free cash flow through the first nine months, has CapEx needs of less than 2% of revenue, and continues to expect conversion of more than 60% of adjusted EBITDA into free cash flow this year.
  • Accelerated Share RepurchasesThrough the first nine months, the company allocated 87% of free cash flow to share repurchases, buying back 3.7 million shares, or approximately 5% of shares outstanding. It expects to complete its existing $650 million authorization in November, about a year ahead of schedule.
  • New $1 Billion Repurchase AuthorizationThe board approved a new three-year $1 billion share repurchase authorization, reflecting management’s stated confidence in the business model and commitment to returning capital to shareholders.
  • Raised Full-Year GuidanceThe company raised full-year revenue guidance to $2.205 billion-$2.215 billion, a $10 million increase at the midpoint, reflecting approximately 4% realized price growth and 2% volume growth. Adjusted EBITDA guidance increased to $590 million-$600 million.
  • Stable Full-Year Gross Margin and CapEx OutlookFull-year gross margin guidance remains approximately 55%, SG&A guidance remains $685 million-$695 million, and CapEx guidance remains $30 million. The effective tax rate is now expected to be approximately 24%.
  • Operational Cost DisciplineAdjusted EBITDA margin was relatively flat year-over-year at 31%, as $17 million of revenue conversion from pricing and volume growth, along with SG&A leverage, more than offset gross margin pressure. Management also cited $6 million of G&A savings in the quarter with no one-time items.
  • Confidence in Long-Term Margin TargetManagement reiterated confidence in its long-term adjusted EBITDA margin target in the mid-20% range and said the company’s process improvements, preferred contractor network, job routing, planning, supply chain flexibility, and cost control support margin durability.
  • Agentic AI Positioned as a Long-Term OpportunityManagement views agentic AI as a long-term opportunity and a natural extension of existing digital capabilities, including the app, virtual technician, and digital service-management tools. The company is working to ensure AI agents can discover and access its brands, products, and services.
  • Low Cancellation Rate and SAVE CapabilitiesManagement said cancellation requests result in an actual cancellation only about 1% of the time. The company continues to use its SAVE team and existing processes to address cancellation requests and seek better solutions for members.
  • High Auto-Pay EnrollmentAuto-pay enrollment is approximately 85%, up slightly from previously disclosed levels.
  • Continued Real Estate Brokerage EngagementDespite the separation from Compass, the company continues to do business with Compass franchisees, which management said was up year-over-year. Frontdoor remains engaged with multiple brokerage houses and has more than 100 field sales representatives working with brokerages, franchisees, agents, and related partners.
  • Balance Sheet Supports Investment and Capital ReturnsThe company reported liquidity of $680 million and said its strong free cash flow and balance sheet allow it to invest in organic growth while returning substantial excess cash to shareholders.

FTDR Earnings History

FTDR earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Mar 03, 20272026 (Q4)0.31-0.23――
Nov 05, 20262026 (Q3)1.771.811.5814.56% (+0.23)
Aug 06, 20262026 (Q2)1.761.931.6318.40% (+0.30)
Apr 30, 20262026 (Q1)0.680.730.6414.06% (+0.09)
Feb 26, 20262025 (Q4)0.130.230.27-14.81% (-0.04)
Nov 05, 20252025 (Q3)1.491.581.3814.49% (+0.20)
Aug 05, 20252025 (Q2)1.441.631.2728.35% (+0.36)
May 01, 20252025 (Q1)0.380.640.4445.45% (+0.20)
Feb 27, 20252024 (Q4)0.110.270.235.00% (+0.07)
Nov 04, 20242024 (Q3)1.031.380.9446.81% (+0.44)

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