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frontdoor (FTDR) AI Stock Analysis
frontdoor
(NASDAQ:FTDR)
Overall score reflects strong profitability and free cash flow, reinforced by a positive earnings update with raised guidance and robust capital returns. The largest constraint is balance-sheet leverage, while technicals show an uptrend but with overextended momentum. Valuation (P/E ~24.2) is a mild headwind given the lack of dividend yield data.
frontdoor (FTDR) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $6.61B
- Dividend Yield
- ―
- Average Volume (3M)
- 602.91K
- Price to Earnings (P/E)
- 23.4
- Beta (1Y)
- 1.46
- Revenue Growth
- 6.90%
- EPS Growth
- 14.09%
- Country
- US
- Employees
- 2,034
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Personal Products & Services
frontdoor Business Overview & Revenue Model
Company Description
Frontdoor, Inc. operates as a U.S.-based provider of extensive home service plans. These comprehensive plans are designed to cover the repair or replacement of key components for roughly two dozen household systems and appliances. This broad coverage...
How the Company Makes Money
Frontdoor primarily makes money by selling home warranty and service plan contracts to consumers, generally generating recurring revenue through plan fees (often billed monthly or annually). When a covered item fails, the customer typically pays a tr...
frontdoor Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative Updates
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.
frontdoor Financial Statement Overview
Summary
Profitability and cash generation are strong (TTM net margin ~12.8% with meaningful improvement vs. 2022; TTM free cash flow ~$393M with solid cash conversion). The main offset is balance-sheet risk: leverage remains elevated (TTM debt-to-equity ~4.14x), which reduces financial flexibility despite improved equity levels.
Income Statement
82Very PositiveBalance Sheet
48NeutralCash Flow
78Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.18B | 2.09B | 1.84B | 1.78B | 1.66B | 1.60B |
| Gross Profit | 1.16B | 1.07B | 952.00M | 848.00M | 676.00M | 749.00M |
| EBITDA | 532.00M | 506.00M | 408.00M | 311.00M | 153.00M | 232.00M |
| Net Income | 284.00M | 255.00M | 235.00M | 171.00M | 71.00M | 128.00M |
Balance Sheet | ||||||
| Total Assets | 2.22B | 2.14B | 2.11B | 1.09B | 1.08B | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 581.00M | 566.00M | 436.00M | 325.00M | 292.00M | 262.00M |
| Total Debt | 1.17B | 1.21B | 1.22B | 610.00M | 627.00M | 644.00M |
| Total Liabilities | 1.91B | 1.90B | 1.87B | 952.00M | 1.02B | 1.07B |
| Stockholders Equity | 315.00M | 242.00M | 239.00M | 137.00M | 61.00M | 3.00M |
Cash Flow | ||||||
| Free Cash Flow | 393.00M | 389.00M | 231.00M | 170.00M | 102.00M | 154.00M |
| Operating Cash Flow | 419.00M | 415.00M | 270.00M | 202.00M | 142.00M | 185.00M |
| Investing Cash Flow | -28.00M | 31.00M | -622.00M | -32.00M | -35.00M | -31.00M |
| Financing Cash Flow | -373.00M | -302.00M | 448.00M | -137.00M | -77.00M | -489.00M |
frontdoor Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTDR, the sentiment is Positive. The current price of 95.98 is above the 20-day moving average (MA) of 83.76, above the 50-day MA of 80.62, and above the 200-day MA of 70.03, indicating a bullish trend. The MACD of 3.60 indicates Negative momentum. The RSI at 78.81 is Negative, neither overbought nor oversold. The STOCH value of 80.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTDR.
frontdoor Risk Analysis
frontdoor disclosed 40 risk factors in its most recent earnings report. frontdoor reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New Risksfrontdoor Peers Comparison
Overall Rating
- FTDR70Outperform
EJH40.25Neutral
Financial Indicators
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FTDR | Frontdoor | 95.98 | 45.56 | 90.36% | |
| EJH | E-Home Household Service Holdings Ltd. | 1.30 | -18.94 | -93.58% |
frontdoor Corporate Events
Frontdoor Announces Resignation of Chief Accounting Officer
NeutralFrontdoor, Inc., a provider of home services and warranties, operates in the U.S. residential services industry, offering repair and maintenance solutions to homeowners and focusing on service plan products.On August 31, 2026, Frontdoor announced tha...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 05, 2026