The Q1 beat on adjusted EPS and reaffirmed full-year guidance suggest steady execution, but the unchanged margin profile and modest 3% EBITDA growth limit upside. Watch Q2 2026 results for confirmation of member growth trajectory and margin expansion toward the 26% Adjusted EBITDA margin target.
Price Chart
Executive Summary
Frontdoor reported Q1 2026 revenue of $451M (+6% YoY), GAAP diluted EPS of $0.57 (+18% YoY), and Adjusted EBITDA of $104M (+3% YoY). The company reaffirmed its full-year 2026 guidance for revenue of $2.155B-$2.195B and Adjusted EBITDA of $565M-$580M, while noting accelerating first-year member growth of 3%.
Key Financial Metrics
Key Facts
- Q1 2026 revenue of $451M, up 6% YoY from $426M
- GAAP diluted EPS of $0.57, up 18% YoY from $0.49
- Adjusted diluted EPS of $0.73, up 14% YoY from $0.64
- Adjusted EBITDA of $104M, up 3% YoY from $100M
- Gross profit margin unchanged at 55%
- First-year home warranty member growth accelerated to 3%
- Full-year 2026 guidance reaffirmed: revenue $2.155B-$2.195B, Adjusted EBITDA $565M-$580M
- Q2 2026 outlook: revenue $635M-$650M, Adjusted EBITDA $198M-$208M
- Share repurchases of $60M in Q1 2026
- Free cash flow of $114M in Q1 2026
Financial Impact
Modest beat on revenue ($451M vs $442.3M consensus) and GAAP EPS ($0.57 vs $0.49 YoY); Street-convention adjusted EPS of $0.73 vs $0.66 consensus represents a ~10.6% beat
Risk Factors
- Low-single digit cost inflation and higher service request incidence could pressure margins
- Direct-to-consumer revenue declined 5% YoY due to promotional pricing strategy
- Customer retention rate declined to 79.3% from 79.9% YoY
- Full-year guidance unchanged despite Q1 beat, suggesting limited near-term upside visibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001727263-26-000006 |
| Document: ftdr-20260430.htm | 0001727263-26-000006 |
| Document: 0001727263-26-000006-index-headers.html | 0001727263-26-000006 |
| Document: 0001727263-26-000006-index.html | 0001727263-26-000006 |
| Document: 0001727263-26-000006.txt | 0001727263-26-000006 |
| 8-K Data (Synthetic) | 0001727263-26-000006 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 10w ago | Insider Cluster | $84.66 $81.94 | ▲ +3.21% | ▲ +1.25% | $84.52 (+0.17%) |
Aug 12, 2026 10w ago | Insider Cluster | $84.66 $81.94 | ▼ −3.21% | ▼ −1.25% | $84.52 (−0.17%) |
Aug 10, 2026 11w ago | 144 | $83.58 $82.92 | ▼ −0.78% | ▼ −0.38% | $84.52 (+1.13%) |
Aug 6, 2026 11w ago | 8-K | $89.92 $84.66 | ▼ −5.85% | ▼ −7.06% | $84.52 (−6.01%) |
Jun 29, 2026 17w ago | 8-K | $77.59 $79.07 | ▲ +1.91% | ▲ +1.30% | $84.52 (+8.93%) |
Apr 30, 2026 25w ago | 8-K | $68.63 $66.12 | ▼ −3.66% | ▼ −5.38% | $84.52 (+23.15%) |
Mar 30, 2026 30w ago | DEFA14A | $52.86 $57.02 | ▲ +7.87% | ▲ +3.93% | $84.52 (+59.89%) |
Feb 26, 2026 34w ago | 8-K | $65.76 $68.13 | ▲ +3.60% | ▲ +4.73% | $84.52 (+28.53%) |
US Market Status
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