The raised guidance and strong cash flow generation support the bullish thesis. Traders should watch for continued margin expansion and execution on the share repurchase program. The stock may gap up on the beat and raise, with potential for further upside if the Q3 outlook is seen as conservative.
Price Chart
Executive Summary
Frontdoor reported strong Q2 2026 results with revenue up 5% to $645M and EPS up 19% to $1.76, beating consensus estimates. The company raised its full-year 2026 revenue guidance to $2.19B-$2.21B and Adjusted EBITDA guidance to $585M-$600M, driven by operational discipline and aggressive share repurchases ($181M YTD). The beat and guidance raise signal accelerating profitability and shareholder returns, making this a bullish catalyst for the stock.
Key Financial Metrics
Key Facts
- Revenue increased 5% YoY to $645M, slightly above $643.6M consensus.
- GAAP diluted EPS of $1.76 beat consensus of $1.76 (in-line with Street consensus of $1.78).
- Adjusted diluted EPS of $1.93 beat consensus of $1.78 by 8.4%.
- Net Income increased 13% to $125M; Adjusted EBITDA up 10% to $220M.
- Gross profit margin expanded to 59% from 58% in Q2 2025.
- Full-year 2026 revenue guidance raised to $2.19B-$2.21B (from $2.155B-$2.195B).
- Full-year 2026 Adjusted EBITDA guidance raised to $585M-$600M (from $565M-$580M).
- Completed $181M in share repurchases YTD through July 2026, up 21% YoY.
- Home warranty ending member count increased 1% to 2.11 million.
- Operating cash flow of $245M and Free Cash Flow of $233M for H1 2026.
Financial Impact
Revenue beat by ~$1.4M; EPS beat by $0.17 (adjusted). Guidance raised by $35M at midpoint for revenue and $20M for Adjusted EBITDA.
Risk Factors
- Home warranty claims costs could rise due to inflation or adverse weather.
- Direct-to-consumer revenue continues to decline (down 2% in Q2), indicating promotional pricing pressure.
- Macroeconomic slowdown could impact home sales and renewal rates.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001727263-26-000011 |
| Document: ftdr-20260430.htm | 0001727263-26-000011 |
| Document: 0001727263-26-000011-index-headers.html | 0001727263-26-000011 |
| Document: 0001727263-26-000011-index.html | 0001727263-26-000011 |
| Document: 0001727263-26-000011.txt | 0001727263-26-000011 |
| 8-K Data (Synthetic) | 0001727263-26-000011 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 10w ago | Insider Cluster | $84.66 $81.94 | ▲ +3.21% | ▲ +1.25% | $83.93 (+0.86%) |
Aug 12, 2026 10w ago | Insider Cluster | $84.66 $81.94 | ▼ −3.21% | ▼ −1.25% | $83.93 (−0.86%) |
Aug 10, 2026 11w ago | 144 | $83.58 $82.92 | ▼ −0.78% | ▼ −0.38% | $83.93 (+0.42%) |
Aug 6, 2026 11w ago | 8-K | $89.92 $84.66 | ▼ −5.85% | ▼ −7.06% | $83.93 (−6.66%) |
Jun 29, 2026 17w ago | 8-K | $77.59 $79.07 | ▲ +1.91% | ▲ +1.30% | $83.93 (+8.17%) |
Apr 30, 2026 25w ago | 8-K | $68.63 $66.12 | ▼ −3.66% | ▼ −5.38% | $83.93 (+22.29%) |
Mar 30, 2026 30w ago | DEFA14A | $52.86 $57.02 | ▲ +7.87% | ▲ +3.93% | $83.93 (+58.78%) |
Feb 26, 2026 34w ago | 8-K | $65.76 $68.13 | ▲ +3.60% | ▲ +4.73% | $83.93 (+27.63%) |
US Market Status
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