The strong financial performance, margin expansion, and positive 2026 guidance suggest improving fundamentals. The company's focus on member growth and margin improvement could drive further upside. Traders should monitor the execution of member count growth in 2026 and whether the company can maintain margin expansion.
Price Chart
Executive Summary
Frontdoor reported record full-year 2025 financial results with 14% revenue growth to $2.09 billion, 9% net income growth to $255 million, and 25% adjusted EBITDA growth to $553 million. The company achieved 150 basis points of gross margin expansion to 55% and repurchased $280 million of shares. For 2026, management provided guidance for revenue of $2.155-$2.195 billion and adjusted EBITDA of $565-$580 million, while targeting member count growth and raising long-term adjusted EBITDA margin outlook to the mid-20% range.
Key Financial Metrics
Key Facts
- Revenue increased 14% to $2.093 billion in 2025
- Net income increased 9% to $255 million in 2025
- Adjusted EBITDA increased 25% to $553 million in 2025
- Gross profit margin expanded 150 basis points to 55%
- Company repurchased $280 million of shares in 2025
- 2026 guidance: revenue of $2.155-$2.195 billion and adjusted EBITDA of $565-$580 million
- Home warranty member count expected to turn positive in 2026
Financial Impact
Revenue increased by $250 million year-over-year, net income by $20 million, and adjusted EBITDA by $110 million
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Renewals | $1.6B | +10.0% |
| Real estate (First-Year) | $141.0M | +13.0% |
| Direct-to-consumer (First-Year) | $172.0M | +4.0% |
| Non-warranty and other | $193.0M | +66.0% |
Risk Factors
- Member count remained flat year-over-year at 2.11 million
- Direct-to-consumer revenue channel declined 6% in Q4 2025
- Company faces competitive pressures in home warranty market
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-073378 |
| Document: ftdr-20260226.htm | 0001193125-26-073378 |
| Document: 0001193125-26-073378-index-headers.html | 0001193125-26-073378 |
| Document: 0001193125-26-073378-index.html | 0001193125-26-073378 |
| Document: 0001193125-26-073378.txt | 0001193125-26-073378 |
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
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers