| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 618.00 | 0.2% | 14.4% |
| Total Income | 618.00 | 0.2% | 14.4% |
| Expenditure | 475.00 | 1.1% | 17.0% |
| PBT | 142.00 | 2.7% | 6.0% |
| Net Profit | 106.00 | 4.5% | 6.0% |
| OPM | — | ||
| NPM | 17.15% | 0.84pp | 1.37pp |
| EPS | 1.45 | 4.0% | 9.8% |
Frontdoor Reports Q3 2025 Revenue Up 14% to $618 Million
04 May 2026 · 4 May, 7:58 am
Summary
Frontdoor, Inc. announced its third-quarter 2025 results, with revenue increasing by 14% to $618 million. The growth was driven by a 12% increase in volume, primarily from the 2-10 acquisition, and a 3% increase from price. Net income increased by 5% to $106 million, and Adjusted EBITDA increased by 18% to $195 million. The company is increasing its full-year revenue guidance to $2.075 billion to $2.085 billion and Adjusted EBITDA guidance to $545 million to $550 million.
Key Highlights
- 1
Frontdoor's revenue increased by 14% to $618 million in the third quarter of 2025.
- 2
Gross profit margin increased by 60 basis points to 57% for the third quarter.
- 3
Net income increased by 5% to $106 million, and diluted earnings per share increased by 9% to $1.42.
- 4
Adjusted EBITDA increased by 18% to $195 million in the third quarter of 2025.
- 5
The company repurchased $215 million of shares year-to-date through October 2025.
- 6
Revenue guidance for the full year 2025 is increased to $2.075 billion to $2.085 billion.
- 7
Adjusted EBITDA guidance for the full year 2025 is increased to $545 million to $550 million.
Management Comments
Bill Cobb
Frontdoor is on pace for another year of record financial performance. Our results are driven by contributions from the 2-10 acquisition and our continuous improvement in execution across the business. Real estate member count increased sequentially for the first time in five years, and our non-warranty business continues to demonstrate robust momentum. We have an extremely attractive business model that generates a tremendous amount of cash, which has us on track to repurchase up to 6% of our outstanding shares in 2025.
Jessica Ross
We delivered exceptional financial performance in the third-quarter with double digit increases in revenue and Adjusted EBITDA. Gross profit margin grew 60 basis points to 57%, which includes the benefit of higher price, a lower number of service requests per member and low-to-mid-single digit inflation.
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