Frontdoor (NASDAQ:FTDR) Announces Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Q1 beat: Frontdoor reported adjusted EPS of $0.73, $0.10 above consensus, with revenue of $451 million (+5.9% YoY), $114 million in free cash flow and $60 million of share buybacks.
• Member growth guidance: Management forecasted ~1% total member count growth in 2026—the first organic increase since 2020—and reaffirmed full‑year guidance while flagging promotional pricing, short‑term retention drag from the 2‑10 integration, and macro/geopolitical risks.
• Stock reaction and risk: Shares rose roughly 13% on the results, but leverage is notable (debt‑to‑equity ~4.7), so investors should watch cash flow and interest‑coverage metrics going forward.

Frontdoor (NASDAQ:FTDR - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.73 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.63 by $0.10, FiscalAI reports. The company had revenue of $451.00 million during the quarter, compared to the consensus estimate of $442.28 million. Frontdoor had a return on equity of 120.79% and a net margin of 12.18%.Frontdoor's revenue was up 5.9% on a year-over-year basis. During the same period last year, the company earned $0.64 earnings per share.

Here are the key takeaways from Frontdoor's conference call:

• Frontdoor forecasts ~1% total member count growth in 2026, the first organic increase since 2020, driven by accelerating direct‑to‑consumer and first‑year real‑estate channels plus strong renewal rates.
• Q1 results were solid — revenue +6% to $451M, gross margin 55%, net income +11% to $41M, adjusted EBITDA +3% to $104M, adjusted EPS +14% to $0.73, with $114M free cash flow and $60M of share buybacks.
• Non‑warranty/HVAC Upgrade Program continues to scale (non‑warranty revenue +23% to $41M), improving quote and order conversion by routing claims to higher‑converting contractors and adding incremental revenue and margin.
• Company reaffirmed full‑year 2026 guidance (Q2 revenue $635–650M; adj. EBITDA $198–208M) but flagged promotional pricing, short‑term retention drag from the 2‑10 integration, and macro/geopolitical risks as items to monitor.

Frontdoor Trading Up 13.3%

Shares of Frontdoor stock traded up $8.04 on Thursday, hitting $68.63. 1,364,597 shares of the company traded hands, compared to its average volume of 538,992. The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 4.73. The company has a market cap of $4.85 billion, a PE ratio of 20.13 and a beta of 1.41. The stock's 50 day moving average price is $60.33 and its 200-day moving average price is $58.77. Frontdoor has a 52 week low of $45.52 and a 52 week high of $70.77.

Institutional Trading of Frontdoor

A number of large investors have recently modified their holdings of the company. Morgan Stanley boosted its holdings in shares of Frontdoor by 11.5% in the fourth quarter. Morgan Stanley now owns 1,485,123 shares of the company's stock valued at $85,677,000 after purchasing an additional 153,138 shares during the period. Invesco Ltd. boosted its holdings in shares of Frontdoor by 2.5% in the fourth quarter. Invesco Ltd. now owns 1,136,647 shares of the company's stock valued at $65,573,000 after purchasing an additional 27,832 shares during the period. Wasatch Advisors LP increased its stake in shares of Frontdoor by 14.9% during the fourth quarter. Wasatch Advisors LP now owns 1,112,470 shares of the company's stock valued at $64,178,000 after buying an additional 144,184 shares during the period. Janus Henderson Group PLC raised its holdings in shares of Frontdoor by 27.2% in the fourth quarter. Janus Henderson Group PLC now owns 902,773 shares of the company's stock valued at $52,089,000 after acquiring an additional 193,256 shares in the last quarter. Finally, Bank of America Corp DE raised its holdings in shares of Frontdoor by 4.7% in the second quarter. Bank of America Corp DE now owns 699,289 shares of the company's stock valued at $41,216,000 after acquiring an additional 31,087 shares in the last quarter.

More Frontdoor News

Here are the key news stories impacting Frontdoor this week:

• Positive Sentiment: Quarterly beat — Frontdoor reported Q1 EPS of $0.73 (above consensus ~$0.63–$0.66) and revenue of $451.0M vs. estimates near $442M; revenue rose ~5.9% year-over-year, supporting the upside move. MarketBeat Q1 release Zacks note
• Positive Sentiment: Revenue guidance for Q2 was provided in a $635M–$650M range (consensus ~ $640M); the high end exceeds estimates and reduces near-term uncertainty. Management also gave FY revenue guidance centered near $2.2B. These forward ranges likely helped sentiment. Guidance / press release
• Neutral Sentiment: Conference call and full earnings transcripts are available for more color on claim trends, membership growth and unit economics — useful for deciding if the beat is durable. Seeking Alpha transcript Yahoo transcript
• Neutral Sentiment: Technical and liquidity context: trading volume spiked well above average and the 50‑day moving average sits above the 200‑day, indicating positive momentum — could amplify short‑term moves but not a substitute for fundamentals. MSN coverage
• Negative Sentiment: Leverage is notable — Frontdoor’s debt-to-equity ratio is high (~4.7), which raises financial risk if margins or cash flow weaken; investors should watch free cash flow and interest coverage in coming quarters. (Background financials referenced in filings/coverage.)

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on FTDR shares. Truist Financial set a $71.00 price target on Frontdoor in a research report on Monday, January 26th. Wall Street Zen downgraded Frontdoor from a "buy" rating to a "hold" rating in a research report on Sunday, March 8th. Weiss Ratings upgraded Frontdoor from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, April 22nd. The Goldman Sachs Group upgraded Frontdoor from a "sell" rating to a "neutral" rating and raised their price target for the stock from $50.00 to $67.00 in a research report on Monday, March 2nd. Finally, Benchmark assumed coverage on Frontdoor in a research note on Thursday, March 26th. They issued a "buy" rating and a $80.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Frontdoor presently has a consensus rating of "Moderate Buy" and a consensus price target of $68.60.

Frontdoor Company Profile

Frontdoor, Inc NASDAQ: FTDR is a leading provider of home service plans and repair solutions for residential property owners. The company offers contract-based coverage that helps homeowners manage the cost of repairing and replacing essential household systems and appliances, including heating and cooling, plumbing, electrical wiring, water heaters, washers, dryers, refrigerators and other major kitchen equipment.

Frontdoor delivers its services through a nationwide network of independent service professionals and contractors, leveraging a cloud-based platform and call center infrastructure to coordinate service visits and process claims.

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