Frontdoor beats Q3 revenue estimates, announces $1 bln buyback

frontdoor

05/11/2026 12:26

Overview
U.S. home warranty provider's Q3 revenue rose 6%, beating analyst expectations
Adjusted EPS for Q3 beat consensus, rising 15%
Company announced new $1 bln share repurchase authorization

Outlook
Frontdoor raises full-year 2026 revenue outlook to $2.205 bln-$2.215 bln
Company expects full-year 2026 adjusted EBITDA of $590 mln-$600 mln
Frontdoor forecasts Q4 revenue of $453 mln-$463 mln and adjusted EBITDA of $62 mln-$72 mln

Result Drivers
PRICE AND VOLUME GAINS - Co said revenue growth was driven equally by higher realized prices and increased volume
OTHER REVENUE GROWTH - 32% increase in 'other' revenue, mainly from New HVAC upgrade program
HIGHER CONTRACT CLAIMS COSTS - Co cited increased service requests per member, mainly due to unfavorable weather in the HVAC trade, as a factor raising contract claims costs

Company press release: ID:nBwbnxvQma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$655 mln
$647.83 mln (7 Analysts)
Q3 Adjusted EPS
Beat
$1.81
$1.77 (5 Analysts)
Q3 EPS
 
$1.65
 
Q3 Adjusted Net Income
Beat
$127 mln
$120.25 mln (4 Analysts)
Q3 Net Income
 
$116 mln
 
Q3 Adjusted EBITDA
Slight Beat*
$205 mln
$203.60 mln (7 Analysts)
Q3 Gross Profit
 
$362 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the personal services peer group is "buy"
Wall Street's median 12-month price target for Frontdoor Inc is $96.00, about 3.4% above its November 4 closing price of $92.86
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
Nov 3 - LGI Homes Q3 adjusted EPS beats on higher closings, cost controls
Nov 4 - CVS beats Q3 revenue, profit estimates, outlook raised; to split into two
Nov 4 - Freshpet Q3 sales beat estimates on volume gains; raises outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)