Frontdoor beats Q2 earnings expectations, raises FY guidance

frontdoor

05/08/2025 12:39

Overview

Frontdoor Q2 revenue rises 14% to $617 mln, beating analyst expectations

Adjusted EPS for Q2 beats estimates, rising to $1.63

Adjusted EBITDA increases 26% to $199 mln, exceeding analyst projections

Outlook

Frontdoor raises full-year revenue guidance to $2.055 bln-$2.075 bln

Company increases full-year gross profit margin forecast to 55%-56%

Frontdoor expects Q3 revenue of $605 mln-$615 mln

Company projects Q3 adjusted EBITDA of $180 mln-$190 mln

Result Drivers

PRICE AND VOLUME - Revenue growth driven by 2% price increase and 12% higher volume, mainly due to 2-10 acquisition

CHANNEL PERFORMANCE - Renewal and real estate channels contributed to revenue growth, aided by 2-10 acquisition

OPERATIONAL EXECUTION - Strong operational execution supported margin structure, per CFO Jessica Ross

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$617 mln
$602.60 mln (6 Analysts)
Q2 Adjusted EPS
Beat
$1.63
$1.45 (5 Analysts)
Q2 EPS
$1.48
Q2 Adjusted Net Income
Beat
$122 mln
$107.40 mln (5 Analysts)
Q2 Net Income
$111 mln
Q2 Adjusted EBITDA
Beat
$199 mln
$186.60 mln (5 Analysts)
Q2 Gross Profit
$356 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "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 $56.00, about 4.4% below its August 4 closing price of $58.49

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw3kYlwXa

(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.)