Frontdoor Q1 revenue rises 6%, beats estimates on higher prices

frontdoor

30/04/2026 12:20

Overview

U.S. home warranty provider's Q1 revenue rose 6%, beating analyst expectations

Adjusted EPS and adjusted EBITDA for Q1 both beat analyst expectations

Company repurchased $60 mln in shares and reaffirmed full-year 2026 outlook

Outlook

Frontdoor sees Q2 revenue of $635 mln to $650 mln

Company expects Q2 adjusted EBITDA of $198 mln to $208 mln

Frontdoor reaffirms 2026 revenue outlook of $2.155 bln to $2.195 bln

Result Drivers

PRICE INCREASES - Revenue growth was mainly driven by a 5% increase in realized price, according to the company

RENEWAL CHANNEL - Renewal revenue rose 6% due to higher price realization

COST PRESSURES - Contract claims costs and sales and marketing expenses increased, reflecting cost inflation and higher marketing investments to drive direct-to-consumer channel growth

Company press release: ID:nBw2bS7Cca

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$451 mln
$442.27 mln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.73
$0.68 (5 Analysts)
Q1 EPS
$0.57
Q1 Adjusted Net Income
Beat
$53 mln
$44.63 mln (4 Analysts)
Q1 Net Income
$41 mln
Q1 Adjusted EBITDA
Beat
$104 mln
$99.60 mln (7 Analysts)
Q1 Gross Profit
$248 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "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 $75.00, about 23.8% above its April 29 closing price of $60.59

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

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.)