Frontdoor Q4 revenue beats expectations on 2-10 acquisition boost

frontdoor

26/02/2026 12:23

Overview

Home warranty provider's Q4 revenue rose 13%, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company repurchased $280 mln of shares in 2025

Outlook

Frontdoor projects 2026 revenue between $2.155 bln and $2.195 bln

Company expects 2026 adjusted EBITDA of $565 mln to $580 mln

Frontdoor anticipates home warranty member count to turn positive in 2026

Result Drivers

ACQUISITION IMPACT - Revenue growth driven by 2-10 acquisition, impacting renewal and real estate channels

PROMOTIONAL STRATEGY - Direct-to-consumer revenue decreased 6% due to promotional pricing to drive new member growth

NON-WARRANTY GROWTH - Non-warranty revenue increased 48% due to new HVAC and Moen programs

Company press release: ID:nBw68g83ja

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$433 mln
$421.49 mln (6 Analysts)
Q4 Adjusted EPS
Beat
$0.23
$0.13 (5 Analysts)
Q4 EPS
$0.02
Q4 Adjusted Net Income
Beat
$17 mln
$11.87 mln (3 Analysts)
Q4 Net Income
$1 mln
Q4 Adjusted EBITDA
Beat
$59 mln
$52.55 mln (6 Analysts)
Q4 Gross Profit
$213 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 $60.00, about 6.6% above its February 25 closing price of $56.30

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 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.)