Home warranties provider Frontdoor Q3 revenue beats analyst estimates on higher prices, volume

frontdoor

05/11/2025 12:15

Overview

Frontdoor Q3 revenue rises 14% to $618 mln, beating analyst expectations

Adjusted EPS for Q3 beats consensus, rising 15% year-over-year

Company repurchased $215 mln of shares YTD, reflecting financial confidence

Outlook

Frontdoor raises full-year revenue forecast to $2.075 bln-$2.085 bln

Company increases full-year Adjusted EBITDA guidance to $545 mln-$550 mln

Frontdoor expects Q4 revenue of $415 mln-$425 mln

Result Drivers

2-10 ACQUISITION - Revenue growth largely driven by the acquisition of 2-10 Home Buyers Warranty, boosting volume and real estate revenue

LOWER SERVICE REQUESTS - Gross profit margin benefited from a lower number of service requests per customer, aided by favorable weather

NEW PROGRAMS - Significant growth in 'Other' revenue due to new HVAC and Moen Programs and New Home Structural Warranty revenue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$618 mln
$610.80 mln (6 Analysts)
Q3 Adjusted EPS
Beat
$1.58
$1.51 (5 Analysts)
Q3 EPS
$1.42
Q3 Adjusted Net Income
Beat
$117 mln
$103.40 mln (5 Analysts)
Q3 Net Income
$106 mln
Q3 Adjusted EBITDA
Beat
$195 mln
$187.10 mln (5 Analysts)
Q3 Gross Profit
$353 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 $63.00, about 4.3% below its November 4 closing price of $65.74

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

Press Release: ID:nBw4qd5jxa

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