Frontdoor (NASDAQ:FTDR) Posts Earnings Results, Beats Expectations By $0.12 EPS

Frontdoor (NASDAQ:FTDR) announced its quarterly earnings data on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.12, Briefing.com reports. Frontdoor had a return on equity of 122.74% and a net margin of 12.87%.The firm had revenue of $433.00 million for the quarter, compared to analysts’ expectations of $421.62 million. During the same period last year, the business posted $0.27 earnings per share. The firm’s revenue for the quarter was up 13.1% on a year-over-year basis.

Here are the key takeaways from Frontdoor’s conference call:

• Frontdoor says it stabilized membership in 2025 and expects ending member count to grow in 2026, driven by ~5% first?year channel growth and improving DTC and real?estate momentum.
• Strong 2025 results: revenue up 14% to nearly $2.1B, gross margin a record 55%, and Adjusted EBITDA up 25% to $553M, with management raising its long?term Adjusted EBITDA margin target to the mid?20% range.
• Non?warranty is scaling fast — the new HVAC program grew 48% to $128M in 2025, Frontdoor expects non?warranty of $220M–$240M in 2026 and has launched an appliance pilot and third?party partnerships to expand share of wallet.
• The business is highly cash generative: record free cash flow of $390M in 2025 and $280M of share repurchases, with management on track to complete the current repurchase authorization ahead of schedule.
• Management flags a near?term headwind as renewal member count is expected to be modestly negative in 2026 (lower prior first?year units), and promotional pricing plus low?single?digit claims/tariff inflation remain execution risks to short?term revenue and margins.

Frontdoor Price Performance

NASDAQ:FTDR traded up $1.32 during trading hours on Friday, reaching $67.08. The company had a trading volume of 369,009 shares, compared to its average volume of 522,221. The firm has a market capitalization of $4.84 billion, a PE ratio of 19.08 and a beta of 1.34. Frontdoor has a one year low of $35.61 and a one year high of $70.14. The company has a quick ratio of 1.73, a current ratio of 1.73 and a debt-to-equity ratio of 3.64. The stock has a 50-day moving average of $58.28 and a two-hundred day moving average of $59.72.

Key Headlines Impacting Frontdoor

Here are the key news stories impacting Frontdoor this week:

• Positive Sentiment: Q4 results beat consensus: Frontdoor reported EPS of $0.23 versus the $0.11 consensus and revenue of $433M vs. $421.6M est., driving the immediate positive reaction. Frontdoor Q4 earnings (MarketBeat)
• Positive Sentiment: Underlying performance shows revenue growth and healthy profitability: revenue rose ~13% year-over-year and the company reported a strong net margin and very high ROE, supporting valuation multiple arguments. Zacks: Q4 earnings and revenues surpass estimates
• Neutral Sentiment: Full earnings call / transcript and slide deck are available — useful for hearing mgmt. commentary on member trends, service mix and expense cadence that will matter for FY26 modeling. Seeking Alpha: Q4 2025 earnings call transcript
• Negative Sentiment: FY2026 guidance disappointed some investors/analysts: several reports note management’s outlook was below expectations, which capped upside despite the quarter’s beat and is weighing on forward EPS/revenue assumptions. Investing.com: Beats Q4 estimates but guides below expectations
• Negative Sentiment: Quarterly EPS remains below last year’s level (Q4 EPS $0.23 vs. $0.27 a year ago), highlighting some mix/seasonal pressures; investors will watch FY26 margin and revenue cadence guidance closely. Yahoo Finance: Why Is Frontdoor (FTDR) Stock Soaring Today

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on FTDR. Oppenheimer reiterated an “outperform” rating and set a $70.00 price target on shares of Frontdoor in a research report on Thursday. Weiss Ratings reissued a “hold (c+)” rating on shares of Frontdoor in a research note on Monday, December 29th. Wall Street Zen cut Frontdoor from a “buy” rating to a “hold” rating in a research report on Monday, November 24th. Finally, Truist Financial set a $71.00 price objective on shares of Frontdoor in a research note on Monday, January 26th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Frontdoor currently has a consensus rating of “Hold” and an average price target of $61.50.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Snowden Capital Advisors LLC raised its position in shares of Frontdoor by 4.1% in the 2nd quarter. Snowden Capital Advisors LLC now owns 6,407 shares of the company’s stock valued at $378,000 after acquiring an additional 250 shares during the period. Bank of Montreal Can boosted its position in Frontdoor by 5.0% during the 4th quarter. Bank of Montreal Can now owns 5,296 shares of the company’s stock worth $306,000 after acquiring an additional 254 shares during the last quarter. Summit Global Investments lifted its position in Frontdoor by 1.5% during the 4th quarter. Summit Global Investments now owns 20,310 shares of the company’s stock worth $1,172,000 after buying an additional 298 shares in the last quarter. Corient Private Wealth LLC boosted its position in Frontdoor by 6.0% during the fourth quarter. Corient Private Wealth LLC now owns 5,282 shares of the company’s stock valued at $305,000 after purchasing an additional 300 shares during the last quarter. Finally, Vanguard Personalized Indexing Management LLC grew its stake in shares of Frontdoor by 4.8% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 6,608 shares of the company’s stock valued at $381,000 after buying an additional 303 shares in the last quarter.

Frontdoor Company Profile

Frontdoor, Inc (NASDAQ:FTDR) is a leading provider of home service plans and repair solutions for residential property owners. The company offers contract-based coverage that helps homeowners manage the cost of repairing and replacing essential household systems and appliances, including heating and cooling, plumbing, electrical wiring, water heaters, washers, dryers, refrigerators and other major kitchen equipment.

Frontdoor delivers its services through a nationwide network of independent service professionals and contractors, leveraging a cloud-based platform and call center infrastructure to coordinate service visits and process claims.