FTDR · Frontdoor, Inc.

Frontdoor, Inc. delivered robust first-quarter 2026 results, with revenue rising 6% to $451 million, driven by 5% higher realized pricing and 1% volume growth across channels. Renewal revenue grew 6% from price increases, real estate channel up 3% on volume despite lower pricing, direct-to-consumer down 5% due to promotional pricing offset by volume gains, and other revenue surged 23% from HVAC upgrade program expansion. Gross profit margin held steady at 55%, reflecting operational stability amid cost pressures. Net income climbed 11% to $41 million, with diluted EPS up 18% to $0.57, supported by revenue gains partially offset by higher contract claims costs ($6 million increase from inflation, service requests, and weather) and marketing investments ($6 million). Adjusted EBITDA rose 3% to $104 million. Management highlighted improving member count trends, accelerated 3% growth in first-year channels, and a strong subscription model. The company repurchased $60 million in shares, underscoring capital return confidence. Cash flow from operations was $119 million, with $114 million free cash flow, $603 million cash position (including $448 million unrestricted), and minimal capex. Reaffirming full-year guidance signals durability: revenue $2.155-2.195 billion (2-3% price, 1-2% volume growth), Adjusted EBITDA $565-580 million (26% margin), 1% total member growth driven by 5% first-year increase, and gross margin 54-55%. Q2 outlook projects revenue $635-650 million and Adjusted EBITDA $198-208 million. CEO Bill Cobb emphasized excellent performance and shareholder returns amid favorable trends.