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Dec 31, 2025
Frontdoor Q4 2025 Earnings Report
Frontdoor reported higher fourth-quarter 2025 revenue with modest profitability and improved Adjusted EBITDA.
Key Takeaways
Frontdoor generated Q4 2025 revenue of 433000000 with net income of 1000000 and Adjusted EBITDA of 59000000, driven by renewal growth and strong expansion in non-warranty revenue.
Revenue increased 13% year-over-year to 433000000.
Gross profit reached 213000000 with a 49% gross margin.
Net income declined to 1000000 from 9000000 in the prior year.
Adjusted EBITDA increased 21% to 59000000.
Revenue by Segment
Forward Guidance
For full-year 2026, Frontdoor expects modest revenue and Adjusted EBITDA growth supported by pricing increases and stabilization of member count.
Positive Outlook
- Revenue expected between 2155000000 and 2195000000.
- Adjusted EBITDA projected between 565000000 and 580000000.
- Home warranty member count expected to turn positive.
- Gross margin guidance of 54% to 55%.
- Approximately 2% to 3% realized price increase expected.
Challenges Ahead
- Low-single digit decrease expected in direct-to-consumer channel revenue.
- Relatively flat real estate channel revenue expected.
- Capital expenditures projected at 30000000 to 35000000.
- Annual effective tax rate expected around 25%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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