Frontdoor (NASDAQ:FTDR) Issues Earnings Results

Frontdoor (NASDAQ:FTDR) announced its quarterly earnings results on Thursday. The company reported $0.73 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.66 by $0.07, FiscalAI reports. The company had revenue of $451.00 million during the quarter, compared to analyst estimates of $442.28 million. Frontdoor had a return on equity of 118.62% and a net margin of 12.22%.The firm’s quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.64 EPS.

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

• Frontdoor forecasts ~1% total member count growth in 2026, the first organic increase since 2020, driven by accelerating direct‑to‑consumer and first‑year real‑estate channels plus strong renewal rates.
• Q1 results were solid — revenue +6% to $451M, gross margin 55%, net income +11% to $41M, adjusted EBITDA +3% to $104M, adjusted EPS +14% to $0.73, with $114M free cash flow and $60M of share buybacks.
• Non‑warranty/HVAC Upgrade Program continues to scale (non‑warranty revenue +23% to $41M), improving quote and order conversion by routing claims to higher‑converting contractors and adding incremental revenue and margin.
• Company reaffirmed full‑year 2026 guidance (Q2 revenue $635–650M; adj. EBITDA $198–208M) but flagged promotional pricing, short‑term retention drag from the 2‑10 integration, and macro/geopolitical risks as items to monitor.

Frontdoor Trading Up 0.2%

Shares of NASDAQ FTDR traded up $0.17 during mid-day trading on Friday, hitting $68.80. 1,045,582 shares of the company traded hands, compared to its average volume of 579,916. Frontdoor has a 1 year low of $46.89 and a 1 year high of $70.77. The stock has a market capitalization of $4.86 billion, a price-to-earnings ratio of 20.18 and a beta of 1.55. The company has a quick ratio of 1.55, a current ratio of 1.47 and a debt-to-equity ratio of 4.95. The business has a 50 day moving average of $60.33 and a two-hundred day moving average of $58.77.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on FTDR. The Goldman Sachs Group upgraded Frontdoor from a “sell” rating to a “neutral” rating and upped their price objective for the company from $50.00 to $67.00 in a report on Monday, March 2nd. Weiss Ratings upgraded Frontdoor from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, April 22nd. Truist Financial set a $71.00 price objective on Frontdoor in a report on Monday, January 26th. Wall Street Zen lowered Frontdoor from a “buy” rating to a “hold” rating in a report on Sunday, March 8th. Finally, Benchmark began coverage on Frontdoor in a report on Thursday, March 26th. They issued a “buy” rating and a $80.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $68.60.

Institutional Investors Weigh In On Frontdoor

Hedge funds have recently modified their holdings of the stock. Marshall Wace LLP acquired a new position in Frontdoor during the third quarter valued at $23,871,000. Cubist Systematic Strategies LLC raised its position in Frontdoor by 309.6% during the second quarter. Cubist Systematic Strategies LLC now owns 431,446 shares of the company’s stock valued at $25,429,000 after buying an additional 326,112 shares during the period. Millennium Management LLC raised its position in Frontdoor by 533.0% during the first quarter. Millennium Management LLC now owns 307,497 shares of the company’s stock valued at $11,814,000 after buying an additional 258,920 shares during the period. Jane Street Group LLC raised its position in Frontdoor by 149.7% during the second quarter. Jane Street Group LLC now owns 360,228 shares of the company’s stock valued at $21,232,000 after buying an additional 215,982 shares during the period. Finally, Janus Henderson Group PLC raised its position in Frontdoor by 27.2% during the fourth quarter. Janus Henderson Group PLC now owns 902,773 shares of the company’s stock valued at $52,089,000 after buying an additional 193,256 shares during the period.

Key Headlines Impacting Frontdoor

Here are the key news stories impacting Frontdoor this week:

• Positive Sentiment: Q1 results beat expectations — Frontdoor reported $0.73 EPS vs. consensus $0.66 and revenue of $451M vs. ~$442M, with revenue up ~5.9% year-over-year; management released the press deck and conference materials after the print. Zacks: Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Market reaction and coverage emphasize the beat — equity commentary and summary pieces note the stronger-than-expected quarter and positive investor response. KalkineMedia: Frontdoor Climbs on Strong Performance
• Neutral Sentiment: Guidance provided for FY‑2026 and Q2 (revenue ranges roughly around ~$2.2B for FY and $635M–$650M for Q2) — ranges are generally in line with consensus, so guidance neither materially surprises to the upside nor signals a major downgrade; EPS guidance text in some reports was unclear. See the company presentation for details. Seeking Alpha: Q1 Results Presentation
• Neutral Sentiment: Earnings call/transcript and slide deck are available — provides transparency on margin drivers (net margin ~12%), product mix and membership trends for investors who want line‑item detail. Seeking Alpha: Q1 Earnings Call Transcript
• Negative Sentiment: Leverage is a risk — the company carries a high debt-to-equity ratio (background metrics show ~4.7x), which can amplify returns but raises concern if growth slows or interest costs rise. (Monitor liquidity and any commentary on capital allocation in the slide deck/call.)

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.