Frontdoor(NASDAQ) FTDR

Frontdoor, Inc. helps homeowners fix broken appliances and systems. It sends professionals to repair or replace items like furnaces. The company protects people from the high cost of home repairs.

What Frontdoor Offers

• Renewals: Service plan renewals for existing customers; made up 76% of revenue for the six months ended June 30, 2026.
• Non-warranty Services: Includes heating, ventilation, and air conditioning (HVAC) upgrades and water shut-off devices; accounted for 10% of revenue for the six months ended June 30, 2026.
• Direct-to-consumer: New warranty plans sold directly to homeowners through marketing; represented 8% of revenue for the six months ended June 30, 2026.
• Real Estate: Home warranties sold during residential property transactions; provided 7% of revenue for the six months ended June 30, 2026.

Strategic Moves

• Acquired 2-10 HBW on Dec. 19, 2024, to enter the new home builder warranty market.
• Expanded the non-warranty service menu with an HVAC upgrade program and Moen water shut-off devices.
• Integrated the Streem technology platform to help professionals diagnose issues with augmented reality.
• Invested in marketing for the direct-to-consumer channel to increase the total warranty base.

The Service Advantage

Frontdoor maintains a nationwide network of professional contractor firms to serve 2.1 million active home warranty customers. The company uses proprietary technology to improve the speed and accuracy of repairs for major household systems.

Key Financial Figures

• Revenue was $1,096 million for the six months ended June 30, 2026, up 5% year over year.
• Net income was $167 million for the six months ended June 30, 2026, compared to $148 million for the same period in 2025.
• Adjusted EBITDA was $324 million for the six months ended June 30, 2026, compared to $300 million for the prior year period.
• Free cash flow was $233 million for the six months ended June 30, 2026, compared to $237 million for the same period in 2025.

Business Evolution

Frontdoor has evolved from a traditional warranty company into a tech-enabled home services platform. Its recurring renewal revenue and expansion into builder warranties support its position in the U.S. market.