Frontdoor (NASDAQ:FTDR) Releases Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Frontdoor (NASDAQ:FTDR) posted its quarterly earnings results on Thursday. The company reported $0.73 EPS for the quarter, beating the consensus estimate of $0.66 by $0.07, FiscalAI reports. Frontdoor had a net margin of 12.18% and a return on equity of 120.79%. The business had revenue of $451.00 million for the quarter, compared to analysts’ expectations of $442.28 million. During the same period in the previous year, the company posted $0.64 EPS. Frontdoor’s revenue was up 5.9% on a year-over-year basis.

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 Stock Up 0.4%

NASDAQ:FTDR traded up $0.28 during trading hours on Friday, reaching $68.91. The company’s stock had a trading volume of 813,445 shares, compared to its average volume of 638,752. The company has a market cap of $4.87 billion, a price-to-earnings ratio of 20.21 and a beta of 1.41. Frontdoor has a one year low of $46.89 and a one year high of $70.77. The business’s 50-day moving average is $60.33 and its 200-day moving average is $58.77. The company has a debt-to-equity ratio of 4.73, a current ratio of 1.55 and a quick ratio of 1.55.

Institutional Investors Weigh In On Frontdoor

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

Frontdoor News Summary

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.)

Analyst Ratings Changes

Several equities analysts have recently commented on FTDR shares. Truist Financial set a $71.00 price target on shares of Frontdoor in a report on Monday, January 26th. The Goldman Sachs Group upgraded shares of Frontdoor from a “sell” rating to a “neutral” rating and boosted their price target for the company from $50.00 to $67.00 in a report on Monday, March 2nd. Weiss Ratings upgraded shares of Frontdoor from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, April 22nd. Wall Street Zen cut shares of Frontdoor from a “buy” rating to a “hold” rating in a report on Sunday, March 8th. Finally, Oppenheimer reiterated an “outperform” rating and issued a $70.00 price objective on shares of Frontdoor in a report on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $68.60.

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.