Frontdoor, Inc. (NASDAQ:FTDR) — the leading U.S. provider of home warranties — beat Wall Street expectations for the third quarter, posting robust revenue and earnings growth that prompted the company to raise its full-year guidance.
Revenue climbed 14% year-over-year to $618 million, surpassing the $608.14 million consensus estimate, while adjusted earnings per share came in at $1.58, above analysts’ forecast of $1.46. The top-line increase reflected a 3% boost from pricing and a 12% rise in volume, driven largely by contributions from the 2-10 acquisition.
Gross profit margin improved 60 basis points to 57%, and adjusted EBITDA rose 18% year-over-year to $195 million.
“Frontdoor is on pace for another year of record financial performance,” said Chairman and CEO Bill Cobb. “Our results are driven by contributions from the 2-10 acquisition and our continuous improvement in execution across the business. Real estate member count increased sequentially for the first time in five years, and our non-warranty business continues to demonstrate robust momentum.”
The company reported 2.11 million active home warranties as of September 30, up 8% from a year earlier. Customer retention improved to 79.4% over the past 12 months, compared with 77.7% a year ago.
Reflecting its strong performance, Frontdoor raised its fiscal 2025 outlook, now expecting revenue between $2.075 billion and $2.085 billion, slightly above analyst expectations of $2.07 billion. It also lifted its adjusted EBITDA forecast to $545–$550 million.
“We delivered exceptional financial performance in the third quarter with double-digit increases in revenue and Adjusted EBITDA. Gross profit margin grew 60 basis points to 57%, which includes the benefit of higher price, a lower number of service requests per member and low-to-mid-single-digit inflation,” said CFO Jessica Ross.
Frontdoor has repurchased $215 million in shares year-to-date through October 2025, putting it on track to buy back up to 6% of its outstanding shares by year-end.