Frontdoor ( (FTDR) ) has released its Q1 earnings. Here is a breakdown of the information Frontdoor presented to its investors.
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Frontdoor, Inc., a leading provider of home warranties and on-demand home repair services, reported robust financial results for the first quarter of 2025, showcasing significant growth in revenue and profitability. The company, known for its brands American Home Shield and 2-10 Home Buyers Warranty, continues to expand its market presence in the home services sector.
In the first quarter of 2025, Frontdoor achieved a 13% increase in revenue, reaching $426 million, and a 41% rise in adjusted EBITDA to $100 million. The company’s net income also saw a 9% increase, amounting to $37 million. These results were bolstered by a strategic acquisition and organic growth, leading to a 15% increase in direct-to-consumer membership.
Key financial highlights include a record gross profit margin of 55%, up by 380 basis points, and a substantial 41% increase in adjusted net income. Frontdoor also repurchased $105 million worth of shares year-to-date, reflecting a strong commitment to returning value to shareholders. The company’s strategic focus on expanding its home warranty member base and integrating the 2-10 acquisition has been pivotal in driving these results.
Looking ahead, Frontdoor has raised its full-year 2025 outlook, projecting revenue between $2.03 billion and $2.05 billion and an adjusted EBITDA range of $500 million to $520 million. The company aims to continue its growth trajectory by enhancing its service offerings and expanding its customer base, while maintaining a strong financial position to navigate economic uncertainties.