Frontdoor ( (FTDR) ) has released its Q2 earnings. Here is a breakdown of the information Frontdoor presented to its investors.
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Frontdoor, Inc. is a leading provider of home warranties and on-demand home repair services, operating primarily in the home services industry with brands like American Home Shield and 2-10 Home Buyers Warranty. In its second-quarter 2025 financial results, Frontdoor reported a 14% increase in revenue to $617 million, a 21% rise in net income to $111 million, and a 26% boost in adjusted EBITDA to $199 million. The company also repurchased $150 million of shares year-to-date through July 2025.
Key financial highlights include a gross profit margin increase of 130 basis points to 58%, and a 26% increase in diluted earnings per share to $1.48. The company attributed its revenue growth to a 2% increase from price adjustments and a 12% increase from higher volume, primarily driven by the acquisition of 2-10 Home Buyers Warranty. Additionally, Frontdoor’s customer retention rate improved to 79.7%.
Frontdoor’s strategic initiatives, such as scaling non-warranty revenue and integrating the 2-10 acquisition, are progressing well. The company has raised its full-year 2025 revenue guidance to a range of $2.055 billion to $2.075 billion, with expectations of a gross profit margin between 55% and 56% and adjusted EBITDA between $530 million and $550 million.
Looking ahead, Frontdoor remains optimistic about its growth prospects, with plans to increase share repurchases to approximately $250 million for 2025. The company continues to focus on expanding its customer base and enhancing its service offerings to maintain its leadership position in the home services industry.