Revenue Growth and Strong Financial Performance
Revenue increased 14% year-over-year to $617 million, net income grew 21% to $111 million, and adjusted EBITDA rose by 26% to $199 million. The company raised its full-year revenue outlook by $25 million to be between $2.055 billion and $2.075 billion.
Home Warranty Segment Success
First year DTC organic home warranties grew by 9%, retention rate stood at 78.3%, near an all-time high, and the integration of 2-10 Home Buyers Warranty is ahead of schedule.
Non-Warranty Revenue Increase
Non-warranty revenue driven by the new HVAC program is expected to come in nearly 40% higher than last year, with a full-year outlook of $120 million.
Strong Cash Flow and Share Repurchases
Free cash flow increased by 44% to $237 million, and the company repurchased $150 million worth of shares year-to-date, with a full-year target of $250 million.
Improvement in Gross Profit Margin
Gross profit margin improved by 130 basis points to 58%, driven by favorable macroeconomic conditions and internal process improvements.