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Jun 30
Frontdoor Q2 2025 Earnings Report
Frontdoor reported strong second-quarter results with double-digit revenue and net income growth.
Key Takeaways
Frontdoor delivered a solid Q2 2025 performance with 14% revenue growth, driven by increases across all customer channels. Net income and adjusted EPS both rose significantly, supported by margin expansion and strong execution.
Revenue rose 14% YoY to $617 million, led by gains across all customer channels
Net income increased 21% to $111 million, with diluted EPS reaching $1.48
Free cash flow hit $237 million for the first half of 2025, up 44% YoY
Home warranty count reached 2.09 million, and customer retention improved to 79.7%
Frontdoor
Frontdoor
Frontdoor Revenue by Segment
Revenue by Segment
Renewals Revenue
CapyFin.comReal Estate (First-Year) Revenue
CapyFin.comDirect-to-Consumer (First-Year) Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Frontdoor raised its full-year 2025 guidance across revenue, margin, and EBITDA metrics, reflecting strong first-half results and momentum from strategic initiatives.
Positive Outlook
- Raised FY25 revenue guidance to $2.055–$2.075 billion
- Increased gross margin outlook to 55–56%
- Raised adjusted EBITDA range to $530–$550 million
- Strong momentum in New HVAC, Moen, and structural warranty programs
- 2-10 acquisition integration ahead of schedule
Challenges Ahead
- Expected 1–3% decline in total home warranty member count
- Discounting strategy impacts price in Direct-to-Consumer channel
- Ongoing inflation in contractor network and replacement parts
- Increase in contract claims costs partially offset favorable weather
- Operating cost pressures from acquisition-related G&A and integration
Revenue & Expenses
Visualization of income flow from segment revenue to net income