
Frontdoor NASDAQ: FTDR raised its full-year revenue and adjusted earnings outlook after third-quarter growth in home warranty memberships and HVAC system upgrades helped offset higher claims costs during an unusually hot summer.
front door, inc. The company is headquartered in Memphis, Tennessee.
| Revenue (TTM) | $2.18B |
| Gross Profit (TTM) | $1.20B |
| EBITDA | $523.00M |
| Operating Margin | 25.70% |
| Return on Equity | 90.00% |
| Return on Assets | 12.30% |
| Revenue/Share (TTM) | $31.14 |
| Book Value | $4.63 |
| Price-to-Book | 20.94 |
| Price-to-Sales (TTM) | 3.06 |
| EV/Revenue | 3.297 |
| EV/EBITDA | 13.47 |
| Quarterly Earnings Growth (YoY) | 16.20% |
| Quarterly Revenue Growth (YoY) | 6.00% |
| Shares Outstanding | $68.89M |
| Float | $67.07M |
| % Insiders | 0.73% |
| % Institutions | 108.95% |
Volatility is currently contracting

Frontdoor NASDAQ: FTDR raised its full-year revenue and adjusted earnings outlook after third-quarter growth in home warranty memberships and HVAC system upgrades helped offset higher claims costs during an unusually hot summer.

Frontdoor (FTDR) came out with quarterly earnings of $1.81 per share, beating the Zacks Consensus Estimate of $1.76 per share. This compares to earnings of $1.58 per share a year ago.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Frontdoor, Inc. (NASDAQ: FTDR), the nation's leading provider of home warranties and new home builder warranties, today announced its third-quarter 2026 results. Third-Quarter 2026 Summary Number of home warranties grew 1% to 2.14 million Revenue increased 6% to $655 million Gross profit margin of 55% Net Income and EPS(1) increased 10% to $116 million and 16% to $1.65, respectively Adjusted EBITDA(2) increased 5% to $205 million Generated $318 million of Operat.

Frontdoor, Inc. is rated a buy, with a DCF-derived fair value of $89.67 per share, implying ~16% upside. Warranty margin expansion is expected to persist due to industry-wide lower claims frequency, dynamic pricing, and process improvements, not mean-reverting as the market implies. Revenue growth is forecast at 5.43% CAGR (2025–2035), with non-warranty services and stable market share supporting long-term value.

Frontdoor earns a Buy rating with an $84 price target, driven by renewed membership growth and robust cash flow. FTDR's strategy of discounted first-year pricing aims to expand recurring revenue, contingent on maintaining an 80% retention rate post-promotion. Adjusted EBITDA margin improved to 33.3% in Q2 (excluding weather benefit), reflecting genuine operational gains despite margin pressures from out-of-warranty services.

Infrastructure, data center and innovation demand support building products companies like URI, OC, ECG, FTDR and AGX despite housing and cost pressures.

Frontdoor (FTDR) could produce exceptional returns because of its solid growth attributes.

Frontdoor (FTDR) could produce exceptional returns because of its solid growth attributes.

After losing some value lately, a hammer chart pattern has been formed for Frontdoor (FTDR), indicating that the stock has found support. This, combined with an upward trend in earnings estimate revisions, could lead to a trend reversal for the stock in the near term.

Frontdoor NASDAQ: FTDR Chief Financial Officer Jason Bailey said the home warranty provider expects member growth to return this year for the first time since 2020, supported by improving real estate-channel conditions, continued direct-to-consumer growth and strong renewal rates.
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