Frontdoor Raises 2026 Outlook After Q3 Revenue Hits $655M

Memphis-based Frontdoor, Inc. reported third-quarter revenue of $655 million on Thursday, up 6% from $618 million a year earlier, and raised its full-year 2026 outlook while approving a new $1 billion share repurchase authorization, according to its Exhibit 99.1 filed with the Securities and Exchange Commission.

• Revenue: $655 million, up 6% (3% price, 3% volume)
• Net income / diluted EPS: $116 million / $1.65, up 10% and 16%
• Adjusted EPS: $1.81, up 15%
• Adjusted EBITDA: $205 million, up 5%
• Home warranties: 2.14 million, up 1%
• Nine-month free cash flow: $298 million; share repurchases through September: $259 million

Renewal revenue rose 4% to $479 million on higher realized price. Real estate first-year revenue increased 3% to $44 million. Direct-to-consumer first-year revenue was $54 million, down 1%. Other revenue jumped 32% to $78 million, led by the company’s new HVAC upgrade program. Gross profit margin was 55%.

Outlook and capital return

Frontdoor now expects full-year revenue of $2.205 billion to $2.215 billion and adjusted EBITDA of $590 million to $600 million. Fourth-quarter revenue is guided at $453 million to $463 million, with adjusted EBITDA of $62 million to $72 million.

Chief Financial Officer Jason Bailey said the company expects to finish its existing $650 million repurchase authorization in November, nearly a year early, and the board approved a new $1 billion authorization. Unrestricted cash stood at $430 million as of Sept. 30, with total cash of $581 million including restricted net assets.

Chairman and Chief Executive Bill Cobb said the results came while the company handled what he called the hottest summer on record for service demand. The industrial and consumer earnings slate this week also includes Cummins’ record third-quarter EPS.

Sources: Frontdoor Exhibit 99.1 (SEC), Frontdoor Form 8-K (SEC), Frontdoor Q3 2026 earnings release (IR PDF)