FTDR

EX-99.1

2 ftdr-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Frontdoor Reports Third Quarter 2026 Results

Revenue Increased 6% to $655 Million;

Net Income Increased 10% to $116 Million, Adjusted EBITDA(2) Increased 5% to $205 Million;

EPS(1) and Adjusted EPS(1),(2) Increased 16% to $1.65 and 15% to $1.81, Respectively;

Company Announces New $1 Billion Share Repurchase Authorization

MEMPHIS, TENN. — November 5, 2026 — 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 Operating Cash Flow and $298 million of Free Cash Flow(2)

• Completed $259 million of share repurchases through September, up over 30% year-to-date

Raising Full-Year 2026 Outlook

• Revenue of $2.205 billion to $2.215 billion

• Adjusted EBITDA(2) of $590 million to $600 million

"I am proud of how our team produced strong third-quarter results while providing exceptional service for our members during the hottest summer on record," said Chairman and Chief Executive Officer Bill Cobb. "Our team continues to rise to the challenge and find new ways to improve our operations and elevate the member experience. These outcomes reflect the value we provide homeowners, the dedication of our people, and the durability of our business model."

“We delivered higher revenue, Adjusted EBITDA and earnings per share again in the third quarter,” said Chief Financial Officer Jason Bailey. “Our capital-light business continued to generate strong cash flows and enabled us to accelerate share repurchases in the third-quarter. We now expect to complete our current authorization in November. As a result, our Board of Directors approved a new $1 billion authorization, which reflects our confidence in the business and underscores our commitment to returning excess cash to shareholders.”

Third-Quarter 2026 Results

Financial Results

Three Months Ended

September 30,

(In millions, except per share data)

2026

2025

Change

Revenue

$

655

$

618

6

%

Gross Profit

362

353

3

%

Net Income

116

106

10

%

Earnings per Share(1)

1.65

1.42

16

%

Adjusted Net Income(2)

127

117

8

%

Adjusted Earnings per Share(1),(2)

1.81

1.58

15

%

Adjusted EBITDA(2)

205

195

5

%

Number of Home Warranties

2.14

2.11

1

%

1

Revenue by Customer Channel

Three Months Ended

September 30,

(In millions)

2026

2025

Change

Renewals

$

479

$

461

4

%

Real estate (First-Year)

44

43

3

%

Direct-to-consumer (First-Year)

54

54

(1

)%

Other

78

59

32

%

Total

$

655

$

618

6

%

Revenue increased 6% to $655 million and was comprised of 3% from higher realized price and 3% from higher volume.

• Renewal revenue increased 4%, driven by higher realized price;

• Real estate revenue increased 3%, due to higher volume;

• Direct-to-consumer revenue declined 1%, due to lower realized price from our promotional pricing strategy that was partially offset by higher volume from growth in the number of new home warranty members;

• Other revenue increased 32%, primarily due to the New HVAC upgrade program.

Period-over-Period Net Income and Adjusted EBITDA(2) Bridge

(In millions)

Net Income

Adjusted EBITDA

Three Months Ended September 30, 2025

$

106

$

195

Impact of change in revenue

17

17

Contract claims costs

(7

)

(7

)

Sales and marketing costs

(4

)

(4

)

Customer service costs

(1

)

(1

)

Stock-based compensation expense

(1

)

—

Other general and administrative costs

6

6

Depreciation and amortization expense

2

—

Interest expense

1

—

Provision for income taxes

(1

)

—

Other

(1

)

(1

)

Three Months Ended September 30, 2026

$

116

$

205

Third-quarter 2026 Net Income increased 10% to $116 million and Adjusted EBITDA(2) increased 5% to $205 million. The table above shows the change versus the prior-year period, and includes:

• $17 million from higher revenue conversion(3).

• Contract claims costs(4) increased $7 million, excluding the impact of claims costs related to the change in revenue. Contract claims costs primarily reflects:

o A higher number of service requests per member, primarily due to approximately $9 million of unfavorable weather in the HVAC trade;

o Normal cost inflation across our contractor network, replacement parts and equipment, which was largely offset by process improvement initiatives;

o Favorable claims cost development of $6 million, compared to a $5 million favorable claims cost development in the third-quarter of 2025.

• $6 million of lower other general and administrative costs due to lower personnel costs.

• $4 million of higher sales and marketing costs, pri

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EX-99.1

2 ftdr-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Frontdoor Continues Strong Financial Performance in First-Quarter 2026

Revenue Increased 6% to $451 Million;

Gross Profit Margin Unchanged at 55%;

Net Income Increased 11% to $41 Million,

Diluted Earnings Per Share Increased 18% to $0.57;

Adjusted EBITDA(1) Increased 3% to $104 Million;

Reaffirming Full-Year 2026 Outlook

MEMPHIS, TENN. — April 30, 2026 — Frontdoor, Inc. (NASDAQ: FTDR), the nation’s leading provider of home warranties and new home builder warranties, today announced its first-quarter 2026 results.

Financial Results

Three Months Ended

March 31,

(In millions except as noted)

2026

2025

Change

Revenue

$

451

$

426

6

%

Gross Profit

248

235

5

%

Net Income

41

37

11

%

Diluted Earnings per Share

0.57

0.49

18

%

Adjusted Net Income(1)

53

49

8

%

Adjusted Diluted Earnings per Share(1)

0.73

0.64

14

%

Adjusted EBITDA(1)

104

100

3

%

Home Warranties (number in millions)

2.10

2.10

0

%

First-Quarter 2026 Summary

• Revenue increased 6% to $451 million and was comprised of 5% from higher realized price and 1% from higher volume

• Gross profit margin unchanged at 55%

• Net Income and Diluted Earnings Per Share increased 11% to $41 million and 18% to $0.57, respectively

• Adjusted EBITDA(1) increased 3% to $104 million

• First-quarter share repurchases totaled $60 million

• Growth in the number of home warranties in the first-year channels accelerated to 3%

Reaffirming Full-Year 2026 Outlook

• Revenue of $2.155 billion to $2.195 billion

• Adjusted EBITDA(2) of $565 million to $580 million

“Frontdoor delivered an excellent first quarter performance," said Chairman and Chief Executive Officer Bill Cobb. “Member count trends continued to improve, our operational foundation remains strong, and we delivered exceptional financial results while returning significant capital to shareholders through share repurchases. Looking ahead, we are reaffirming our full-year 2026 guidance based on our strong operating performance and the durability of our subscription-based business model."

1

First-Quarter 2026 Results

Revenue by Customer Channel

Three Months Ended

March 31,

(In millions)

2026

2025

Change

Renewals

$

352

$

333

6

%

Real estate (First-Year)

28

27

3

%

Direct-to-consumer (First-Year)

31

32

(5

)%

Other

41

33

23

%

Total

$

451

$

426

6

%

Revenue increased 6% to $451 million and was comprised of a 5% increase from realized price and a 1% increase from higher volume.

• Renewal revenue increased 6% due to higher price realization;

• Real estate revenue increased 3% due to higher volume, partially offset by lower price;

• Direct-to-consumer revenue decreased 5% due to lower price from our promotional pricing strategy to drive new home warranty member growth, partially offset by higher volume; and

• Other revenue increased 23% primarily due to the growth of the HVAC upgrade program.

Period-over-Period Net Income and Adjusted EBITDA(1) Bridge

(In millions)

Net Income

Adjusted EBITDA

Three Months Ended March 31, 2025

$

37

$

100

Impact of change in revenue

19

19

Contract claims costs

(6

)

(6

)

Sales and marketing costs

(6

)

(6

)

Customer service costs

(2

)

(2

)

Stock-based compensation expense

(3

)

—

Other general and administrative costs

(1

)

(1

)

Depreciation and amortization expense

2

—

Interest expense

1

—

Interest and net investment income

(1

)

(1

)

Provision for income taxes

1

—

Three Months Ended March 31, 2026

$

41

$

104

First-quarter 2026 Net Income increased 11% to $41 million and Adjusted EBITDA(1) increased 3% to $104 million. The table above shows the change versus the prior-year period, and includes:

• $19 million from higher revenue conversion(3).

• Contract claims costs(4) increased $6 million, excluding the impact of claims costs related to the change in revenue. Contract claims costs primarily reflects:

o Low-single digit cost inflation across our contractor network, replacement parts and equipment;

o A higher number of service requests per member, including $1 million from unfavorable weather; and

o Favorable claims cost development of $6 million, compared to a $7 million favorable claims cost development in the first-quarter of 2025.

• $6 million of higher sales and marketing costs, primarily due to increased marketing investments to drive direct-to-consumer channel growth.

2

Cash Flow

Three Months Ended

March 31,

(In millions)

2026

2025

Net cash provided from (used for):

Operating activities

$

119

$

124

Investing activities

(7

)

47

Financing activities

(75

)

(85

)

Cash increase during the period

$

37

$

85

Net cash provided from operating activities was $119 million for the three months ended March 31, 2026 and was comprised of $69 million in earnings adjusted for non-cash charges and $50 million in cash provided from working capital.

Net cash used for investi