Frontdoor, Inc. Reports 14% Revenue Growth to $617 Million in Latest Quarter

Frontdoor, Inc. reported significant financial growth in its latest quarterly results, with revenue reaching $617 million for the three months ended June 30, 2025, a 14% increase from $542 million in the same period last year. For the first half of 2025, revenue totaled $1.043 billion, up 13% from $920 million in the prior year. The company’s net income also saw a notable rise, reaching $111 million for the second quarter, compared to $92 million in 2024, and $148 million for the first half of 2025, up from $126 million in the previous year. Earnings per share increased to $1.51 for the second quarter and $2.00 for the first half, reflecting a positive trend in profitability.

The growth in revenue was largely attributed to the acquisition of 2-10 HBW, completed in December 2024, which contributed approximately $56 million and $97 million to revenue for the respective three and six months ended June 30, 2025. Renewal revenue from existing customers accounted for 76% of total revenue, while new home warranty sales and other revenue channels also contributed to the overall increase. However, the company noted a decline in the number of renewed home warranties, which was partially offset by improved pricing strategies and increased sales in the direct-to-consumer segment.

Operationally, Frontdoor reported approximately 2.1 million active home warranties as of June 30, 2025, reflecting a 7% increase from the previous year. The customer retention rate improved to 79.7%, up from 76.6% in 2024. The company’s total assets increased to $2.172 billion, up from $2.107 billion at the end of 2024, driven by higher cash reserves and the impact of the 2-10 HBW acquisition. The company’s employee headcount also rose, reflecting its expansion efforts and increased operational demands.

In terms of expenses, Frontdoor's cost of services rendered increased to $261 million for the second quarter, up from $237 million in 2024, primarily due to inflationary pressures. Selling and administrative expenses rose to $172 million, reflecting costs associated with the 2-10 HBW acquisition and increased customer service demands. The company reported a significant increase in depreciation and amortization expenses, which rose to $21 million for the second quarter, largely due to the amortization of intangible assets acquired in the acquisition.

Looking ahead, Frontdoor remains focused on leveraging its recent acquisition to enhance its market position and expand its service offerings. The company anticipates continued growth in revenue and profitability, although it acknowledges potential challenges from macroeconomic conditions, including inflation and a competitive landscape. The management expressed confidence in its strategic direction and operational capabilities, aiming to capitalize on the fragmented nature of the home services industry for future acquisitions and growth opportunities.