Frontdoor, Inc. reported a significant increase in financial performance for the third quarter of 2025, with revenues reaching $618 million, a 14% increase from $540 million in the same period last year. For the nine months ending September 30, 2025, the company generated $1.66 billion in revenue, up from $1.46 billion in 2024. Net income for the third quarter was $106 million, compared to $100 million in 2024, while net income for the nine-month period rose to $253 million from $226 million. The company's earnings per share also improved, with basic earnings per share at $1.45 for the third quarter, up from $1.32 a year earlier.
The increase in revenue was attributed to several factors, including a 9% rise in renewal revenue, which accounted for 76% of total revenue, and contributions from the acquisition of 2-10 HBW, completed in December 2024. This acquisition added approximately $52 million to quarterly revenue and $149 million for the nine-month period. However, the company noted a decline in the number of renewed home warranties, which was partially offset by improved pricing strategies and growth in direct-to-consumer sales.
Operationally, Frontdoor reported approximately 2.1 million active home warranties as of September 30, 2025, reflecting an 8% increase from the previous year. The customer retention rate also improved to 79.4%, up from 77.7% in 2024. The company faced challenges in the real estate market, which affected demand for home warranties, but it continued to expand its service offerings and geographic reach. The total assets of the company increased to $2.23 billion from $2.11 billion at the end of 2024, driven by the acquisition and operational growth.
In terms of strategic developments, Frontdoor has been actively pursuing acquisitions to enhance its market position and service offerings. The integration of 2-10 HBW is expected to provide additional revenue streams and improve operational efficiencies. The company has also implemented cost management strategies to mitigate inflationary pressures on labor and materials, which have been impacting its cost of services rendered. Looking ahead, Frontdoor anticipates continued growth, although it remains cautious about macroeconomic conditions that could affect consumer demand and operational costs. The company is committed to leveraging its expanded capabilities to drive future performance and shareholder value.
About Frontdoor, Inc.
Frontdoor, Inc. is a leading provider of home warranties and structural warranties in the U.S., offering protection for home systems, appliances, and new construction. Its brands include American Home Shield and 2-10 HBW. The company serves homeowners, builders, and real estate partners through a nationwide contractor network, leveraging technology for service efficiency, customer retention, and expansion into non-warranty home services.
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