Frontdoor beats Q3 revenue estimates, announces $1 billion buyback
FTDR•Frontdoor reported Q3 revenue of $655 million and adjusted EPS of $1.81, beating analyst estimates of $647.83 million and $1.77. It authorized a $1 billion share repurchase and raised its 2026 revenue outlook to $2.205 billion-$2.215 billion.
1. Quarterly results
Frontdoor's Q3 revenue rose 6% to $655 million, above the $647.83 million consensus estimate. Adjusted EPS increased 15% to $1.81, beating the $1.77 estimate; adjusted EBITDA was $205 million, a slight beat against $203.60 million.
2. Buyback and outlook
The company announced a new $1 billion share repurchase authorization. It raised its full-year 2026 revenue outlook to $2.205 billion-$2.215 billion and expects adjusted EBITDA of $590 million-$600 million. For Q4, it forecast revenue of $453 million-$463 million and adjusted EBITDA of $62 million-$72 million.
3. Revenue and costs
Revenue growth was driven equally by higher realized prices and increased volume, while other revenue rose 32%, mainly due to the New HVAC upgrade program. Frontdoor cited more service requests per member, mainly from unfavorable weather in the HVAC trade, as a factor in higher contract claims costs.
