Frontdoor Q4 Revenue Climbs 13.1% to $433M, EPS Beats by 74%
Home warranty company Frontdoor reported Q4 CY2025 revenue of $433 million, rising 13.1% year-on-year and surpassing estimates by 2.7%, while adjusted EPS of $0.23 beat forecasts by 74.1%. However, Q1 CY2026 revenue guidance of $442.5 million undercut estimates by 2%, though full-year EBITDA is guided to $572.5 million, 3.4% above forecasts.
1. Strong Q4 Sales and EPS
Frontdoor reported Q4 CY2025 revenue of $433 million, a 13.1% increase year-on-year that topped analyst estimates of $422 million by 2.7%. Adjusted EPS of $0.23 per share beat forecasts by 74.1%, while adjusted EBITDA reached $59 million, exceeding estimates by 12.4%.
2. Guidance Details
For Q1 CY2026, revenue guidance is set at $442.5 million, 2% below analyst estimates, signaling a potential slowdown in top-line growth. Full-year EBITDA guidance of $572.5 million surpasses analyst forecasts by 3.4%, reflecting management’s expectation of improved operational leverage.
3. Profitability Metrics
Operating margin expanded to 6.2% from 4.2% a year ago, driven by efficiency gains in service operations. Free cash flow margin climbed to 21.7% versus 13.3% in the prior period, underscoring stronger cash conversion and balance sheet flexibility.