Frontdoor Inc
NASDAQ:FTDR
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Frontdoor Inc
NASDAQ:FTDR
|
US |
|
Central Retail Corporation PCL
SET:CRC
|
TH |
|
O
|
Orlen SA
PSE:PKN
|
PL |
|
G
|
Golden Patriot Corp
OTC:GPTC
|
US |
|
Thesis Gold Inc
XTSX:TAU
|
CA |
|
Keshun Waterproof Technologies Co Ltd
SZSE:300737
|
CN |
|
V
|
Vanfund Urban Investment and Development Co Ltd
SZSE:000638
|
CN |
|
C
|
China Oil and Gas Group Ltd
DUS:GPI1
|
HK |
|
Jiu Rong Holdings Ltd
HKEX:2358
|
HK |
Frontdoor Inc
Frontdoor Inc., a company rooted in the American tradition of home services, emerged from the fertile grounds of innovation and necessity. Originally a part of ServiceMaster, it embarked on its own path in 2018 as a standalone entity focusing on home warranty and service plans. This strategic move allowed Frontdoor to harness its vast resources and dedicated workforce to address a pressing need: reliable and swift home repair services. With a diverse suite of offerings under the brands like American Home Shield, the company capitalizes on a subscription-based model. Homeowners, seeking peace amidst the unpredictability of home maintenance, subscribe to its plans, which promise timely and quality repairs for a variety of household systems and appliances. By aligning consumer needs with dependable service, Frontdoor ensures a steady stream of revenue through these yearly or monthly service agreements.
At the heart of Frontdoor's business model is its extensive network of service professionals. These seasoned contractors, working in tandem with Frontdoor's robust digital infrastructure, ensure that the company delivers on its promises swiftly. By integrating technology with traditional service delivery, Frontdoor has streamlined its operations, making it both agile and responsive. The company isn't just reacting to issues as they arise; it proactively maintains relations with its clients, leveraging data analytics to predict and prevent potential breakdowns. This innovative approach allows Frontdoor not only to serve its existing customer base with excellence but also to expand into new markets, reinforcing its position as a leader in the home warranty industry. Through strategic partnerships and continuous reinvestment in its technological capabilities, Frontdoor remains poised to navigate the ever-evolving landscape of home services.
Frontdoor Inc., a company rooted in the American tradition of home services, emerged from the fertile grounds of innovation and necessity. Originally a part of ServiceMaster, it embarked on its own path in 2018 as a standalone entity focusing on home warranty and service plans. This strategic move allowed Frontdoor to harness its vast resources and dedicated workforce to address a pressing need: reliable and swift home repair services. With a diverse suite of offerings under the brands like American Home Shield, the company capitalizes on a subscription-based model. Homeowners, seeking peace amidst the unpredictability of home maintenance, subscribe to its plans, which promise timely and quality repairs for a variety of household systems and appliances. By aligning consumer needs with dependable service, Frontdoor ensures a steady stream of revenue through these yearly or monthly service agreements.
At the heart of Frontdoor's business model is its extensive network of service professionals. These seasoned contractors, working in tandem with Frontdoor's robust digital infrastructure, ensure that the company delivers on its promises swiftly. By integrating technology with traditional service delivery, Frontdoor has streamlined its operations, making it both agile and responsive. The company isn't just reacting to issues as they arise; it proactively maintains relations with its clients, leveraging data analytics to predict and prevent potential breakdowns. This innovative approach allows Frontdoor not only to serve its existing customer base with excellence but also to expand into new markets, reinforcing its position as a leader in the home warranty industry. Through strategic partnerships and continuous reinvestment in its technological capabilities, Frontdoor remains poised to navigate the ever-evolving landscape of home services.
Strong Growth: Frontdoor reported 14% revenue growth for 2025, reaching nearly $2.1 billion, and expects continued growth in 2026.
Margin Expansion: Gross margin hit a record 55%, up 150 basis points, and the company raised its long-term adjusted EBITDA margin target to the mid-20% range.
Cash Generation & Share Buybacks: Free cash flow reached a record $390 million, and Frontdoor repurchased $280 million in shares in 2025, with significant buybacks planned ahead.
Member Growth: Home warranty member count stabilized in 2025 and is expected to grow in 2026 for the first time since 2020.
Non-Warranty Expansion: The new HVAC program grew 48% to $128 million, and a new appliance upgrade program was launched in pilot markets.
Raised Guidance: Revenue guidance for 2026 is set at $2.155–$2.195 billion, with adjusted EBITDA expected at $565–$580 million.
Cost Control: SG&A and marketing expenses are expected to stay flat in 2026, with efficiency from AI and digital tools helping offset inflation.
Headwinds and Outlook: Management is cautious on real estate market growth, expects low single-digit cost inflation, and sees renewal rates and promotional pricing as key factors for 2026.
