Frontdoor 2025 Q2 Earnings Sustained Profitability as Net Income Rises 20.7%

Frontdoor reported Q2 2025 results with strong revenue and earnings growth, exceeding expectations and raising full-year guidance. The company demonstrated continued profitability for the eighth consecutive year, while leadership signaled optimism about long-term strategic progress.

Frontdoor reported Q2 2025 earnings that exceeded expectations, with net income rising 20.7% year-over-year to $111 million. The company raised its full-year revenue outlook, reflecting strong first-half performance and confidence in the second half of the year.

Revenue
Revenue in Q2 2025 reached $617 million, representing a 13.8% increase compared to $542 million in the same period of 2024. Renewals remained the largest revenue contributor, generating $461 million, while the Direct-to-Consumer segment added $56 million. Real estate revenue totaled $44 million, and other segments contributed $56 million, rounding out the total revenue.

Earnings/Net Income
Earnings per share (EPS) increased by 28.0% to $1.51, driven by a 20.7% rise in net income to $111 million. These results underscore the company’s sustained profitability, with eight consecutive years of profitability in the same quarter. The performance reflects strong operational execution and business model resilience.

Price Action
Frontdoor’s stock price declined 13.08% during the most recent trading day, 3.80% over the past week, and 6.29% month-to-date. This recent volatility contrasts with historically strong post-earnings performance.

Post-Earnings Price Action Review
A post-earnings strategy of buying Frontdoor shares following a revenue increase in its quarterly report has historically outperformed the market. Over the past three years, holding shares for 30 days after a positive report yielded a 75.13% return, outperforming the benchmark by 26.54%. The strategy posted a 21.34% compound annual growth rate, with no recorded maximum drawdown, indicating strong risk-adjusted returns.

CEO Commentary
Chairman and CEO Bill Cobb highlighted the company’s strong second-quarter performance, including 9% organic growth in the Direct-to-Consumer segment and successful scaling of non-warranty revenue. CFO Jessica Ross noted $199 million in Adjusted EBITDA and emphasized confidence in the company’s second-half performance and long-term strategic execution.

Guidance
Frontdoor raised its full-year 2025 revenue outlook to $2.055 billion to $2.075 billion, with a gross profit margin target of 55% to 56% and Adjusted EBITDA of $530 million to $550 million. The updated guidance reflects robust first-half performance and optimism for the remainder of the year.

Additional News
On August 6, 2025, Frontdoor announced a raised 2025 revenue outlook amid strong operational performance, according to a report titled *Frontdoor raises 2025 revenue outlook to $2.075B amid…*. Though details were restricted, the company has also committed to $150 million in share repurchases, reinforcing its focus on shareholder returns. Leadership remains confident in the company’s strategic direction and long-term positioning for continued success.