Frontdoor, Inc. Raises 2025 Revenue Guidance to $2.055B-$2.075B, Expects 9-10% Volume Growth

Frontdoor, Inc. has increased its earnings guidance for 2025, with revenue projected to range from $2.055 billion to $2.075 billion. Key assumptions include a 2-4% increase in realized price, a 9-10% increase in volume, and a high single-digit increase in real estate channel revenue. Home warranty member count is expected to decline 1-3% in 2025.

Frontdoor Inc. (NASDAQ: FTDR) has announced a significant increase in its 2025 earnings guidance, projecting revenue to range from $2.055 billion to $2.075 billion. The company's key assumptions include a 2-4% increase in realized price, a 9-10% increase in volume, and a high single-digit increase in real estate channel revenue. Additionally, the home warranty member count is expected to decline by 1-3% in 2025.

The second-quarter 2025 results, released on August 5, 2025, showed strong financial performance. Revenue increased by 14% to $617 million, with gross profit margin rising to 58% from 55%. Adjusted EBITDA also increased by 26% to $199 million. The company's Chief Executive Officer, Bill Cobb, commented, "We continue to perform exceptionally well and delivered another quarter of outstanding financial performance."

Key drivers of Frontdoor's revenue growth include a 2% price increase and a 12% higher volume, primarily driven by the 2-10 acquisition. Renewal and real estate channels also contributed to revenue growth. The company's Chief Financial Officer, Jessica Ross, noted, "We generated nearly $200 million in Adjusted EBITDA in the second quarter of 2025, underpinned by excellent operational execution supporting our margin structure."

Frontdoor has also increased its full-year gross profit margin forecast to 55%-56% and expects Q3 revenue of $605 million to $615 million, with Q3 adjusted EBITDA projected to be $180 million to $190 million. The company has raised its full-year revenue guidance and increased its target for 2025 share repurchases to approximately $250 million.

Analysts remain optimistic about Frontdoor's prospects. The current average analyst rating on the shares is "buy," with a breakdown of 3 "strong buy" or "buy," 2 "hold," and 1 "sell" or "strong sell." The stock recently traded at 16 times the next 12-month earnings, compared to a P/E of 13 three months ago.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXD20AB0:0-frontdoor-beats-q2-earnings-expectations-raises-fy-guidance/
[2] https://www.businesswire.com/news/home/20250805369118/en/Frontdoor-Announces-Second-Quarter-2025-Financial-Results