Frontdoor (FTDR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 5% to $645M, net income rose 13% to $125M, and adjusted EPS increased up to $1.93.

• Adjusted EBITDA reached $220M, up 10–11% year-over-year, with gross profit margin at 59%.

• Member count grew 1% to 2.11M, the first organic growth since 2021, with strong gains in direct-to-consumer and real estate channels.

• Share repurchases totaled $181M YTD through July 2026, reducing share count by ~24% since 2021.

• Non-warranty and other business neared $250M annualized revenue, led by HVAC upgrade program scaling rapidly.

Financial highlights

• Gross profit margin improved to 59% in Q2 2026, up 100 bps year-over-year.

• Adjusted EBITDA margin expanded to 34% in Q2 2026.

• Adjusted EPS grew up to 19% to $1.93, aided by share repurchases.

• Free cash flow for H1 2026 was $233M, with unrestricted cash of $472M and total liquidity of $722M.

• First half 2026: revenue $1.1B, net income $167M, adjusted EBITDA $324M.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $2.19B–$2.21B; adjusted EBITDA guidance increased to $585M–$600M.

• Q3 2026 revenue expected at $642M–$652M; adjusted EBITDA at $197M–$207M.

• SG&A expected at $685M–$695M, reflecting increased marketing investment.

• Non-warranty and other revenue projected to increase over 20% in Q3 2026.

• Expect to complete $330M–$502M in share repurchases in 2026, finishing authorization nearly a year early.