Frontdoor, Inc. (FTDR) has reported a 9% increase in renewal revenues and a 21% rise in real estate channel revenues for the second quarter of 2025, fueled by the strategic acquisition of 2-10 and strong performance across its business segments. This acquisition is expected to contribute approximately 10% of the company’s anticipated 13% revenue growth for the full year. As of now, FTDR’s earnings per share (EPS) estimate for 2026 has been revised upward to $4.05 from $3.99.
The company achieved a gross profit margin expansion of 60 basis points year-over-year, leading to an adjusted EBITDA margin of 32% in Q3 2025. Frontdoor’s return on equity (ROE) stands at 122.7%, significantly surpassing the industry’s average of 14.7%, demonstrating its effective use of shareholders’ funds. Despite inflationary pressures, Frontdoor’s strategic operational initiatives have strengthened its financial outlook.
