Frontdoor reported third quarter 2026 revenue of $655 million, a 6% increase year-over-year driven by 3% growth in both price and volume. While GAAP EPS of $1.65 fell short of estimates, Adjusted EPS grew 15% to $1.81, and the company raised its full-year guidance while authorizing a massive new buyback program.

Key Highlights

  • Gross margin reached 55%, significantly outperforming the 51.6% analyst expectation despite $9 million in unfavorable weather costs.
  • Management raised full-year 2026 revenue guidance to a range of $2.205 billion to $2.215 billion and Adjusted EBITDA to $590 million to $600 million.
  • Authorized a new $1 billion share repurchase program over three years, following the early completion of its previous $650 million authorization.
  • Renewal revenue increased 4% on higher realized pricing, though direct-to-consumer revenue declined 1% due to promotional pricing strategies.