Frontdoor delivered a record year in 2025, driven by strong revenue growth and margin expansion, largely attributed to the successful integration of the 2-10 acquisition. The company is optimistic about re-igniting member growth and increasing long-term profitability in 2026.
Full-year revenue increased 14% to $2.093 billion, with organic revenue growth of 3.7%.
positiveGross profit margin expanded 150 basis points to 55% for the full year.
positiveNet income increased 9% to $255 million and Adjusted EBITDA increased 25% to $553 million for the full year.
positiveNet cash provided from operating activities increased 54% to $416 million for the full year.
positiveRepurchased $280 million of shares in 2025.
positiveFourth-quarter Net Income decreased 84% to $1 million compared to $9 million in the prior year.
negativeFourth-quarter Diluted Earnings per Share decreased 83% to $0.02 compared to $0.11 in the prior year.
negativeDirect-to-consumer revenue decreased 6% in the fourth quarter, primarily due to lower pricing strategy.
attentionCustomer retention rate slightly decreased to 79.2% from 79.9% in the prior year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Renewals | N/A | — | — | — |
Real estate (First-Year) | N/A | — | — | — |
Direct-to-consumer (First-Year) | N/A | — | — | — |
Non-warranty and other | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
2025 was an exceptional year, marked by strong execution against our strategic objectives and record-breaking financial performance.
We stabilized member count, scaled non-warranty revenue, realized 2-10 synergies ahead of expectations and repurchased 7% of our shares.
Looking ahead, we are extremely pleased about re-igniting member growth, increasing our long-term margin target, and using our strong cash flows to repurchase shares and drive long-term value creation.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.