Frontdoor(US:FTDR)2025-11-05 12:05Revenue and Growth - Revenue increased 14% to $618 million, driven by a 12% increase in volume primarily from the 2-10 acquisition and a 3% increase in price[5] - Real estate revenue increased 21% primarily due to the 2-10 acquisition[10] - Other revenue surged 73% due to growth in new HVAC and Moen programs[10] - Revenue for Q3 2025 was $618 million, a 14.4% increase from $540 million in Q3 2024[34] - Full-year revenue guidance increased to between $2.075 billion and $2.085 billion[5] Profitability - Gross profit margin improved by 60 basis points to 57%[4] - Net income rose 5% to $106 million, with diluted earnings per share increasing 9% to $1.42[5] - Adjusted EBITDA increased 18% to $195 million[5] - Gross profit for Q3 2025 reached $353 million, up from $306 million in Q3 2024, reflecting a gross margin improvement[34] - Net income for the nine months ended September 30, 2025, was $253 million, compared to $226 million for the same period in 2024, representing a 12% increase[34] - Adjusted net income for Q3 2025 was $117 million, up 10% from $106 million in Q3 2024; for the nine months, adjusted net income increased to $288 million from $240 million, representing a 20% growth[43] - Adjusted EBITDA for Q3 2025 was $195 million, a 18% increase from $165 million in Q3 2024; for the nine months, adjusted EBITDA rose to $494 million from $394 million, a growth of 25%[45] Cash Flow and Assets - Free Cash Flow for the nine months ended September 30, 2025, was $315 million, compared to $212 million in the same period of 2024, showing a significant increase[39] - Cash and cash equivalents increased to $563 million as of September 30, 2025, up from $421 million at the end of 2024[36] - Total assets grew to $2,227 million as of September 30, 2025, compared to $2,107 million at the end of 2024, indicating strong asset growth[36] - Free cash flow for the nine months ended September 30, 2025, was $296 million, a significant increase of 63% compared to $181 million in the same period of 2024[44] Shareholder Returns - Share repurchases totaled $215 million year-to-date through October 2025[5] - The company repurchased $195 million of common stock during the nine months ended September 30, 2025, compared to $120 million in the same period of 2024[39] - The weighted-average diluted shares outstanding decreased to 74.4 million in Q3 2025 from 77.1 million in Q3 2024, indicating a reduction in share dilution[34] Expenses - Selling and administrative expenses for Q3 2025 were $174 million, an increase from $154 million in Q3 2024, reflecting investment in growth[34] - The company incurred $13 million in amortization expense for Q3 2025, compared to $1 million in Q3 2024; for the nine months, amortization expense totaled $38 million versus $2 million in the prior year[43] - Restructuring charges for Q3 2025 were $1 million, down from $3 million in Q3 2024; for the nine months, restructuring charges remained at $1 million compared to $5 million in the previous year[43] Membership and Customer Metrics - Home warranty member count is expected to decline approximately 2% in 2025[16] - The number of home warranties increased to 2.11 million in 2025, reflecting an 8% growth compared to 1.95 million in 2024; customer retention rate improved to 79.4% from 77.7%[47] - First-year direct-to-consumer home warranties grew to 0.32 million in 2025, up from 0.27 million in 2024, marking an increase of 18.5%[47] Tax and Adjustments - The company reported a tax impact of adjustments of $(3) million for Q3 2025, compared to $(1) million in Q3 2024, indicating a higher tax adjustment impact year-over-year[43]