| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 58 | 21.2x | 17.8x | Around median | |
Growth | 65 | 9.3% | 7.1% | Around median | |
Quality | 94 | 23.0% | 4.5% | Top tier | |
Safety | 64 | 1.1x | 2.6x | Around median | |
Capital Return | 76 | — | 2.12% | Top tier | |
Momentum | 88 | 49.7% | 2.9% | Top tier | |
Sentiment | 44 | 4 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Frontdoor, Inc. provides home warranty services through brands including American Home Shield and 2-10, with its economic base primarily relying on recurring renewal revenue, alongside first-year contracts sold directly to consumers or through the real estate channel. The company expands customer spending through non-warranty services, led by its HVAC system upgrade program, leveraging a base of 2.1 million members and a nationwide network of approximately 17 thousand contractors, including nearly 4 thousand preferred contractors.
In Q2 fiscal 2026, revenue increased 5% to $645 million, with more than 3% driven by higher realized price and more than 1% by higher volume. Gross profit reached $378 million, up 5%, and gross profit margin expanded 100 basis points to 59%, while net income increased 13% to $125 million and adjusted EBITDA rose 10% to $220 million, with a 34% margin.
The business mix showed clear variation in Q2 fiscal 2026: renewal revenue grew 4% and first-year real estate revenue grew 3%, while direct-to-consumer revenue declined 2% due to promotional pricing, and non-warranty and other revenue increased 19% thanks to the HVAC program. Total members at the end of the period also grew 1%, marking the first organic growth in five years, driven by 5% growth in direct-to-consumer members, 7% growth in the real estate channel, and stable renewal members.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on FTDR is neutral, with an average price target of $90.67 and a wide range between $67 and $105. The average target is slightly below the top of the 52-week range of $93.43, while the highest target exceeds that peak and the lowest target falls within the annual range of $48.47–93.43. This dispersion indicates that the market is balancing improving member growth, margins, and cash flows on one hand against weakness in the housing market and pressures from mix, weather, and spending on the other.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Frontdoor's revenue increased 5% to $645 million, driven by more than 3% from realized price and more than 1% from volume. Net income increased 13% to $125 million, while adjusted EBITDA reached $220 million with a 34% margin. Dynamic pricing contributed approximately $16 million in revenue conversion, while favorable weather added a benefit of approximately $5 million.
Yes, total members at the end of Q2 fiscal 2026 grew 1%, marking the first organic growth in five years. Direct-to-consumer channel members increased 5% for the seventh consecutive quarter of year-over-year growth, and real estate channel members grew 7%. Renewal members also remained stable, supported by a retention rate of 79.6% and automatic payment enrollment among 85% of members.
Frontdoor expects the HVAC upgrade program to reach revenue of $170 million after growing from $13 million over four years. The program serves a base of 2.1 million members and had penetrated only 3% of it through Q2 fiscal 2026, leaving room for further expansion. Its margin is currently in the low-twenties percentage range, and the company aims to improve it through dynamic pricing while also preparing to expand its home appliance business in Q4 fiscal 2026.
Management raised the revenue range to $2.19–2.21 billion, with expected growth of between 3% and 4% in realized price and between 1% and 2% in volume. It also raised the adjusted EBITDA range to $585–600 million, equivalent to a margin of approximately 27% at the midpoint, and expects a gross margin of approximately 55%. The guidance includes non-warranty and other revenue of between $230 million and $240 million, capital expenditures of approximately $30 million, and an effective tax rate of approximately 25%.
The company generated free cash flow of $233 million during the first half of fiscal 2026 and expects to convert more than 60% of adjusted EBITDA into free cash flow during the year. At the end of Q2 fiscal 2026, unrestricted cash totaled $472 million and total liquidity reached $722 million. Management is targeting approximately $330 million in share repurchases in fiscal 2026, after allocating nearly $900 million to repurchases since 2021.
