Revenue growth accelerated to 4.5% YoY in 2026Q2 with gross margin expanding to 58.6% from 54.6% in 2024Q2, while operating margin surged to 27.9% on strong operating leverage.
Frontdoor, Inc. (FTDR) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 2.15B | 2.09B | 1.84B | 1.78B | 1.66B | 1.6B | 1.47B | 1.36B | 1.26B | 1.16B | 1.02B |
| Revenue Growth % | 9.26% | 13.56% | 3.54% | 7.1% | 3.75% | 8.68% | 7.99% | 8.51% | 8.73% | 13.43% | - |
| Cost of Goods Sold | 1.02B | 1.02B | 891M | 932M | 986M | 853M | 792M | 711M | 706M | 607M | 526M |
| COGS % of Revenue | - | 48.97% | 48.35% | 52.36% | 59.33% | 53.25% | 53.73% | 52.09% | 56.12% | 52.46% | 51.57% |
| Gross Profit | 1.13B | 1.07B | 952M | 848M | 676M | 749M | 682M | 654M | 552M | 550M | 494M |
| Gross Margin % | 52.54% | 51.03% | 51.65% | 47.64% | 40.67% | 46.75% | 46.27% | 47.91% | 43.88% | 47.54% | 48.43% |
| Gross Profit Growth % | - | 12.18% | 12.26% | 25.44% | -9.75% | 9.82% | 4.28% | 18.48% | 0.36% | 11.34% | - |
| Operating Expenses | 699M | 661M | 595M | 581M | 522M | 509M | 467M | 388M | 338M | 312M | 494M |
| OpEx % of Revenue | - | 31.58% | 32.28% | 32.64% | 31.41% | 31.77% | 31.68% | 28.42% | 26.87% | 26.97% | 48.43% |
| Selling, General & Admin | 677M | 661M | 595M | 581M | 522M | 509M | 467M | 388M | 338M | 312M | 286M |
| SG&A % of Revenue | - | 31.58% | 32.28% | 32.64% | 31.41% | 31.77% | 31.68% | 28.42% | 26.87% | 26.97% | 28.04% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 208M |
| Operating Income | 429M | 407M | 357M | 267M | 154M | 240M | 215M | 266M | 214M | 238M | 194M |
| Operating Margin % | 19.98% | 19.45% | 19.37% | 15% | 9.27% | 14.98% | 14.59% | 19.49% | 17.01% | 20.57% | 19.02% |
| Operating Income Growth % | - | 14.01% | 33.71% | 73.38% | -35.83% | 11.63% | -19.17% | 24.3% | -10.08% | 22.68% | - |
| EBITDA | 510M | 508M | 408M | 304M | 188M | 275M | 249M | 290M | 234M | 255M | 208M |
| EBITDA Margin % | 23.75% | 24.27% | 22.14% | 17.08% | 11.31% | 17.17% | 16.89% | 21.25% | 18.6% | 22.04% | 20.39% |
| EBITDA Growth % | 8.51% | 24.51% | 34.21% | 61.7% | -31.64% | 10.44% | -14.14% | 23.93% | -8.24% | 22.6% | - |
| D&A (Non-Cash Add-back) | 75M | 101M | 51M | 37M | 34M | 35M | 34M | 24M | 20M | 17M | 14M |
| EBIT | 438M | 417M | 357M | 274M | 119M | 197M | 215M | 266M | 214M | 238M | 196M |
| Net Interest Income | -59M | -57M | -28M | -31M | -22M | -28M | -46M | -53M | -19M | 4M | 2M |
| Interest Income | 17M | 22M | 20M | 16M | 4M | 1M | 2M | 6M | 4M | 3M | 2M |
| Interest Expense | 76M | 79M | 48M | 47M | 26M | 29M | 48M | 59M | 23M | 1M | 0 |
| Other Income/Expense | -67M | -69M | -48M | -40M | -61M | -72M | -66M | -62M | -47M | -18M | 2M |
| Pretax Income | 362M | 338M | 309M | 227M | 93M | 168M | 149M | 204M | 167M | 220M | 196M |
| Pretax Margin % | 16.86% | 16.15% | 16.77% | 12.75% | 5.6% | 10.49% | 10.11% | 14.95% | 13.28% | 19.01% | 19.22% |
| Income Tax | 88M | 83M | 74M | 56M | 22M | 39M | 37M | 51M | 42M | 60M | 71M |
| Effective Tax Rate % | 24.31% | 24.56% | 23.95% | 24.67% | 23.66% | 23.21% | 24.83% | 25% | 25.15% | 27.27% | 36.22% |
| Net Income | 274M | 255M | 235M | 171M | 71M | 128M | 112M | 153M | 125M | 160M | 124M |
| Net Margin % | 12.76% | 12.18% | 12.75% | 9.61% | 4.27% | 7.99% | 7.6% | 11.21% | 9.94% | 13.83% | 12.16% |
| Net Income Growth % | 6.61% | 8.51% | 37.43% | 140.85% | -44.53% | 14.29% | -26.8% | 22.4% | -21.88% | 29.03% | - |
| Net Income (Continuing) | 274M | 255M | 235M | 171M | 71M | 129M | 112M | 153M | 125M | 160M | 125M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.85 | 3.42 | 3.01 | 2.11 | 0.87 | 1.50 | 1.31 | 1.80 | 1.48 | 1.89 | 1.46 |
| EPS Growth % | 12.45% | 13.62% | 42.65% | 142.53% | -42% | 14.5% | -27.22% | 21.97% | -21.92% | 29.45% | - |
| EPS (Basic) | - | 3.48 | 3.05 | 2.12 | 0.87 | 1.50 | 1.31 | 1.81 | 1.48 | 1.89 | 1.47 |
| Diluted Shares Outstanding | 71.1M | 74.5M | 78M | 80.9M | 82M | 85.5M | 85.5M | 84.9M | 84.7M | 84.7M | 84.7M |
| Basic Shares Outstanding | 69.9M | 73.1M | 77M | 80.5M | 81.8M | 85.1M | 85.2M | 84.7M | 84.5M | 84.5M | 84.5M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying FTDR stock.
For fiscal year 2025, Frontdoor, Inc. (FTDR) reported total revenue of $2.09B. This represents a 105.2% increase compared to $1.02B in 2016.
Frontdoor, Inc. (FTDR) is profitable, generating $255.0M in net income for the fiscal year ending 2025 with a net profit margin of 12.2%.
Frontdoor, Inc. (FTDR) reported an operating income of $407.0M, resulting in an operating profit margin of 19.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Frontdoor, Inc. (FTDR) generated $1.07B in gross profit for the year, representing a gross profit margin of 51.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Claims cost inflation pressure
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates on Renewals
Frontdoor's revenue growth accelerated to 4.5% year-over-year in 2026Q2, up from 3.6% in 2024Q2, driven by membership renewals and pricing actions, as reported in the latest quarterly filing.
The sequential acceleration from 3.0% in 2024Q1 to 4.5% in 2026Q2 suggests that the renewal base is providing a stable annuity-like foundation, while new member acquisition from the real estate channel remains muted. The raised full-year 2026 revenue guidance of $642M-$652M implies management expects this momentum to persist, likely supported by DTC marketing efforts and the app-first strategy. However, the narrow guidance range indicates limited visibility into the back half, warranting monitoring of membership growth sustainability.
Gross Margin Expansion Defies Cost Pressures
Gross margin improved to 58.6% in 2026Q2 from 54.6% in 2024Q2, despite persistent inflation in skilled labor and parts, according to the income statement data, suggesting effective pricing power and cost mitigation.
The 400 basis point expansion in gross margin over eight quarters indicates that Frontdoor has been able to pass through cost increases via higher plan premiums, while also benefiting from a favorable mix shift toward renewals. The 51.0% gross margin cited in recent context flags suggests that the 2026Q2 figure may be seasonally elevated, but the trend is clearly upward. Investors should monitor the claims cost ratio, as any acceleration in claim frequency or severity could reverse this expansion.
Operating Leverage Drives Margin Upside
Operating margin surged to 27.9% in 2026Q2 from 24.9% in 2024Q2, as SG&A grew only 9.3% year-over-year versus revenue growth of 4.5%, per the income statement, indicating strong operating leverage.
The fact that SG&A increased at a slower pace than revenue in 2026Q2 (176 vs 170 in 2025Q2) suggests that the company is scaling its fixed cost base efficiently, particularly in marketing and overhead. The operating margin of 27.9% is well above the peer group (e.g., WSO at 9.6%), reflecting the high-margin subscription model. However, the Q4 2025 operating margin of 4.8% highlights the seasonality, and the company's ability to maintain this leverage through the off-season will be key.
EPS Growth Outpaces Net Income on Buybacks
Diluted EPS grew 18.9% year-over-year in 2026Q2 to $1.76, while net income grew only 12.6%, according to the income statement, indicating that share repurchases are boosting per-share metrics.
The gap between EPS growth and net income growth is attributable to the company's aggressive buyback program, which management described as 'unprecedented.' While this is shareholder-friendly, it also reduces the share count and can mask underlying operational performance. The SBC of $11M in 2026Q2 is modest relative to net income, but investors should adjust for it to assess true earnings quality. The EPS miss of $0.01 versus estimates suggests that the buyback may be offsetting some operational headwinds.
COGS Efficiency Drives Margin Gains
COGS as a percentage of revenue fell to 41.4% in 2026Q2 from 45.4% in 2024Q2, per the income statement, reflecting improved claims management and virtual diagnosis adoption.
The reduction in COGS ratio is the primary driver of gross margin expansion, and it appears to be a structural improvement rather than a one-time benefit. The integration of Streem's AR technology likely contributes to lower truck roll costs, and the company's scale in negotiating labor rates is a competitive advantage. However, the risk of inflation in HVAC parts and skilled labor remains, and any reversal in this trend would pressure margins. The Q4 2025 COGS ratio of 56.1% shows the seasonal volatility, so the trend should be evaluated on a year-over-year basis.
What Could Invalidate the Base Case
Despite strong margins, the 2025Q4 net income of just $2M and EPS of $0.03, per the income statement, highlight vulnerability to seasonal claims spikes and cost inflation that could pressure profitability.
The sharp drop in Q4 2025 operating margin to 4.8% and net margin to 0.5% demonstrates how quickly profitability can erode when claims frequency rises, as seen in the elevated COGS ratio of 56.1%. While the company has shown recovery in subsequent quarters, the reliance on favorable claims trends and the ability to pass through costs is a key risk. Additionally, the high debt-to-equity ratio of 5.01% suggests limited financial flexibility if margins compress, and the 'unprecedented' buybacks could strain cash flow if operational performance falters. Short-sellers might argue that the 58.6% gross margin in 2026Q2 is unsustainable and that the company's pricing power will wane as competition intensifies.