At a glance
Frontdoor Inc is worth $5.80B, about 25 times its fiscal 2025 earnings. Revenue grew 13.6% to $2.09B in fiscal 2025, with 12.2% kept as profit; over 5 years it has grown 7.3% a year. It pays no dividend; it spent $727.0M buying back its shares over FY2021–FY2025. The stock returned +23.6% over the past year with dividends reinvested and +15.0% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 31.7% in the 2020 crash (S&P 500: 33.7%) and 47.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 22 months after the lows.
The business in plain English
Frontdoor sells home warranties: yearly service plans that pay to repair or replace major home systems and appliances that break down from normal wear and tear. A plan can cover up to 29 items, such as plumbing, electrical, heating and cooling (HVAC) and refrigerators. Its brands include American Home Shield, HSA, OneGuard and Landmark, and it calls itself the leading US home warranty provider by revenue. As of December 31, 2025, it had about 2.1 million active home warranties. About 17,000 independent contractor firms do the repairs.
Most revenue comes from customers who sign up again. Renewals made up 75.8% of 2025 revenue of $2.09 billion, and about 84% of warranty customers pay monthly by auto-pay. First-year plans sold directly to consumers added 8.2%. First-year plans sold through the real estate channel, usually tied to a home sale, added 6.7%.
The other 9.2% came from non-warranty services and other sources. These include discounted new HVAC systems and installing Moen smart water shut-off valves. In December 2024, Frontdoor bought 2-10 HBW, which sells warranties to home builders that cover structural failures for up to ten years after a home is finished. It had about 20,000 builder partners at the end of 2025. Frontdoor's largest regions are California, Florida and Texas.
Price history
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FTDR +23.6% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Renewals | $1.59B | 75.8% |
| Non-Warranty And Other | $193.0M | 9.2% |
| Direct To Consumer Home Service Plan Contracts | $172.0M | 8.2% |
| Real Estate Home Service Plan Contracts | $141.0M | 6.7% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $645.0M, up 4.5% from a year earlier, and net income was $125.0M (+12.6%).
- For fiscal 2025, revenue was $2.09B (+13.6% year over year; +7.3% a year from FY2020 to FY2025) with a 12.2% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +7.3% good |
|---|---|
| Free cash flow margin | 18.6% good |
| Return on equity (FY2025) | 105.4% (lifted by a small equity base, often the result of years of buybacks) good |
| Return on assets (FY2025) | 11.9% good |
| Net cash (cash minus debt) | $-533.0M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.47B | $112.0M | $175.0M |
| FY2021 | $1.60B | $128.0M | $154.0M |
| FY2022 | $1.66B | $71.0M | $102.0M |
| FY2023 | $1.78B | $171.0M | $170.0M |
| FY2024 | $1.84B | $235.0M | $231.0M |
| FY2025 | $2.09B | $255.0M | $390.0M |
Valuation snapshot
| Market value | $5.80B |
|---|---|
| P/E ratio | 24.6 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Frontdoor’s market value went from $2.25B at the end of 2018 to $5.80B on Oct 28, 2026, about 2.6 times as much; since the end of 2025 it is up 39%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $5.80B | +39.4% |
| 2025 | $4.16B | +0.4% |
| 2024 | $4.15B | +47.8% |
| 2023 | $2.80B | +65.4% |
| 2022 | $1.70B | -45.4% |
| 2021 | $3.10B | -27.7% |
| 2020 | $4.29B | +6.9% |
| 2019 | $4.01B | +78.5% |
| 2018 | $2.25B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| FTDR price data to Oct 28, 2026 | +46.0% | +23.6% | +43.8% | +15.0% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +46.0% |
| 2025 | +5.5% |
| 2024 | +55.2% |
| 2023 | +69.3% |
| 2022 | -43.3% |
| 2021 | -27.0% |
| 2020 | +5.9% |
| 2019 | +78.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 30% over that stretch · deepest drop along the way 31.7%, back to its old high 7.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 44.5% over that stretch · deepest drop along the way 47.1%, back to its old high 21.6 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 3 sales ($3.6M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 10, 2026 | Evan Iverson SVP & Chief Operating Officer | sell | $1.6M |
| Aug 10, 2026 | Jeffrey Fiarman SVP & Chief Legal Officer | sell | $1.1M |
| Aug 10, 2026 | Kathryn M Collins SVP & Chief Revenue Officer | sell | $890K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.3% | Sep 30, 2025 |
| Boston Partners | 7.38% | Jun 30, 2026 |
| Vanguard Portfolio Management | 6.73% | Mar 31, 2026 |
| Vanguard Capital Management | 5.28% | Mar 31, 2026 |
| STATE STREET CORPORATION | 5% | Jun 30, 2026 |
ETFs with the most weight in FTDR
| TMFS Motley Fool Small-Cap Growth ETF | 2.75% |
| PSCD Invesco S&P SmallCap Consumer Discretionary ETF | 1.96% |
| XSHQ Invesco S&P SmallCap Quality ETF | 1.56% |
| NIXT Research Affiliates Deletions ETF | 1.03% |
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 0.81% |
| FLRG Fidelity U.S. Multifactor ETF | 0.63% |
| SEIS SEI Select Small Cap ETF | 0.6% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.54% |
What could go wrong
- Renewals drive about three-quarters of revenue. Renewals made up 76% of 2025 revenue. If more customers cancel, for example after a poor repair experience, revenue would fall. Winning replacements through marketing may not be cost-effective.
- Weak home sales hurt new sign-ups. Many first-year plans are sold through the real estate channel. Higher interest rates cut home sales in 2022, 2023 and 2024, and sales were flat in 2025. The company says this hurt its business.
- Depends on thousands of outside contractors. About 17,000 independent firms do the repairs. If Frontdoor cannot attract and keep enough good contractors, or their work slips, customer satisfaction, renewals and costs could suffer.
- Repair costs and tariffs could squeeze profits. Frontdoor pays for parts, appliances and home systems when it fixes or replaces covered items. Higher prices, including from US tariffs on imports, raise the cost of plans already sold at a set price.
- Builder warranties carry long-term structural risk. 2-10 HBW covers structural failures for up to ten years after a home is finished. Underpricing that risk, or losing reinsurance (insurance Frontdoor buys to share large losses), could lead to large losses.
- Heavy debt and interest rate exposure. Total debt was $1.16 billion as of June 30, 2026, against $627 million in cash and investments. Higher rates would raise interest on its variable-rate debt, and loan terms limit some business choices.
Recent events
- Executive or board change
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Quarterly results released
For income and retirement investors
Frontdoor does not pay a cash dividend. Its 10-K filed February 26, 2026 says any return depends on the share price rising. An income investor would have to sell shares to draw cash from it. The company buys back its own stock instead. It spent $727 million on buybacks from 2021 through 2025, including $283 million in 2025. Free cash flow (cash left after running and investing in the business) was $390 million that year. The share count fell 18.6% between October 2021 and July 2026. The stock has fallen hard in past downturns. It dropped about 32% in the 2020 COVID crash and recovered in about eight months. In the 2022 bear market (a long, broad slide in stock prices), it fell about 47% and took nearly 22 months to regain its peak. Its price history does not go back to the 2008 financial crisis. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Frontdoor make money?
Frontdoor makes most of its money from yearly home warranty plans that cover repairs to home systems and appliances. Renewals by existing customers brought in $1.59 billion, or 75.8%, of its $2.09 billion revenue in 2025. First-year plans sold directly to consumers added 8.2%, and plans sold through the real estate channel added 6.7%. The other 9.2% came from non-warranty services and other sources, such as HVAC upgrades and Moen water shut-off valve installations. Net income was $255 million.
Does Frontdoor pay a dividend?
No. Frontdoor does not pay a cash dividend, and its 10-K filed February 26, 2026 says shareholders' returns depend on the share price rising. The company has used cash for buybacks (purchases of its own stock) instead, spending $727 million from 2021 through 2025. The share count fell 18.6% between October 2021 and July 2026. Buybacks can raise each remaining share's slice of profits, but they pay no cash to shareholders who keep their shares.
Is Frontdoor the same company as American Home Shield?
American Home Shield is a brand owned by Frontdoor. Frontdoor, Inc. was formerly named AHS Holding Company, Inc. and is listed on Nasdaq as FTDR. It sells home warranties under the American Home Shield, HSA, OneGuard and Landmark brands. In December 2024 it bought 2-10 HBW, which sells warranties to new home builders. From January to October 2025, about one in six new US homes was covered by a 2-10 HBW warranty.
How much debt does Frontdoor have?
Frontdoor had $1.16 billion of total debt as of June 30, 2026, against $627 million of cash and investments. That left about $533 million of net debt (debt minus cash). Shareholders' equity was just $284 million on that date. A small equity base makes return on equity (profit divided by shareholders' equity) look unusually high; it was 105.4% for 2025. The 10-K warns that higher interest rates would raise the cost of its variable-rate debt.
How has Frontdoor stock performed?
Frontdoor shares have gained over three and five years, but with big swings. As of October 28, 2026, the price return was 23.6% over one year, about 43.8% a year over three years and 15% a year over five years. By calendar year, the stock fell 27% in 2021 and 43% in 2022, then rose 69% in 2023, 55% in 2024 and 5.5% in 2025. It was up 46% for 2026 through October 28, when it traded at 24.6 times 2025 earnings.