Frontdoor, Q3 2026 Earnings Call Transcript

Frontdoor grew third-quarter revenue 6% and adjusted EBITDA 5%, absorbing a reversal of weather-related benefits as record heat drove claims higher. Member count rose 1%, with improving renewals and direct-to-consumer growth offsetting a deteriorating housing market; the company now expects real estate members to be flat by year-end but maintains its forecast for about 1% total member growth in 2026. HVAC upgrades lifted non-warranty revenue 32%, with substantial growth potential as only 3% of members have used the program. Full-year revenue and adjusted EBITDA guidance were raised at the midpoint, while the gross-margin outlook was unchanged. Frontdoor also authorized $1 billion in share repurchases over three years, citing strong cash generation; it sees agentic AI as a long-term opportunity and plans to expand equipment upgrades into appliances.