Abstract

Frontdoor Inc is scheduled to report quarterly results on February 26, 2026 Pre-Market; this preview reviews last quarter’s performance, the company’s own projections for this quarter with year-over-year comparisons, segment dynamics, and prevailing institutional views.

Market Forecast

The market’s current modeling for Frontdoor Inc implies revenue of 421.62 million in this quarter, up 14.60% year over year, EBIT of 20.97 million rising 53.64%, and adjusted EPS of $0.13 increasing 17.86%; forecasts for gross profit margin and net profit margin are not disclosed. The main business remains renewal-driven, which contributed 461.00 million last quarter and continues to set the baseline for revenue trajectory and earnings visibility; year-over-year changes by segment were not disclosed. The most promising segment appears to be direct-to-consumer initiatives, which generated 54.00 million last quarter; year-over-year changes for this segment were not disclosed.

Last Quarter Review

Frontdoor Inc delivered revenue of 618.00 million last quarter, up 14.44% year over year, with a gross profit margin of 57.28%, GAAP net profit attributable to the parent company of 0.11 billion, a net profit margin of 17.15%, and adjusted EPS of $1.58 rising 14.49% year over year; net profit declined 4.50% quarter over quarter. A key financial highlight was the strong year-over-year increase in both revenue and EPS alongside a stable gross margin profile, reflecting operating discipline in the face of normal seasonal fluctuation. Main business highlights: renewals contributed 461.00 million (74.60% of revenue), direct-to-consumer 54.00 million (8.74%), real estate 43.00 million (6.96%), and other 59.00 million (9.55%); year-over-year segment growth rates were not disclosed.

Current Quarter Outlook

Home-Service Plan Renewals

Renewals form the backbone of Frontdoor Inc’s revenue base and are central to earnings quality this quarter. With total revenue for the quarter modeled at 421.62 million, the year-over-year growth rate of 14.60% suggests that contract retention, pricing actions within the plan portfolio, and steady renewal momentum are supporting top-line expansion even as sequential volume eases from the seasonally stronger prior quarter. The company’s last reported gross margin of 57.28% shows that service delivery and parts procurement are translating effectively into value capture; sustaining a similar margin band will be pivotal to converting revenue growth into EBIT and EPS upside. Management’s ability to balance service costs against claim frequency and severity, while maintaining customer satisfaction and renewal rates, will influence how much of the 14.60% revenue increase flows through to the 53.64% modeled EBIT gain and 17.86% EPS growth.

Direct-to-Consumer Expansion

Direct-to-consumer initiatives contributed 54.00 million last quarter and remain a strategic lever for incremental revenue growth and broader customer reach. This quarter, conversion efficiency, acquisition cost per customer, and cross-sell into higher-value service plans are likely to determine whether the segment’s contribution expands relative to the renewal base. As total revenue is expected to be 421.62 million, a gradual mix shift toward direct channels can provide more flexible pricing and bundling opportunities, potentially aiding the modeled 53.64% year-over-year increase in EBIT. Marketing optimization and targeted digital engagement are important in this segment: the aim is to improve customer lifetime value while keeping acquisition costs controllable, which would complement the 17.86% year-over-year EPS increase implied by the current quarter forecast.

Key Stock Price Drivers This Quarter

Three elements appear most influential for this quarter’s stock performance. First, the relationship between the anticipated 14.60% year-over-year revenue increase and the company’s ability to sustain its last reported 57.28% gross margin will be closely watched; the extent of margin preservation or improvement often sets the tone for EPS outcomes. Second, operating leverage sensitivity is high this quarter: with EBIT projected to grow 53.64% year over year from a comparatively lighter seasonal revenue base, execution on service efficiency and overhead control can amplify EPS beyond the $0.13 modeled level. Third, revenue mix across renewals, direct-to-consumer, real estate, and other channels matters for valuation; stability in renewals combined with measured growth in direct channels could support resilience if headline revenue moderates sequentially from 618.00 million last quarter to the 421.62 million modeled this quarter. Investors will also look to whether net profit margin remains near last quarter’s 17.15% level, as margin trajectories often drive near-term multiple changes.

Analyst Opinions

The ratio of bullish to bearish opinions collected within the January 1, 2026 to February 19, 2026 window stands at 1:0, indicating a majority bullish stance. Truist Financial’s Mark Hughes maintained a Buy rating on Frontdoor Inc with a price target of $71.00 in January 2026, reflecting confidence in the company’s earnings path and the durability of its renewal-led cash flows. This view aligns with the quarter’s modeled fundamentals: revenue expected at 421.62 million increasing 14.60% year over year, EBIT rising 53.64%, and EPS up 17.86%. The bullish case emphasizes the translation of top-line growth into EBIT through disciplined cost management and solid gross margin execution, which last stood at 57.28%. It also highlights that the renewal base of 461.00 million last quarter supports visibility into contract revenue, while targeted direct-to-consumer expansion offers incremental growth opportunities without overreliance on any single channel. With last quarter’s EPS of $1.58 up 14.49% year over year and net profit margin at 17.15%, the analyst outlook anticipates that Frontdoor Inc can deliver another year-over-year improvement this quarter and retain flexibility to maintain or enhance margin performance through operational efficiency. In the absence of contrary bearish notes within the specified date window, the bullish perspective remains the dominant institutional viewpoint heading into the February 26, 2026 Pre-Market report.