$FTDR

Frontdoor, Inc.

CIK:0001727263|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Condensed Consolidated Statements of Operations and Comprehensive Income [Abstract]
Revenue	$ 645	$ 617	$ 1,096	$ 1,043
Cost of services rendered	267	261	470	452
Gross Profit	378	356	626	591
Selling and administrative expenses	176	172	338	323
Depreciation and amortization expense	20	21	40	44
Restructuring charges	2	0	3	0
Interest expense	19	20	38	39
Interest and net investment income	(5)	(4)	(11)	(10)
Income before Income Taxes	167	146	218	194
Provision for income taxes	41	36	51	46
Net Income	125	111	167	148
Other Comprehensive Income (Loss), Net of Income Taxes:
Unrealized gain (loss) on derivative instruments, net of income taxes	4	(5)	8	(12)
Total Other Comprehensive Income (Loss), Net of Income Taxes	4	(5)	8	(12)
Comprehensive Income	$ 130	$ 106	$ 175	$ 136
Earnings per Share:
Basic	$ 1.8	$ 1.51	$ 2.37	$ 2
Diluted	$ 1.76	$ 1.48	$ 2.33	$ 1.96
Weighted-average Common Shares Outstanding:
Basic	69.9	73.5	70.2	74.1
Diluted	71.1	74.7	71.6	75.3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Condensed Consolidated Statements of Cash Flows [Abstract]
Cash and Cash Equivalents at Beginning of Period	$ 566	$ 421
Cash Flows from Operating Activities:
Net Income	167	148
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation and amortization expense	40	44
Deferred income tax benefit	(3)	(4)
Stock-based compensation expense	21	17
Other	(3)	2
Changes in:
Receivables	0	(1)
Prepaid expenses and other current assets	(12)	(10)
Deferred reinsurance	0	(2)
Deferred customer acquisition costs	(1)	(1)
Accounts payable	29	35
Deferred revenue	(8)	(11)
Accrued liabilities	(8)	6
Deferred insurance premiums	0	6
Current income taxes	24	22
Net Cash Provided from Operating Activities	245	251
Cash Flows from Investing Activities:
Purchases of property and equipment	(12)	(14)
Business acquisitions, net of cash acquired	0	3
Purchases of short-term investments and available-for-sale securities	(2)	(6)
Sales and maturities of available-for-sale securities	0	60
Net Cash (Used for) Provided from Investing Activities	(14)	42
Cash Flows from Financing Activities:
Repayments of debt	(14)	(14)
Repurchases of common stock	(152)	(135)
Other financing activities	(3)	(3)
Net Cash Used for Financing Activities	(169)	(153)
Cash Increase During the Period	62	141
Cash and Cash Equivalents at End of Period	$ 627	$ 562

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 627,000,000	$ 566,000,000
Receivables, less allowance of $4 and $4, respectively	11,000,000	10,000,000
Prepaid expenses and other current assets	45,000,000	44,000,000
Contract assets	9,000,000	0
Assets held for sale	0	4,000,000
Total Current Assets	692,000,000	624,000,000
Other Assets:
Property and equipment, net	53,000,000	57,000,000
Goodwill	963,000,000	959,000,000
Intangible assets, net	374,000,000	398,000,000
Operating lease right-of-use assets	7,000,000	7,000,000
Deferred reinsurance	66,000,000	66,000,000
Deferred customer acquisition costs	15,000,000	14,000,000
Other assets	17,000,000	17,000,000
Total Assets	2,186,000,000	2,142,000,000
Current Liabilities:
Accounts payable	118,000,000	89,000,000
Accrued liabilities:
Payroll and related expenses	26,000,000	47,000,000
Home warranty claims	82,000,000	69,000,000
Income taxes payable	45,000,000	26,000,000
Other	32,000,000	34,000,000
Deferred revenue	103,000,000	107,000,000
Current portion of long-term debt	29,000,000	29,000,000
Total Current Liabilities	435,000,000	402,000,000
Long-Term Debt	1,131,000,000	1,144,000,000
Other Long-Term Liabilities:
Deferred tax liabilities, net	54,000,000	53,000,000
Operating lease liabilities	16,000,000	18,000,000
Unearned insurance premium	236,000,000	236,000,000
Long-term deferred revenue	15,000,000	19,000,000
Other long-term liabilities	15,000,000	27,000,000
Total Other Long-Term Liabilities	336,000,000	354,000,000
Commitments and Contingencies (Note 7)
Shareholders' Equity:
Common stock, $0.01 par value; 2,000,000,000 shares authorized; 89,177,293 shares issued and 69,284,644 shares outstanding as of June 30, 2026 and 88,480,560 shares issued and 70,958,215 shares outstanding as of December 31, 2025	1,000,000	1,000,000
Additional paid-in capital	214,000,000	195,000,000
Retained earnings	952,000,000	785,000,000
Accumulated other comprehensive loss	(4,000,000)	(12,000,000)
Less treasury stock, at cost; 19,892,649 shares as of June 30, 2026 and 17,522,345 shares as of December 31, 2025	(879,000,000)	(727,000,000)
Total Shareholders' Equity	284,000,000	242,000,000
Total Liabilities and Shareholders' Equity	$ 2,186,000,000	$ 2,142,000,000