Filing Flows › Frontdoor (FTDR) › Q1 2025
Frontdoor (FTDR) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 1, 2025
Frontdoor (FTDR) reported revenue of $426M for the first quarter 2025 (Q1 2025), +13% from a year earlier and +12% from the quarter before. Operating margin was 11.3%, net earnings $37.0M (8.7% of revenue).
Frontdoor, Q1 2025: revenue $426M (+13% year over year), operating margin 11.3%, net earnings $37.0M, operating cash flow $124M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $426M | +12% | +13% |
| Gross profit | $235M | +27% | +21% |
| Operating profit | $48.0M | +700% | +7% |
| Net earnings | $37.0M | +311% | +9% |
| Operating cash flow | $124M | +114% | +48% |
| Free cash flow | $117M | +134% | +58% |
What changed
Revenue was $426.0M in Q1 2025, up 13% year over year and up 12% from the previous quarter. Renewals was the largest line at 78% of revenue. Renewals added $35.0M year over year (up 12%), 73% of the total change. Direct to Consumer Home Service Plan Contracts declined 11%.
Gross margin was 55.2%, up 3.6 points from a year earlier. Operating profit was $48.0M, a 11.3% margin (down 0.6 points year over year). Of the extra revenue versus a year earlier, 6% reached operating profit, below the 12% margin then. Operating expenses grew 25% against revenue growth of 13%. The fastest-growing cost line was Other operating costs (+140%). Net earnings were $37.0M, up 9% year over year. The effective tax rate was 22.9%.
Operating cash flow was $124.0M (up 48% year over year), 335% of net earnings. Non-cash charges added back $23.0M of depreciation and amortization and $8.0M of share-based compensation. Working capital and other items added $56.0M. Capital expenditures of $7.0M left free cash flow of $117.0M.
Questions
What was Frontdoor's revenue in the first quarter 2025?
Frontdoor (FTDR) reported revenue of $426M for the first quarter 2025 (Q1 2025), +13% from a year earlier and +12% from the quarter before.
Was Frontdoor profitable in the first quarter 2025?
Operating profit was $48.0M (11.3% of revenue) and net earnings $37.0M.
Source: Frontdoor 10-Q on SEC EDGAR.