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Frontdoor (FTDR) Q3 2025 earnings results (third quarter 2025)

10-Q filed Nov 5, 2025

Frontdoor (FTDR) reported revenue of $618M for the third quarter 2025 (Q3 2025), +14% from a year earlier and +0.2% from the quarter before. Operating margin was 23.1%, net earnings $106M (17.2% of revenue).

Revenue$618M
Year over year+14%
Quarter over quarter+0.2%
Operating margin23.1%
Net earnings$106M

Frontdoor, Q3 2025: revenue $618M (+14% year over year), operating margin 23.1%, net earnings $106M, operating cash flow $64.0M. The chart follows the revenue to costs, profit and cash.

Q3 2025AmountQ/QY/Y
Revenue$618M+0.2%+14%
Gross profit$353M-0.8%+15%
Operating profit$143M-3%+7%
Net earnings$106M-5%+6%
Operating cash flow$64.0M-50%+156%
Free cash flow$58.0M-52%+262%

What changed

Revenue was $618.0M in Q3 2025, up 14% year over year and roughly flat from the previous quarter. Renewals was the largest line at 75% of revenue. Renewals added $39.0M year over year (up 9%), 50% of the total change.

Gross margin was 57.1%, up 0.5 points from a year earlier. Operating profit was $143.0M, a 23.1% margin (down 1.7 points year over year). Of the extra revenue versus a year earlier, 12% reached operating profit, below the 25% margin then. Operating expenses grew 22% against revenue growth of 14%. The fastest-growing cost line was Other operating costs (+100%). Net earnings were $106.0M, up 6% year over year. The effective tax rate was 25.9%.

Operating cash flow was $64.0M (up 156% year over year), 60% of net earnings. Non-cash charges added back $22.0M of depreciation and amortization and $8.0M of share-based compensation. Working capital and other items used $72.0M. Capital expenditures of $6.0M left free cash flow of $58.0M.

Questions

What was Frontdoor's revenue in the third quarter 2025?

Frontdoor (FTDR) reported revenue of $618M for the third quarter 2025 (Q3 2025), +14% from a year earlier and +0.2% from the quarter before.

Was Frontdoor profitable in the third quarter 2025?

Operating profit was $143M (23.1% of revenue) and net earnings $106M.

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Source: Frontdoor 10-Q on SEC EDGAR.