FTDRMEDIUM SIGNALFINANCIAL10-K

FTDR shows strong operational performance with 54% operating cash flow growth and 14% revenue increase, but faces significantly higher financing costs with interest expense nearly doubling.

The company is generating substantially more cash from operations while growing revenue at a healthy double-digit pace, indicating strong underlying business momentum. However, the near-doubling of interest expense suggests new debt financing or higher rates are creating meaningful headwinds to profitability.

Comparing 2026-02-26 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

FTDR delivered robust financial performance with revenue growing 14% to $2.1B, gross profit expanding 17% to $1.2B, and operating cash flow surging 54% to $416M. The company significantly increased shareholder returns through 76% higher share buybacks ($283M) and 118% higher dividends ($137M), while building a stronger cash position (+34% to $566M). However, interest expense nearly doubled to $79M, reflecting higher financing costs that partially offset the strong operational gains, though the overall financial picture remains positive with strong cash generation supporting increased capital returns.

FINANCIAL STATEMENT CHANGES
Dividends Paid
Cash Flow
+117.5%
$63.0M→$137.0M

Dividend payments increased 117.5% — management confidence in sustained cash generation.

Interest Expense
P&L
+97.5%
$40.0M→$79.0M

Interest expense surged 97.5% — significant debt increase or rising rates materially impacting earnings.

Share Buybacks
Cash Flow
+75.8%
$161.0M→$283.0M

Share repurchases increased 75.8% — management returning capital, signals confidence in intrinsic value.

Operating Cash Flow
Cash Flow
+54.1%
$270.0M→$416.0M

Operating cash flow surged 54.1% — exceptional cash generation, highest quality earnings signal.

Cash & Equivalents
Balance Sheet
+34.4%
$421.0M→$566.0M

Cash position surged 34.4% — strong cash generation or capital raise providing significant financial cushion.

Capital Expenditure
Cash Flow
-33.3%
$39.0M→$26.0M

Capex reduced 33.3% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Current Assets
Balance Sheet
+27.9%
$488.0M→$624.0M

Current assets grew 27.9% — improving short-term liquidity or inventory/receivables build.

Gross Profit
P&L
+16.8%
$991.0M→$1.2B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Revenue
P&L
+13.6%
$1.8B→$2.1B

Revenue growing 13.6% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-27
ADDED
As of February 20, 2026, there were 70,617,688 shares outstanding of the registrant s common stock, par value $0.01 per share.
Internal Revenue Service NASDAQ Nasdaq Global Select Market new home builder warranty A written warranty, or a collection of warranties, a builder provides to a new home buyer to define the standards for certain workmanship, distribution systems (e.g., electrical, piping or venting), and/or structural elements in a new home, and which may be backed by insurance and/or surety coverage Omnibus Plan Frontdoor, Inc.
Securities and Exchange Commission Securities Act Securities Act of 1933, as amended SOFR Secured Overnight Financing Rate Term Loan A $418 million term loan A facility, which became effective on December 19, 2024 Term Loan B $800 million term loan B facility, which became effective on December 19, 2024 Term Loan Facilities The Term Loan A together with the Term Loan B U.S.
BUSIN ESS Overview Frontdoor is the leading provider of home warranties and new home builder warranties in the United States, as measured by revenue, and operates under the American Home Shield, HSA, OneGuard, Landmark and 2-10 HBW brands.
Our home warranty customers frequently use our services, as we handle approximately 3.8 million home warranty service requests annually utilizing our nationwide network of approximately 17,000 qualified independent professional contractor firms in a wide range of trades and with diverse skills and capabilities.
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REMOVED
As of February 20, 2025, there were 74,745,629 shares outstanding of the registrant s common stock, par value $0.01 per share.
Internal Revenue Service LIBOR London Inter-bank Offered Rate NASDAQ Nasdaq Global Select Market Omnibus Plan Frontdoor, Inc.
Securities and Exchange Commission Securities Act Securities Act of 1933, as amended SOFR Secured Overnight Financing Rate Streem Streem, LLC, our technology platform that uses augmented reality, computer vision and machine learning to provide services Term Loan A $418 million term loan A facility, which became effective on December 19, 2024 Term Loan B $800 million term loan B facility, which became effective on December 19, 2024 Term Loan Facilities The Term Loan A together with the Term Loan B U.S.
BUSIN ESS Overview Frontdoor is the leading provider of home warranties and new home structural warranties in the United States, as measured by revenue, and operates primarily under the American Home Shield and 2-10 HBW brands.
We maintain regular contact with our home warranty customers as we handle approximately four million home warranty service requests annually utilizing our nationwide network of approximately 17,000 qualified professional contractor firms in a wide range of trades and with diverse skills and capabilities.
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