Frontdoor (NASDAQ:FTDR) reported fourth-quarter financial results that significantly outperformed Wall Street expectations, driven by steady growth in its core home warranty business.
The Memphis-based company posted a fourth-quarter net income of $1 million, or 2 cents per share.
When adjusted for one-time items, earnings reached 23 cents per share, more than double the 11-cent consensus estimate from analysts surveyed by Zacks Investment Research.
Revenue for the quarter climbed to $433 million, surpassing the $420.6 million anticipated by market observers.
The performance caps a record fiscal year for the provider of home service plans, which reported a full-year profit of $255 million, or $3.42 per share, on total revenue of $2.09 billion.
The company’s growth remains supported by its ability to manage service costs and expand its "Direct-to-Consumer" and "Real Estate" channels.
Despite a volatile housing market, Frontdoor has successfully leveraged its digital platform and a vast network of service contractors to maintain high customer retention rates.
Looking ahead, Frontdoor issued an optimistic revenue forecast for fiscal year 2026, signaling confidence in continued market share gains.
The company expects full-year revenue to fall between $2.15 billion and $2.19 billion.