Frontdoor Inc. (NASDAQ: FTDR) saw its stock price surge 18.54% in pre-market trading on Thursday, May 1, 2025, following the release of its impressive first-quarter financial results and an upward revision of its full-year outlook.

The nation's leading provider of home warranties reported several key highlights that contributed to investor enthusiasm:

1. Revenue Growth: First-quarter revenue increased 13% year-over-year to $426 million, surpassing analyst expectations of $416.39 million.

2. Earnings Beat: Adjusted earnings per share came in at $0.64, significantly higher than the consensus estimate of $0.38 and up 45.45% from $0.44 in the same period last year.

3. Improved Profitability: Gross profit margin expanded by 380 basis points to a first-quarter record of 55%, while Adjusted EBITDA surged 41% to $100 million.

4. Customer Growth: The number of home warranties increased by 7% compared to the previous year, reaching 2.10 million. The customer retention rate also improved to 79.9% from 76.3% a year ago.

5. Raised Outlook: Frontdoor increased its full-year 2025 revenue guidance to a range of $2.03 billion to $2.05 billion, up from the previous forecast of $2.00 billion to $2.04 billion. The company also raised its Adjusted EBITDA outlook to $500 million to $520 million.

Chairman and CEO Bill Cobb commented on the results, stating, "We are off to a great start in 2025 and are pleased to increase our full-year outlook across the board. Our first-quarter results show that we are advancing our three strategic priorities by improving home warranty member count, scaling non-warranty services and integrating the 2-10 acquisition."

The strong financial performance and optimistic outlook have clearly resonated with investors, driving the significant pre-market stock price increase. As Frontdoor continues to execute its growth strategy and demonstrate improved profitability, the company appears well-positioned for continued success in the home warranty market.