Frontdoor Inc (FTDR) shares plummeted 5.10% in pre-market trading on Wednesday, despite reporting strong third-quarter financial results. The sharp decline comes as the company announced a significant leadership change in its finance department.

The home warranty provider reported impressive Q3 earnings, with adjusted EPS of $1.58 beating analyst estimates of $1.51, and revenue of $618 million surpassing the expected $610.8 million. However, investors seemed to focus on the unexpected news of CFO Jessica Ross's resignation, effective November 10, 2025.

Frontdoor announced that Jason Bailey, currently serving as vice president of finance, will succeed Ross as the new CFO. While Bailey brings extensive experience from his tenure at Frontdoor and its former parent company, ServiceMaster Global Holdings, the market's reaction suggests concerns about the continuity of financial leadership. Despite the company's efforts to ensure a smooth transition, with Ross staying on as an advisor to the CEO until December 31, 2025, the sudden change appears to have shaken investor confidence in the short term.