Frontdoor Inc (FTDR), the leading provider of home warranties in the U.S., saw its stock surge 6.48% in pre-market trading on Tuesday following the release of its impressive second-quarter 2025 financial results and an upward revision of its full-year guidance.
The company reported a 14% increase in revenue, reaching $617 million, significantly surpassing the analyst consensus estimate of $602.6 million. This growth was driven by a 2% price increase and a 12% rise in volume, primarily attributed to the successful integration of the 2-10 acquisition. Frontdoor's adjusted earnings per share (EPS) of $1.63 also beat the analyst expectations of $1.45, marking a 28.35% increase from the same period last year.
Adding to the positive sentiment, Frontdoor raised its full-year 2025 outlook. The company increased its revenue guidance to a range of $2.055 billion to $2.075 billion, up from the previous forecast. The gross profit margin range was adjusted to 55% to 56%, and the adjusted EBITDA range was raised to $530 million to $550 million. CFO Jessica Ross highlighted that strong operational execution supported the company's margin structure. The market's enthusiastic response to these results and the optimistic outlook is reflected in the stock's pre-market rally.
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