Shares of Frontdoor Inc (FTDR) surged 5.56% in pre-market trading, as the home warranty provider reported second-quarter results that exceeded analyst expectations and raised its full-year guidance.

The company posted Q2 adjusted earnings of $1.93 per share, beating the consensus estimate of $1.76, while revenue rose 5% to $645 million, slightly ahead of forecasts. Gross profit margin expanded to 59%, and adjusted EBITDA climbed 10% to $220 million. Management credited higher realized prices from its dynamic pricing model, lower contract claims costs, and a 19% increase in other revenue driven by the new HVAC upgrade program.

Looking ahead, Frontdoor raised its full-year 2026 revenue outlook to a range of $2.19 billion to $2.21 billion, up from prior guidance and above the $2.18 billion consensus. The company also lifted its adjusted EBITDA forecast to $585 million to $600 million and reported its first member growth since 2021, further bolstering investor confidence.