Slide 1: Third-Quarter 2025 Earnings Webcast
Third-Quarter 2025 Earnings Webcast November 5th, 2025
Slide 2: Today's Presenters
Today’s Presenters Bill Cobb Jessica Ross Jason Bailey Matt Davis Chairman & Senior Vice President & Vice President, Vice President, Chief Executive Officer Chief Financial Officer Finance Investor Relations and Treasurer 2
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, projected future performance and any statements
Slide 4: Q3 2025 Highlights
Q3 2025 Highlights ($ millions) Revenue Gross Profit Margin Highlights o Organic direct-to-consumer member +14% +60bps count grew +8% vs. prior year o Real estate member count $618M 57% increased sequentially for the first time in five years Net Income Adjusted EBITDA* o Continued expansion in new H
Slide 5: Building Momentum Across the Business
Building Momentum Across the Business 1 2 3 4 5 Improving Continued Operational Positive Non-Warranty Real Estate Strong Excellence DTC Unit Growth Expanding Channel Retention Rates 5
Slide 6: Foundation of Operational Excellence
Foundation of Operational Excellence Pricing Actions Operational Efficiencies o Optimizing price increases through o Enhancing contractor management dynamic pricing capabilities processes to drive higher preferred contract usage o Increasing trade service fee as lever to protect margins o Leveraging
Slide 7: Efforts to Drive DTC Growth Are Working
Efforts to Drive DTC Growth are Working Five consecutive quarters of organic member count growth; +8% organic growth in Q3 vs PY First Year Direct-to-Consumer Home Warranties Drivers (in thousands) 1) Warrantina campaign is working; 320 targeting younger audiences 310 310 o Media approach moving fro
Slide 8: Warrantina Campaign Resonating
Warrantina Campaign Resonating 83% 78% 73% 68% 66% 65% 62% 55% 52% 50% 47% 45% Likeability Relevance Differentiation Effect on Interest March '25 Sept '25 Under 45 8
Slide 9: Turning the Corner in Real Estate
Turning the Corner in Real Estate First sequential member count growth since 2020 First-Year Real Estate Home Warranties (in thousands) Drivers 210 210 1) Shift to buyer’s market supporting an 200 improvement in home warranty sales 2) Increased real estate agent engagement and local marketing effort
Slide 10: Retention Near All-Time-Highs at 79.4%
Retention Near All-Time-Highs at 79.4% Supported by innovation to improve member experience AHS App Video Chat ~20% Member Downloads 35K Video Calls and 4.9 Star Rating on Google Play Store and 99% Thumbs Up Ratings 10
Slide 11: Non-Warranty Is a Massive Opportunity
Non-Warranty is a Massive Opportunity Approximately a $2 Billion opportunity over time across our member base New HVAC Appliance Roofing Water Heaters o Increasing revenue o Extended pilot program o Exploring cross selling o Conducting market expectations to across full array of opportunities to res
Slide 12: Third Quarter Financial Results
Third Quarter Financial Results 12
Slide 13: Q3 2025 Revenue
Q3 2025 Revenue ($ millions) +14% o Volume +12%, Price +3% $618 o Renewals +9% due to the addition of 2-10 and higher price $540 o Real estate +21% primarily due to the addition of 2-10 o DTC +11% as higher volumes were partially offset by lower price o Other revenue +73% due to the new HVAC and Moe
Slide 14: Q3 2025 Gross Profit
Q3 2025 Gross Profit ($ millions) +16% o Gross profit margin increased 60 360 basis points 340 $353 320 o Low-to-mid-single digit net cost inflation across our contractor 300 $306 network, replacement parts and equipment 280 57% gross profit 260 margin 57% gross profit o Lower service requests per 2
Slide 15: Q3 2025 Net Income & Adjusted EBITDA
Q3 2025 Net Income & Adjusted EBITDA* ($ millions) Net Income Adjusted EBITDA* +18% +5% $195 $165 $106 32% $100 Adj EBITDA* margin 31% Adj EBTIDA* margin Q3 2024 Q3 2025 Q3 2024 Q3 2025 * This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presentat
Slide 16: Q3 2025 Earnings Per Share
Q3 2025 Earnings Per Share Adjusted Earnings per Share Earnings per Share* +15% +9% $1.58 $1.42 $1.38 $1.30 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Note: All references to earnings per share are presented on a diluted basis * This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financi
Slide 17: Strong Free Cash Flow & Financial Position
Strong Free Cash Flow* & Financial Position Free Cash Flow* Cash Position Key Highlights Restricted Cash $563 +64% Unrestricted Cash o FCF increased 64% $296 $474 o Repurchased $215M $385 shares YTD through $291 October $181 o YTD FCF conversion of 60% vs. 46% in prior $184 $178 year period YTD 2024
Slide 18: Q4 2025 Outlook
Q4 2025 Outlook Revenue Adjusted EBITDA* $415M - $425M $50M - $55M Refer to “Non-GAAP Financial Measures" in this presentation for a description of this measure. A reconciliation of our forward-looking Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of th
Slide 19: Full-Year 2025 Outlook
Full-Year 2025 Outlook 2024 Prior Revised Metric Actuals 2025 Outlook 2025 Outlook Revenue Drivers vs. Prior Year Revenue $1.8 billion $2.055 - $2.075 billion $2.075 - $2.085 billion o ~3% increase in realized price, ~10% increase in realized volume Gross Profit Margin 54% 55% - 56% ~55.5% o ~10% in
Slide 20: Frontdoor Is Delivering Outstanding Operational Execution
Frontdoor Is Delivering Outstanding operational execution Record financial performance Hyper-focused on growth 20
Slide 21: Questions?
Questions? 21
Slide 22: Appendix
Appendix 22
Slide 23: Q3 2025 Consolidated Results
Q3 2025 Three Months Ended $ millions, except per share amounts September 30, 2025 2024 Better /(Worse) Consolidated Revenue $ 618 $ 540 $ 77 YOY Growth 14% Gross Profit 353 306 48 Results Gross Profit Margin 57% 57% 60 bps Selling and administrative expenses 174 154 (20) Depreciation and amortizati
Slide 24: YTD 2025 Consolidated Results
YTD 2025 $ millions, except per share amounts Nine Months Ended September 30, Consolidated 2025 2024 Better /(Worse) Revenue $ 1,660 $ 1,461 $ 200 YOY Growth 14% Results Gross Profit 944 806 138 Gross Profit Margin 56.9% 55.2% 170 bps Selling and administrative expenses 498 456 (41) % of revenue 30%
Slide 25: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Three Months Ended Nine Months Ended September 30, September 30, ($ millions) 2025 2024 2025 2024 Net Income $ 106 $ 100 $ 253 $ 226 Depreciation and amortization expense 22 $ 10 $ 66 $ 28 Restructuring charges 1 $ 3 $ 1 $ 5 Interest expense 20 10 59 29 N
Slide 26: Net Income to Adjusted Net Income Reconciliation
Net Income to Adjusted Net Income Reconciliation Three Months Ended September 30, ($ millions) 2025 2024 Net Income $ 106 $ 100 Amortization expense 13 1 Acquisition-related costs 2 3 Restructuring charges 1 3 Tax Impact of adjustments (3) (1) Adjusted Net Income* $ 117 $ 106 Adjusted Earnings per S
Slide 27: Operating Activities to Free Cash Flow Reconciliations
Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations Three Months Ended Nine Months Ended September 30, September 30, ($ millions) 2025 2024 2025 2024 Net Cash Provided from Operating Activities $ 65 $ 25 $ 315 $ 212 Property additions (5) (9) (20) (31) Free Cash Flow* $ 59