Slide 1: Second-Quarter 2026 Earnings Webcast
Second-Quarter 2026 Earnings Webcast August 6th, 2026
Slide 2: Today's Presenters
Today’s Presenters Bill Cobb Jason Bailey Matt Davis Chairman & Senior Vice President & Vice President, Chief Executive Officer Chief Financial Officer 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: Delivering Across Strategic Priorities
Delivering Across Strategic Priorities 1 2 3 4 Drive Scale Deliver Maintain Member Non-Warranty Structurally Capital Allocation Growth Revenue Higher Margins Discipline 4
Slide 5: Q2 2026 Highlights
Q2 2026 Highlights ($ millions) Revenue Gross Profit Margin Returned to Shareholders $645M 59% $181M +5% of shares repurchased +100 bps through July 31 Net Income Adjusted EBITDA* Adjusted EPS $125M $220M $1.93 +13% +10% +19% Note: all comparisons are versus the prior year comparable period. Adjuste
Slide 6: Total Ending Member Count Increased 1%
Total Ending Member Count Increased 1% First Total Ending Member Growth Since 2021 Direct-To-Consumer Real Estate Renewal Home Warranty Count Home Warranty Count Home Warranty Count +5% vs. Prior Year Period +7% vs. Prior Year Period Stable vs. Prior Year Period Growing Momentum Improving Capture Ra
Slide 7: Delivering Consistent DTC Ending Member Growth
Delivering Consistent DTC Ending Member Growth ...to drive continued growth Executing against a proven playbook… o +5% ending member growth versus prior year period Growing Demand 1 o o o Warrantina campaign resonating Increasing marketing investment, improving mix, and pacing Multi-brand strategy p
Slide 8: Real Estate Delivering Strong Growth
Real Estate Delivering Strong Growth Q2 2026 Ending Member Count Avg Months of Supply vs. Existing Home Sales 20 +7% 6 Target supply is 5+ months 18 16 5 Average Months of Supply on Hand 4.6 4.5 year-over-year improvement 14 Existing Home Sales (in millions) 4 3.8 12 3.1 10 3 Attach Rate Momentum 2.
Slide 9: The Renewal Journey
The Renewal Journey [XX]% Retention Rate up [XX] bps YoY — near all-time high Onboarding Engagement Renewal Moment Post-Renewal 1 2 3 4 9
Slide 10: Winning The Renewal Moment
Winning The Renewal Moment Retention Rate Q4 2025 Q1 2026 Q2 2026 79.2% 79.3% 79.6% 1 Elevating the Member Experience 2 Operational Improvements o Differentiated technology features o Stronger save program execution o Strong usage of preferred contractors o Simplified autopay enrollment o Record hig
Slide 11: HVAC Upgrades Expanding Share of Wallet
HVAC Upgrades Expanding Share of Wallet New HVAC Upgrade Revenue Significant Opportunity Ahead Significantly scaled business since program inception Low penetration program to date $165M - $175M $87M $128M ~3% of member base has purchased new HVAC system through Frontdoor $51M $13M 2022 2023 2024 20
Slide 12: Second Quarter 2026 Financial Results
Second Quarter 2026 Financial Results 12
Slide 13: Delivering Value Through a Durable Model
Delivering Value Through a Durable Model Renewal-Driven Structurally Higher Excellent Cash Returning Cash Revenue Margins Generation to Shareholders Predictable subscription-based Operational excellence >60% of Adj EBITDA* to FCF* ~$900M repurchased since 2021 * This financial measure is a non-GAAP
Slide 14: Strong First Half Financial Results
Strong First Half Financial Results Revenue Adj EBITDA* Net Income Adj EPS* $1,096M $324M $167M $2.66 1H 2026 +5% +8% +13% +17% Revenue Adj EBITDA* Net Income Adj EPS* $645M $220M $125M $1.93 Q2 2026 +5% +10% +13% +19% Note: all comparisons are versus the prior year comparable period. Adjusted EPS i
Slide 15: Continued Revenue Growth in Q2
Continued Revenue Growth in Q2 Total: 5% growth comprised of over 3% price +5% and over 1% volume $645M $617M Renewals: up 4% due to higher price RE1: up 3% due to higher volume partially offset by lower price DTC1: down (2)% as lower price was partially offset by higher volume Non warranty & other:
Slide 16: Delivered Record Gross Margins in Q2
Delivered Record Gross Margins in Q2 ($ millions) Gross Profit Gross Profit Margin +5% $378 58% +100 bps 59% $356 Q2 2025 Q2 2026 + Pricing Actions o Dynamic pricing + Lower Incidence Rate o o Favorable weather New HVAC upgrade program + o Improved cost control and planning Operational Excellence o
Slide 17: Q2 2026 Net Income & Adjusted EBITDA
Q2 2026 Net Income & Adjusted EBITDA* ($ millions) Net Income Adjusted EBITDA* +13% +10% $220 $125 $199 $111 32% 34% Adj EBITDA Margin* Adj EBITDA Margin* Q2 2025 Q2 2026 Q2 2025 Q2 2026 * This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presenta
Slide 18: Fundamentally Stronger Business Model
Fundamentally Stronger Business Model +1,400 bps Adj EBITDA Margin* 24% 26% 27% 19% of margin expansion in four years 13% Operating at the high end of our mid 20% long-term target 2022 2023 2024 2025 2026 Fcst* updated in early 2026 Pricing Actions Operational Excellence Operating Leverage Dynamic p
Slide 19: Strong Free Cash Flow & Financial Position
Strong Free Cash Flow & Financial Position 1H Free Cash Flow* FCF1 Conversion Unrestricted Cash Total Liquidity2 $233M >60% $472M $722M Durable cash generation & strong liquidity position provide ample flexibility to create value through our capital allocation strategy *This financial measure is a n
Slide 20: Disciplined Capital Allocation Creating Long-Term Value
Disciplined Capital Allocation Creating Long-Term Value 1 2 3 Invest Preserve Financial Return Excess Cash For Growth Flexibility to Shareholders o Organic investments o Maintain ample liquidity o Programmatic and o Selective M&A o Prudent leverage ratio opportunistic share repurchases 20
Slide 21: Expect to Complete Repurchase Authorization in 2026
Expect to Complete Repurchase Authorization in 2026 Current $502M $181M $148M Authorization Repurchased since Repurchased YTD Remaining Sept 2024 authorization through July 2026 authorization Capital Deployed Share Count Reduction EPS Accretion Share Repurchases Since 2021 Deployed ~$900M to share R
Slide 22: Increasing FY 2026 Outlook
Increasing FY 2026 Outlook Actual Prior Revised Metric FY 2025 FY 2026 Outlook FY 2026 Outlook Revenue $2.1 billion $2.155 - $2.195 billion $2.19 - $2.21 billion Gross Profit Margin 55% 54% - 55% ~55% SG&A $669 million $660 - $680 million $685 - $695 million Adjusted EBITDA* $553 million $565 - $580
Slide 23: Q3 2026 Financial Guidance
Q3 2026 Financial Guidance Revenue Adjusted EBITDA* $642M to $652M $197M to $207M Drivers Drivers o Renewal increase low-single to mid-single o Higher revenue conversion digits o Slightly lower gross margin driven by cost o Real Estate increase low-single digit inflation and mix shift o Direct-to-Co
Slide 24: Three Key Takeaways
Three Key Takeaways: Ending Member Count Past Inflection Point Delivering Margins In-Line With Long Term Targets Expect to Complete Repurchase Authorization Early 24
Slide 25: Questions?
Questions? 25
Slide 26: Appendix
Appendix 26
Slide 27: Q2 & YTD 2026 Consolidated Results
Q2 & YTD 2026 Consolidated Results Three Months Ended June 30, Six Months Ended June 30, $ millions, except per share amounts 2026 2025 Change 2026 2025 Change Revenue $645 $617 $29 $1,096 $1,043 $54 YoY Growth 5% 5% Gross Profit $378 $356 $23 $626 $591 $35 % of revenue 59% 58% 100 bps 57% 57% 40 bp
Slide 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA* Reconciliation Three Months Ended Six Months Ended Year Ended June 30, June 30, Dec 31, ($ millions) 2026 2025 2026 2025 2025 2024 2023 2022 Net Income $125 $111 $167 $148 $255 $235 $171 $71 Depreciation and amortization expense 20 21 40 44 89 39 37 34 Restructuring charges 2 0 3 0
Slide 29: Adjusted Net Income Reconciliation
Adjusted Net Income* Reconciliation Three Months Ended Six Months Ended June 30, June 30, ($ millions) 2026 2025 2026 2025 Net Income $125 $111 $167 $148 Amortization expense 12 12 24 25 Restructuring charges 2 0 3 0 Acquisition and integration related costs 1 2 4 4 Tax Impact of adjustments (4) (3)
Slide 30: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation * Six Months Ended June 30, ($ millions) 2026 2025 Net Cash Provided from Operating Activities $245 $251 Property additions (12) (14) Free Cash Flow* $233 $237 *This financial measure is a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in this presen