Slide 1: Fourth-Quarter & Full Year 2025 Earnings Webcast
Fourth-Quarter & Full Year 2025 Earnings Webcast February 26th, 2026 1
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: Record Financial Performance in 2025
Record Financial Performance in 2025 ($ millions) Revenue Gross Margin We returned $2,093 55% +14% vs. PY +150bps vs. PY $280 Million Net Income Adjusted EBITDA* To our shareholders $255 $553 through share repurchases +9% vs. PY +25% vs. PY *This financial measure is a non-GAAP financial measure. Re
Slide 5: Delivered Outstanding Performance in 2025
Delivered Outstanding Performance in 2025 Grow & Retain Scale Home Warranty Integrate 2-10 Non-Warranty Members Stabilized total member New HVAC sales grew 48% Realized more than $20M of count in 2025 to $128M cost synergies in 2025 Accelerated DTC member Launched appliance upgrade Estim
Slide 6: Stabilized Member Count in 2025
Stabilized Member Count in 2025 (in thousands) Highlights 2,120 2,090 2,110 Total member count improved in the First-Year RE 210 210 back half of 2025 and was stable for the 200 First-Year DTC full year (vs original outlook of down Renewals 2%-4%) 310 310 320 First year combined channels showed
Slide 7: Healthier Real Estate Macro Supported 2H Member Growth
Healthier Real Estate Macro Supported 2H Member Growth 20 Highlights 6 Average Months of Supply vs. Existing Home Sales 18 Target supply is 5+ months o While existing home sales remain 16 sluggish, inventory levels improved 5 14 4.0 4.2 o Transition to buyer’s market in back half 4 3.7 12 of 2025 im
Slide 8: Accelerated DTC Growth to 3% in 2025
Accelerated DTC Growth to 3% in 2025 Brand Leadership Growing Demand Improving Conversion Highest awareness, interest Strengthened Website and SEO and trust in category value proposition strategy enhancements Added value through app Improved targeting, including Promotional and virtual experts reach
Slide 9: Improved Member Experience Driving Higher Renewal Rates
Improved Member Experience Driving Higher Renewal Rates Renewal Rates by Channel Highlights 81% 79% o Renewal rates increased 150 basis 75% 74% points to 75% in 2025: 73% 72% o Innovation and technology o Auto-pay up ~100 bps to 84% o Strong preferred contractor utilization of 84% o Strong onboardin
Slide 10: New HVAC Upgrade Fueled Non-Warranty
New HVAC Upgrade Fueled Non-Warranty New HVAC Upgrade Revenue ($M) Highlights +$41 127.801 o New HVAC upgrade sales to home $128 warranty members grew to $128M o Increased contractor participation +$36 86.546 o Sizeable opportunity as we have $87 completed ~55k installs since inception across our 2.
Slide 11: We Have Aggressive Long-Term Goals
We Have Aggressive Long-Term Goals 1 2 3 4 Drive Scale Deliver Maintain Member Non-Warranty Structurally Capital Allocation Growth Revenue Higher Margins Discipline 11
Slide 12: #1: Drive Member Growth
#1: Drive Member Growth First Year Channels to Grow ~5% in 2026 o DTC: Continued momentum from media campaign and enhanced targeting and promotional strategy o Real Estate: Improving market environment, increased agent engagement, local investments and promotions Expect Ending Renewals to Turn Posit
Slide 13: #2: Scale Non-Warranty Revenue
#2: Scale Non-Warranty Revenue Grow Share of Wallet with Members o Scaling new HVAC upgrades o Expanding appliance upgrade program Leverage Contractor Network o Moen partnership today o Explore additional partnership models to monetize Non- the network Warranty Unlock Builder Opportunity Strategy o
Slide 14: #3: Deliver Structurally Higher Margins as We Scale
#3: Deliver Structurally Higher Margins as We Scale Comprehensive Pricing Actions o Optimizing price increases through dynamic pricing capabilities o Ability to leverage trade service fee to protect margins Continued Operational Excellence o Enhancing contractor management processes to drive Increas
Slide 15: #4: Maintain Capital Allocation Discipline
#4: Maintain Capital Allocation Discipline Accelerate Growth o Organic investments to drive growth o Selective M&A Maintain Strong Financial Profile o Ample liquidity o Prudent leverage ratio Driving Long-Term Return Excess Cash to Shareholders Value Creation o Programmatic and opportunistic share r
Slide 16: Fourth Quarter and Full Year 2025 Financial Results
Fourth Quarter and Full Year 2025 Financial Results 16
Slide 17: Q4 2025 Financial Snapshot
Q4 2025 Financial Snapshot ($ millions) Revenue Gross Margin $433 49% +13% vs. PY Period +70 bps vs. PY Period Adj EBITDA* Adj Diluted EPS* $59 $0.23 +21% vs. PY Period (15)% vs. PY Period *This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this present
Slide 18: Delivered Higher Revenues in 2025
Delivered Higher Revenues in 2025 ($ millions) Revenue o Volume +11%, price +3% +14% o Organic revenues +3.7% $2,093 $1,843 o Renewals +10% o Real Estate +13% o DTC revenue +4% o Non-warranty and other revenue +66% 2024 2025 18
Slide 19: Operational Execution Drove Record Margin
Operational Execution Drove Record Margin ($ millions) Gross Profit o Gross margins expanded 150 bps to a record 55% +17% 1200 o 3% higher price delivered $1,157 through dynamic pricing 1000 $991 o Lower service requests per 800 customer, including favorable 55% weather of $7M 600 gross profit 54% m
Slide 20: 2025 Net Income & Adjusted EBITDA
2025 Net Income & Adjusted EBITDA* ($ millions) Net Income Adjusted EBITDA* +25% +9% $553 $255 $235 $443 26% 24% Adj EBITDA* Adj EBTIDA* margin margin 2024 2025 2024 2025 * This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presentation for a descr
Slide 21: Exceptionally Strong Financial Profile
Exceptionally Strong Financial Profile Free Cash Flow $390M Free Cash Flow* o Durable recurring revenue model with strong margins and high cash conversion of 70% o Capital light business model Strong Financial Position Net Debt to Adj 1.4x EBITDA* o Ample liquidity of ~$660M1 o Low net leverage rati
Slide 22: Strong History of Share Repurchases
Strong History of Share Repurchases ($ millions) Current Authorization ~$330 o Completed $321M in repurchases under current authorization of $650M $280 o Record $280M of repurchases in 2025 Prior Authorization Current Authorization o On track to complete current authorization by early 2027 $160 $41
Slide 23: 2026 Financial Guidance
2026 Financial Guidance Revenue Or Another strong year with revenue growing to $2.155B to $2.195B Or Profit Margin Gross Maintain strong margin levels of 54% to 55% Or SG&A Flat at $660M to $680M, while gaining leverage FY2026 SG&A Or Adjusted EBITDA Another record year at $565M to $580M and ~26% Ad
Slide 24: 2026 Detailed Revenue Outlook
2026 Detailed Revenue Outlook Channel Growth Profile Revenue Outlook ($M) 3% to 5% Renewals: Low-single digit increase $2,155 to $2,195 First-Year DTC: Low-single digit decrease $2,093 First-Year RE: Relatively flat Non-Warranty and Other: $220M to $240M Total: 3% to 5% Realized Price: 2% to 3% Real
Slide 25: 2026 Detailed Margin Outlook
2026 Detailed Margin Outlook Margin Drivers Adjusted EBITDA Margin Outlook o Expect gross margin of 54% to 55% o Higher realized price 26% 26% o Low-single digit cost inflation o Normalized weather o Higher mix of non-warranty revenue 55% 54% to 55% Gross Margin Gross Margin o Adjusted EBITDA margin
Slide 26: Raising our Long-Term Margin Target
Raising our Long-Term Margin Target Prior Prior New New Metric 2028 Target LT Target 2028 Target LT Target Revenue $2.5B+ MSD to HSD* Unchanged Unchanged organic growth Adj EBITDA Low 20% Mid 20% Mid 20% Low 20% Margin *Mid-single digit to High-single digit 26
Slide 27: Q1 2026 Financial Guidance
Q1 2026 Financial Guidance Revenue Adjusted EBITDA $440M to $445M $95M to $105M Drivers Drivers o Higher price realization, driven by renewals o Higher gross profit from revenue conversion o Slightly higher first-year RE revenue o Lapping favorable claims development of $7M in prior year period o Lo
Slide 28: Three Key Takeaways
Three Key Takeaways: Member Count is Expected to Grow in 2026 Raising our Long-Term Adjusted EBITDA Margin Target Strong Cash Generation and Share Repurchases 28
Slide 29: Questions?
Questions? 29
Slide 30: Appendix
Appendix 30
Slide 31: Q4 2025 Consolidated Results
Q4 2025 Three Months Ended $ millions, except per share amounts December 31, 2025 2024 Better /(Worse) Consolidated Revenue $ 433 $ 383 $ 50 YOY Growth 13% Gross Profit 213 186 28 Results Gross Profit Margin 49% 49% 70 bps Selling and administrative expenses 171 155 (16) Depreciation and amortizatio
Slide 32: FY 2025 Consolidated Results
Twelve Months Ended FY 2025 $ millions, except per share amounts Revenue 2025 $ 2,093 December 31, 2024 $ 1,843 Better /(Worse) $ 250 Consolidated YOY Growth Gross Profit Gross Profit Margin 1,157 55.3% 991 53.8% 14% 166 150 bps Results Selling and administrative expenses % of revenue Depreciation a
Slide 33: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, ($ millions) 2025 2024 2025 2024 Net Income $ 1 $ 9 $ 255 $ 235 Depreciation and amortization expense 23 $ 11 $ 89 $ 39 Restructuring charges 2 $ 3 $ 4 $ 8 Interest expense 20 11 79 40 Non-c
Slide 34: Net Income to Adjusted Net Income Reconciliation
Net Income to Adjusted Net Income Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, ($ millions) 2025 2024 2025 2024 Net Income $ 1 $ 9 $ 255 $ 235 Amortization expense 15 2 53 4 Acquisition-related costs 3 8 8 17 Restructuring charges 2 3 4 8 Tax Impact of adjustments
Slide 35: Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations
Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations Three Months Ended Twelve Months Ended December 31, December 31, ($ millions) 2025 2024 2025 2024 Net Cash Provided from Operating Activities $ 101 $ 59 $ 416 $ 270 Property additions (6) (8) (26) (39) Free Cash Flow* $ 94
Slide 36: Net Debt and TTM Adjusted EBITDA Reconciliation
Net Debt and TTM Adjusted EBITDA Reconciliation As of and for the Twelve Months Ended December 31, ($ millions) 2025 Term Loan A $397 Term Loan B 792 Total Debt – Face Value (A) $1,189 Discounts and issuance costs (16) Total Debt – Book Value $1,173 LCs Outstanding (B) 2 Available cash and marketabl