Slide 1: First-Quarter 2026 Earnings Webcast
First-Quarter 2026 Earnings Webcast April 30th, 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 performanceand any statements a
Slide 4: Reminder: 2026 Focus Areas
Reminder: 2026 Focus Areas Grow Deliver Maintain Member Structurally Disciplined Capital Base Higher Margins Allocation 4
Slide 5: Q1 2026 Highlights
Q1 2026 Highlights ($ millions) Revenue Gross Profit Margin Highlights o Growth in the number of home $451M 55% warranties in the first-year channels accelerated to 3% +6% Unchanged o Total member count is trending positively; expected to be up ~1% for FY 2026 Net Income Adjusted EBITDA* o Continued
Slide 6: Strong Execution Across the Business in Q1
Strong Execution Across the Business in Q1 Channel Highlights* Drivers o Strengthening brand leadership Direct-to-consumer +3% o Growing demand o Improving conversion through AI tools and Member Growth promotional pricing o Existing home sales remain constrained Real Estate +3% o Home inventory impr
Slide 7: Strategic Priorities to Drive Value Creation
Strategic Priorities to Drive Value Creation 1 2 3 4 Drive Scale Deliver Maintain Member Non-Warranty Structurally Capital Allocation Growth Revenue Higher Margins Discipline 7
Slide 8: First Quarter 2026 Financial Results
First Quarter 2026 Financial Results 8
Slide 9: Q1 2026 Financial Snapshot
Q1 2026 Financial Snapshot ($ millions) Revenue Gross Margin $451 55% +6% Unchanged Adj EBITDA* Adj Diluted EPS* $104 $0.73 +3% +14% Note: All comparisons are versus the prior year period of Q1 2025 *This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in th
Slide 10: Continued Revenue Growth in Q1
Continued Revenue Growth in Q1 ($ millions) Revenue o Comprised of 5% Price and 1% Volume +6% • Renewals up 6% due to higher price $451 • First-Year Real Estate up 3% with higher volume partially offset by $426 lower price • First-Year DTC down 5% with lower price partially offset by higher volume •
Slide 11: Delivered Strong Gross Margins in Q1
Delivered Strong Gross Margins in Q1 ($ millions) Gross Profit o Gross margins were unchanged vs. the prior year period +5% • 5% higher realized price delivered $248 through dynamic pricing $235 • Low single digit cost inflation 55% 55% gross profit gross profit • Slightly higher number of service m
Slide 12: Q1 2026 Net Income & Adjusted EBITDA
Q1 2026 Net Income & Adjusted EBITDA* ($ millions) Net Income Adjusted EBITDA* +3% +11% $41 $104 $100 $37 Q1 2025 Q1 2026 Q1 2025 Q1 2026 * This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presentation for a description of this measure and the Ap
Slide 13: Strong Free Cash Flow & Financial Position
Strong Free Cash Flow & Financial Position ($ millions) Free Cash Flow* Liquidity Position o Robust free cash flow of $114M Revolver Availability in Q1 Unrestricted Cash $698 $117 $570 $250 o Free cash flow conversion $114 expected to be above 60% of $248 Adjusted EBITDA for FY 2026 $448 o Repurchas
Slide 14: Q2 2026 Financial Guidance
Q2 2026 Financial Guidance Revenue Adjusted EBITDA* $635M to $650M $198M to $208M Drivers Drivers o Low single digit increase in Renewal o Higher gross profit from revenue conversion o Mid single digit increase in Real Estate o Low single digit inflation o Low single digit decrease in Direct-to- o C
Slide 15: Reaffirming FY 2026 Outlook
Reaffirming FY 2026 Outlook FY 2025 FY 2026 Metric Actual Outlook Revenue $2.1 billion $2.155 - $2.195 billion Gross Profit Margin 55% 54% - 55% SG&A $669 million $660 - $680 million Adjusted EBITDA* $553 million $565 - $580 million Capital Expenditures $26 million $30 - $35 million Annual Effective
Slide 16: Three Key Takeaways
Three Key Takeaways: Member Count Expected to Grow ~1% in 2026 Delivering Margins In-Line With Long Term Targets Using Significant Cash Flows to Repurchase Shares 16
Slide 17: Questions?
Questions? 17
Slide 18: Appendix
Appendix 18
Slide 19: Q1 2026 Consolidated Results
Q1 2026 Consolidated Results Three Months Ended March 31, $ millions, except per share amounts 2026 2025 Change Revenue $451 $426 $25 YoY Growth 6% Gross Profit $248 $235 $13 % of revenue 55% 55% (30) bps Selling and administrative expenses $162 $151 $11 % of revenue 36% 35% 50 bps Depreciation and
Slide 20: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA* and Adjusted EBITDA Margin* Reconciliation Three Months Ended Twelve Months Ended March 31 December 31 ($ millions) 2026 2025 2025 Revenue $451 $426 $2,093 Net Income 41 37 255 Depreciation and amortization expense 20 23 89 Restructuring charges 1 1 4 Provision for income taxes 10 1
Slide 21: Adjusted Net Income Reconciliation
Adjusted Net Income* Reconciliation Three Months Ended March 31, ($ millions) 2026 2025 Net Income $41 $37 Amortization expense 12 13 Restructuring charges 1 1 Acquisition and integration related costs 2 2 Tax Impact of adjustments (3) (3) Adjusted Net Income* $53 $49 Adjusted Earnings per Share* Di
Slide 22: Free Cash Flow Reconciliation
Free Cash Flow* Reconciliation Three Months Ended March 31, ($ millions) 2026 2025 Net Cash Provided from Operating Activities $119 $124 Property additions (6) (7) Free Cash Flow* $114 $117 *This financial measure is a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in this presen