Frontdoor Inc.'s stock surged 6.57% during intraday trading on Thursday, following the release of its fourth-quarter and full-year 2025 financial results.

The home warranty provider reported quarterly revenue of $433 million, a 13% increase year-over-year, which surpassed analyst expectations of $421.49 million. The company's adjusted earnings per share of $0.23 significantly beat the consensus estimate of $0.13. The strong performance was attributed to a boost from the 2-10 Home Buyers Warranty acquisition, which contributed to revenue growth in renewal and real estate channels. Additionally, non-warranty revenue saw a substantial 48% increase due to new HVAC and Moen programs.

Management provided optimistic guidance for the coming year, projecting 2026 revenue between $2.155 billion and $2.195 billion and adjusted EBITDA of $565 million to $580 million. The company also announced it had repurchased $280 million worth of its shares in 2025, highlighting its commitment to returning capital to shareholders.