Frontdoor, Inc.
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
FTDR$97.09+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061815
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0000950170-25-103008
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 138 current paragraphs.
80 unchanged; 43 reworded; 9 added; 4 removed; 2 previous and 6 current paragraphs rearranged.
Tables are not compared: 10 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Net income was $111 million and $92 million for the three months ended June 30, 2025 and 2024, respectively, and $148 million and $126 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
Adjusted EBITDA was $199 million and $158 million for the three months ended June 30, 2025 and 2024, respectively, and $300 million and $229 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
The following tables provide a summary of the changes in net income and Adjusted EBITDA:
Current report
Net cash provided from operating activities was $251 million and $187 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
Accounts payable increased during the six months ended June 30, 2025, reflecting the timing of trade payables driven by seasonality.
Current report
Accrued liabilities—Home warranty claims increased during the six months ended June 30, 2025, reflecting a higher number of service requests driven by seasonality.
Current report
Deferred revenue decreased during the six months ended June 30, 2025, reflecting a decline in the number of first-year real estate home warranties, which are typically paid in full at closing on the real estate transaction.
Current report
Long-term debt decreased during the six months ended June 30, 2025, reflecting scheduled debt payments.
Current report
Deferred tax liabilities, net, decreased during the six months ended June 30, 2025, reflecting the impact of amortization expense of the intangible assets acquired as part of the 2-10 HBW Acquisition.
Removed paragraphs (4)
Previous report
First-year revenue only.
Previous report
Net income was $37 million and $34 million for the three months ended March 31, 2025 and 2024, respectively.
Previous report
Net cash provided from operating activities was $124 million and $84 million for the three months ended March 31, 2025 and 2024, respectively.
Previous report
Accrued liabilities—Home warranty claims decreased during the three months ended March 31, 2025, reflecting favorable claims costs.
Reworded paragraphs (43)
Previous wording
For the three months ended March 31, 2025 and 2024, we generated revenue, net income and Adjusted EBITDA of $426 million, $37 million and $100 million, respectively, and $378 million, $34 million and $71 million, respectively. For a reconciliation of net income to Adjusted EBITDA, see “—Results of Operations—Adjusted EBITDA.”
Current wording
For the three months ended June 30, 2025 and 2024, we generated revenue, net income and Adjusted EBITDA of $617 million, $111 million and $199 million, respectively, and $542 million, $92 million and $158 million, respectively. For the six months ended June 30, 2025 and 2024, we generated revenue, net income and Adjusted EBITDA of $1,043 million, $148 million and $300 million, respectively, and $920 million, $126 million and $229 million, respectively. For a reconciliation of net income to Adjusted EBITDA, see “—Results of Operations—Adjusted EBITDA.”
Previous wording
For the three months ended March 31, 2025, our total operating revenue included 78 percent of revenue derived from existing customer renewals, while six percent and eight percent were derived from new home warranty sales made in conjunction with existing home real estate transactions and direct-to-consumer sales, respectively, and eight percent was derived from other revenue channels. For the three months ended March 31, 2024, our total operating revenue included 79 percent of revenue derived from existing customer renewals, while seven percent and nine percent were derived from new home service plan sales made in conjunction with existing home real estate transactions and direct-to-consumer sales, respectively, and five percent was derived from other revenue channels.
Current wording
For the six months ended June 30, 2025, our total operating revenue included 76 percent of revenue derived from existing customer renewals, while seven percent and eight percent were derived from new home warranty sales made in conjunction with existing home real estate transactions and direct-to-consumer sales, respectively, and nine percent was derived from other revenue channels. For the six months ended June 30, 2024, our total operating revenue included 78 percent of revenue derived from existing customer renewals, while seven percent and nine percent were derived from new home warranty sales made in conjunction with existing home real estate transactions and direct-to-consumer sales, respectively, and six percent was derived from other revenue channels.
Previous wording
Our financial condition and results of operations for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 continued to be adversely impacted by the following:
Current wording
Our financial condition and results of operations for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 continued to be adversely impacted by the following:
Previous wording
Challenging real estate market conditions, driven by a decline in the number of home resale transactions, primarily resulting from high interest rates combined with low home inventory levels, continue to constrain demand for home warranties.
Current wording
Challenging real estate market conditions, driven by a decline in the number of existing home sales, continue to constrain demand for home warranties.
Previous wording
Consumer sentiment remains mixed as a result of a broad range of current macroeconomic conditions, including pressure on consumer prices and high interest rates. We believe this environment continues to impact demand for home warranties.
Current wording
Consumer sentiment declined as a result of a broad range of current macroeconomic conditions, including pressure on consumer prices and high interest rates. We believe this environment continues to impact demand for home warranties.
Previous wording
Our labor, parts and equipment costs continue to be impacted by inflation.
Current wording
Inflation continues to impact our labor, parts and equipment costs.
Previous wording
Our critical accounting policies and estimates are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Form 10-K. There have been no material changes to our critical accounting policies during the three months ended March 31, 2025.
Current wording
Our critical accounting policies and estimates are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Form 10-K. There have been no material changes to our critical accounting policies during the six months ended June 30, 2025.
Previous wording
We reported revenue of $426 million and $378 million for the three months ended March 31, 2025 and 2024, respectively. The following table provides a summary of our revenue by major customer acquisition channel for our home warranties and other revenue:
Current wording
We reported revenue of $617 million and $542 million for the three months ended June 30, 2025 and 2024, respectively, and $1,043 million and $920 million for the six months ended June 30, 2025 and 2024, respectively. The following tables provide a summary of our revenue by major customer acquisition channel for our home warranties and other revenue:
Previous wording
For the three months ended March 31, 2025, includes approximately $41 million as a result of the 2-10 HBW Acquisition on December 19, 2024.
Current wording
For the three months ended June 30, 2025, includes approximately $56 million as a result of the 2-10 HBW Acquisition on December 19, 2024.
Previous wording
Revenue increased 13 percent for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase in renewal revenue reflects improved price realization resulting from our prior pricing actions and the impact of the 2-10 HBW Acquisition, offset, in part, by a decline in number of renewed home warranties. The decrease in direct-to-consumer revenue reflects lower price realization resulting from our efforts to drive incremental sales, offset, in part, by the impact of the 2-10 HBW Acquisition. The increase in other revenue was primarily driven by the impact of new home structural warranties from the 2-10 HBW Acquisition and growth in non-warranty home services.
Current wording
Revenue increased 14 percent for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase in renewal revenue reflects improved price realization resulting from our prior pricing actions and the impact of the 2-10 HBW Acquisition, offset, in part, by a decline in the number of renewed home warranties. The increase in real estate revenue reflects the impact of the 2-10 HBW Acquisition. The increase in direct-to-consumer revenue reflects an increase in the number of direct-to-consumer home warranties and the impact of the 2-10 HBW Acquisition, offset, in part, by lower price realization resulting from our discounting efforts to drive incremental sales. The increase in other revenue was primarily driven by the impact of new home structural warranties from the 2-10 HBW Acquisition and growth in non-warranty home services.
Previous wording
As of March 31, 2025, excluding the 2-10 HBW home warranties acquired on December 19, 2024, the number of home warranties was 1.9 million, the reduction in home warranties was two percent and the customer retention rate was 78.5 percent.
Current wording
As of June 30, 2025, excluding the 2-10 HBW home warranties acquired on December 19, 2024, the number of home warranties was 1.9 million, the reduction in home warranties was two percent and the customer retention rate was 78.3 percent.
Previous wording
The growth in the number of home warranties as of March 31, 2025 was primarily driven by the 2-10 HBW acquisition, offset, in part, by the challenging real estate market.
Current wording
The growth in the number of home warranties as of June 30, 2025 was primarily driven by the 2-10 HBW acquisition, offset, in part, by the challenging real estate macro environment and decline in number of renewed home warranties.
Previous wording
We reported cost of services rendered of $191 million and $184 million for the three months ended March 31, 2025 and 2024, respectively. The following table provides a summary of the changes in cost of services rendered:
Current wording
We reported cost of services rendered of $261 million and $237 million for the three months ended June 30, 2025 and 2024, respectively, and $452 million and $420 million for the six months ended June 30, 2025 and 2024, respectively. The following tables provide a summary of the changes in cost of services rendered:
Previous wording
The decrease in contract claims costs primarily reflects continued process improvement initiatives, specifically relating to better cost management across our contractor network and higher trade service fees, which drove a lower number of home warranty service requests per customer. This was offset, in part, by an unfavorable weather impact of $5 million, driven by a higher number of home warranty service requests in the HVAC trade, and ongoing inflationary cost pressures. Additionally, contract claims costs reflects a $7 million favorable adjustment in the first quarter of 2025 related to the development of prior period claims, compared to a $1 million favorable adjustment in the first quarter of 2024.
Current wording
The decrease in contract claims costs primarily reflects continued process improvement initiatives, specifically relating to better cost management across our contractor network and higher trade service fees, which drove a lower number of home warranty service requests per customer, offset, in part, by inflationary cost pressures. Additionally, contract claims costs reflects a $7 million favorable adjustment in the first six months of 2025 related to the development of prior period claims, compared to a $4 million favorable adjustment in the first six months of 2024.
Previous wording
We reported selling and administrative expenses of 151 million and $135 million for the three months ended March 31, 2025 and 2024, respectively. The following table provides a summary of the components of selling and administrative expenses:
Current wording
We reported selling and administrative expenses of $172 million and $167 million for the three months ended June 30, 2025 and 2024, respectively, and $323 million and $302 million for the six months ended June 30, 2025 and 2024, respectively. The following table provides a summary of the components of selling and administrative expenses:
Previous wording
The following table provides a summary of the changes in selling and administrative expenses:
Current wording
The following tables provide a summary of the changes in selling and administrative expenses:
Previous wording
Customer service costs increased primarily due to growth in our non-warranty home services. Acquisition-related costs are driven by the 2-10 HBW Acquisition and represent direct third-party costs, including legal, accounting and financial advisory fees. Other general and administrative costs increased primarily due to increased personnel costs from the 2-10 HBW acquisition.
Current wording
Sales and marketing costs decreased due to the timing of marketing investments and sales optimization efforts, offset, in part, by increases driven by the 2-10 HBW Acquisition. Customer service costs increased primarily due to the 2-10 HBW acquisition and growth in non-warranty home services. Acquisition-related costs are driven by the 2-10 HBW Acquisition and represent direct third-party costs, including legal, accounting and financial advisory fees, as well as post-acquisition systems integration costs. Other general and administrative costs increased primarily due to increased personnel costs from the 2-10 HBW acquisition.
Previous wording
Depreciation expense was $10 million and $8 million for the three months ended March 31, 2025 and 2024, respectively. Amortization expense was $13 million and $1 million for the three months ended March 31, 2025 and 2024, respectively, with the increase primarily driven by the amortization of intangible assets acquired as part of the 2-10 HBW Acquisition.
Current wording
Depreciation expense was $9 million and $8 million for the three months ended June 30, 2025 and 2024, respectively, and $19 million and $17 million for the six months ended June 30, 2025 and 2024, respectively. Amortization expense was $12 million and $1 million for the three months ended June 30, 2025 and 2024, respectively, and $25 million and $1 million for the six months ended June 30, 2025 and 2024, respectively, with the increase primarily driven by the amortization of intangible assets acquired as part of the 2-10 HBW Acquisition.
Previous wording
Restructuring charges were $1 million and less than $1 million for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025, restructuring charges primarily include severance costs.
Current wording
Restructuring charges were less than $1 million and $1 million for the three months ended June 30, 2025 and 2024, respectively, and less than $1 million and $1 million for the six months ended June 30, 2025 and 2024, respectively. For the three and six months ended June 30, 2024, these charges primarily included expenses related to the exit of certain operating leases and severance costs.
Previous wording
Interest expense was $19 million and $10 million for the three months ended March 31, 2025 and 2024, respectively, with the increase driven by the higher debt balance as compared to prior year.
Current wording
Interest expense was $20 million and $10 million for the three months ended June 30, 2025 and 2024, respectively, and $39 million and $20 million for the six months ended June 30, 2025 and 2024, respectively, with the increase driven by the higher debt balance as compared to prior year as a result of financing the 2-10 HBW Acquisition.
Previous wording
Interest and net investment income was $6 million and $5 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Interest and net investment income was $4 million and $5 million for the three months ended June 30, 2025 and 2024, respectively, and $10 million for each of the six months ended June 30, 2025 and 2024.
Previous wording
The effective tax rate on income before income taxes was 22.3 percent and 24.4 percent for the three months ended March 31, 2025 and 2024, respectively. The decrease in the effective tax rate was primarily due to share-based compensation.
Current wording
The effective tax rate on income before income taxes was 24.3 percent and 25.8 percent for the three months ended June 30, 2025 and 2024, respectively, and 23.8 percent and 25.4 percent for the six months ended June 30, 2025 and 2024, respectively. The decrease in the effective tax rate for the three and six months ended June 30, 2025 was primarily due to changes in share-based compensation and acquisition-related transaction costs.
Previous wording
The impact of change in revenue was primarily driven by improved price realization and the impact of the 2-10 HBW Acquisition, offset, in part, by a reduction in the number of organic home warranties. For more information on changes in net income or Adjusted EBITDA, see discussion above.
Current wording
The impact of change in revenue was primarily driven by improved price realization and the impact of the 2-10 HBW Acquisition, offset, in part, by a decline in the number of renewed home warranties. For more information on changes in net income or Adjusted EBITDA, see discussion of individual line items above.
Previous wording
We exclude restructuring charges and acquisition-related costs from Adjusted EBITDA because we believe they do not reflect our ongoing operations and because we believe doing so is useful to investors in aiding period-to-period comparability.
Current wording
We exclude restructuring charges, acquisition-related costs and other non-operating expenses from Adjusted EBITDA because we believe they do not reflect our ongoing operations and because we believe doing so is useful to investors in aiding period-to-period comparability.
Previous wording
Cash and cash equivalents totaled $506 million and $421 million as of March 31, 2025 and December 31, 2024, respectively, and short- and long-term marketable securities totaled less than $1 million and $53 million as of March 31, 2025 and December 31, 2024. Our cash and cash equivalents and short- and long-term marketable securities include balances associated with regulatory requirements in our business. See “—Limitations on Distributions and Dividends by Subsidiaries.” As of March 31, 2025 and December 31, 2024, the total net assets subject to these third-party restrictions were $185 million and $184 million, respectively. As of March 31, 2025, there was $2 million of letters of credit outstanding under our $250 million Revolving Credit Facility, and the available borrowing capacity under the Revolving Credit Facility was $248 million. The letters of credit are posted in lieu of cash to satisfy regulatory requirements in certain states in which we operate. We currently believe that cash generated from operations, our cash on hand and available borrowing capacity under the Revolving Credit Facility as of March 31, 2025 will provide us with sufficient liquidity to meet our obligations in the short- and long-term.
Current wording
Cash and cash equivalents totaled $562 million and $421 million as of June 30, 2025 and December 31, 2024, respectively, and short- and long-term marketable securities totaled less than $1 million and $53 million as of June 30, 2025 and December 31, 2024. Our cash and cash equivalents and short- and long-term marketable securities include balances associated with regulatory requirements in our business. See “—Limitations on Distributions and Dividends by Subsidiaries.” As of June 30, 2025 and December 31, 2024, the total net assets subject to these third-party restrictions were $185 million and $184 million, respectively. As of June 30, 2025, there was $2 million of letters of credit outstanding under our $250 million Revolving Credit Facility, and the available borrowing capacity under the Revolving Credit Facility was $248 million. The letters of credit are posted in lieu of cash to satisfy regulatory requirements in certain states in which we operate. We currently believe that cash generated from operations, our cash on hand and available borrowing capacity under the Revolving Credit Facility as of June 30, 2025 will provide us with sufficient liquidity to meet our obligations in the short- and long-term.
Previous wording
On July 26, 2024, our Board of Directors approved a new share repurchase authorization of up to $650 million of our common stock over the three-year period from September 4, 2024 through September 4, 2027. Purchases under this repurchase program may be made from time to time by the company in the open market at prevailing market prices (including through a Rule 10b5-1 Plan), in privately negotiated transactions, or through any combination of these methods, through September 4, 2027. The actual timing, number, manner and value of any shares repurchased will depend on several factors, including the market price of the company’s stock, general market and economic conditions, the company’s liquidity requirements, applicable legal requirements and other business considerations. The repurchase program does not obligate us to acquire any number of shares in any specific period or at all and may be suspended or discontinued at any time at our discretion. As of March 31, 2025, we repurchased a total of 2,149,160 outstanding shares at an aggregate cost of $111 million under this program, which is included in treasury stock on the condensed consolidated statements of financial position included in Part I, Item 1 of this Quarterly Report on Form 10-Q. As of March 31, 2025, we had $539 million remaining available for future repurchases under this program. We expect to fund future share repurchases from net cash provided from operating activities.
Current wording
On July 26, 2024, our Board of Directors approved a new share repurchase authorization of up to $650 million of our common stock over the three-year period from September 4, 2024 through September 4, 2027. Purchases under this repurchase program may be made from time to time by the company in the open market at prevailing market prices (including through Rule 10b5-1 Plans), in privately negotiated transactions, or through any combination of these methods, through September 4, 2027. The actual timing, number, manner and value of any shares repurchased will depend on several factors, including the market price of the company’s stock, general market and economic conditions, the company’s liquidity requirements, applicable legal requirements and other business considerations. The repurchase program does not obligate us to acquire any number of shares in any specific period or at all and may be suspended or discontinued at any time at our discretion. As of June 30, 2025, we repurchased a total of 3,563,822 outstanding shares at an aggregate cost of $175 million under this program, which is included in treasury stock on the condensed consolidated statements of financial position included in Part I, Item 1 of this Quarterly Report on Form 10-Q. As of June 30, 2025, we had $475 million remaining available for future repurchases under this program. We expect to fund future share repurchases from net cash provided from operating activities.
Previous wording
Furthermore, there are regulatory restrictions on the ability of certain of our subsidiaries to transfer funds to us. The payments of ordinary and extraordinary dividends by certain of our subsidiaries (through which we conduct our business) are subject to significant regulatory restrictions under the laws and regulations of the states in which they operate. Among other things, such laws and regulations require certain subsidiaries to maintain minimum capital and net worth requirements and may limit the amount of ordinary and extraordinary dividends and other payments that these subsidiaries can pay to us. We expect that such limitations will be in effect for the foreseeable future. None of our subsidiaries are obligated to make funds available to us through the payment of dividends.
Current wording
Furthermore, there are regulatory restrictions on the ability of certain of our subsidiaries to transfer funds to us. The payments of ordinary and extraordinary dividends by certain of our subsidiaries (through which we conduct our business) are subject to significant regulatory restrictions under the laws and regulations of the states in which they operate. Among other things, such laws and regulations require certain subsidiaries to maintain minimum capital and net worth requirements and may limit the amount of ordinary and extraordinary dividends and other payments that these subsidiaries can pay to us. None of our subsidiaries are obligated to make funds available to us through the payment of dividends.
Previous wording
Net cash provided from operating activities for the three months ended March 31, 2025 comprised $68 million in earnings adjusted for non-cash charges and $61 million in cash provided from working capital and long-term insurance-related accounts, offset, in part, by $4 million in payments for restructuring charges. Cash provided from working capital was primarily driven by seasonality, offset, in part, by payments of accrued bonuses.
Current wording
Net cash provided from operating activities for the six months ended June 30, 2025 comprised $208 million in earnings adjusted for non-cash charges and $48 million in cash provided from working capital and long-term insurance-related accounts, offset, in part, by $5 million in payments for restructuring charges. Cash provided from working capital was primarily driven by seasonality, offset, in part, by payments of accrued bonuses and a decline in the number of first-year real estate home warranties, which are typically paid for upfront at the time of closing on the home sale.
Previous wording
Net cash provided from operating activities for the three months ended March 31, 2024 comprised $51 million in earnings adjusted for non-cash charges and $34 million in cash provided from working capital, offset, in part, by $1 million in payments for restructuring charges. Cash provided from working capital was primarily driven by seasonality, offset, in part, by payments of accrued bonuses and a decline in the number of first-year real estate home warranties, which are typically paid for upfront at the time of closing on the home sale.
Current wording
Net cash provided from operating activities for the six months ended June 30, 2024 comprised $161 million in earnings adjusted for non-cash charges and $28 million in cash provided from working capital, offset, in part, by $3 million in payments for restructuring charges. Cash provided from working capital was primarily driven by seasonality, offset, in part, by payments of accrued bonuses and a decline in the number of first-year real estate home warranties, which are typically paid for upfront at the time of closing on the home sale.
Previous wording
Net cash provided from investing activities was $47 million for the three months ended March 31, 2025 as compared to net cash used for investing activities of $10 million for the three months ended March 31, 2024.
Current wording
Net cash provided from investing activities was $42 million for the six months ended June 30, 2025 as compared to net cash used for investing activities of $22 million for the six months ended June 30, 2024.
Previous wording
For the three months ended March 31, 2025, cash provided from sales and maturities of available-for-sale securities was $60 million, and purchases of available-for-sale securities was $6 million. There were no sales and maturities or purchases of available-for-sale securities for the three months ended March 31, 2024. Capital expenditures were $7 million and $10 million for three months ended March 31, 2025 and 2024, respectively, and included recurring capital needs and technology projects. We expect capital expenditures for the full year 2025 relating to committed, recurring capital needs and the continuation of investments in information systems and productivity enhancing technology to be approximately $35 million to $45 million. We have no additional material capital commitments at this time.
Current wording
For the six months ended June 30, 2025, cash provided from sales and maturities of available-for-sale securities was $60 million, purchases of available-for-sale securities was $6 million, and there was $3 million in cash provided from the finalization of the 2-10 HBW Acquisition purchase price. Capital expenditures were $14 million for six months ended June 30, 2025 and included recurring capital needs and technology projects. We expect capital expenditures for the full year 2025 relating to committed, recurring capital needs and the continuation of investments in information systems and productivity enhancing technology to be approximately $25 million to $35 million. We have no additional material capital commitments at this time.
Previous wording
Net cash used for financing activities was $85 million and $21 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Net cash used for financing activities was $153 million and $71 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
For the three months ended March 31, 2025, we made scheduled principal payments of debt of $7 million and purchased outstanding shares of our common stock at an aggregate cost of $71 million. Repurchases of common stock included associated commissions and taxes of $1 million.
Current wording
For the six months ended June 30, 2025, we made scheduled principal payments of debt of $14 million and purchased outstanding shares of our common stock at an aggregate cost of $135 million. Repurchases of common stock included associated commissions and taxes of $1 million.
Previous wording
For the three months ended March 31, 2024, we made scheduled principal payments of debt of $4 million and purchased outstanding shares of our common stock at an aggregate cost of $13 million. Repurchases of common stock included associated commissions and taxes of less than $1 million.
Current wording
For the six months ended June 30, 2024, we made scheduled principal payments of debt of $8 million and purchased outstanding shares of our common stock at an aggregate cost of $58 million. Repurchases of common stock included associated commissions and taxes of $1 million.
Previous wording
Cash and cash equivalents increased during the three months ended March 31, 2025, reflecting cash provided from operating activities, offset, in part, by capital expenditures, scheduled principal payments of debt and purchases of outstanding shares.
Current wording
Cash and cash equivalents increased during the six months ended June 30, 2025, reflecting cash provided from operating activities and the sale of marketable securities, offset, in part, by capital expenditures, scheduled principal payments of debt and purchases of outstanding shares.
Previous wording
Marketable securities decreased during the three months ended March 31, 2025, reflecting the sale of available-for-sale securities.
Current wording
Marketable securities decreased during the six months ended June 30, 2025, reflecting the sale of available-for-sale securities.
Previous wording
Deferred revenue increased during the three months ended March 31, 2025, reflecting recognition of revenue on an other-than-straight-line basis to match the timing of cost recognition.
Current wording
Contract assets increased during the six months ended June 30, 2025, reflecting a net contract asset related to the recognition of monthly pay customer revenue on an other-than-straight-line basis to match the timing of cost recognition.
Previous wording
Intangible assets decreased during the three months ended March 31, 2025, reflecting the amortization of intangible assets acquired as part of the 2-10 HBW Acquisition.
Current wording
Intangible assets, net, decreased during the six months ended June 30, 2025, reflecting the amortization and revised allocation of intangible assets acquired as part of the 2-10 HBW Acquisition.
Previous wording
Long-term marketable securities decreased during the three months ended March 31, 2025, reflecting the sale of available-for-sale securities.
Current wording
Long-term marketable securities decreased during the six months ended June 30, 2025, reflecting the sale of available-for-sale securities.
Previous wording
Accrued liabilities—Payroll and related expenses decreased during the three months ended March 31, 2025, reflecting payments of accrued bonuses.
Current wording
Accrued liabilities—Payroll and related expenses decreased during the six months ended June 30, 2025, reflecting payments of accrued bonuses.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, includes approximately $97 million as a result of the 2-10 HBW Acquisition on December 19, 2024.
Current report — wording carried from elsewhere
Revenue increased 13 percent for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase in renewal revenue reflects improved price realization resulting from our prior pricing actions and the impact of the 2-10 HBW Acquisition, offset, in part, by a decline in the number of renewed home warranties. The increase in real estate revenue reflects the impact of the 2-10 HBW Acquisition, offset, in part, by the challenging real estate macro environment. The increase in direct-to-consumer revenue reflects the impact of the 2-10 HBW Acquisition and an increase in the number of direct-to-consumer home warranties, offset, in part, by lower price realization resulting from our discounting efforts to drive incremental sales. The increase in other revenue was primarily driven by the impact of new home structural warranties from the 2-10 HBW Acquisition and growth in non-warranty home services.
Current report — wording carried from elsewhere
The increase in contract claims costs primarily reflects inflationary cost pressures, offset, in part, by a lower number of service requests per customer, primarily driven by a favorable weather impact of $5 million. Additionally, contract claims costs reflects a $4 million favorable adjustment in the second quarter of 2025 related to the development of prior period claims, compared to a $5 million favorable adjustment in the second quarter of 2024.
Current report — wording carried from elsewhere
Sales and marketing costs decreased due to the timing of marketing investments and sales optimization efforts, offset, in part, by increases driven by the 2-10 HBW Acquisition. Customer service costs increased primarily due to the 2-10 HBW acquisition and growth in non-warranty home services. Acquisition-related costs are driven by the 2-10 HBW Acquisition and represent direct third-party costs, including legal, accounting and financial advisory fees, as well as post-acquisition systems integration costs. Other general and administrative costs increased primarily due to increased personnel costs from the 2-10 HBW acquisition.
Current report — wording carried from elsewhere
The impact of change in revenue was primarily driven by improved price realization and the impact of the 2-10 HBW Acquisition, offset, in part, by the challenging real estate macro environment and a decline in the number of renewed home warranties. For more information on changes in net income or Adjusted EBITDA, see discussion of individual line items above.
Current report — wording carried from elsewhere
For the six months ended June 30, 2024, capital expenditures were $22 million and included recurring capital needs and technology projects.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Adjusted EBITDA was $100 million and $71 million for the three months ended March 31, 2025 and 2024, respectively.
Previous report — wording carried elsewhere
The following table provides a summary of the changes in net income and Adjusted EBITDA: