Frontdoor, Inc. Common Stock Technology Leadership Forum 2026

Thanks, Sergio. Happy to be here.

Yeah. When you think about Frontdoor, we are the category-leading home subscription, home services business model. A lot of people like to talk about recurring revenue and capital light. I think we are the epitome of a recurring revenue, capital-light business. We participate, or are a part of, the $500 billion home services world. We're a subset of that. We like to define our market, if there are 90 million owner-occupied homes, we think home warranty is about 5 million of that, with an opportunity to be somewhere between 15 million and 20 million homes. So a lot of potential upside for the category.

I think another thing that really sets us apart, a really nice strategic option on our business is our new non-warranty service, where outside of the subscription model, we've been able to monetize our supply chain and our contractor relationships to increase value to the member through our non-warranty services, like HVAC upgrade.

Yeah. Primarily, you could think of a home warranty, the value prop as budget protection and convenience for home services. We often get the question, is it like insurance? We like to say insurance is in case something happens, a warranty is for when something happens. If you think about, we cover 29 major home systems and appliances, so your air conditioner, your dishwasher, your hot water heater. When one of those systems or items fails, we're there to help you get back up and running.

We go to market in two channels. First year real estate through a home closing transaction, or direct to consumer. That price point is somewhere between $500 and $900 a year, depending on your geography and the type of options you choose for coverage, trade service fee, et cetera.

Yeah. For those who are new to our story, I mentioned a minute ago, we go to market in first year real estate as part of a home closing transaction or direct to consumer. As you can imagine, those are our go-to-market channels, and then you flow into the renewal bucket or renewal channel. Over the last five years, there's been enormous pressure in the real estate market. While existing home sales have dropped dramatically, and we tend to look at both that and time on market. As time on market or inventory levels were at 2 and 3 months, there was a lot of pressure on that first-year channel that really bogged us down, if you think about total member count.