Frontdoor, Inc.

Ladies and gentlemen, welcome to Front Door's first quarter 2026 earnings call. Today's call is being recorded and broadcast on the internet. Beginning today's call is Matt Davis, Vice President of Investor Relations and Treasurer. He will introduce the other speakers on the call. At this time, we'll begin today's call. Please go ahead, Mr. Davis.

Thank you, Operator. Good morning, everyone, and thank you for joining Front Door's first quarter 2026 earnings conference call. Joining me today are Bill Cobb, Chairman and CEO, and Jason Bailey, Senior Vice President and CFO. The press release and slide presentation that will be used during today's call can be found on the investor relations section of Front Door's website, which is located at www.investors.frontdoorhome.com. As stated on slide three of the presentation, I'd like to remind you that this call and webcast may contain forward-looking statements. These statements are subject to various risks and uncertainties, which could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's filings with the SEC. Please refer to the risk factor section in our filings for a more detailed discussion of our forward-looking statements and the risks and uncertainties related to such statements. All forward-looking statements are made as of today, April 30th, and, except as required by law, the company undertakes no obligation to update any forward-looking statements, whether a result of new information, future events, or otherwise. We will also reference certain non-GAAP financial measures throughout today's call. We've included definitions of these terms and reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures in our press release and the appendix to the presentation in order to better assist you in understanding our financial performance. I will now turn the call over to Bill Cobb for opening comments.

Bill? Thanks, Matt Davis. Coming into 2026, we laid out an ambitious plan. Grow the member base, deliver structurally higher margins, and maintain a disciplined capital allocation framework to create shareholder value. I'm happy to report that we are off to a fast start in 2026 and executing on each of these. Turning to slide five. Revenue grew 6% to $451 million. Gross profit margin remained strong at 55%. Net income grew 11% to $41 million. Adjusted EBITDA increased 3% to $104 million and we bought back $60 million worth of shares. Operationally, our member count trend continues to move in the right direction, with growth in our first-year channels accelerating to 3%. Combining this with our strong execution in the renewal channel, we now anticipate total member count will grow approximately 1% for the year. This would be a major milestone and would mark the first year of organic member count growth since 2020. Complementing our core business, our HVAC upgrade program continues to be a significant driver of growth and adds meaningful value for our home warranty members. Let's now turn to slide six to take a deeper look at channel performance. Starting with the direct-to-consumer channel, where ending member count grew 3% versus the prior year period, marking the sixth consecutive quarter of year-over-year member growth. proof that our strategy is working. Our approach to DTC is anchored in three key areas, strengthening brand leadership, growing demand, and improving conversion. First, strengthening brand leadership. We continue to benefit from strong brand awareness, which we further reinforced in March with the launch of our latest Warrantina campaign. Campaign results continue to be terrific. with improvements across key brand metrics, including unaided awareness up 6% to 28%, purchase consideration up five points to 35%, and likelihood to recommend up eight points to 63%. Second, we are growing demand through an optimized value proposition, a more refined targeting approach, and enhanced performance marketing. These efforts are allowing us to drive higher intent to purchase traffic while maintaining discipline around our marketing investments. In short, we are improving both the quality and quantity of demand entering the funnel. Additionally, we have started to see increased demand from the integration of 210 onto our platform with better SEO performance and an improved user experience. And third, we are improving conversions. We continue to refine our sales funnel through optimized marketing content for LLMs, AI tools to improve sales performance, and promotional pricing, all to drive stronger conversion. The beauty of our promotional pricing strategy is that we are able to deliver member count growth without compromising long-term renewal performance. Most importantly, the renewal rates for our promotional cohorts are consistently exceeding those of non-discounted member cohorts. Now, moving on to the first-year real estate channel. While existing home sales remain near 30-year lows, home inventory continues to rise. This improvement in inventory is creating a more favorable selling environment for home warranties. To capitalize on this, we've been deliberately investing at the local level and leveraging targeted promotions to position our brands for success. Here's a great metric. Our attach rate has improved now for eight consecutive months and was at nearly 6% of existing home sales in March. As a result, ending member count for first-year real estate grew 3%, the first time we have organically grown this channel in years. This is a very big deal. Now, turning to renewals, where our performance has been nothing short of amazing. Renewal rates remain near record highs, supported by a combination of factors. Continuous improvement in the end-to-end member experience and reduced cancellations, driven by engaging with members at the right time with the right message. Now, moving to non-warranty and other. we continued to scale during the quarter with revenue growth of 23% year-over-year to $41 million. HVAC upgrades remain the primary driver, and we continue to optimize how we run the program. By routing a greater share of HVAC claims to higher converting contractors, we have seen significant improvements in both quote rates and orders. Let me now turn to slide 7 to discuss our strategic priorities driving value creation. Last quarter, we were clear about the priorities that matter most for our business. First, member growth. Improving first-year acquisition trends combined with strong renewal rates gives us confidence that we expect to deliver approximately 1% member count growth this year. Second, we continue to scale non-warranty revenue in a disciplined manner. We have proven our ability to expand share of wallet while deepening engagement with our member base. Third, deliver structurally higher margins. Last quarter, we increased our long-term margin targets underpinned by dynamic pricing and cost discipline. This margin performance translates into strong cash generation, which brings us to our final priority, disciplined capital allocation to drive long-term value creation. Our capital allocation priorities remain unchanged. First, we invest to accelerate growth through organic initiatives and selective M&A. Second, we maintain a strong balance sheet and financial profile. And finally, we return excess cash to shareholders, and we are on track to complete our current share repurchase authorization by early 2027. Execution across all of these long-term goals is clearly reflected in our financial performance. With that, let me turn it over to Jason to walk through the financials and our outlook in more detail. Jason.