Frontdoor, Inc. Earnings Per Share Disclosure
Note 21. Earnings Per Share
Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potentially dilutive shares of common stock been issued. The dilutive effect of stock options, performance options, RSUs, performance shares and RSAs are reflected in diluted earnings per share by applying the treasury stock method.
A summary of the calculations of our basic and diluted earnings per share is as follows:
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Year Ended |
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(In millions, except per share data) |
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2025 |
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2024 |
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2023 |
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Net Income |
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$ |
|
255 |
|
|
$ |
|
235 |
|
|
$ |
|
171 |
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Weighted-average common shares outstanding |
|
|
|
73.1 |
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|
|
|
77.0 |
|
|
|
|
80.5 |
|
Effect of dilutive securities: |
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|
|
|
|
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|
|
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|
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RSUs(1) |
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|
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0.7 |
|
|
|
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0.6 |
|
|
|
|
0.3 |
|
Stock options(2) |
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|
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0.3 |
|
|
|
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0.2 |
|
|
|
|
— |
|
Performance options(3) |
|
|
|
0.3 |
|
|
|
|
0.2 |
|
|
|
|
— |
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Weighted-average common shares outstanding - assuming dilution: |
|
|
|
74.5 |
|
|
|
|
78.0 |
|
|
|
|
80.9 |
|
Basic earnings per share |
|
$ |
|
3.48 |
|
|
$ |
|
3.05 |
|
|
$ |
|
2.13 |
|
Diluted earnings per share |
|
$ |
|
3.42 |
|
|
$ |
|
3.01 |
|
|
$ |
|
2.12 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.