Frontdoor, Inc. Segments Disclosure
Note 13. Segments
We operate as one operating and reportable segment. The majority of our revenue is generated from home warranty contracts entered into with our customers. The accounting policies applied to our one operating and reportable segment are described in Note 2.
Our chief operating decision maker (“CODM”), who is our , regularly evaluates financial information, primarily revenue, net income and other measures, on a consolidated basis in deciding how to allocate resources and in assessing performance. Additionally, consolidated revenue is one key component of our incentive compensation program.
Information for our one operating and reportable segment is as follows:
|
|
Year Ended |
|
||||||||||||
(In millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||
Revenue |
|
$ |
|
2,093 |
|
|
$ |
|
1,843 |
|
|
$ |
|
1,780 |
|
Cost of services rendered |
|
|
|
936 |
|
|
|
|
852 |
|
|
|
|
895 |
|
Sales and marketing costs |
|
|
|
315 |
|
|
|
|
307 |
|
|
|
|
299 |
|
Customer service costs |
|
|
|
117 |
|
|
|
|
104 |
|
|
|
|
106 |
|
General and administrative costs |
|
|
|
236 |
|
|
|
|
201 |
|
|
|
|
176 |
|
Other segment items (1) |
|
|
|
235 |
|
|
|
|
145 |
|
|
|
|
133 |
|
Net Income |
|
$ |
|
255 |
|
|
$ |
|
235 |
|
|
$ |
|
171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Assets |
|
$ |
|
2,142 |
|
|
$ |
|
2,107 |
|
|
$ |
|
1,089 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.