Frontdoor is the largest U.S. home warranty provider, operating primarily under the American Home Shield brand with roughly 2.1 million active members. A home warranty is an annual subscription covering repair or replacement of major home systems and appliances — HVAC, plumbing, electrical, and kitchen appliances — when they break down from normal wear and tear. When something breaks, the member pays a co-pay (trade service fee) of roughly $100–$125, and Frontdoor dispatches a contractor from its network of roughly 17,000 firms. Frontdoor sells new memberships through two channels: real estate (bundled into home sale transactions via agent relationships) and direct-to-consumer (digital, TV, and search advertising). After the first year, members roll into renewals, which make up roughly 79% of home warranty revenue and run at an 81% retention rate. Key profit levers are subscription pricing (dynamically adjusted by member risk profile and geography), trade service fees, and contractor cost management — roughly 4,200 preferred contractors handle 84% of jobs at lower cost. Beyond core warranties, Frontdoor is building a non-warranty home services business sold to its existing member base, including an HVAC upgrade program and appliance and water heater replacement offerings, leveraging its contractor network with minimal incremental customer acquisition cost. Frontdoor also acquired 2-10 HBW in late 2024, adding new home builder structural warranties and access to 19,000 homebuilder relationships. The business is capital-light, generating substantial free cash flow, which Frontdoor deploys primarily into share repurchases.