What Frontdoor, Inc. told the SEC could break it.

Frontdoor's largest cost is contract claims — paying to repair/replace appliances and home systems — much of which relies on imported parts and appliances; U.S. tariffs (including blanket steel/aluminum duties and tariffs on goods from key parts-supplier countries) have already increased and may continue to increase those costs, pressuring its margins.

“Changes in U.S. tariff and import/export regulations have impacted and may continue to impact the costs of parts, appliances and home systems. Import duties or restrictions on components and raw materials that are imposed, or the perception that they could occur, may materially and adversely affect our business by increasing our costs.”

Frontdoor depends on a limited number of (six) national suppliers for key components used in fulfilling home-warranty claims — replacement parts, appliances and HVAC — where direct supplier spend was about 22% of its 2025 cost of services; disruption to that concentrated supplier group would raise claims costs and impair service quality.

“We are dependent on a limited number of suppliers for various key components used in our product offerings, and the cost, quality and availability of these components are essential to our services. Direct supplier spend, which excludes purchases made by our contractors, made up approximately 22 percent of our cost of services rendered in 2025, and we have multiple national supplier agreements in place.”