Frontdoor, Inc. 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures We maintain a set of disclosure controls and procedures designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. The design of any disclosure controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. In accordance with Rule 13a-15(b) of the Exchange Act, as of the end of the period covered by this Annual Report on Form 10-K, an evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures, as of the end of the period covered by this Annual Report on Form 10-K, were effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Management’s Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal controls over financials reporting. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. Management based its assessment on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). Based on this assessment, management has concluded that our internal control over financial reporting was effective as of December 31, 2025. Our independent registered public accounting firm, Deloitte & Touche LLP, has audited the effectiveness of our internal controls over financial reporting as of December 31, 2025 and has expressed an unqualified opinion in their report which is included herein. Changes in Internal Control over Financial Reporting There were no changes to our internal control over financial reporting, as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. OTHE R INFORMATION On November 6, 2025 , William C. Cobb , our Chief Executive Officer and Chairman of the Board of Directors , terminated a “Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K, which was adopted on August 7, 2025. No sales were made pursuant to the plan prior to termination. As disclosed in our quarterly report for the quarter ending September 30, 2025 filed with the SEC on November 5, 2025, Mr. Cobb’s trading plan was intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and provided for an aggregate sale of up to 191,036 shares of the Company’s Common Stock that Mr. Cobb has an option to purchase. Mr. Cobb’s trading plan would have provided for sales from November 7, 2025 to August 7, 2026 , subject to early termination if all transactions under the trading plan were completed or upon certain specified events set forth therein. ITEM 9C. DISCLOSURE REGARDIN G FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 79 PART I II ITEM 10 . DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The information required by this Item for the company will be set forth in the company’s Proxy Statement for the 2026 Annual Meeting of Stockholders, which information is hereby incorporated herein by reference. ITEM 11 . EXECUTIVE COMPENSATION The information required by this Item for the company will be set forth in the company’s Proxy Statement for the 2026 Annual Meeting of Stockholders, which information is hereby incorporated herein by reference. ITEM 12 . SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information required by this Item for the company will be set forth in the company’s Proxy Statement for the 2026 Annual Meeting of Stockholders, which information is hereby incorporated herein by reference. ITEM 13 . CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by this Item for the company will be set forth in the company’s Proxy Statement for the 2026 Annual Meeting of Stockholders, which information is hereby incorporated herein by reference. ITEM 14 . PRINCIPAL ACCOUNTANT FEES AND SERVICES The information required by this Item for the company will be set forth in the company’s Proxy Statement for the 2026 Annual Meeting of Stockholders, which information is hereby incorporated herein by reference. 80 PART IV ITEM 15. EXHIBITS AND F INANCIAL STATEMENT SCHEDULES (a). Financial Statements, Schedules and Exhibits. 1 . Financial Statements Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) contained in Item 8 of this Annual Report on Form 10-K. 49 Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2025, 2024 and 2023 contained in Item 8 of this Annual Report on Form 10-K. 51 Consolidated Statements of Financial Position as of December 31, 2025 and 2024 contained in Item 8 of this Annual Report on Form 10-K. 52 Consolidated Statements of Changes in Equity for the years ended December 31, 2025, 2024 and 2023 contained in Item 8 of this Annual Report on Form 10-K. 53 Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023 contained in Item 8 of this Annual Report on Form 10-K. 54 Notes to the Consolidated Financial Statements contained in Item 8 of this Annual Report on Form 10-K. 55 2. Exhibits 82 The exhibits filed with this report are listed on the Exhibit Index. Entries marked by the symbol # next to the exhibit’s number identify management compensatory plans, contracts or arrangements. 3 . Financial Statements Schedules The following information is filed as part of this Annual Report on Form 10-K and should be read in conjunction with the financial statements contained in Item 8 of this Annual Report on Form 10-K: Schedule I—Frontdoor, Inc. (Parent Company Only) Condensed Financial Information 85 Schedule II—Valuation and Qualifying Accounts 90 ITEM 16. FORM 10-K SUMMARY None. 81 EXHIBIT INDEX Exhibit Number Description 2.1 Share Purchase Agreement, dated June 3, 2024, by and among Frontdoor, Inc., 2-10 HBW Acquisition, L.P. and 2-10 Holdco, Inc (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed on June 4, 2024). 3.1 Restated Certificate of Incorporation of Frontdoor, Inc. (incorporated by reference to Exhibit 3.1 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021). 3.2 Amended and Restated Bylaws of Frontdoor, Inc. (incorporated by reference to Exhibit 3.2 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023). 4.1 Description of Securities. (incorporated by reference to Exhibit 4.1 to Frontdoor’s Annual Report on Form 10-K for the year ended December 31, 2023). 10.1# Form of Employee Stock Option Agreement under the Frontdoor, Inc. 2018 Omnibus Incentive Plan (the “Omnibus Plan”) (incorporated by reference to Exhibit 10.8 to Amendment No. 1 to Frontdoor’s Registration Statement on Form 10 filed on August 30, 2018). 10.2# Form of Director Deferred Share Equivalent Agreement under the Omnibus Plan (incorporated by reference to Exhibit 10.9 to Amendment No. 1 to the Company’s Registration Statement on Form 10 filed on August 30, 2018). 10.3# Form of AHS Holding Company, Inc. Indemnification Agreement by and between Frontdoor, Inc. and individual directors (incorporated by reference to Exhibit 10.2 to Frontdoor’s Registration Statement on Form 10 filed on August 1, 2018). 10.4 Amendment and Amended and Restated Credit Agreement, (incorporated by reference to Exhibit 10.1 to Amendment No. 1 to Frontdoor’s Current Report on Form 8-K filed on June 21, 2021). 10.5 Amendment No. 1, dated March 8, 2023, to Amended and Restated Credit Agreement (incorporated by reference to Exhibit 10.10 to Frontdoor’s Quarterly Report on Form 10-Q for the year ended March 31, 2023). 10.6 Amendment No. 2, dated as of December 19, 2024, to the Amended and Restated Credit Agreement (incorporated by reference to Exhibit 10.1 to Frontdoor’s Current Report on Form 8-K filed on December 19, 2024). 10.7# Offer Letter dated July 5, 2018, from Frontdoor, Inc. to Jeffrey Fiarman (incorporated by reference to Exhibit 10.4 to Amendment No. 1 to Frontdoor’s Registration Statement on Form 10 filed on August 30, 2018). 10.8# Frontdoor, Inc. 2018 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.6 to Amendment No. 1 to Frontdoor’s Registration Statement on Form 10 filed on August 30, 2018). 10.9# Form of Stock Option Grant Notice under the Frontdoor, Inc. 2018 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.2 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019). 10.10# Form of Non-Qualified Stock Option Agreement under the Frontdoor, Inc. Omnibus Plan, effective March 2025 (incorporated by reference to Exhibit 10.1 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025). 10.11# Frontdoor, Inc. 2019 Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.1 to Frontdoor’s Current Report on Form 8-K filed on May 2, 2019). 10.12# Form of Non-Qualified Stock Option Agreement under the Frontdoor, Inc. Omnibus Plan, effective March 2021 (incorporated by reference to Exhibit 10.1 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021). 10.13# Employment Agreement, dated May 19, 2022, between William C. Cobb and Frontdoor, Inc. (incorporated by reference to Exhibit 10.1 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022). 10.14# Form of Performance Non-Qualified Stock Option Award Agreement under the Frontdoor, Inc. Omnibus Plan, effective June 2022 (incorporated by reference to Exhibit 10.2 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022). 10.15# Form of Performance Shares Agreement under the Frontdoor, Inc. Omnibus Plan, effective March 2021 (incorporated by reference to Exhibit 10.3 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022). 10.16# Form of Restricted Stock Unit Agreement under the Frontdoor, Inc. Omnibus Plan, effective March 2021 (incorporated by reference to Exhibit 10.4 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022). 10.17# Form of Sign-On Restricted Stock Unit Agreement under the Frontdoor, Inc. Omnibus Plan, effective June 2022 (incorporated by reference to Exhibit 10.5 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022). 10.18# Offer Letter dated December 1, 2022, from Frontdoor, Inc. to Jessica Ross (incorporated by reference to Exhibit 10.26 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023). 10.19# Frontdoor, Inc. Executive Severance Policy (incorporated by reference to Exhibit 10.28 to Frontdoor’s Annual Report on Form 10-K for the year ended December 31, 2022). 10.20# Form of Performance Share Grant Notice under the Frontdoor, Inc. 2018 Omnibus Incentive Plan, effective March 2024 (incorporated by reference to Exhibit 10.1 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024). 82 Exhibit Number Description 10.21# Form of Restricted Stock Unit Agreement under the Frontdoor, Inc. Omnibus Incentive Plan, effective March 2024 (incorporated by reference to Exhibit 10.2 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024). 10.22#* Separation and Transition Agreement between Frontdoor, Inc. and Jessica Ross, dated as of November 3, 2025. 10.23# Offer Letter dated May 21, 2025, from Frontdoor, Inc. to Balakrishnan Ganesh (incorporated by reference to Exhibit 10.1 to Frontdoor’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025). 10.24#* Form of Performance Share Grant Notice under the Frontdoor, Inc. 2018 Omnibus Incentive Plan, effective March 2025. 19* Frontdoor, Inc. Securities Trading Policy. 21* List of Subsidiaries. 23* Consent of Deloitte & Touche LLP. 31.1* Certification of Chief Executive Officer pursuant to Rule 13a - 14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2* Certification of Chief Financial Officer pursuant to Rule 13a - 14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1* Certification of Chief Executive Officer pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2* Certification of Chief Financial Officer pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 97.1# Frontdoor, Inc. Executive Clawback Policy (incorporated by reference to Exhibit 97.1 to Frontdoor’s Annual Report on Form 10-K for the year ended December 31, 2023). 101.INS* Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. 101.SCH* Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents. 104* Cover page formatted as Inline XBRL and included in Exhibit 101. # Denotes management compensatory plans, contracts or arrangements. * Filed herewith. The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by Frontdoor in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time. 83 SIGNATURE S Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FRONTDOOR, INC. Date: February 26, 2026 By: /s/ William C. Cobb Name: William C. Cobb Title: Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Date: February 26, 2026 By: /s/ William C. Cobb Name: William C. Cobb Title: Chairman of the Board, Director and Chief Executive Officer (principal executive officer) Date: February 26, 2026 By: /s/ Jason L. Bailey Name: Jason L. Bailey Title: Senior Vice President and Chief Financial Officer (principal financial officer) Date: February 26, 2026 By: /s/ Sally J. Shanks Name: Sally J. Shanks Title: Vice President, Chief Accounting Officer and Controller (principal accounting officer) Date: February 26, 2026 By: /s/ D. Steve Boland Name: D. Steve Boland Title: Director Date: February 26, 2026 By: /s/ Anna C. Catalano Name: Anna C. Catalano Title: Director Date: February 26, 2026 By: /s/ Peter L. Cella Name: Peter L. Cella Title: Director Date: February 26, 2026 By: /s/ Christopher L. Clipper Name: Christopher L. Clipper Title: Director Date: February 26, 2026 By: /s/ Brian P. McAndrews Name: Brian P. McAndrews Title: Director Date: February 26, 2026 By: /s/ Liane J. Pelletier Name: Liane J. Pelletier Title: Director [ Signature Page to the Annual Report on Form 10-K ] 84 SCHEDULE I Frontdoor, Inc. (Parent Company Only) Condensed Statements of Operations and Comprehensive Income (In millions) Year Ended December 31, 2025 2024 2023 Revenue $ — $ — $ — Selling and administrative expenses — 17 — Interest expense 79 40 40 Interest and net investment income ( 5 ) ( 4 ) ( 4 ) Loss on extinguishment of debt — 3 — Loss before Income Taxes ( 74 ) ( 56 ) ( 35 ) Provision for income taxes 4 1 2 Net Loss from Operations ( 78 ) ( 57 ) ( 38 ) Equity in earnings of subsidiaries (net of tax) 333 292 209 Net Income $ 255 $ 235 $ 171 Other Comprehensive (Loss) Income, Net of Income Taxes: Unrealized (loss) gain on derivative instruments, net of income taxes ( 12 ) ( 6 ) ( 3 ) Total Other Comprehensive (Loss) Income, Net of Income Taxes: ( 12 ) ( 6 ) ( 3 ) Comprehensive Income $ 243 $ 229 $ 169 See accompanying Notes to the Condensed Financial Statements. 85 Frontdoor, Inc. (Parent Company Only) Condensed Statements of Financial Position (In millions) As of December 31, 2025 2024 Assets: Current Assets: Cash and cash equivalents $ 160 $ 11 Prepaid expenses and other current assets — 4 Total Current Assets 160 15 Other Assets: Investments in subsidiaries 1,487 1,772 Deferred tax assets, net 5 — Other assets 2 2 Total Assets $ 1,653 $ 1,790 Liabilities and Shareholders' Equity: Current Liabilities: Accounts payable $ — $ — Accrued liabilities: Income taxes payable 26 — Other accrued liabilities 15 9 Current portion of long-term debt 29 29 Total Current Liabilities 70 38 Long-Term Debt 1,144 1,170 Due to Subsidiaries 185 339 Other Long-Term Liabilities: Deferred tax liabilities, net — — Other long-term liabilities 13 4 Total Other Long-Term Liabilities 13 4 Shareholders' Equity 242 239 Total Liabilities and Shareholders' Equity $ 1,653 $ 1,790 See accompanying Notes to the Condensed Financial Statements. 86 Frontdoor, Inc. (Parent Company Only) Condensed Statements of Cash Flows (In millions) Year Ended December 31, 2025 2024 2023 Cash and Cash Equivalents at Beginning of Period $ 11 $ 39 $ 1 Net Cash Used for Operating Activities ( 1 ) ( 56 ) ( 42 ) Cash Flows from Investing Activities: Business acquisitions, net of cash acquired 3 ( 583 ) — Net Cash Provided from (Used for) Investing Activities 3 ( 583 ) — Cash Flows from Financing Activities: Borrowings of debt, net of discount — 1,216 — Repayments of debt ( 29 ) ( 598 ) ( 17 ) Debt issuance costs paid — ( 18 ) — Net transfers to Parent Company 449 164 216 Repurchases of common stock ( 283 ) ( 161 ) ( 121 ) Other financing activities 9 9 1 Net Cash Provided from Financing Activities 147 611 80 Cash (Decrease) Increase During the Period 149 ( 28 ) 38 Cash and Cash Equivalents at End of Period $ 160 $ 11 $ 39 See accompanying Notes to the Condensed Financial Statements. 87 Frontdoor, Inc. (Parent Company Only) Notes to the Condensed Financial Statements Note 1. Basis of Presentation The condensed financial statements of Frontdoor, Inc. (“Parent Company”) are required as a result of the restricted net assets of the Parent Company’s consolidated subsidiaries exceeding 25 percent of the Parent Company’s consolidated net assets as of December 31, 2025. All consolidated subsidiaries of the Parent Company are wholly owned. The primary source of income for the Parent Company is equity in its subsidiaries’ earnings. Pursuant to rules and regulations of the SEC, the unconsolidated condensed financial statements of the Parent Company do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP. Therefore, these condensed financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in this Annual Report on Form 10-K. The Parent Company has accounted for its subsidiaries using the equity method of accounting in these condensed financial statements. Note 2. Long-Term Debt On June 17, 2021, we entered into the Credit Agreement, which provided for a $ 260 million Prior Term Loan A maturing June 17, 2026 , a $ 380 million Prior Term Loan B maturing June 17, 2028 and a $ 250 million Prior Revolving Credit Facility terminating June 17, 2026 . On December 19, 2024, we entered into the second amendment to the Credit Agreement, which provides for a $ 418 million Amended Term Loan A maturing December 31, 2029 , a $ 800 million Amended Term Loan B maturing December 31, 2031 and a $ 250 million Amended Revolving Credit Facility terminating December 31, 2029 . The net proceeds from the transaction were used to repay the Prior Term Loan Facilities, including accrued and unpaid interest, to fund the 2-10 HBW Acquisition, which also closed on December 19, 2024, and to pay related fees and expenses of all these transactions with the remainder has been designated to fund share repurchases or for other general corporate purposes. In connection with the second amendment to the Credit Agreement, we repaid all of the then current outstanding principal amounts of the Prior Term Loan Facilities, consisting of $ 218 million related to the Prior Term Loan A and $ 368 million related to the Prior Term Loan B, and recorded a loss on extinguishment of debt of $ 3 million, which included the write-off of unamortized debt issuance costs and original issue discount. Additionally, on December 19, 2024, we terminated the Prior Revolving Credit Facility, which carried a zero balance. For the years ended December 31, 2025, 2024 and 2023, Parent Company’s debt and corresponding interest expense were not allocated to its subsidiaries. American Home Shield is a co-obligor and/or guarantor of the debt, and interest expense has been pushed down to American Home Shield for income tax purposes. For further information on the Parent Company’s financing transactions, see Note 12 to the audited consolidated financial statements included in Item 8 of this Annual Report on Form 10-K. Note 3. Acquisition On December 19, 2024 , we completed the acquisition of all of the issued and outstanding common stock of 2-10 HBW pursuant to a purchase agreement dated June 3, 2024 for aggregate cash consideration of $ 585 million, subject to certain customary adjustments including the amount of cash acquired, debt, seller transaction expenses, working capital and regulatory capital in the business of 2-10 HBW. Following the settlement of all contractual adjustments, the aggregate cash consideration paid was $ 580 million. 2-10 HBW is a leading provider of new home builder warranties that provide home builders insurance-backed coverage and/or administrative services for workmanship, systems and/or structural failures. 2-10 HBW is also a provider of home warranties. For further information on the 2-10 HBW Acquisition, see Note 7 to the audited consolidated financial statements included in Item 8 of this Annual Report on Form 10-K. Note 4. Supplemental Non-Cash Information The Parent Company entered into certain non-cash transactions with subsidiaries as follows, which have been excluded from the condensed statements of cash flows: Year Ended December 31, (In millions) 2025 2024 2023 Settlement of amounts due to subsidiaries $ ( 573 ) $ — $ ( 605 ) Dividend from subsidiaries 573 — 605 88 Note 5. Share Repurchase Program On July 26, 2024 , our Board of Directors approved a new share repurchase authorization of up to $ 650 million of our common stock over the three-year period from September 4, 2024 through September 4, 2027. Purchases under this new repurchase program may be made from time to time by the company in the open market at prevailing market prices (including through a Rule 10b5-1 Plan), in privately negotiated transactions, or through any combination of these methods, through September 4, 2027. The actual timing, number, manner and value of any shares repurchased will depend on several factors, including the market price of the company’s stock, general market and economic conditions, the company’s liquidity requirements, applicable legal requirements and other business considerations. The repurchase program does not obligate us to acquire any number of shares in any specific period or at all and may be suspended or discontinued at any time at our discretio n. We repurchased a total of 5,402,120 outstanding shares at an aggregate cost of $ 280 million, which is included in treasury stock on the accompanying consolidated statements of financial position. As of December 31, 2025 , we had $ 329 million remaining available for future repurchases under this program. For further information on the Parent Company’s share repurchases, see Note 20 to the audited consolidated financial statements included in Item 8 of this Annual Report on Form 10-K. 89 SCHEDULE II Frontdoor, Inc. Valuation and Qualifying Accounts (In millions ) Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions (1) Balance at End of Period As of and for the year ended December 31, 2025 Allowance for doubtful accounts: Accounts receivable $ 4 $ 19 $ 19 $ 4 Income tax valuation allowance 1 — 1 — As of and for the year ended December 31, 2024 Allowance for doubtful accounts: Accounts receivable $ 5 $ 20 $ 21 $ 4 Income tax valuation allowance 1 — — 1 As of and for the year ended December 31, 2023 Allowance for doubtful accounts: Accounts receivable $ 4 $ 22 $ 21 $ 5 Income tax valuation allowance — 1 — 1 (1) Deductions to the allowance for doubtful accounts for accounts receivable reflect write-offs of uncollectible accounts. Deductions to the income tax valuation allowance are primarily attributable to the reduction in net operating loss carryforwards and other deferred tax assets related to the uncertainty of future taxable income in certain jurisdictions. 90