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Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segments

Note 10. 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 to the audited consolidated financial statements included in our 2025 Form 10-K.

Our chief operating decision maker (“CODM”), who is our Chief Executive Officer, 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:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In millions)

 

2026

 

 

2025

 

 

2026

 

 

2026

 

Revenue

 

$

 

645

 

 

$

 

617

 

 

$

 

1,096

 

 

$

 

1,043

 

Cost of services rendered

 

 

 

267

 

 

 

 

261

 

 

 

 

470

 

 

 

 

452

 

Sales and marketing costs

 

 

 

85

 

 

 

 

82

 

 

 

 

156

 

 

 

 

147

 

Customer service costs

 

 

 

32

 

 

 

 

30

 

 

 

 

62

 

 

 

 

58

 

General and administrative costs

 

 

 

59

 

 

 

 

61

 

 

 

 

120

 

 

 

 

118

 

Other segment items (1)

 

 

 

77

 

 

 

 

72

 

 

 

 

121

 

 

 

 

119

 

Net Income

 

$

 

125

 

 

$

 

111

 

 

$

 

167

 

 

$

 

148

 

(1)
Other segment items include depreciation and amortization expense, restructuring charges, interest expense, interest and net investment income, and provision for income taxes.

 

 

 

As of

 

 

 

June 30,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Total Assets

 

$

 

2,186

 

 

$

 

2,142