Dream Finders Homes Announces Second Quarter 2026 Results
Record Second Quarter Net Sales of 2,232, Up
Record Second Quarter Closings of 2,290
Second Quarter 2026 Highlights (As Compared to Second Quarter 2025)
-
Net sales increased
15% to 2,232 from 1,938 -
Homebuilding revenues of
$1.0 billion $1.1 billion -
Home closings increased
3% to 2,290 from 2,232 -
Homebuilding gross margin of
14.2% compared to16.5% -
Adjusted homebuilding gross margin (non-GAAP) of
24.2% compared to25.9% -
Pre-tax income of
$37 million $74 million -
Net income attributable to DFH of
$28 million $0.27 $57 million $0.57 -
Financial services pre-tax income remained consistent at
$12 million - Controlled lot pipeline of 54,091 as of June 30, 2026 compared to 63,121 as of December 31, 2025
-
Total liquidity of
$605 million -
Return on participating equity of
9.6% compared to25.0% -
Repurchased 1,012,621 Class A common shares for
$15 million
Management Commentary
Patrick Zalupski, Dream Finders Homes Founder, Co-Chairman and CEO, said, “The home building market continues to be challenging, but our teams have worked hard to identify opportunities to improve our cost structure with the goal of delivering more affordable homes to our customers. We believe costs will need to continue to trend down, perhaps significantly, to have a meaningful impact on market-wide housing results. Positively, our team delivered second-quarter and year-to-date Company records for both net sales and home closings. The higher closing volume helped partially offset lower average sales prices, which constrained margins, consistent with challenging macroeconomic conditions. Additionally, in line with our growth initiatives, our year-over-year active community count increase of
While the environment has been difficult, DFH certainly has further opportunities to improve operationally. We are laser-focused on reducing our SG&A expense, and believe we can streamline and right-size our operations to better manage our overhead costs in the current environment. This process is well underway, and we hope to be completed by year-end.
We are also continuing to find ways to add experience and talent to our executive team and Board of Directors. I’m incredibly excited about the upgrades to the Company that we announced in the second quarter. With the appointment of Clint Szubinski as Chief Operating Officer, we have added a much-needed experienced and disciplined operator. Clint was most recently COO for a larger national public homebuilder and is fully aligned with the long-term goals for DFH. He is excited about our disciplined asset-light home building model, and, just as importantly, our long-term approach to building a durable business that should produce above-market shareholder returns over time. While Clint appreciates our patient approach, he has already rolled up his sleeves and is working on numerous near-term implementations to improve operational performance. I look forward to reporting back on Clint and the teams’ progress in the coming quarters.
Our Board of Directors received a significant upgrade as well with the appointments of Rick Beckwitt, who will serve alongside me as Co-Chairman, and Steve Fischer, an independent director. Rick’s extensive public homebuilding experience is second to none in the industry, having served as Co-CEO of one of the largest homebuilders, by revenue, in the world. It would be hard to over emphasize Rick’s track record of success; we are incredibly fortunate to have him join our Board. Steve Fischer comes to our Board with significant financial and leadership expertise as a former CFO and CEO in the public banking industry. These two additions bring valuable guidance and perspective as we further scale the business.
As we continue to evaluate opportunities for growth, we remain focused on disciplined capital allocation, inventory turns, cash generation and maintaining the flexibility of our asset-light model. We reiterate our 2026 full-year guidance of approximately 9,250 home closings.”
Homebuilding
Second Quarter 2026 Results
Homebuilding revenues in the second quarter of 2026 were
Homebuilding gross margin percentage in the second quarter of 2026 was
Adjusted homebuilding gross margin in the second quarter of 2026 was
Selling, general and administrative expense (“SG&A”) in the second quarter of 2026 decreased
Contingent consideration income of
Net sales in the second quarter of 2026 were 2,232, an increase of
Second Quarter 2026 Backlog
As of June 30, 2026, DFH had a backlog of 2,319 homes, valued at
The following table shows the backlog units and ASP as of June 30, 2026 by homebuilding segment:
|
As of June 30, 2026 (unaudited) |
||||||
Backlog: |
Units |
|
Average Sales Price |
||||
Southeast |
|
1,016 |
|
|
$ |
481,400 |
|
Mid-Atlantic |
|
694 |
|
|
431,554 |
||
Midwest |
|
609 |
|
|
|
600,333 |
|
Total |
|
2,319 |
|
|
$ |
497,716 |
|
Financial Services
Financial services revenues increased by
Full Year 2026 Outlook
Dream Finders Homes maintains its guidance of approximately 9,250 home closings for the full year 2026.
About Dream Finders Homes
Dream Finders Homes (NYSE: DFH), headquartered in Jacksonville, Florida, was recognized as the 2025 National Builder of the Year by Builder magazine. Dream Finders Homes builds single-family homes throughout the Southeast, Mid-Atlantic and Midwest, including Florida, Texas, Tennessee, North Carolina, South Carolina, Georgia, Colorado, Arizona, and the Washington, D.C. metropolitan area, which comprises Washington D.C., Northern Virginia and Maryland. As the Official Home Builder of the PGA TOUR, the Jacksonville Jaguars and the Tampa Bay Rays, Dream Finders Homes is deeply committed to excellence beyond homebuilding and into the communities it serves. Through its wholly owned subsidiaries, DFH also provides mortgage financing as well as title agency and underwriting services to homebuyers. Dream Finders Homes achieves its growth and returns by maintaining an asset-light homebuilding model. For more information, please visit www.dreamfindershomes.com.
Forward-Looking Statements
This press release includes forward-looking statements regarding future events which include, but are not limited to, projected 2026 home closings and market conditions, possible or assumed future results of operations, and statements regarding the Company’s strategies and expectations as they relate to market opportunities and growth. All forward-looking statements are based on Dream Finders Homes’ beliefs as well as assumptions made by and information currently available to Dream Finders Homes. These statements reflect Dream Finders Homes’ current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in Dream Finders Homes’ Annual Report on Form 10-K for the year ended December 31, 2025 and other filings with the U.S. Securities and Exchange Commission. Dream Finders Homes undertakes no obligation to update or revise any forward-looking statement, except as may be required by applicable law.
Dream Finders Homes, Inc. Condensed Consolidated Balance Sheets (In thousands, except per share and share amounts)
|
|||||||
|
June 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
203,494 |
|
|
$ |
234,766 |
|
Restricted cash |
|
50,272 |
|
|
|
49,624 |
|
Accounts receivable |
|
29,533 |
|
|
|
39,120 |
|
Inventories |
|
2,327,779 |
|
|
|
2,025,662 |
|
Lot deposits |
|
501,755 |
|
|
|
545,253 |
|
Mortgage loans held for sale |
|
198,131 |
|
|
|
205,089 |
|
Other assets |
|
249,562 |
|
|
|
223,999 |
|
Investments in unconsolidated entities |
|
21,783 |
|
|
|
26,610 |
|
Goodwill |
|
377,361 |
|
|
|
377,361 |
|
Total assets |
$ |
3,959,670 |
|
|
$ |
3,727,484 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Accounts payable |
$ |
156,114 |
|
|
$ |
126,130 |
|
Accrued liabilities |
|
280,118 |
|
|
|
321,457 |
|
Customer deposits |
|
94,459 |
|
|
|
69,593 |
|
Revolving credit facility and other borrowings |
|
1,037,986 |
|
|
|
822,296 |
|
Senior unsecured notes, net |
|
592,342 |
|
|
|
591,060 |
|
Mortgage warehouse facilities |
|
186,785 |
|
|
|
192,837 |
|
Total liabilities |
|
2,347,804 |
|
|
|
2,123,373 |
|
|
|
|
|
||||
Mezzanine Equity |
|
|
|
||||
Redeemable preferred stock |
|
148,500 |
|
|
|
148,500 |
|
Redeemable noncontrolling interests |
|
29,539 |
|
|
|
29,539 |
|
Equity |
|
|
|
||||
Class A common stock, |
|
374 |
|
|
|
367 |
|
Class B common stock, |
|
577 |
|
|
|
577 |
|
Accumulated other comprehensive income |
|
1,407 |
|
|
|
613 |
|
Additional paid-in capital |
|
304,205 |
|
|
|
298,594 |
|
Retained earnings |
|
1,208,177 |
|
|
|
1,173,950 |
|
Treasury stock, at cost, 4,200,275 and 2,124,094 shares of Class A common stock as of June 30, 2026 and December 31, 2025, respectively |
|
(82,837 |
) |
|
|
(49,526 |
) |
Total Dream Finders Homes, Inc. stockholders’ equity |
|
1,431,903 |
|
|
|
1,424,575 |
|
Noncontrolling interests |
|
1,924 |
|
|
|
1,497 |
|
Total equity |
|
1,433,827 |
|
|
|
1,426,072 |
|
Total liabilities, mezzanine equity and equity |
$ |
3,959,670 |
|
|
$ |
3,727,484 |
|
Dream Finders Homes, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share and share amounts)
|
|||||||||||||||
|
Three Months Ended June 30, (unaudited) |
|
Six Months Ended June 30, (unaudited) |
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Homebuilding |
$ |
1,007,144 |
|
|
$ |
1,099,580 |
|
|
$ |
1,843,803 |
|
|
$ |
2,069,688 |
|
Financial services |
|
56,280 |
|
|
|
50,925 |
|
|
|
107,460 |
|
|
|
70,688 |
|
Total revenues |
|
1,063,424 |
|
|
|
1,150,505 |
|
|
|
1,951,263 |
|
|
|
2,140,376 |
|
Homebuilding cost of sales |
|
863,782 |
|
|
|
917,871 |
|
|
|
1,579,425 |
|
|
|
1,701,407 |
|
Financial services expense |
|
45,239 |
|
|
|
40,058 |
|
|
|
87,950 |
|
|
|
52,924 |
|
Selling, general and administrative expense |
|
128,440 |
|
|
|
134,699 |
|
|
|
239,343 |
|
|
|
251,393 |
|
Income from unconsolidated entities |
|
(43 |
) |
|
|
(17 |
) |
|
|
(378 |
) |
|
|
(197 |
) |
Contingent consideration revaluation |
|
— |
|
|
|
(12,706 |
) |
|
|
— |
|
|
|
(11,606 |
) |
Other (income) expense, net |
|
(10,840 |
) |
|
|
(3,464 |
) |
|
|
(10,729 |
) |
|
|
1,226 |
|
Income before taxes |
|
36,846 |
|
|
|
74,064 |
|
|
|
55,652 |
|
|
|
145,229 |
|
Income tax expense |
|
(9,002 |
) |
|
|
(17,525 |
) |
|
|
(14,248 |
) |
|
|
(33,680 |
) |
Net income |
|
27,844 |
|
|
|
56,539 |
|
|
|
41,404 |
|
|
|
111,549 |
|
Net (income) loss attributable to noncontrolling interests |
|
(123 |
) |
|
|
41 |
|
|
|
(427 |
) |
|
|
(66 |
) |
Net income attributable to Dream Finders Homes, Inc. |
$ |
27,721 |
|
|
$ |
56,580 |
|
|
$ |
40,977 |
|
|
$ |
111,483 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.27 |
|
|
$ |
0.57 |
|
|
$ |
0.37 |
|
|
$ |
1.12 |
|
Diluted |
$ |
0.27 |
|
|
$ |
0.56 |
|
|
$ |
0.37 |
|
|
$ |
1.10 |
|
Weighted-average number of shares |
|
|
|
|
|
|
|
||||||||
Basic |
|
91,299,188 |
|
|
|
93,444,326 |
|
|
|
91,657,686 |
|
|
|
93,495,455 |
|
Diluted |
|
91,341,917 |
|
|
|
101,913,888 |
|
|
|
91,883,564 |
|
|
|
101,635,185 |
|
Dream Finders Homes, Inc. Other Financial and Operating Data
|
|||||||||||||||
|
Three Months Ended June 30, (unaudited) |
|
Six Months Ended June 30, (unaudited) |
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
Other Financial and Operating Data: |
|
|
|
|
|
|
|
||||||||
Home closings |
|
2,290 |
|
|
|
2,232 |
|
|
|
4,160 |
|
|
|
4,157 |
|
Average sales price of homes closed(1) |
$ |
438,171 |
|
|
$ |
481,027 |
|
|
$ |
442,478 |
|
|
$ |
489,018 |
|
Net sales |
|
2,232 |
|
|
|
1,938 |
|
|
|
4,640 |
|
|
|
3,970 |
|
Cancellation rate |
|
11.1 |
% |
|
|
14.0 |
% |
|
|
9.3 |
% |
|
|
12.8 |
% |
Homebuilding gross margin (in thousands)(2) |
$ |
143,362 |
|
|
$ |
181,709 |
|
|
$ |
264,378 |
|
|
$ |
368,281 |
|
Homebuilding gross margin %(3) |
|
14.2 |
% |
|
|
16.5 |
% |
|
|
14.3 |
% |
|
|
17.8 |
% |
Adjusted homebuilding gross margin (in thousands)(4) |
$ |
243,735 |
|
|
$ |
285,162 |
|
|
$ |
447,057 |
|
|
$ |
555,262 |
|
Adjusted homebuilding gross margin %(3)(4) |
|
24.2 |
% |
|
|
25.9 |
% |
|
|
24.2 |
% |
|
|
26.8 |
% |
Selling, general and administrative expense %(3) |
|
12.8 |
% |
|
|
12.3 |
% |
|
|
13.0 |
% |
|
|
12.1 |
% |
Active communities as of period end(5) |
|
|
|
|
|
353 |
|
|
|
271 |
|
||||
Backlog - units |
|
|
|
|
|
2,319 |
|
|
|
2,513 |
|
||||
Backlog - value (in thousands) |
|
|
|
|
$ |
1,154,203 |
|
|
$ |
1,200,875 |
|
||||
Net homebuilding debt to net capitalization(4) |
|
|
|
|
|
46.5 |
% |
|
|
44.5 |
% |
||||
Return on participating equity(6) |
|
|
|
|
|
9.6 |
% |
|
|
25.0 |
% |
||||
(1) |
Average sales price of homes closed is calculated based on homebuilding revenues, adjusted for the impact of percentage of completion revenues, and excluding deposit forfeitures and land sales, over homes closed. |
(2) |
Homebuilding gross margin is homebuilding revenues less homebuilding cost of sales. |
(3) |
Calculated as a percentage of homebuilding revenues. |
(4) |
Adjusted homebuilding gross margin and net homebuilding debt to net capitalization are non-GAAP financial measures. For definitions of these non-GAAP financial measures and reconciliations to our most directly comparable financial measures calculated and presented in accordance with GAAP, see “Reconciliation of Non-GAAP Financial Measures” below. |
(5) |
A community becomes active once the model is completed or the community has its fifth net sale. A community becomes inactive when it has fewer than five homesites remaining to sell. |
(6) |
Return on participating equity is calculated as net income attributable to DFH, less redeemable preferred stock dividends, divided by average beginning and ending total Dream Finders Homes, Inc. stockholders’ equity (“participating equity”) for the trailing twelve months. |
Three Months Ended June 30, (unaudited) |
|
Six Months Ended June 30, (unaudited) |
|||||||||||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||||||
Home Closings: |
Units |
|
Average Sales Price |
|
Units |
|
Average Sales Price |
|
Units |
|
Average Sales Price |
|
Units |
|
Average Sales Price |
||||
Southeast |
889 |
|
$ |
431,960 |
|
842 |
|
$ |
438,549 |
|
1,503 |
|
$ |
434,324 |
|
1,529 |
|
$ |
441,561 |
Mid-Atlantic |
715 |
|
|
372,812 |
|
600 |
|
|
444,571 |
|
1,341 |
|
|
376,236 |
|
1,121 |
|
|
449,629 |
Midwest |
686 |
|
|
514,341 |
|
790 |
|
|
553,989 |
|
1,316 |
|
|
519,292 |
|
1,507 |
|
|
566,470 |
Total |
2,290 |
|
$ |
438,171 |
|
2,232 |
|
$ |
481,027 |
|
4,160 |
|
$ |
442,478 |
|
4,157 |
|
$ |
489,018 |
Reconciliation of Non-GAAP Financial Measures
Management utilizes specific non-GAAP financial measures as supplementary tools to evaluate operating performance. These include adjusted homebuilding gross margin and net homebuilding debt to net capitalization. Other companies may not calculate non-GAAP financial measures in the same manner that we do. Accordingly, these non-GAAP financial measures should be considered only as a supplement to relevant GAAP information, as reconciled for each measure below. In the future, we may incorporate additional adjustments to these non-GAAP financial measures as we find them relevant and beneficial for both management and investors.
Adjusted Homebuilding Gross Margin
The following table presents a reconciliation of adjusted homebuilding gross margin to the GAAP financial measure of homebuilding gross margin for each of the periods indicated (in thousands, except percentages):
|
Three Months Ended June 30, (unaudited) |
|
Six Months Ended June 30, (unaudited) |
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
Homebuilding gross margin(1) |
$ |
143,362 |
|
|
$ |
181,709 |
|
|
$ |
264,378 |
|
|
$ |
368,281 |
|
Interest expense in homebuilding cost of sales(2) |
|
58,269 |
|
|
|
56,197 |
|
|
|
105,055 |
|
|
|
98,002 |
|
Amortization in homebuilding cost of sales(3) |
|
(346 |
) |
|
|
396 |
|
|
|
(411 |
) |
|
|
1,725 |
|
Commission expense |
|
42,450 |
|
|
|
46,860 |
|
|
|
78,035 |
|
|
|
87,254 |
|
Adjusted homebuilding gross margin |
$ |
243,735 |
|
|
$ |
285,162 |
|
|
$ |
447,057 |
|
|
$ |
555,262 |
|
Homebuilding gross margin %(4) |
|
14.2 |
% |
|
|
16.5 |
% |
|
|
14.3 |
% |
|
|
17.8 |
% |
Adjusted homebuilding gross margin %(4) |
|
24.2 |
% |
|
|
25.9 |
% |
|
|
24.2 |
% |
|
|
26.8 |
% |
(1) |
Homebuilding gross margin is homebuilding revenues less homebuilding cost of sales. |
(2) |
Includes interest charged to homebuilding cost of sales related to our senior unsecured notes, net, revolving credit facility and other homebuilding-related debt (“homebuilding debt”), as well as lot option fees. |
(3) |
Represents amortization of purchase accounting adjustments from our acquisitions. |
(4) |
Calculated as a percentage of homebuilding revenues. |
We define adjusted homebuilding gross margin as homebuilding gross margin excluding the effects of capitalized interest, lot option fees, amortization included in homebuilding cost of sales (adjustments resulting from the application of purchase accounting in connection with acquisitions) and commission expense. Our management believes this information is meaningful as it isolates the impact that these excluded items have on homebuilding gross margin. We include internal and external commission expense in homebuilding cost of sales, not selling, general and administrative expense, and therefore commission expense is taken into account in homebuilding gross margin.
As a result, in order to provide a meaningful comparison to the public company homebuilders that include commission expense below the homebuilding gross margin line in selling, general and administrative expense, we have excluded commission expense from adjusted homebuilding gross margin. However, because adjusted homebuilding gross margin information excludes capitalized interest, lot option fees, purchase accounting amortization and commission expense, which have real economic effects and could impact our results of operations, the utility of adjusted homebuilding gross margin information as a measure of our operating performance may be limited.
Net Homebuilding Debt to Net Capitalization
The following table presents a reconciliation of net homebuilding debt to net capitalization to the GAAP financial measure of total debt to total capitalization for each of the periods indicated (in thousands, except percentages):
|
As of June 30, (unaudited) |
|
As of December 31, (unaudited) |
|
As of June 30, (unaudited) |
||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2025 |
|
Total debt |
$ |
1,817,113 |
|
|
$ |
1,606,193 |
|
|
$ |
1,580,352 |
|
Total mezzanine equity |
|
178,039 |
|
|
|
178,039 |
|
|
|
178,039 |
|
Total equity |
|
1,433,827 |
|
|
|
1,426,072 |
|
|
|
1,335,686 |
|
Total capitalization |
$ |
3,428,979 |
|
|
$ |
3,210,304 |
|
|
$ |
3,094,077 |
|
Total debt to total capitalization |
|
53.0 |
% |
|
|
50.0 |
% |
|
|
51.1 |
% |
|
|
|
|
|
|
||||||
Total debt |
$ |
1,817,113 |
|
|
$ |
1,606,193 |
|
|
$ |
1,580,352 |
|
Less: Mortgage warehouse facilities and other secured borrowings |
|
210,459 |
|
|
|
217,133 |
|
|
|
158,041 |
|
Less: Cash and cash equivalents |
|
203,494 |
|
|
|
234,766 |
|
|
|
210,320 |
|
Net homebuilding debt |
|
1,403,160 |
|
|
$ |
1,154,294 |
|
|
|
1,211,991 |
|
Total mezzanine equity |
|
178,039 |
|
|
|
178,039 |
|
|
|
178,039 |
|
Total equity |
|
1,433,827 |
|
|
|
1,426,072 |
|
|
|
1,335,686 |
|
Net capitalization |
$ |
3,015,026 |
|
|
$ |
2,758,405 |
|
|
$ |
2,725,716 |
|
Net homebuilding debt to net capitalization |
|
46.5 |
% |
|
|
41.8 |
% |
|
|
44.5 |
% |
Net homebuilding debt to net capitalization is a non-GAAP financial measure calculated as homebuilding debt, less cash and cash equivalents (“net homebuilding debt”), divided by the sum of net homebuilding debt, total mezzanine equity and total equity (“net capitalization”). Net homebuilding debt excludes borrowings under our mortgage warehouse facilities, as well as any other non-homebuilding borrowings the Company may incur from time to time. Management believes the ratio of net homebuilding debt to net capitalization is meaningful as it is used to assess the performance of our homebuilding segments and is a relevant measure of our overall leverage.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260730582656/en/
Investor Contact: investors@dreamfindershomes.com
Media Contact: mediainquiries@dreamfindershomes.com
Source: Dream Finders Homes, Inc.