Tri Pointe Homes Q3 pretax earnings fall 53.6%
Nine-month pretax results were a $122.806 million loss, while quarter-end liquidity was approximately $1.1 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Tri Pointe Homes, Inc. (TPH) reported third-quarter 2026 home sales revenue of $706.760 million, compared with $817.298 million in third-quarter 2025, a 13.5% decline. Income before income taxes was $35.635 million versus $76.863 million; results included $21.078 million of inventory-related impairment charges and immaterial transaction-related expenses. Net income available to common stockholders was $23.584 million, compared with $56.144 million.
Tri Pointe delivered 1,084 homes versus 1,217 and recorded 794 net new home orders versus 995. Homebuilding gross margin was 17.6% versus 20.6%; adjusted homebuilding gross margin was 23.7% versus 24.7%. Adjusted measures are non-GAAP.
For the nine months ended September 30, 2026, Tri Pointe recorded a pretax loss of $122.806 million, versus pretax income of $247.723 million a year earlier. At September 30, backlog was 1,204 homes valued at $871.239 million, and total liquidity was approximately $1.1 billion, including $325.9 million of cash and $822.8 million of availability under its revolving credit facility.
0 points · 0 major0 major · 3 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Moderate pointThird-quarter home sales revenue declined 13.5% to $706.760 million.
- Moderate pointNine-month results included a $122.806 million pretax loss.
- Minor pointThird-quarter pretax income fell 53.6% to $35.635 million.
Filing Explained
The September 30, 2026 balance sheet reports 100 common shares issued and outstanding, versus 84,478,836 on December 31, 2025.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Home sales revenue: $706.760 million vs. $817.298 million
Income before income taxes: $35.635 million vs. $76.863 million
Net income available to common stockholders: $23.584 million vs. $56.144 million
+5 more
8 metrics
Home sales revenue
$706.760 million vs. $817.298 million
Three months ended September 30, 2026 and 2025
Income before income taxes
$35.635 million vs. $76.863 million
Three months ended September 30, 2026 and 2025
Net income available to common stockholders
$23.584 million vs. $56.144 million
Three months ended September 30, 2026 and 2025
Adjusted EBITDA
$86.249 million vs. $125.796 million
Three months ended September 30, 2026 and 2025; non-GAAP measure
Homebuilding gross margin
17.6% vs. 20.6%
Three months ended September 30, 2026 and 2025
Net new home orders
794 vs. 995 orders
Three months ended September 30, 2026 and 2025
Backlog
1,204 homes; $871.239 million
At September 30, 2026
Total liquidity
Approximately $1.1 billion
At the end of third-quarter 2026
Key Terms
Adjusted EBITDA, Homebuilding gross margin, Backlog, Net homebuilding debt-to-net capital, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA means EBITDA before"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Homebuilding gross margin financial
"Homebuilding gross margin percentage"
Homebuilding gross margin is the percentage of sales a builder keeps after covering the direct costs to build houses—materials, labor and subcontractors—but before paying for overhead like marketing, administration or interest. Think of it as the profit made on each house before the company’s other bills; higher margins mean the builder is more efficient or has stronger pricing power, which helps investors judge profitability and resilience to rising costs.
Backlog financial
"Backlog (estimated dollar value)"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
Net homebuilding debt-to-net capital financial
"Ratio of net homebuilding debt-to-net capital"
Net homebuilding debt-to-net capital is a leverage ratio that compares the homebuilding segment’s debt after subtracting cash (net debt) to the total capital supporting that business (net capital). It shows how much of the homebuilding operation is funded by borrowed money versus owned funds; like comparing the mortgage balance on a property to the homeowner’s equity, a higher ratio means greater reliance on borrowing and greater sensitivity to interest rates and sales slowdowns, which matters to investors assessing risk and financial flexibility.
Lot option abandonments financial
"impairments and lot option abandonments"
Earnings Snapshot
Home sales revenue: $706.760 million
Third quarter ended September 30, 2026
Home sales revenue
$706.760 million
-13.5% year over year
Income before income taxes
$35.635 million
-53.6% year over year
Adjusted EBITDA
$86.249 million
-31.4% year over year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were TPH's third-quarter 2026 revenue and earnings?
TPH reported third-quarter home sales revenue of $706.760 million and net income available to common stockholders of $23.584 million. Revenue compared with $817.298 million and net income with $56.144 million in third-quarter 2025. Income before income taxes was $35.635 million.
What adjustments did TPH make to third-quarter pretax income?
Adjusted income before income taxes was $56.810 million, compared with reported pretax income of $35.635 million. The reconciliation added back $21.078 million of inventory impairment charges, land and lot option abandonments, and pre-acquisition charges, as well as transaction-related expenses associated with the Sumitomo Forestry transaction.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________________
FORM 8-K
_______________________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 5, 2026
_______________________________________________________________________________________
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (775 ) 413-1030
Not Applicable
(Former name or former address, if changed since last report.)
_______________________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| None | ||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On November 5, 2026, Tri Pointe Homes, Inc., a Delaware corporation (the “Company”), announced in a press release its financial results for the quarter ended September 30, 2026. A copy of the Company’s press release announcing these financial results is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including the exhibits attached hereto, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth in such filing. In addition, the press release furnished as an exhibit to this report includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits
99.1 Press Release dated November 5, 2026
104 Cover Page Interactive Data File, formatted in Inline XBRL
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Tri Pointe Homes, Inc. | ||||||||
| Date: November 5, 2026 | By: | /s/ Glenn J. Keeler | ||||||
| Glenn J. Keeler, Chief Financial Officer | ||||||||
3
Exhibit 99.1
TRI POINTE HOMES, INC. REPORTS 2026 THIRD QUARTER RESULTS
INCLINE VILLAGE, Nev., November 5, 2026 / Tri Pointe Homes, Inc. (the “Company”) today announced results for the third quarter ended September 30, 2026.
Results and Operational Data for Third Quarter 2026 and Comparisons to Third Quarter 2025
•Home sales revenue of $706.8 million compared to $817.3 million
◦New home deliveries of 1,084 homes compared to 1,217 homes
◦Average sales price of homes delivered of $652,000 compared to $672,000
•Homebuilding gross margin percentage of 17.6% compared to 20.6%. Excluding inventory-related charges of $21.1 million, our homebuilding gross margin percentage was 20.6%*.
◦Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 23.7%*
•SG&A expense as a percentage of home sales revenue of 14.2% compared to 12.9%
•Income before income taxes was $35.6 million compared to income before income taxes of $76.9 million. Results included $21.1 million of inventory-related impairment charges and immaterial transaction-related expenses. Excluding these items, adjusted income before income taxes was $56.8 million*.
•Net new home orders of 794 compared to 995
•Active selling communities averaged 168.5 compared to 152.0
◦Net new home orders per average selling community were 4.7 orders (1.6 per month) compared to 6.5 orders (2.2 per month)
◦Cancellation rate of 16% compared to 12%
•Backlog units at quarter end of 1,204 homes compared to 1,298 homes
◦Dollar value of backlog at quarter end of $871.2 million compared to $1.0 billion
◦Average sales price of homes in backlog at quarter end of $724,000 compared to $781,000
•Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 25.9% and 19.7%*, respectively, as of September 30, 2026
•Ended the third quarter of 2026 with total liquidity of approximately $1.1 billion, including cash and cash equivalents of $325.9 million and $822.8 million of availability under our revolving credit facility
| * | See “Reconciliation of Non-GAAP Financial Measures” | ||||
Page 1
About Tri Pointe Homes, Inc.
One of the largest homebuilders in the U.S., Tri Pointe Homes, Inc. has a presence in 13 states and the District of Columbia, and is a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities with deep ties to the communities it serves—some for as long as a century. Tri Pointe Homes combines the financial resources, technology platforms and proven leadership of a national organization with the regional insights, longstanding community connections and agility of empowered local teams. The company is one of the 2026 Fortune World’s Most Admired Companies, 2026 Fortune 100 Best Companies to Work For®, and recognized as a PEOPLE Companies That Care® (2023–2026) organization. The company was also named as a Great Place To Work-Certified™ company for five years in a row and named on several Great Place To Work® Best Workplaces lists. Tri Pointe has also won multiple Builder of the Year and Developer of the Year awards. For more information, please visit TriPointeHomes.com.
Forward-Looking Statements
Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include, but are not limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects, and capital spending. Forward-looking statements that are included in this press release are generally accompanied by words such as “anticipate,” “assuming,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “projection,” “should,” “strategy,” “target,” “will,” “would,” or other words that convey future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. These forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: the effects of general economic conditions, including employment rates, housing starts, interest rate levels, home affordability, inflation, consumer sentiment, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials, labor and home components; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in parts of the western United States; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or public health emergencies, including outbreaks of contagious diseases, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to our computer systems, theft of our homebuyers’ confidential information or other forms of cyber-attack; risks associated with the Company’s integration into the Sumitomo Forestry Group, including purchase accounting, financing, systems, controls, reporting processes, and the realization of anticipated benefits from the Sumitomo Forestry transaction; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is
Page 2
not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.
Investor Relations Contact:
InvestorRelations@TriPointeHomes.com, 949-478-8696
Page 3
KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||
| Operating Data: | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
| Home sales revenue | $ | 706,760 | $ | 817,298 | $ | (110,538) | (13.5) | % | $ | 1,898,374 | $ | 2,417,916 | $ | (519,542) | (21.5) | % | |||||||||||||||||||||||||||||||
| Homebuilding gross margin | $ | 124,664 | $ | 168,103 | $ | (43,439) | (25.8) | % | $ | 343,190 | $ | 523,818 | $ | (180,628) | (34.5) | % | |||||||||||||||||||||||||||||||
| Homebuilding gross margin % | 17.6 | % | 20.6 | % | (3.0) | % | 18.1 | % | 21.7 | % | (3.6) | % | |||||||||||||||||||||||||||||||||||
| Adjusted homebuilding gross margin %* | 23.7 | % | 24.7 | % | (1.0) | % | 23.4 | % | 25.7 | % | (2.3) | % | |||||||||||||||||||||||||||||||||||
| SG&A expense | $ | 100,159 | $ | 105,193 | $ | (5,034) | (4.8) | % | $ | 413,543 | $ | 316,784 | $ | 96,759 | 30.5 | % | |||||||||||||||||||||||||||||||
| SG&A expense as a % of home sales revenue | 14.2 | % | 12.9 | % | 1.3 | % | 21.8 | % | 13.1 | % | 8.7 | % | |||||||||||||||||||||||||||||||||||
| (Loss) income before income taxes | $ | 35,635 | $ | 76,863 | $ | (41,228) | (53.6) | % | $ | (122,806) | $ | 247,723 | $ | (370,529) | (149.6) | % | |||||||||||||||||||||||||||||||
| Adjusted EBITDA* | $ | 86,249 | $ | 125,796 | $ | (39,547) | (31.4) | % | $ | 209,174 | $ | 390,816 | $ | (181,642) | (46.5) | % | |||||||||||||||||||||||||||||||
| Interest incurred | $ | 19,098 | $ | 19,953 | $ | (855) | (4.3) | % | $ | 56,009 | $ | 61,646 | $ | (5,637) | (9.1) | % | |||||||||||||||||||||||||||||||
| Interest in cost of home sales | $ | 21,408 | $ | 24,499 | $ | (3,091) | (12.6) | % | $ | 59,141 | $ | 73,112 | $ | (13,971) | (19.1) | % | |||||||||||||||||||||||||||||||
| Other Data: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net new home orders | 794 | 995 | (201) | (20.2) | % | 3,175 | 3,364 | (189) | (5.6) | % | |||||||||||||||||||||||||||||||||||||
| New homes delivered | 1,084 | 1,217 | (133) | (10.9) | % | 2,833 | 3,583 | (750) | (20.9) | % | |||||||||||||||||||||||||||||||||||||
| Cancellation rate | 16 | % | 12 | % | 4 | % | 11 | % | 12 | % | (1) | % | |||||||||||||||||||||||||||||||||||
| Average selling price of homes delivered | $ | 652 | $ | 672 | $ | (20) | (3.0) | % | $ | 670 | $ | 675 | $ | (5) | (0.7) | % | |||||||||||||||||||||||||||||||
| Average selling communities | 168.5 | 152.0 | 16.5 | 10.9 | % | 163.3 | 149.1 | 14.2 | 9.5 | % | |||||||||||||||||||||||||||||||||||||
| Selling communities at end of period | 169 | 155 | 14 | 9.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Backlog (estimated dollar value) | $ | 871,239 | $ | 1,013,544 | $ | (142,305) | (14.0) | % | |||||||||||||||||||||||||||||||||||||||
| Backlog (homes) | 1,204 | 1,298 | (94) | (7.2) | % | ||||||||||||||||||||||||||||||||||||||||||
| Average selling price in backlog | $ | 724 | $ | 781 | $ | (57) | (7.3) | % | |||||||||||||||||||||||||||||||||||||||
| September 30, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Data: | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 325,891 | $ | 982,814 | $ | (656,923) | (66.8) | % | |||||||||||||||||||||||||||||||||||||||
| Real estate inventories | $ | 3,640,319 | $ | 3,178,248 | $ | 462,071 | 14.5 | % | |||||||||||||||||||||||||||||||||||||||
| Lots owned or controlled | 32,444 | 32,219 | 225 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||
Homes under construction (1) | 2,165 | 1,392 | 773 | 55.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Homes completed, unsold | 530 | 681 | (151) | (22.2) | % | ||||||||||||||||||||||||||||||||||||||||||
| Total homebuilding debt | $ | 1,103,415 | $ | 1,104,054 | $ | (639) | (0.1) | % | |||||||||||||||||||||||||||||||||||||||
| Stockholders’ equity | $ | 3,164,423 | $ | 3,315,834 | $ | (151,411) | (4.6) | % | |||||||||||||||||||||||||||||||||||||||
| Book capitalization | $ | 4,267,838 | $ | 4,419,888 | $ | (152,050) | (3.4) | % | |||||||||||||||||||||||||||||||||||||||
| Ratio of homebuilding debt-to-capital | 25.9 | % | 25.0 | % | 0.9 | % | |||||||||||||||||||||||||||||||||||||||||
| Ratio of net homebuilding debt-to-net capital* | 19.7 | % | 3.5 | % | 16.2 | % | |||||||||||||||||||||||||||||||||||||||||
__________
(1) Homes under construction included 50 and 48 models as of September 30, 2026 and December 31, 2025, respectively.
* See “Reconciliation of Non-GAAP Financial Measures”
Page 4
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets | (unaudited) | ||||||||||
| Cash and cash equivalents | $ | 325,891 | $ | 982,814 | |||||||
| Receivables | 151,662 | 147,250 | |||||||||
| Real estate inventories | 3,640,319 | 3,178,248 | |||||||||
| Investments in unconsolidated entities | 232,472 | 183,075 | |||||||||
| Mortgage loans held for sale | 63,964 | 98,514 | |||||||||
| Goodwill and other intangible assets, net | 156,603 | 156,603 | |||||||||
| Deferred tax assets, net | 43,132 | 43,132 | |||||||||
| Other assets | 223,957 | 187,899 | |||||||||
| Total assets | $ | 4,838,000 | $ | 4,977,535 | |||||||
| Liabilities | |||||||||||
| Accounts payable | $ | 77,543 | $ | 41,693 | |||||||
| Accrued expenses and other liabilities | 437,496 | 425,289 | |||||||||
| Loans payable | 455,000 | 456,468 | |||||||||
| Senior notes | 648,415 | 647,586 | |||||||||
| Mortgage repurchase facilities | 54,927 | 90,570 | |||||||||
| Total liabilities | 1,673,381 | 1,661,606 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity | |||||||||||
Stockholders’ equity: | |||||||||||
| Common stock, $0.01 par value, 100 and 500,000,000 shares authorized and 100 and 84,478,836 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | — | 844 | |||||||||
| Additional paid-in capital | — | — | |||||||||
| Retained earnings | 3,164,423 | 3,314,990 | |||||||||
Total stockholders’ equity | 3,164,423 | 3,315,834 | |||||||||
| Noncontrolling interests | 196 | 95 | |||||||||
| Total equity | 3,164,619 | 3,315,929 | |||||||||
| Total liabilities and equity | $ | 4,838,000 | $ | 4,977,535 | |||||||
Page 5
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Homebuilding: | |||||||||||||||||||||||
| Home sales revenue | $ | 706,760 | $ | 817,298 | $ | 1,898,374 | $ | 2,417,916 | |||||||||||||||
| Land and lot sales revenue | — | 18,768 | 598 | 23,953 | |||||||||||||||||||
| Other operations revenue | 824 | 805 | 2,474 | 2,439 | |||||||||||||||||||
| Total revenues | 707,584 | 836,871 | 1,901,446 | 2,444,308 | |||||||||||||||||||
| Cost of home sales | 582,096 | 649,195 | 1,555,184 | 1,894,098 | |||||||||||||||||||
| Cost of land and lot sales | 153 | 16,844 | 1,337 | 21,838 | |||||||||||||||||||
| Other operations expense | 813 | 794 | 2,438 | 2,381 | |||||||||||||||||||
| Sales and marketing | 46,559 | 48,490 | 129,779 | 141,603 | |||||||||||||||||||
| General and administrative | 53,600 | 56,703 | 283,764 | 175,181 | |||||||||||||||||||
| Homebuilding income (loss) from operations | 24,363 | 64,845 | (71,056) | 209,207 | |||||||||||||||||||
| Equity in (loss) income of unconsolidated entities | (10) | 1,309 | (122) | 2,275 | |||||||||||||||||||
| Transaction expense | (6) | — | (79,662) | — | |||||||||||||||||||
| Other income, net | 4,430 | 6,581 | 17,318 | 22,884 | |||||||||||||||||||
| Homebuilding income (loss) before income taxes | 28,777 | 72,735 | (133,522) | 234,366 | |||||||||||||||||||
| Financial Services: | |||||||||||||||||||||||
| Revenues | 19,433 | 17,858 | 49,032 | 53,762 | |||||||||||||||||||
| Expenses | 12,575 | 13,730 | 38,316 | 40,405 | |||||||||||||||||||
| Financial services income before income taxes | 6,858 | 4,128 | 10,716 | 13,357 | |||||||||||||||||||
| Income (loss) before income taxes | 35,635 | 76,863 | (122,806) | 247,723 | |||||||||||||||||||
| Provision for income taxes | (12,066) | (20,753) | (4,501) | (66,886) | |||||||||||||||||||
| Net income (loss) | 23,569 | 56,110 | (127,307) | 180,837 | |||||||||||||||||||
| Net loss (income) attributable to noncontrolling interests | 15 | 34 | (21) | 91 | |||||||||||||||||||
| Net income (loss) available to common stockholders | $ | 23,584 | $ | 56,144 | $ | (127,328) | $ | 180,928 | |||||||||||||||
Page 6
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| New Homes Delivered | Average Sales Price | New Homes Delivered | Average Sales Price | New Homes Delivered | Average Sales Price | New Homes Delivered | Average Sales Price | ||||||||||||||||||||||||||||||||||||||||
| West | 516 | $ | 747 | 621 | $ | 760 | 1,316 | $ | 772 | 1,782 | $ | 753 | |||||||||||||||||||||||||||||||||||
| Central | 368 | 543 | 394 | 536 | 1,018 | 551 | 1,252 | 547 | |||||||||||||||||||||||||||||||||||||||
| East | 200 | 607 | 202 | 665 | 499 | 645 | 549 | 712 | |||||||||||||||||||||||||||||||||||||||
| Total | 1,084 | $ | 652 | 1,217 | $ | 672 | 2,833 | $ | 670 | 3,583 | $ | 675 | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Net New Home Orders | Average Selling Communities | Net New Home Orders | Average Selling Communities | Net New Home Orders | Average Selling Communities | Net New Home Orders | Average Selling Communities | ||||||||||||||||||||||||||||||||||||||||
| West | 352 | 74.5 | 488 | 70.8 | 1,513 | 73.4 | 1,655 | 68.8 | |||||||||||||||||||||||||||||||||||||||
| Central | 326 | 69.0 | 322 | 59.2 | 1,188 | 65.4 | 1,158 | 60.2 | |||||||||||||||||||||||||||||||||||||||
| East | 116 | 25.0 | 185 | 22.0 | 474 | 24.5 | 551 | 20.1 | |||||||||||||||||||||||||||||||||||||||
| Total | 794 | 168.5 | 995 | 152.0 | 3,175 | 163.3 | 3,364 | 149.1 | |||||||||||||||||||||||||||||||||||||||
| As of September 30, 2026 | As of September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Backlog Units | Backlog Dollar Value | Average Sales Price | Backlog Units | Backlog Dollar Value | Average Sales Price | ||||||||||||||||||||||||||||||
| West | 621 | $ | 505,079 | $ | 813 | 680 | $ | 568,881 | $ | 837 | |||||||||||||||||||||||||
| Central | 430 | 262,060 | 609 | 378 | 231,076 | 611 | |||||||||||||||||||||||||||||
| East | 153 | 104,100 | 680 | 240 | 213,587 | 890 | |||||||||||||||||||||||||||||
| Total | 1,204 | $ | 871,239 | $ | 724 | 1,298 | $ | 1,013,544 | $ | 781 | |||||||||||||||||||||||||
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Lots Owned | Lots Controlled (1) | Lots Owned or Controlled | Lots Owned | Lots Controlled (1) | Lots Owned or Controlled | ||||||||||||||||||||||||||||||
| West | 8,896 | 3,594 | 12,490 | 8,629 | 3,864 | 12,493 | |||||||||||||||||||||||||||||
| Central | 5,609 | 7,801 | 13,410 | 5,188 | 8,017 | 13,205 | |||||||||||||||||||||||||||||
| East | 2,178 | 4,366 | 6,544 | 2,137 | 4,384 | 6,521 | |||||||||||||||||||||||||||||
| Total | 16,683 | 15,761 | 32,444 | 15,954 | 16,265 | 32,219 | |||||||||||||||||||||||||||||
(1) As of September 30, 2026 and December 31, 2025, lots controlled included lots that were under land option contracts or purchase contracts. As of September 30, 2026 and December 31, 2025, lots controlled for West include 275 and zero, respectively, and for Central include 5,483 and 5,356, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.
Page 7
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited)
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
The following table reconciles the homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors, who adjust gross margins in a similar fashion.
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | % | 2025 | % | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Home sales revenue | $ | 706,760 | 100.0 | % | $ | 817,298 | 100.0 | % | |||||||||||||||
| Cost of home sales | 582,096 | 82.4 | % | 649,195 | 79.4 | % | |||||||||||||||||
| Homebuilding gross margin | 124,664 | 17.6 | % | 168,103 | 20.6 | % | |||||||||||||||||
| Add: interest in cost of home sales | 21,408 | 3.0 | % | 24,499 | 3.0 | % | |||||||||||||||||
| Add: impairments and lot option abandonments | 21,078 | 3.0 | % | 9,244 | 1.1 | % | |||||||||||||||||
| Adjusted homebuilding gross margin | $ | 167,150 | 23.7 | % | $ | 201,846 | 24.7 | % | |||||||||||||||
| Homebuilding gross margin percentage | 17.6 | % | 20.6 | % | |||||||||||||||||||
| Adjusted homebuilding gross margin percentage | 23.7 | % | 24.7 | % | |||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | % | 2025 | % | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Home sales revenue | $ | 1,898,374 | 100.0 | % | $ | 2,417,916 | 100.0 | % | |||||||||||||||
| Cost of home sales | 1,555,184 | 81.9 | % | 1,894,098 | 78.3 | % | |||||||||||||||||
| Homebuilding gross margin | 343,190 | 18.1 | % | 523,818 | 21.7 | % | |||||||||||||||||
| Add: interest in cost of home sales | 59,141 | 3.1 | % | 73,112 | 3.0 | % | |||||||||||||||||
| Add: impairments and lot option abandonments | 41,880 | 2.2 | % | 23,413 | 1.0 | % | |||||||||||||||||
| Adjusted homebuilding gross margin | $ | 444,211 | 23.4 | % | $ | 620,343 | 25.7 | % | |||||||||||||||
| Homebuilding gross margin percentage | 18.1 | % | 21.7 | % | |||||||||||||||||||
| Adjusted homebuilding gross margin percentage | 23.4 | % | 25.7 | % | |||||||||||||||||||
Page 8
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(dollars in thousands)
(unaudited)
The following table reconciles the Company’s ratio of homebuilding debt-to-capital to the non-GAAP ratio of net homebuilding debt-to-net capital. We believe that the ratio of net homebuilding debt-to-net capital is a relevant financial measure for management and investors to understand the leverage employed in our operations and as an indicator of the Company’s ability to obtain financing.
| September 30, 2026 | December 31, 2025 | ||||||||||
| Loans payable | $ | 455,000 | $ | 456,468 | |||||||
| Senior notes | 648,415 | 647,586 | |||||||||
| Mortgage repurchase facilities | 54,927 | 90,570 | |||||||||
| Total debt | 1,158,342 | 1,194,624 | |||||||||
| Less: mortgage repurchase facilities | (54,927) | (90,570) | |||||||||
| Total homebuilding debt | 1,103,415 | 1,104,054 | |||||||||
| Stockholders’ equity | 3,164,423 | 3,315,834 | |||||||||
| Total capital | $ | 4,267,838 | $ | 4,419,888 | |||||||
| Ratio of homebuilding debt-to-capital(1) | 25.9 | % | 25.0 | % | |||||||
| Total homebuilding debt | $ | 1,103,415 | $ | 1,104,054 | |||||||
| Less: Cash and cash equivalents | (325,891) | (982,814) | |||||||||
| Net homebuilding debt | 777,524 | 121,240 | |||||||||
| Stockholders’ equity | 3,164,423 | 3,315,834 | |||||||||
| Net capital | $ | 3,941,947 | $ | 3,437,074 | |||||||
| Ratio of net homebuilding debt-to-net capital(2) | 19.7 | % | 3.5 | % | |||||||
__________
(1) The ratio of homebuilding debt-to-capital is computed as the quotient obtained by dividing total homebuilding debt by the sum of total homebuilding debt plus stockholders’ equity.
(2) The ratio of net homebuilding debt-to-net capital is computed as the quotient obtained by dividing net homebuilding debt (which is total homebuilding debt less cash and cash equivalents) by the sum of net homebuilding debt plus stockholders’ equity.
Page 9
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(dollars in thousands)
(unaudited)
The following tables present certain non-GAAP financial measures reflecting adjustments for inventory-related impairment charges and costs associated with the Sumitomo Forestry transaction, including transaction-related compensation costs and professional fees. We believe reflecting these adjustments is useful to investors in understanding our recurring operations by eliminating the effects of certain non-routine events, and may be helpful in comparing the Company to other homebuilders to the extent they provide similar information.
| Three Months Ended September 30, 2026 | Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||||
| Gross Margin Reconciliation | As Reported | Adjustments | Adjusted | As Reported | Adjustments | Adjusted | |||||||||||||||||||||||||||||
| Home sales revenue | $ | 706,760 | $ | — | $ | 706,760 | $ | 1,898,374 | $ | — | $ | 1,898,374 | |||||||||||||||||||||||
| Cost of home sales | 582,096 | (21,078) | 561,018 | 1,555,184 | (41,880) | 1,513,304 | |||||||||||||||||||||||||||||
| Homebuilding gross margin | $ | 124,664 | $ | 21,078 | $ | 145,742 | $ | 343,190 | $ | 41,880 | $ | 385,070 | |||||||||||||||||||||||
| Homebuilding gross margin percentage | 17.6 | % | 20.6 | % | 18.1 | % | 20.3 | % | |||||||||||||||||||||||||||
| Three Months Ended September 30, 2026 | Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||||
| SG&A Reconciliation | As Reported | Adjustments | Adjusted | As Reported | Adjustments | Adjusted | |||||||||||||||||||||||||||||
| Sales and marketing | $ | 46,559 | $ | — | $ | 46,559 | $ | 129,779 | $ | — | $ | 129,779 | |||||||||||||||||||||||
| General and administrative (G&A) | 53,600 | (91) | (1) | 53,509 | 283,764 | (122,203) | (1) | 161,561 | |||||||||||||||||||||||||||
| Total sales and marketing and G&A | $ | 100,159 | $ | (91) | $ | 100,068 | $ | 413,543 | $ | (122,203) | $ | 291,340 | |||||||||||||||||||||||
| As a percentage of home sales revenue | 14.2 | % | 14.2 | % | 21.8 | % | 15.3 | % | |||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes Reconciliation | Three Months Ended September 30, 2026 | Nine Months Ended September 30, 2026 | ||||||||||||
| Income (loss) before income taxes (as reported) | $ | 35,635 | $ | (122,806) | ||||||||||
| Add: inventory impairment charges and land and lot option abandonments and pre-acquisition charges included in cost of home sales | 21,078 | 41,880 | ||||||||||||
| Add: transaction-related expenses included in G&A | 91 | (1) | 122,203 | (1) | ||||||||||
| Add: transaction-related expenses included in financial services | — | 907 | (1) | |||||||||||
| Add: transaction expenses | 6 | (2) | 79,662 | (2) | ||||||||||
| Adjusted income before income taxes | $ | 56,810 | $ | 121,846 | ||||||||||
__________
(1) Comprises costs incurred due to accelerated RSU vestings and other compensation costs incurred in connection with the Sumitomo Forestry transaction.
(2) Comprises investment banking, legal, advisory, and other professional fees incurred in connection with the Sumitomo Forestry transaction.
Page 10
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
The following table calculates the non-GAAP financial measures of EBITDA and Adjusted EBITDA and reconciles those amounts to net income available to common stockholders, as reported and prepared in accordance with GAAP. EBITDA means net income (loss) available to common stockholders before (a) interest expense, (b) expensing of previously capitalized interest included in costs of home sales, (c) income taxes and (d) depreciation and amortization. Adjusted EBITDA means EBITDA before (e) amortization of stock-based compensation, (f) impairments and lot option abandonments, (g) Sumitomo Forestry transaction-related expenses included in general and administrative expenses, (h) Sumitomo Forestry transaction-related expenses included in financial services, and (i) other transaction expenses incurred in connection with the Sumitomo Forestry transaction. Other companies may calculate EBITDA and Adjusted EBITDA (or similarly titled measures) differently. We believe EBITDA and Adjusted EBITDA are useful measures of the Company’s ability to service debt and obtain financing.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Net income (loss) available to common stockholders | $ | 23,584 | $ | 56,144 | $ | (127,328) | $ | 180,928 | |||||||||||||||
| Interest expense: | |||||||||||||||||||||||
| Interest incurred | 19,098 | 19,953 | 56,009 | 61,646 | |||||||||||||||||||
| Interest capitalized | (19,098) | (19,953) | (56,009) | (61,646) | |||||||||||||||||||
| Amortization of interest in cost of sales | 21,408 | 24,839 | 59,141 | 73,570 | |||||||||||||||||||
| Provision for income taxes | 12,066 | 20,753 | 4,501 | 66,886 | |||||||||||||||||||
| Depreciation and amortization | 8,016 | 7,508 | 23,219 | 22,552 | |||||||||||||||||||
| EBITDA | 65,074 | 109,244 | (40,467) | 343,936 | |||||||||||||||||||
| Amortization of stock-based compensation | — | 7,308 | 4,989 | 23,467 | |||||||||||||||||||
| Impairments and lot option abandonments | 21,078 | 9,244 | 41,880 | 23,413 | |||||||||||||||||||
| Transaction-related expenses included in G&A | 91 | (1) | — | 122,203 | (1) | — | |||||||||||||||||
| Transaction-related expenses included in financial services | — | — | 907 | (1) | — | ||||||||||||||||||
| Transaction expenses | 6 | (2) | — | 79,662 | (2) | — | |||||||||||||||||
| Adjusted EBITDA | $ | 86,249 | $ | 125,796 | $ | 209,174 | $ | 390,816 | |||||||||||||||
__________
(1) Comprises costs incurred due to accelerated RSU vestings and other compensation costs incurred in connection with the Sumitomo Forestry transaction.
(2) Comprises investment banking, legal, advisory, and other professional fees incurred in connection with the Sumitomo Forestry transaction.
Page 11