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Tri Pointe Homes (NYSE: TPH) swings to Q2 2026 loss amid Sumitomo charges

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Tri Pointe Homes, Inc. reported weaker results for the quarter ended June 30, 2026. Home sales revenue was $685.1 million, down from $879.8 million, as new home deliveries fell to 1,013 from 1,326, though the average sales price edged up to $676,000 from $664,000. Homebuilding gross margin declined to 18.0% from 20.8%; excluding $19.7 million of inventory-related charges, it was 20.8%, and adjusted homebuilding gross margin was 24.0%.

The company recorded a loss before income taxes of $165.3 million versus income of $84.4 million a year earlier, driven by $196.8 million of charges associated with the Sumitomo Forestry transaction and $19.7 million of inventory impairments. Excluding these items, adjusted income before income taxes was $51.2 million. Net loss available to common stockholders was $157.7 million compared with net income of $60.7 million. Adjusted EBITDA was $83.1 million, down from $139.3 million.

Operating metrics were more stable: net new home orders were 1,147 versus 1,131, with an 11% cancellation rate versus 13%. Backlog ended the quarter at 1,494 homes valued at $1.06 billion. The company reported homebuilding debt-to-capital of 25.9% and net homebuilding debt-to-net capital of 16.9%, and ended the quarter with total liquidity of $1.3 billion, including $462.1 million of cash and $821.0 million available under its revolving credit facility.

Positive

  • None.

Negative

  • Home sales revenue fell 22.1% year over year in Q2 2026 to $685.1 million, with new home deliveries down 23.6%.
  • Homebuilding gross margin compressed by 2.8 percentage points to 18.0%, even before considering adjusted non-GAAP measures.
  • Loss before income taxes was $165.3 million, versus prior-year income of $84.4 million, reflecting large transaction and impairment charges.
  • Adjusted EBITDA declined 40.4% to $83.1 million from $139.3 million, indicating weaker underlying profitability.
  • Net loss available to common stockholders totaled $157.7 million, compared with net income of $60.7 million in the prior-year quarter.

Filing Explained

By June 30, cash was down 53.0% from year-end while homebuilding debt was down 0.5%, and net debt-to-net capital was 16.9%.

The company’s August 13 Form 8-K reports completed second-quarter results for the period ended June 30, 2026; its balance sheet shows cash down 53.0% from year-end while homebuilding debt declined 0.5%, increasing net leverage.

The reported net homebuilding debt-to-net capital measure subtracts cash from homebuilding debt; it rose from 3.5% at year-end to 16.9% at June 30, connecting the lower cash balance with a larger net debt position.

The operating asset mix also shifted: real estate inventories rose 8.1% to $3,436,045, homes under construction rose 80.6% to 2,514, and completed unsold homes fell 49.6% to 343.

The specific balance-sheet lines requiring comparison in the next quarterly report are cash and cash equivalents, total homebuilding debt, real estate inventories, and homes under construction.

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, and exhibit attachments filed with this report.
Home sales revenue Q2 2026 $685.1 million Quarter ended June 30, 2026; down 22.1% from $879.8 million in Q2 2025
Net (loss) income Q2 2026 $157.7 million loss Net loss available to common stockholders for the quarter ended June 30, 2026
Loss before income taxes Q2 2026 $165.3 million loss Compared with income before income taxes of $84.4 million in Q2 2025
Adjusted income before income taxes Q2 2026 $51.2 million Excludes inventory-related charges and $196.8 million of Sumitomo Forestry transaction charges
Adjusted EBITDA Q2 2026 $83.1 million Down from $139.3 million in the quarter ended June 30, 2025
Homebuilding gross margin Q2 2026 18.0% GAAP homebuilding gross margin; adjusted homebuilding gross margin was 24.0%
Total liquidity $1.3 billion As of June 30, 2026, including $462.1 million cash and $821.0 million revolver availability
Backlog dollar value $1.06 billion Estimated backlog value at June 30, 2026 for 1,494 homes
Adjusted EBITDA financial
"Adjusted EBITDA was $83,068 for Q2 2026 compared to $139,322 in 2025"
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 was 18.0% compared to 20.8%"
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 units at quarter end of 1,494 homes compared to 1,520"
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.
cancellation rate financial
"Cancellation rate of 11% compared to 13%"
The cancellation rate is the share of orders, bookings, subscriptions or appointments that are cancelled before they are completed, expressed as a percentage of total commitments. Investors care because a rising cancellation rate is like many diners calling off reservations: it can signal weaker demand, lower predictable revenue, higher costs to replace lost business, and risks to future growth and cash flow forecasts.
net homebuilding debt-to-net capital financial
"Ratio of net homebuilding debt-to-net capital of 16.9% as of June 30, 2026"
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.
non-GAAP financial measures financial
"In this press release, we utilize certain financial measures that are non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Home sales revenue $685.1 million (22.1)% vs Q2 2025
Net (loss) income available to common stockholders $157.7 million loss from $60.7 million income in Q2 2025
Loss before income taxes $165.3 million loss from $84.4 million income in Q2 2025
Adjusted income before income taxes $51.2 million adjusts for Sumitomo Forestry and inventory-related charges
Adjusted EBITDA $83.1 million (40.4)% vs $139.3 million in Q2 2025
Homebuilding gross margin 18.0% down from 20.8% in Q2 2025

FAQ

How did Tri Pointe Homes (TPH) Q2 2026 revenue compare to Q2 2025?
Tri Pointe Homes generated $685.1 million in home sales revenue in Q2 2026, down from $879.8 million in Q2 2025, a decline of 22.1%. The drop was driven by fewer new home deliveries, partially offset by a slightly higher average selling price.

What was Tri Pointe Homes (TPH) profitability for the quarter ended June 30, 2026?
Tri Pointe Homes reported a loss before income taxes of $165.3 million and a net loss of $157.7 million in Q2 2026. This compares with income before income taxes of $84.4 million and net income of $60.7 million in the prior-year quarter.

How did the Sumitomo Forestry transaction affect Tri Pointe Homes (TPH) Q2 2026 results?
Q2 2026 results included $196.8 million of charges tied to the Sumitomo Forestry transaction plus $19.7 million of inventory-related impairments. Excluding these items, adjusted income before income taxes was $51.2 million instead of a $165.3 million loss.

What were Tri Pointe Homes (TPH) margins in Q2 2026?
Homebuilding gross margin was 18.0% in Q2 2026, down from 20.8%. Excluding inventory-related charges, homebuilding gross margin was 20.8%, and adjusted homebuilding gross margin was 24.0%, compared with 25.2% a year earlier.

What was Tri Pointe Homes (TPH) Adjusted EBITDA for Q2 2026?
Tri Pointe Homes reported Adjusted EBITDA of $83.1 million for Q2 2026, compared with $139.3 million in Q2 2025, a decrease of 40.4%. The decline reflects lower revenue, margin compression, and the impact of various transaction-related adjustments.

What liquidity and leverage did Tri Pointe Homes (TPH) report as of June 30, 2026?
As of June 30, 2026, Tri Pointe Homes had $1.3 billion of total liquidity, including $462.1 million in cash and $821.0 million of revolver availability. The company’s homebuilding debt-to-capital ratio was 25.9%, and net homebuilding debt-to-net capital was 16.9%.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Understanding 8-K Material Events →
0001561680false00015616802026-08-132026-08-13

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) August 13, 2026
_______________________________________________________________________________________
Q1 LOGO.jpg
Tri Pointe Homes, Inc.
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________
Delaware1-3579661-1763235
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
 
940 Southwood Blvd, Suite 200
Incline Village, Nevada 89451
(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 classTrading Symbol(s)Name of each exchange on which registered
NoneNoneNone

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 August 13, 2026, Tri Pointe Homes, Inc., a Delaware corporation (the “Company”), announced in a press release its financial results for the quarter ended June 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 August 13, 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: August 13, 2026By:/s/ Glenn J. Keeler
Glenn J. Keeler,
Chief Financial Officer

3
Exhibit 99.1
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TRI POINTE HOMES, INC. REPORTS 2026 SECOND QUARTER RESULTS
INCLINE VILLAGE, Nev., August 13, 2026 / Tri Pointe Homes, Inc. (the “Company”) today announced results for the second quarter ended June 30, 2026.
Results and Operational Data for Second Quarter 2026 and Comparisons to Second Quarter 2025
•Home sales revenue of $685.1 million compared to $879.8 million
◦New home deliveries of 1,013 homes compared to 1,326 homes
◦Average sales price of homes delivered of $676,000 compared to $664,000
•Homebuilding gross margin percentage of 18.0% compared to 20.8%. Excluding inventory-related charges of $19.7 million, our homebuilding gross margin percentage was 20.8%*.
◦Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 24.0%*
•SG&A expense as a percentage of home sales revenue of 32.5% compared to 12.6%. Excluding $122.1 million of compensation-related charges associated with the Sumitomo Forestry transaction, SG&A expense as a percentage of home sales revenue was 14.7%*.
•Loss before income taxes was $165.3 million compared to income before income taxes of $84.4 million. Results included $196.8 million of charges associated with the Sumitomo Forestry transaction and $19.7 million of inventory-related impairment charges. Excluding these items, adjusted income before income taxes was $51.2 million* compared to $84.4 million.
•Net new home orders of 1,147 compared to 1,131
•Active selling communities averaged 164.3 compared to 149.8
◦Net new home orders per average selling community were 7.0 orders (2.3 monthly) compared to 7.6 orders (2.5 monthly)
◦Cancellation rate of 11% compared to 13%
•Backlog units at quarter end of 1,494 homes compared to 1,520
◦Dollar value of backlog at quarter end of $1.1 billion compared to $1.2 billion
◦Average sales price of homes in backlog at quarter end of $713,000 compared to $776,000
•Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 25.9% and 16.9%*, respectively, as of June 30, 2026
•Ended the second quarter of 2026 with total liquidity of $1.3 billion, including cash and cash equivalents of $462.1 million and $821.0 million of availability under our revolving credit facility
*See “Reconciliation of Non-GAAP Financial Measures”


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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 Merger; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission.
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The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is 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

  

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KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
20262025Change% Change20262025Change% Change
Operating Data:(unaudited)
Home sales revenue$685,118 $879,832 $(194,714)(22.1)%$1,191,614 $1,600,618 $(409,004)(25.6)%
Homebuilding gross margin$123,096 $183,202 $(60,106)(32.8)%$218,526 $355,715 $(137,189)(38.6)%
Homebuilding gross margin %18.0 %20.8 %(2.8)%18.3 %22.2 %(3.9)%
Adjusted homebuilding gross margin %*24.0 %25.2 %(1.2)%23.3 %26.1 %(2.8)%
SG&A expense$222,538 $110,974 $111,564 100.5 %$313,384 $211,591 $101,793 48.1 %
SG&A expense as a % of home sales revenue32.5 %12.6 %19.9 %26.3 %13.2 %13.1 %
(Loss) income before income taxes$(165,332)$84,350 $(249,682)(296.0)%$(158,441)$170,860 $(329,301)(192.7)%
Adjusted EBITDA*$83,068 $139,322 $(56,254)(40.4)%$122,925 $265,020 $(142,095)(53.6)%
Interest incurred$18,326 $20,374 $(2,048)(10.1)%$36,911 $41,693 $(4,782)(11.5)%
Interest in cost of home sales$21,263 $25,578 $(4,315)(16.9)%$37,733 $48,613 $(10,880)(22.4)%
Other Data:
Net new home orders1,147 1,131 16 1.4 %2,381 2,369 12 0.5 %
New homes delivered1,013 1,326 (313)(23.6)%1,749 2,366 (617)(26.1)%
Cancellation rate11 %13 %(2)%10 %12 %(2)%
Average selling price of homes delivered$676 $664 $12 1.8 %$681 $677 $4 0.6 %
Average selling communities164.3 149.8 14.5 9.7 %161.1 147.7 13.4 9.1 %
Selling communities at end of period169 151 18 11.9 %
Backlog (estimated dollar value)$1,064,633 $1,179,715 $(115,082)(9.8)%
Backlog (homes)1,494 1,520 (26)(1.7)%
Average selling price in backlog$713 $776 $(63)(8.1)%
June 30,December 31,
20262025Change% Change
Balance Sheet Data:(unaudited)
Cash and cash equivalents$462,085 $982,814 $(520,729)(53.0)%
Real estate inventories$3,436,045 $3,178,248 $257,797 8.1 %
Lots owned or controlled33,271 32,219 1,052 3.3 %
Homes under construction (1)
2,514 1,392 1,122 80.6 %
Homes completed, unsold343 681 (338)(49.6)%
Total homebuilding debt$1,098,735 $1,104,054 $(5,319)(0.5)%
Stockholders’ equity$3,140,839 $3,315,834 $(174,995)(5.3)%
Book capitalization$4,239,574 $4,419,888 $(180,314)(4.1)%
Ratio of homebuilding debt-to-capital25.9 %25.0 %0.9 %
Ratio of net homebuilding debt-to-net capital*16.9 %3.5 %13.4 %
__________
(1)     Homes under construction included 39 and 48 models as of June 30, 2026 and December 31, 2025, respectively.
*    See “Reconciliation of Non-GAAP Financial Measures”
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CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
 
June 30,December 31,
20262025
Assets(unaudited)
Cash and cash equivalents$462,085 $982,814 
Receivables175,514 147,250 
Real estate inventories3,436,045 3,178,248 
Investments in unconsolidated entities245,695 183,075 
Mortgage loans held for sale86,881 98,514 
Goodwill and other intangible assets, net156,603 156,603 
Deferred tax assets, net43,132 43,132 
Other assets211,811 187,899 
Total assets$4,817,766 $4,977,535 
Liabilities
Accounts payable$79,848 $41,693 
Accrued expenses and other liabilities420,675 425,289 
Loans payable450,600 456,468 
Senior notes648,135 647,586 
Mortgage repurchase facilities77,459 90,570 
Total liabilities1,676,717 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 June 30, 2026 and December 31, 2025, respectively— 844 
Additional paid-in capital— — 
Retained earnings3,140,839 3,314,990 
Total stockholders’ equity
3,140,839 3,315,834 
Noncontrolling interests210 95 
Total equity3,141,049 3,315,929 
Total liabilities and equity$4,817,766 $4,977,535 


 
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CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands)
(unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Homebuilding:
Home sales revenue$685,118 $879,832 $1,191,614 $1,600,618 
Land and lot sales revenue23 3,364 598 5,185 
Other operations revenue825 814 1,650 1,634 
Total revenues685,966 884,010 1,193,862 1,607,437 
Cost of home sales562,022 696,630 973,088 1,244,903 
Cost of land and lot sales205 3,253 1,184 4,994 
Other operations expense812 793 1,625 1,587 
Sales and marketing45,333 50,171 83,220 93,113 
General and administrative177,205 60,803 230,164 118,478 
Homebuilding (loss) income from operations(99,611)72,360 (95,419)144,362 
Equity in (loss) income of unconsolidated entities(24)471 (112)966 
Transaction expense(73,779)— (79,656)— 
Other income, net5,652 7,174 12,888 16,303 
Homebuilding (loss) income before income taxes(167,762)80,005 (162,299)161,631 
Financial Services:
Revenues16,106 18,403 29,599 35,904 
Expenses13,676 14,058 25,741 26,675 
Financial services income before income taxes2,430 4,345 3,858 9,229 
(Loss) income before income taxes(165,332)84,350 (158,441)170,860 
Benefit (provision) for income taxes7,646 (23,640)7,565 (46,133)
Net (loss) income(157,686)60,710 (150,876)124,727 
Net (income) loss attributable to noncontrolling interests(12)38 (36)57 
Net (loss) income available to common stockholders$(157,698)$60,748 $(150,912)$124,784 
 
 
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MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price		New
Homes
Delivered		Average
Sales
Price
West458$795 640$735 800$788 1,161$750 
Central376550 481546 650556 858551 
East179637 205717 299670 347740 
Total1,013$676 1,326$664 1,749$681 2,366$677 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
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
West55674.8 52368.8 1,16173.3 1,16767.8 
Central42665.0 42361.0 86263.5 83660.6 
East16524.5 18520.0 35824.3 36619.3 
Total1,147164.31,131149.82,381161.12,369147.7
As of June 30, 2026As of June 30, 2025
Backlog UnitsBacklog Dollar ValueAverage Sales PriceBacklog UnitsBacklog Dollar ValueAverage Sales Price
West785 $629,058 $801 813 $682,250 $839 
Central472 282,083 598 450 271,975 604 
East237 153,492 648 257 225,490 877 
Total1,494$1,064,633 $713 1,520$1,179,715 $776 
As of June 30, 2026As of December 31, 2025
Lots OwnedLots Controlled (1)Lots Owned or ControlledLots OwnedLots Controlled (1)Lots Owned or Controlled
West9,086 3,498 12,584 8,629 3,864 12,493 
Central5,203 8,397 13,600 5,188 8,017 13,205 
East1,992 5,095 7,087 2,137 4,384 6,521 
Total16,28116,99033,27115,95416,26532,219
(1)     As of June 30, 2026 and December 31, 2025, lots controlled included lots that were under land option contracts or purchase contracts. As of June 30, 2026 and December 31, 2025, lots controlled for West include 275 and zero, respectively, and for Central include 5,607 and 5,356, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.
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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 June 30,
2026%2025%
(dollars in thousands)
Home sales revenue$685,118 100.0 %$879,832 100.0 %
Cost of home sales562,022 82.0 %696,630 79.2 %
Homebuilding gross margin123,096 18.0 %183,202 20.8 %
Add:  interest in cost of home sales21,263 3.1 %25,578 2.9 %
Add:  impairments and lot option abandonments19,734 2.9 %13,096 1.5 %
Adjusted homebuilding gross margin$164,093 24.0 %$221,876 25.2 %
Homebuilding gross margin percentage18.0 %20.8 %
Adjusted homebuilding gross margin percentage24.0 %25.2 %

Six Months Ended June 30,
2026%2025%
(dollars in thousands)
Home sales revenue$1,191,614 100.0 %$1,600,618 100.0 %
Cost of home sales973,088 81.7 %1,244,903 77.8 %
Homebuilding gross margin218,526 18.3 %355,715 22.2 %
Add:  interest in cost of home sales37,733 3.2 %48,613 3.0 %
Add:  impairments and lot option abandonments20,802 1.7 %14,169 0.9 %
Adjusted homebuilding gross margin$277,061 23.3 %$418,497 26.1 %
Homebuilding gross margin percentage18.3 %22.2 %
Adjusted homebuilding gross margin percentage23.3 %26.1 %







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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.
 
June 30, 2026December 31, 2025
Loans payable$450,600 $456,468 
Senior notes648,135 647,586 
Mortgage repurchase facilities77,459 90,570 
Total debt1,176,194 1,194,624 
Less: mortgage repurchase facilities(77,459)(90,570)
Total homebuilding debt1,098,735 1,104,054 
Stockholders’ equity3,140,839 3,315,834 
Total capital$4,239,574 $4,419,888 
Ratio of homebuilding debt-to-capital(1)25.9 %25.0 %
Total homebuilding debt$1,098,735 $1,104,054 
Less: Cash and cash equivalents(462,085)(982,814)
Net homebuilding debt636,650 121,240 
Stockholders’ equity3,140,839 3,315,834 
Net capital$3,777,489 $3,437,074 
Ratio of net homebuilding debt-to-net capital(2)16.9 %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.







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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 June 30, 2026Six Months Ended June 30, 2026
Gross Margin ReconciliationAs ReportedAdjustmentsAdjustedAs ReportedAdjustmentsAdjusted
Home sales revenue$685,118 $— $685,118 $1,191,614 $— $1,191,614 
Cost of home sales562,022 (19,734)542,288 973,088 (20,802)952,286 
Homebuilding gross margin $123,096 $19,734 $142,830 $218,526 $20,802 $239,328 
Homebuilding gross margin percentage18.0 %20.8 %18.3 %20.1 %
Three Months Ended June 30, 2026Six Months Ended June 30, 2026
SG&A ReconciliationAs ReportedAdjustmentsAdjustedAs ReportedAdjustmentsAdjusted
Sales and marketing$45,333 $— $45,333 $83,220 $— $83,220 
General and administrative (G&A)177,205 (122,112)(1)55,093 230,164 (122,112)(1)108,052 
Total sales and marketing and G&A$222,538 $(122,112)$100,426 $313,384 $(122,112)$191,272 
As a percentage of home sales revenue32.5 %14.7 %26.3 %16.1 %



(Loss) Income Before Income Taxes ReconciliationThree Months Ended June 30, 2026Six Months Ended June 30, 2026
(Loss) income before income taxes (as reported)$(165,332)$(158,441)
Add: inventory impairment charges and land and lot option abandonments and pre-acquisition charges included in cost of home sales19,734 20,802 
Add: transaction-related expenses included in G&A122,112 (1)122,112 (1)
Add: transaction-related expenses included in financial services907 (1)907 (1)
Add: transaction-related expenses included in other expense, net73,779 (2)79,656 (2)
Adjusted income before income taxes$51,200 $65,036 
__________
(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.










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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 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 June 30,Six Months Ended June 30,
2026202520262025
(in thousands)
Net (loss) income available to common stockholders$(157,698)$60,748 $(150,912)$124,784 
Interest expense:
Interest incurred18,326 20,374 36,911 41,693 
Interest capitalized(18,326)(20,374)(36,911)(41,693)
Amortization of interest in cost of sales21,263 25,578 37,733 48,731 
Provision for income taxes(7,646)23,640 (7,565)46,133 
Depreciation and amortization7,585 7,657 15,203 15,044 
EBITDA(136,496)117,623 (105,541)234,692 
Amortization of stock-based compensation3,032 8,603 4,989 16,159 
Impairments and lot option abandonments19,734 13,096 20,802 14,169 
Transaction-related expenses included in G&A122,112 (1)— 122,112 (1)— 
Transaction-related expenses included in financial services907 (1)— 907 (1)— 
Transaction expenses73,779 (2)— 79,656 (2)— 
Adjusted EBITDA$83,068 $139,322 $122,925 $265,020 
 __________
(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.
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