What changed in this filing

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Item 1. Financial Statements

2026-04-23 compared with 2025-10-23 · 144 added, 283 removed, 337 unchanged (56% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

As of September 30, 2025 and December 31, 2024

As of March 31, 2026 and December 31, 2025

(in thousands, except share and per share amounts)

September 30,

Cash and cash equivalents

14 unchanged sentences

Preferred stock, $ 0.01 par value, 50,000,000 shares authorized, none outstanding

Common stock, $ 0.01 par value, 100,000,000 shares authorized, 29,383,819 and 30,961,227 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

Common stock, $ 0.01 par value, 100,000,000 shares authorized, 28,769,233 and 29,050,515 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital

5 unchanged sentences

Unaudited Condensed Consolidated Statements of Operations

For the Three and Nine Months Ended September 30, 2025 and 2024

For the Three Months Ended March 31, 2026 and 2025

(in thousands, except share and per share amounts)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Homebuilding revenues

6 unchanged sentences

Cost of home sales revenues

( 2,285,233 )

( 2,386,208 )

Cost of land sales and other revenues

Total homebuilding cost of revenues

( 2,292,432 )

( 2,386,415 )

Financial services costs

Selling, general and administrative

Inventory impairment

Other (expense) income, net

Selling, general and administrative expense

Other income (expense), net

Income before income tax expense

5 unchanged sentences

Unaudited Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2025 and 2024

For the Three Months Ended March 31, 2026 and 2025

(in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Operating activities

3 unchanged sentences

Fair value adjustments of mortgage-related assets and liabilities

Loss on debt extinguishment

Inventory impairment

Impairment on other investment

Abandonment of lot option contracts

10 unchanged sentences

Purchases of property and equipment

Proceeds from sale of property and equipment

Proceeds from sale of mortgage servicing rights

Expenditures related to development of rental properties

Payments for business combinations

Other investing activities

Net cash provided by (used in) investing activities

Net cash used in investing activities

Financing activities

Borrowings under revolving credit facilities

Payments on revolving credit facilities

( 2,221,500 )

( 1,045,000 )

Proceeds from issuance of senior notes due 2033

Extinguishment of senior notes due 2027

Borrowings under revolving credit facility

Payments on revolving credit facility

Borrowing under construction loan agreements

Proceeds from issuance of insurance premium notes and other

Principal payments on insurance premium notes and other

Proceeds from issuance of notes and other

Principal payments on notes and other

Debt issuance costs

Net (payments) proceeds for mortgage repurchase facilities

Withholding of common stock upon vesting of stock-based compensation awards

Net payments for mortgage repurchase facilities

Withholding of common stock upon settlement of stock-based compensation awards

Repurchases of common stock under stock repurchase program

Dividend payments

Other financing activities

Net cash provided by financing activities

Net cash provided by (used in) financing activities

Cash and cash equivalents and Restricted cash

11 unchanged sentences

(in thousands)

For the Three Months Ended September 30, 2025 and 2024

Additional Paid-In Capital

Retained Earnings

Total Stockholders' Equity

Balance at June 30, 2025

Vesting of stock-based compensation awards

Withholding of common stock upon vesting of stock-based compensation awards

Repurchases of common stock

Stock-based compensation expense

Cash dividends declared and dividend equivalents

Balance at September 30, 2025

Balance at June 30, 2024

Vesting of stock-based compensation awards

Withholding of common stock upon vesting of stock-based compensation awards

Repurchases of common stock

Stock-based compensation expense

Cash dividends declared and dividend equivalents

Balance at September 30, 2024

For the Nine Months Ended September 30, 2025 and 2024

For the Three Months Ended March 31, 2026 and 2025

Additional Paid-In Capital

2 unchanged sentences

Balance at December 31, 2025

Vesting of stock-based compensation awards

Withholding of common stock upon vesting of stock-based compensation awards

Settlement of stock-based compensation awards

Withholding of common stock upon settlement of stock-based compensation awards

Repurchases of common stock

Excise tax on repurchases of common stock

Stock-based compensation expense

Cash dividends declared and dividend equivalents

Balance at September 30, 2025

Balance at March 31, 2026

Balance at December 31, 2024

Vesting of stock-based compensation awards

Withholding of common stock upon vesting of stock-based compensation awards

Settlement of stock-based compensation awards

Withholding of common stock upon settlement of stock-based compensation awards

Repurchases of common stock

Excise tax on repurchases of common stock

Stock-based compensation expense

Cash dividends declared and dividend equivalents

Balance at September 30, 2024

Balance at March 31, 2025

See Notes to Unaudited Condensed Consolidated Financial Statements

1 unchanged sentence

Notes to Unaudited Condensed Consolidated Financial Statements

September 30, 2025

March 31, 2026

Basis of Presentation

4 unchanged sentences

Our Century Communities brand has an emphasis on serving the affordable homebuilding market but offers a wide range of buyer profiles including:

entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections.

Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade selections.

entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the limited ability to personalize their homes through certain option and upgrade selections.

Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios, centralized locations, and the internet, and generally provides no option or upgrade selections.

Our homebuilding operations are organized into the following five reportable segments:

1 unchanged sentence

Our indirect wholly-owned subsidiaries, Inspire Home Loans Inc., Parkway Title, LLC, IHL Home Insurance Agency, LLC, and IHL Escrow Inc., which provide mortgage, title, insurance brokerage and escrow services, respectively, primarily to our homebuyers, have been identified as our Financial Services segment.

Additionally, our Century Living segment is engaged in the development, construction, management, and disposition of multi-family rental properties, currently all located in Colorado.

Additionally, our Century Living segment is engaged in the development, construction, management, and sales of multi-family rental properties, currently all located in Colorado.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S.

8 unchanged sentences

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Accordingly, actual results could differ from those estimates.

Reclassification

Certain prior period amounts have been reclassified to conform to current period presentation.

Certain prior period amounts have been reclassified to conform to current period presentation, including the presentation of inventory impairment.

Beginning in the fourth quarter of 2025, inventory impairment was reclassified to be included in cost of home sales revenues in our condensed consolidated statements of operations rather than presented as a separate line item.

These reclassifications have not changed the results of operations of prior periods.

6 unchanged sentences

We are currently evaluating the impact of the adoption of ASU 2024-03 on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No.

2023-09, “ Income Taxes (Topic 740) :

Improvements to Income Tax Disclosures” (“ASU 2023-09”).

ASU 2023-09 requires more disaggregated income tax disclosures, including additional information in the rate reconciliation

and additional disclosures about income taxes paid.

ASU 2023-09 will become effective for our fiscal year ending December 31, 2025.

We are currently evaluating the impact of the adoption of ASU 2023-09 on our consolidated financial statements and related annual disclosures, but we currently do not expect the impact to be significant.

Reporting Segments

2 unchanged sentences

Our Century Communities brand is managed by geographic location, and each of our four geographic regions offers a wide range of buyer profiles including:

entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections.

entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the limited ability to personalize their homes through certain option and upgrade selections.

Each of our four geographic regions is considered a separate operating segment.

Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade selections.

Our Century Complete brand has operations in nine states and is managed separately from our four geographic regions, and it is considered a separate operating segment.

We have presented our homebuilding operations as the following reportable segments as of September 30, 2025:

Our Century Complete brand has operations in 10 states and is managed separately from our four geographic regions, and it is considered a separate operating segment.

We have presented our homebuilding operations as the following reportable segments as of March 31, 2026:

 West (California and Washington)

1 unchanged sentence

 Southeast (Florida, Georgia, North Carolina, South Carolina, and Tennessee)

 Century Complete (Alabama, Arizona, Florida, Georgia, Indiana, Kentucky, Michigan, North Carolina, and South Carolina)

We have identified our Financial Services operations, which provide mortgage, title, insurance brokerage and escrow services to our homebuyers, and Century Living, which is engaged in the development, construction, management, and disposition of multi-family rental properties currently all located in Colorado, as reportable segments.

 Century Complete (Alabama, Arizona, Florida, Georgia, Indiana, Kentucky, Michigan, Nevada, North Carolina, and South Carolina)

We have identified our Financial Services operations, which provide mortgage, title, insurance brokerage and escrow services to our homebuyers, and Century Living, which is engaged in the development, construction, management, and sales of multi-family rental properties currently all located in Colorado, as reportable segments.

Our Corporate operations are a non-operating segment, as it serves to support our homebuilding operations, and to a lesser extent our Financial Services operations, through various functions, such as our executive, finance, treasury, human resources, accounting and legal departments.

4 unchanged sentences

The CODMs consider budget-to-actual forecast variances for income before tax expense on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.

The measure of segment assets is reported on the consolidated balance sheets as total assets.

Except for those accounting policies for Century Living which are described below, the accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 .

Beginning in the first quarter of 2025, we have separately reported our Century Living segment as a reportable segment, which was previously included in our Corporate segment, in order to reflect the distinct nature of our multi-family rental operations.

Accordingly, we have recast the corresponding segment information for the three and nine months ended September 30, 2024.

During the first quarter of 2025, our strategy evolved for our Century Living multi-family rental properties to be predominantly focused on the disposition of the assets shortly after lease stabilization.

Accordingly, we have determined that these multi-family rental operations have become part of our ordinary activities, and revenue is recognized from the sale of these properties when performance obligations are satisfied, generally when the respective properties are delivered and title has passed to the buyers, and r ental income and expenses from these properties during lease-up is recognized as other income on the condensed consolidated statement of operations.

We record multi-family rental property inventory within prepaid and other assets on the condensed consolidated balance sheet , and cash flows from development activities and the disposition of properties are recorded as operating activities on the condensed consolidated statement of cash flows.

The measure of segment assets is reported on the condensed consolidated balance sheets as total assets.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 .

The following tables summarize total revenue, significant expenses, and income (loss) before income tax expense by segment (in thousands ):

Three months ended September 30, 2025

Century Complete

Financial Services

Century Living

Cost of home sales

Financial services costs

Selling, general and administrative

Inventory impairment

Other segment items (1)

Income (loss) before tax expense

Three months ended September 30, 2024

Century Complete

Financial Services

Century Living

Cost of home sales

Financial services costs

Selling, general and administrative

Inventory impairment

Other segment items (1)

Income (loss) before tax expense

Nine months ended September 30, 2025

Three Months Ended March 31, 2026

Century Complete

1 unchanged sentence

Century Living

Cost of home sales

( 2,285,233 )

Cost of home sales revenues

Financial services costs

Selling, general and administrative

Inventory impairment

Selling, general and administrative expense

Other segment items (1)

Income (loss) before tax expense

Nine months ended September 30, 2024

Three Months Ended March 31, 2025

Century Complete

1 unchanged sentence

Century Living

Cost of home sales

( 2,386,208 )

Cost of home sales revenues

Financial services costs

Selling, general and administrative

Inventory impairment

Selling, general and administrative expense

Other segment items (1)

2 unchanged sentences

The following table summarizes total assets by segment (in thousands):

September 30,

Century Complete

2 unchanged sentences

Century Living assets include primarily multi-family rental properties under construction and properties that are in lease-up, which are included in prepaid and other assets on the condensed consolidated balance sheets.

Corporate assets include primarily costs associated with certain cash and cash equivalents, certain property and equipment, deferred tax assets, certain receivables, and prepaid insurance.

Business Combinations

On January 22, 2024, we closed the acquisition of substantially all the assets and assumed certain liabilities of Landmark Homes of Tennessee, Inc.

(“Landmark”), a homebuilder with operations, including six active communities, in Nashville, Tennessee, for approximately $ 33.4 million in cash, inclusive of customary holdbacks.

We concluded that the acquisition represented a business combination.

During the nine months ended September 30, 2024, we incurred $ 0.1 million in acquisition costs, which are reflected in other expense in our condensed consolidated statements of operations.

On July 31, 2024, we closed the acquisition of substantially all the assets and operations and assumed certain liabilities of Anglia Homes LP (“Anglia”), a homebuilder with operations, including 26 active communities, in the greater Houston, Texas area, for approximately $ 127.0 million in cash, inclusive of customary holdbacks.

We concluded that the acquisition represented a business combination, as we determined that the fair value of the gross assets acquired was not concentrated in a single identifiable asset or group of similar identifiable assets, and the acquired assets and processes have the ability to create outputs in the form of revenue from the sale of single-family residences.

During the three and nine months ended September 30, 2024, we incurred $ 0.5 million in acquisition costs, which are reflected in other expense in our condensed consolidated statements of operations.

Corporate assets include primarily costs associated with certain cash and cash equivalents, certain property and equipment, deferred tax assets, certain receivables, and certain prepaids and other assets, including prepaid insurance.

Inventories included the following (in thousands):

September 30,

Homes under construction

8 unchanged sentences

Inspire primarily finances these loans using its mortgage repurchase facilities.

Mortgage loans held for sale and mortgage servicing rights are carried at fair value, with gains and losses from the changes in fair value reflected in financial services revenue on the consolidated statements of operations.

Management believes carrying mortgage loans held for sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them.

As of September 30, 2025 and December 31, 2024, Inspire had mortgage loans held for sale with an aggregate fair value of $ 183.5 million and $ 236.9 million, respectively, and an aggregate outstanding principal balance of $ 186.8 million and $ 241.6 million, respectively.

F or the three and nine months ended September 30,

2025, the change in fair value for mortgage loans held for sale resulted in a loss of $ 0.4 million and a gain of $ 1.5 million, respectively.

For the three and nine months ended September 30, 2024, the change in fair value for mortgage loans held for sale resulted in a gain of $ 0.1 million, and a loss of $ 4.1 million, respectively.

During the second quarter of 2025, we sold mortgage servicing rights with an unpaid principal balance of approximately $ 3.0 billion.

The total unpaid principal balance of mortgage loans serviced at September 30, 2025 and December 31, 2024 was $ 401.2 million and $ 2.9 billion, respectively .

As of March 31, 2026 and December 31, 2025, Inspire had mortgage loans held for sale with an aggregate fair value of $ 213.9 million and $ 299.1 million, respectively, and an aggregate outstanding principal balance of $ 219.1 million and $ 304.9 million, respectively.

F or the three months ended March 31, 2026 and 2025, the change in fair value for mortgage loans held for sale resulted in a gain of $ 0.6 million and $ 3.2 million, respectively.

The total unpaid principal balance of mortgage loans serviced at March 31, 2026 and December 31, 2025 was $ 1.1 billion and $ 769.4 million, respectively.

Refer to Note 12 – Fair Value Disclosures for further information regarding our mortgage loans held for sale and mortgage servicing rights.

Net gains and losses from the sale of mortgage loans held for sale are included in financial services revenue on the consolidated statements of operations, and include (1) net gains on sale of loans, which are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale, with sale proceeds reflecting the cash received from investors through the sale of the mortgage loan and servicing release premium;

Net gains and losses from the sale of mortgage loans held for sale are included in financial services revenue on the condensed consolidated statements of operations, and include (1) net gains or losses on sale of loans, which are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale, with sale proceeds reflecting the cash received from investors through the sale of the mortgage loan and servicing release premium;

(2) the fair value of originated mortgage servicing rights;

3 unchanged sentences

and (6) fees earned from originating mortgage loans.

Fees earned from originating mortgage loans, which are recognized at the time the mortgage loans are funded, include origination fees, credits, commitment fees, and discount points provided directly to our customers to reduce interest rates .

Net gains on the sale of mortgage loans were $ 11.7 million and $ 39.9 million for the three and nine months ended September 30, 202 5, respectively, and were $ 15.3 million and $ 47.1 million for the three and nine months ended September 30, 2024, respectively.

Mortgage loans in process for which interest rates were locked by borrowers, or interest rate lock commitments, had an aggregate principal balance of $ 85.9 million and $ 76.3 million as of September 30, 2025 and December 31, 2024, respectively, and carried a weighted average interest rate of approximately 4.9 % and 5.5 %, respectively .

Fees earned from originating mortgage loans, which are recognized at the time the mortgage loans are funded, include origination fees, commitment fees, and discount points , net of credits.

Net gains on the sale of mortgage loans were $ 16.0 million and $ 12.8 million for the three months ended March 31, 202 6 and 2025, respectively.

Mortgage loans in process for which interest rates were locked by borrowers, or interest rate lock commitments, had an aggregate principal balance of $ 112.4 million and $ 67.5 million as of March 31, 2026 and December 31, 2025, respectively, and carried a weighted average interest rate of approximately 4.5 % and 4.7 %, respectively .

Interest rate risks related to these obligations are typically mitigated through our interest rate hedging program or by the preselling of loans to investors.

5 unchanged sentences

Prepaid expenses and other assets included the following (in thousands):

September 30,

Prepaid insurance

3 unchanged sentences

Multi-family rental properties inventory (2)

Multi-family rental properties under construction (2)

Mortgage loans held for investment at fair value (3)

Mortgage loans held for investment at amortized cost (3)

Mortgage servicing rights

Right-of-use assets

Other assets and prepaid expenses

1 unchanged sentence

(1) Restricted cash consists of restricted cash related to land development, earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain compensating balances associated with our mortgage repurchase facilities and other financing obligations.

(2) During the first quarter of 2025, our strategy evolved for our Century Living multi-family rental properties to be predominantly focused on the disposition of the assets shortly after lease stabilization and we determined that these operations have become part of our ordinary activities.

Accordingly, we reclassified $ 119.4 million associated with multi-family properties under construction within prepaid and other assets and $ 90.5 million associated with completed multi-family rental property assets within property and equipment, net to multi-family rental properties inventory within prepaid and other assets on the condensed consolidated balance sheet as of the beginning of the period.

Multi-family rental properties inventory includes multi-family rental properties that are under construction and properties that are in lease-up.

(3) During the three months ended September 30, 2025, we determined that we no longer had the intent to hold the mortgage loans, and subsequently sold the majority of the mortgage loans during the period.

(2) Multi-family rental properties inventory includes multi-family rental properties that are under construction and those in lease-up.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities included the following (in thousands):

September 30,

Earnest money deposits

5 unchanged sentences

Income taxes payable

Lease liabilities - operating leases

Other accrued liabilities

2 unchanged sentences

Amounts accrued, which are included in accrued expenses and other liabilities on the condensed consolidated balance sheets, are based upon historical experience rates.

As of March 31, 2026 and December 31, 2025, our warranty reserve was $ 11.9 million and $ 14.1 million, respectively.

We subsequently assess the adequacy of our warranty accrual on a quarterly basis through a model that incorporates historical payment trends and we adjust the amounts recorded, if necessary.

Based on warranty payment trends relative to our estimates at the time of home closing, we reduced our warranty reserve by $ 0.1 million and $ 0.3 million during the three months ended September 30, 2025 and 2024, respectively, and we reduced our warranty reserve by $ 1.4 million and $ 1.9 million during the nine months ended September 30, 2025 and 2024, respectively, which is included as a reduction to cost of home sales revenues on our condensed consolidated statements of operations.

Changes in our warranty accrual for the three and nine months ended September 30, 2025 and 2024 are detailed in the table below (in thousands) :

Three Months Ended September 30,

Nine Months Ended September 30,

Beginning balance

Warranty expense provisions

Warranty adjustment

Ending balance

Based on warranty payment trends relative to our estimates at the time of home closing, we reduced our warranty reserve by $ 3.0 million and $ 1.9 million during the three months ended March 31, 2026 and 2025, respectively, which is included as a reduction to cost of home sales revenues on our condensed consolidated statements of operations.

Self-Insurance Reserve

5 unchanged sentences

Our self-insurance liability is presented on a gross basis without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any.

Estimates of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any, are recorded as receivables when such recoveries are considered probable.

Based on a third-party actuarial analysis, we increased our self-insurance reserve by $ 1.3 million during the three and nine months ended September 30, 2025, and we reduced our self-insurance reserve by $ 0.8 million during the three and nine months ended September 30, 2024.

Estimates of insurance recoveries and amounts we have paid on behalf of and expect

to recover from other parties, if any, are recorded as receivables when such recoveries are considered probable.

During the three months ended March 31, 2026 and 2025, we recorded no adjustment to our self-insurance reserve.

Any adjustments to our self-insurance reserve would be included in cost of home sales revenues on our condensed consolidated statements of operations .

Changes in our self-insurance reserve for incurred but not reported construction defect claims for the three and nine months ended September 30, 2025 and 2024 are detailed in the table below (in thousands) :

Three Months Ended September 30,

Nine Months Ended September 30,

Changes in our self-insurance reserve for incurred but not reported construction defect claims for the three months ended March 31, 2026 and 2025 are detailed in the table below (in thousands) :

Three Months Ended March 31,

Beginning balance

2 unchanged sentences

Ending balance

Our outstanding debt obligations included the following as of September 30, 2025 and December 31, 2024 (in thousands):

September 30,

6.750 % senior notes, due June 2027 (1)

Our outstanding debt obligations included the following as of March 31, 2026 and December 31, 2025 (in thousands):

3.875 % senior notes, due August 2029 (1)

6.625 % senior notes, due September 2033 (1)

Construction loan agreements

Other financing obligations (2)

2 unchanged sentences

Mortgage repurchase facilities

(1) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest expense over the respective terms of the senior notes.

(2) As of September 30, 2025, other financing obligations included $ 26.1 million related to insurance premium notes and certain secured borrowings as well as $ 131.1 million outstanding under construction loan agreements related to Century Living.

As of December 31, 2024, other financing obligations included $ 11.0 million related to insurance premium notes and certain secured borrowings , as well as $ 102.4 million outstanding under construction loan agreements.

Issuance of 6.625% Senior Notes Due 2033

During the three months ended September 30, 2025 , we entered into an indenture with U.S.

Bank Trust Company, National Association, as trustee pursuant to which we issued $ 500.0 million aggregate principal amount of our 6.625 % Senior Notes due 2033 (the “2033 Notes”).

The 2033 Notes were issued at 100% of their principal amount and we received proceeds of $ 493.1 million, net of $ 6.9 million in issuance costs.

The indenture contains certain restrictive covenants on issuing future secured debt and other transactions, and contains various optional redemption provisions to redeem the 2033 Notes, in whole or in part, at a time before, or on or after, September 15, 2028, and a put provision triggered by certain change of control events.

The aggregate principal balance of the 2033 Notes is due in September 2033.

Interest on the 2033 Notes will accrue from September 17, 2025 at a rate of 6.625 % per annum, and will be payable semi-annually in cash in March and September of each year, beginning in March 2026.

As of September 30, 2025, the aggregate obligation, inclusive of unamortized financing costs on these notes, was $ 493.1 million.

Extinguishment of 6.750% Senior Notes Due 2027

During the three months ended September 30, 2025, we legally extinguished $ 500.0 million in outstanding principal of our 6.750 % Senior Notes due 2027 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest, totaling $ 511.4 million.

The extinguishment transaction resulted in a loss on debt extinguishment of $ 1.4 million included in other expense in the condensed consolidated statements of operations.

(1) The carrying value of senior notes reflects the impact of premiums and/or discounts (if applicable), and issuance costs that are amortized to interest expense over the respective terms of the senior notes.

(2) As of March 31, 2026 and December 31, 2025, other financing obligations included insurance premium notes and certain secured borrowings, which bore a weighted average interest rate of 5.5 % and 5.8 %, respectively.

3.875% Senior Notes Due 2029

As of September 30, 2025, we had outstanding $ 500.0 million in aggregate principal amount of our 3.875 % Senior Notes due 2029, which principal balance is due in August 2029.

As of March 31, 2026, we had outstanding $ 500.0 million in aggregate principal amount of our 3.875 % Senior Notes due 2029 (the “2029 Notes”), which principal balance is due in August 2029.

Prior to that date, interest only payments are due semi-annually in February and August of each year.

These notes were issued under an indenture which contains certain restrictive covenants on issuing future secured debt and other transactions, and contains various optional redemption provisions to redeem the 2029 Notes, in whole or in part, at a time before, or on or after, February 15, 2029, and a put provision triggered by certain change of control events.

As of September 30, 2025, the aggregate obligation, inclusive of unamortized financing costs on these notes, was $ 497.0 million.

These notes were issued under an indenture which contains certain restrictive covenants on issuing future secured debt and other transactions, and contains various optional redemption provisions to redeem the 2029 Notes, in whole or in part, at a time before, on, or after, February 15, 2029, and a put provision triggered by certain change of control events.

As of March 31, 2026, the aggregate obligation, inclusive of unamortized financing costs on these notes, was $ 497.4 million.

6.625% Senior Notes Due 2033

As of March 31, 2026, we had outstanding $ 500.0 million in aggregate principal amount of our 6.625 % Senior Notes due 2033 (the “2033 Notes”), which principal balance is due in September 2033.

Prior to that date, interest only payments are due semi-annually in March and September of each year.

These notes were issued under an indenture which contains certain restrictive covenants on issuing future secured debt and other transactions, and contains various optional redemption provisions to redeem the 2033 Notes, in whole or in part, at a time before, on, or after, September 15, 2028, and a put provision triggered by certain change of control events.

As of March 31, 2026, the aggregate obligation, inclusive of unamortized financing costs on these notes, was $ 493.6 million.

Construction Loan Agreements

2 unchanged sentences

Portions of the obligations under the secured construction loan agreements are guaranteed by us.

Borrowings under the construction loan agreements bear interest at various rates, including a fixed rate and floating interest rates per annum equal to the Secured Overnight Financing Rate (which we refer to as “SOFR”) plus an applicable margin.

The outstanding principal balances and all accrued and unpaid interest is due on varying maturity dates from March 17, 2026 through February 28, 2029 , with certain of the construction loan agreements allowing for the option to extend the maturity dates for a period of 12 months if certain conditions are satisfied.

Borrowings under the construction loan agreements bear interest at various rates, including floating interest rates per

annum equal to the Secured Overnight Financing Rate (which we refer to as “SOFR”) plus an applicable margin.

The outstanding principal balances and all accrued and unpaid interest is due on varying maturity dates from December 31, 2026 through February 28, 2029, with certain of the construction loan agreements allowing for the option to extend the maturity dates for a period of 12 months if certain conditions are satisfied.

The construction loan agreements contain customary affirmative and negative covenants (including covenants related to construction completion, and limitations on the use of loan proceeds, transfers of land, equipment, and improvements), as well as customary events of default.

Interest on our construction loan agreements is capitalized to the multi-family properties assets included in prepaid expenses and other assets on the condensed consolidated balance sheets while the related multi-family rental properties are being actively developed.

As of September 30, 2025 and December 31, 2024, $ 131.1 million and $ 102.4 million was outstanding under the construction loan agreements respectively, with borrowings that bore a weighted average interest rate of 6.6 % and 6.5 % as of September 30, 2025 and December 31, 2024, respectively, and we were in compliance with all covenants thereunder.

As of March 31, 2026 and December 31, 2025, $ 104.8 million and $ 90.3 million was outstanding under the construction loan agreements respectively, with borrowings that bore a weighted average interest rate of 6.0 % and 6.1 % as of March 31, 2026 and December 31, 2025, respectively, and we were in compliance with all covenants thereunder.

Revolving Line of Credit

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The Credit Agreement also provides for customary fees including commitment fees payable to each lender ranging from 0.20 % to 0.35 % per annum based on our leverage ratio of the unused portion of the revolving line of credit and other customary fees.

As of September 30, 2025 and December 31, 2024, $ 339.0 million and $ 135.5 million, respectively, was outstanding under the revolving line of credit, with borrowings that bore an interest rate of 5.7 % and 5.9 %, respectively, and we were in compliance with all covenants under the Credit Agreement.

As of March 31, 2026 and December 31, 2025, $ 203.7 million and $ 51.5 million, respectively, was outstanding under the revolving line of credit, with borrowings that bore an interest rate of 5.2 % and 5.2 %, respectively, and we were in compliance with all covenants under the Credit Agreement.

Mortgage Repurchase Facilities – Financial Services

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Morgan Chase Bank, N.A., U.S.

Bank National Association and Truist Bank, which provide Inspire with uncommitted repurchase facilities of up to an aggregate of $ 375.0 million as of September 30, 2025, secured by the mortgage loans financed thereunder.

The repurchase facilities have varying short term maturity dates through June 1, 2026 .

Borrowings under the mortgage repurchase facilities bear interest at variable interest rates per annum equal to SOFR plus an applicable margin, and bore a weighted average interest rate of 5.8 % as of September 30, 2025.

Bank National Association and Truist Bank, which provide Inspire with uncommitted repurchase facilities of up to an aggregate of $ 375.0 million as of March 31, 2026, secured by the mortgage loans financed thereunder.

The repurchase facilities have varying short term maturity dates through November 13, 2026 .

Amounts outstanding under the repurchase facilities are not guaranteed by us or any of our subsidiaries, and the agreements contain various affirmative and negative covenants applicable to Inspire that are customary for arrangements of this type.

As of September 30, 2025 and December 31, 2024, we had $ 176.6 million and $ 232.8 million outstanding under the repurchase facilities, respectively, and were in compliance with all covenants thereunder.

As of March 31, 2026 and December 31, 2025, we had $ 211.2 million and $ 289.3 million outstanding under the repurchase facilities, respectively, and were in compliance with all covenants thereunder.

Interest on Senior Notes and Revolving Line of Credit

Interest on our senior notes and revolving line of credit, if applicable, is capitalized to homebuilding inventories while the related communities are being actively developed and until homes are completed.

As our qualifying assets exceeded our outstanding debt during the three and nine months ended September 30, 2025 and 2024, we capitalized all interest costs incurred on these facilities during these periods.

As our qualifying assets exceeded our outstanding debt during the three months ended March 31, 2026 and 2025, we capitalized all interest costs incurred on these facilities during these periods.

Our interest costs were as follows (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Interest capitalized beginning of period

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At the end of each interim period, we are required to estimate our annual effective tax rate for the fiscal year and to use that rate to provide for income taxes for the current year-to-date reporting period.

Our 2025 estimated annual effective tax rate, before discrete items, of 25.0 %, is driven by our blended federal and state statutory rate of 24.8 %, and certain permanent differences between GAAP and tax, including disallowed deductions for executive compensation, and offset by estimated federal energy home credits for current year home deliveries.

For the nine months ended September 30, 2025, our estimated annual rate of 25.0 % was benefitted by discrete items which had a net impact of decreasing our rate by 0.7 %, including federal energy home tax credits claimed in excess of previous estimates and the impact of excess tax benefits for vested stock-based compensation.

Our 2026 estimated annual effective tax rate, before discrete items, of 26.3 %, is driven by our blended federal and state statutory rate of 24.6 %, and certain permanent differences between GAAP and tax, including disallowed deductions for executive compensation, partially offset by estimated federal energy home credits for current year home deliveries, which combined resulted in a net increase in our effective tax rate of 1.7 % .

For the three months ended March 31, 2026, our estimated annual rate of 26.3 % was impacted by discrete items which increased our rate by 0.5 %, primarily related to a shortfall in tax deductions for stock-based compensation awards that vested during the period.

On July 4, 2025, H.R.1, the One Big Beautiful Bill Act , was signed into law, which disallows Section 45L tax credits for new energy-efficient homes delivered after June 30, 2026.

As a result, our income tax expense and effective tax rate would not reflect a benefit from such tax credits as to homes delivered after that date.

For the three months ended September 30, 2025 and 2024, we recorded income tax expense of $ 10.4 million and $ 26.9 million, respectively .

For the nine months ended September 30, 2025 and 2024, we recorded income tax expense of $ 35.8 million and $ 73.8 million, respectively.

As a result, our income tax expense and effective tax rate for 2026 will not reflect a benefit from such tax credits as to homes delivered after June 30, 2026.

For the three months ended March 31, 2026 and 2025, we recorded income tax expense of $ 8.9 million and $ 13.1 million, respectively .

Fair Value Disclosures

Fair value measurements are used for the Company’s mortgage loans held for sale, certain mortgage loans held for investment, mortgage servicing rights, interest rate lock commitments and other derivative instruments on a recurring basis.

Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage servicing rights, interest rate lock commitments and other derivative instruments on a recurring basis.

We also utilize fair value measurements on a non-recurring basis for inventories and intangible assets when events and circumstances indicate that the carrying value is not recoverable.

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The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service.

 Mortgage loans held for investment at fair value – A portion of our mortgage loans held for investment included in prepaid expenses and other assets , which were those determined to be unsaleable and transferred from mortgage loans held for sale, are recorded at fair value and are calculated based on a Level 3 analysis which incorporates information including the value of underlying collateral, from markets where there is little observable trading activity.

The following outlines the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2025 and December 31, 2024, respectively (in thousands):

September 30,

The following outlines the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2026 and December 31, 2025, respectively (in thousands):

Balance Sheet Classification

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Mortgage loans held for sale

Mortgage loans held for investment at fair value (1)

Prepaid expenses and other assets

Mortgage servicing rights (1)

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Accrued expenses and other liabilities

(1) During the three months ended September 30, 2025, mortgage loans held for investment at fair value totaling $ 20.0 million were transferred to mortgage loans held for sale, as we no longer had the intent to hold the mortgage loans, and subsequently sold the majority of the mortgage loans during the period.

The unobservable inputs used in the valuation of the mortgage loans held for investment at fair value include, among other items, the value of underlying collateral, from markets where there is little observable trading activity.

(2) The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were a weighted average of 7.8 %, 10.4 %, and $ 80 per year per loan, respectively, as of September 30, 2025 , and 8.5 %, 10.6 %, and $ 74 per year per loan, respectively, as of December 31, 2024.

(1) The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were a weighted average of 8.0 %, 11.7 %, and $ 76 per year per loan, respectively, as of March 31, 202 6, and 7.8 %, 10.4 %, and $ 80 per year per loan, respectively, as of December 31, 2025.

The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement.

The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements, with gains and losses from the changes in fair value reflected in financial services revenue on our condensed consolidated statements of operations (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Mortgage servicing rights

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End of period

Three Months Ended September 30,

Nine Months Ended September 30,

Mortgage loans held-for-investment at fair value

Beginning of period

Transfers from loans held for sale

Transfers to loans held for sale

Reduction in unpaid principal balance

Changes in fair value

End of period

During the three months ended September 30, 2025, mortgage loans held for investment at fair value totaling $ 20.0 million were transferred to mortgage loans held for sale, as we no longer had the intent to hold the mortgage loans, and subsequently sold the majority of the mortgage loans during the period.

During the second quarter of 2025, we sold mortgage servicing rights with an unpaid principal balance of approximately $ 3.0 billion for approximately $ 47.3 million, including customary holdbacks.

For the financial assets and liabilities that the Company does not reflect at fair value, the following present both their respective carrying value and fair value at September 30, 2025 and December 31, 2024, respectively (in thousands).

September 30, 2025

For the financial assets and liabilities that the Company does not reflect at fair value, the following present both their respective carrying value and fair value at March 31, 2026 and December 31, 2025, respectively (in thousands).

March 31, 2026

December 31, 2025

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6.625 % senior notes (1)(2)

Revolving line of credit (3)

Construction loan agreements (3)(4)

Other financing obligations (3)(5)

Revolving line of credit (3)

Mortgage repurchase facilities (3)

(1) Estimated fair value of the senior notes is based on recent trading activity in inactive markets.

(2) During the three months ended September 30, 2025, we entered into an indenture pursuant to which we issued $ 500.0 million aggregate principal amount of our 6.625 % senior notes due 2033 and we legally extinguished $ 500.0 million in outstanding principal of our 6.750 % senior notes due 2027.

(2) Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts.

As of September 30, 2025, these amounts totaled $ 3.0 million and $ 6.9 million for the 3.875 % senior notes and 6.625 % senior notes, respectively.

As of March 31, 2026, these amounts totaled $ 2.6 million and $ 6.4 million for the 3.875 % senior notes and 6.625 % senior notes, respectively.

As of December 31, 2025, these amounts totaled $ 2.8 million and $ 6.6 million for the 3.875 % senior notes and 6.625 % senior notes, respectively.

(3) Carrying amount approximates fair value due to short-term nature and/or interest rate terms.

(4) As of September 30, 2025, other financing obligations included $ 26.1 million related to insurance premium notes and certain secured borrowings that bore a weighted average interest rate of 6.0 %, and $ 131.1 million related to outstanding borrowings on the construction loan agreements related to Century Living that bore a weighted average interest rate of 6.6 %.

As of December 31, 2024, other financing obligations included $ 11.0 million related to insurance premium notes and certain secured borrowings that bore a weighted average interest rate of 6.7 %, and $ 102.4 million related to outstanding borrowings on the construction loan agreements that bore a weighted average interest rate of 6.5 %.

(4) As of March 31, 2026 and December 31, 2025, construction loan agreements related to Century Living bore a weighted average interest rate of 6.0 % and 6.1 %, respectively.

(5) As of March 31, 2026 and December 31, 2025, other financing obligations related to insurance premium notes and certain secured borrowings bore a weighted average interest rate of 5.5 % and 5.8 %, respectively.

Non-financial assets and liabilities include items such as inventory and property and equipment that are measured at fair value when acquired and as a result of impairments, if deemed necessary.

D uring the three months ended September 30, 2025, we determined that inventory with a carrying value before impairment of $ 11.9 million for three communities in our Texas, Southeast, and Century Complete segments was not recoverable.

D uring the nine months ended September 30, 2025, we determined that inventory with a carrying value before impairment of $ 41.3 million for eight communities in our Texas, Southeast and Century Complete segments was not recoverable.

Accordingly, during the three and nine months ended September 30, 2025, we recognized impairment charges of an aggregate $ 3.2 million and $ 11.0 million, respectively, in order to record the communities at fair value .

During the three months ended September 30, 2024, w e recognized impairment charges of $ 1.4 million related to two communities with a carrying value before impairment of $ 10.6 million, and during the nine months ended September 30, 2024, w e recognized impairment charges of $ 1.9 million related to four communities with a carrying value before impairment of $ 15.2 million.

The estimated fair values of the communities were determined through a discounted cash flow approach utilizing Level 3 inputs.

When estimating future discounted cash flows, we utilized a weighted-average discount rate of approximately 12 % in each of our valuations during the three months and nine months ended September 30, 2025 and 2024, respectively.

Changes in our cash flow projections in future periods related to our communities may change our conclusions on the recoverability of inventory in the future.

No impairment charges were recorded in the three months ended March 31, 2026.

During the three months ended March 31, 2025, we recorded impairment charges of $ 0.4 million for one community.

The estimated fair value of this community was measured using a

discounted cash flow approach with Level 3 inputs, and reflects the estimated fair value in the prior period that the impairment was identified.

When estimating future discounted cash flows, we utilized a weighted-average discount rate of approximately 10 % in our valuation during the three months ended March 31, 2025.

Changes in our cash flow projections in future periods related to this community may change our conclusions on the recoverability of inventory in the future.

Stock-Based Compensation

During the nine months ended September 30, 2025 and 2024, we granted restricted stock units (which we refer to as “RSUs”) covering 0.2 million and 0.2 million shares of common stock, respectively, with a grant date fair value of $ 76.14 and $ 86.01 per share, respectively, that vest over a three year period.

During the nine months ended September 30, 2025 and 2024, we granted 16.0 thousand and 11.0 thousand shares of common stock, respectively, on an unrestricted basis (which we refer to as “stock awards”) with a grant date fair value of $ 53.26 and $ 82.84 per share, respectively, to our non-employee directors.

During the nine months ended September 30, 2025, we granted performance share units (which we refer to as “PSUs”) covering up to 0.5 million shares of common stock assuming maximum level of performance with a weighted-average grant date fair value of $ 67.01 per share that are subject to service, performance, and market vesting conditions.

During the three months ended March 31, 2026 and 2025, we granted restricted stock units (which we refer to as “RSUs”) covering 0.3 million and 0.2 million shares of common stock, respectively, with a grant date fair value of $ 67.99 and $ 76.38 per share, respectively, that vest over a three year period.

During the three months ended March 31, 2026, we did no t grant performance share units (which we refer to as “PSUs”).

During the three months ended March 31, 2025, we granted PSUs covering up to an aggregate of 0.5 million shares of common stock, assuming maximum level of performance with a weighted-average grant date fair value of $ 67.01 per share that are subject to service, performance, and market vesting conditions.

The quantity of shares that will vest and be issued upon settlement of the PSUs ranges from 0 % to up to 250 % of a targeted number of shares depending upon the participant and will be determined based on achievement of three-year cumulative revenue and three-year cumulative adjusted pre-tax income performance goals.

The ultimate share payout may then be adjusted by a relative total shareholder return modifier based on our three-year cumulative total stockholder return (which we refer to as “TSR”) relative to the average TSR of all companies in a defined peer group, with the potential to decrease the payout by 10% or increase it up to 20%.

W e u tilize the Monte Carlo simulation model to determine the fair value of PSUs that contain market conditions , and stock-based compensation expense is recognized ratably for awards subject to market conditions regardless of whether the market condition is satisfied, provided that the requisite service has been met.

During the nine months ended September 30, 2024, we granted PSUs covering up to 0.3 million shares of common stock assuming maximum level of performance with a grant date fair value of $ 82.23 per share that are subject to both service and performance vesting conditions.

The quantity of shares that will ultimately vest and be issued upon settlement of the PSUs ranges from 0 % to 250 % of a targeted number of shares and will be determined based on achievement of a three-year cumulative adjusted pre-tax income performance goal.

During the nine months ended September 30, 2025 and 2024, we issued 0.4 million and 0.2 million shares of common stock, respectively, upon the vesting and settlement of PSUs that were granted in previous periods.

Approximately 1.1 million shares will vest from 2026 to 2028 if the defined maximum performance targets are met and, for applicable awards, if the defined maximum TSR conditions are met, and no shares will vest if the defined minimum performance targets are not met.

A summary of our outstanding RSUs and PSUs, assuming the current estimated level of performance achievement , are as follows (in thousands, except years):

September 30, 2025

Unvested units

The ultimate share payout may then be adjusted by a relative total stockholder return modifier based on our three-year cumulative total stockholder return (which we refer to as “TSR”) relative to the average TSR of all companies in a defined peer group, with the potential to decrease the payout by 10 % or increase it by up to 20 %.

During the three months ended March 31, 2026 and 2025, we issued 0.4 million and 0.4 million shares of common stock, respectively, upon the settlement of PSUs based on final achievement of the performance level goals specified under the terms of the PSU awards granted in previous periods.

Approximately 0.7 million shares will be issued upon settlement from 2027 to 2028 if the defined service and maximum performance targets under currently outstanding PSU awards are met and, for applicable PSU awards, if the defined maximum TSR conditions are met, and no shares will be issued upon settlement if the defined service or minimum performance targets are not met.

A summary of our nonvested awards, including PSUs , assuming the current estimated level of performance achievement , and RSUs, are as follows (in thousands, except years):

March 31, 2026

Nonvested awards

Unrecognized compensation cost

Weighted-average years to recognize compensation cost

During the three months ended September 30, 2025 and 2024, we recognized stock-based compensation expense of $ 5.5 million and $ 7.4 million, respectively.

During the nine months ended September 30, 2025 and 2024, we recognized stock-based compensation expense of $ 13.7 million and $ 18.1 million, respectively.

Stock-based compensation expense is included in selling, general, and administrative expense on our condensed consolidated statements of operations.

Stock-based compensation expense for PSUs is initially estimated based on target performance achievement and adjusted as appropriate throughout the performance period.

During the three months ended March 31, 2026 and 2025, we recognized stock-based compensation expense of $ 1.8 million and $ 0.3 million, respectively, which is included in selling, general, and administrative expense on our condensed consolidated statements of operations.

Stock-based compensation expense for PSUs is initially estimated based on target performance achievement and then adjusted as appropriate throughout the respective three-year performance periods.

Accordingly, future compensation cost associated with outstanding PSUs may increase or decrease based on the probability and extent of achievement with respect to the applicable performance measures.

During the three and nine months ended September 30, 2025, in accordance with ASC 718, Compensation—Stock Compensation, we updated our recognition of stock-based compensation expense associated with previously granted PSU awards to reflect probable financial results as they relate to the performance goals of the awards.

Accordingly, our estimate of the number of shares which will ultimately vest and be issued upon settlement of certain PSU awards decreased approximately 0.1 million shares and 0.1 million shares during the three and nine months ended September 30, 2025, respectively.

During the three and nine months ended September 30, 2025, we recorded cumulative net adjustments to reduce stock-based compensation expense of $ 1.4 million ($ 1.1 million net of tax) or $ 0.04 per basic share and diluted share, and $ 6.1 million ($ 4.7 million net of tax), and $ 0.15 per basic share and diluted share, respectively.

During the three months ended March 31, 2026 and 2025, in accordance with ASC 718, Compensation—Stock Compensation , we updated our recognition of stock-based compensation expense associated with previously granted PSU awards to reflect probable financial results as they relate to the performance goals of the PSU awards.

During the three months ended March 31, 2026 and 2025, our estimate of the number of shares which will ultimately vest and be issued upon settlement of certain PSU awards decreased by approximately 0.1 million shares and 0.1 million shares, respectively, and we recorded cumulative adjustments to reduce stock-based compensation expense of $ 3.4 million ($ 2.5 million net of tax), or $ 0.09 per share (basic and diluted) and $ 5.8 million ($ 4.3 million net of tax), or $ 0.14 per share (basic and diluted) , respectively.

Stockholders’ Equity

The Company’s authorized capital stock consists of 100.0 million shares of common stock, par value $ 0.01 per share, and 50.0 million shares of preferred stock, par value $ 0.01 per share.

As of September 30, 2025 and December 31, 2024, there were 29.4 million and 31.0 million shares of common stock issued and outstanding, respectively, and no shares of preferred stock outstanding.

As of March 31, 2026 and December 31, 2025, there were 28.8 million and 29.1 million shares of common stock issued and outstanding, respectively, and no shares of preferred stock outstanding.

On May 4, 2022, the stockholders approved the adoption of the Century Communities, Inc.

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Under the 2022 Incentive Plan, 3.1 million shares of common stock are available for issuance to eligible participants, plus 51.2 thousand shares of our common stock that remained available for issuance under the 2017 Incentive Plan and any shares subject to awards outstanding under the 2017 Incentive Plan that are subsequently forfeited, cancelled, expire or otherwise terminate without the issuance of such shares.

During the nine months ended September 30, 2025 and 2024, we issued 0.6 million and 0.3 million shares of common stock, respectively, related to the vesting and settlement of RSUs and PSUs.

As of September 30, 2025, approximately 1.5 million shares of common stock remained available for issuance under the 2022 Incentive Plan .

The following table sets forth cash dividends declared by our Board of Directors to holders of record of our common stock during the three and nine months ended September 30, 2025 and 2024, respectively (dollars in thousands, except per share information):

Nine months ended September 30, 2025

During the three months ended March 31, 2026 and 2025, we issued

0.6 million and 0.6 million shares of common stock, respectively, related to the vesting and settlement of RSUs and PSUs.

As of March 31, 2026, approximately 1.3 million shares of common stock remained available for issuance under the 2022 Incentive Plan , assuming maximum levels of performance achievement for nonvested PSUs.

The following tables set forth cash dividends declared by our Board of Directors to holders of record of our common stock during the three months ended March 31, 2026 and 2025, respectively (dollars in thousands, except per share information):

Three Months Ended March 31, 2026

Cash Dividends Declared and Paid

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March 11, 2026

June 11, 2025

August 13, 2025

August 27, 2025

September 10, 2025

Nine months ended September 30, 2024

Three Months Ended March 31, 2025

Cash Dividends Declared and Paid

3 unchanged sentences

March 12, 2025

June 12, 2024

August 14, 2024

August 28, 2024

September 11, 2024

Under the 2022 Incentive Plan, at the discretion of the Compensation Committee of the Board of Directors, RSUs and PSUs granted under the plan have the right to earn dividend equivalents, which entitles the holders of such RSUs and PSUs to additional RSUs and PSUs equal to the same dividend value per share as holders of common stock.

Dividend equivalents are subject to the same vesting and other terms and conditions as the underlying RSUs and PSUs.

Our stock repurchase program authorizes us to repurchase up to 4.5 million shares of our outstanding common stock, of which 2.8 million shares remained available to be repurchased as of September 30, 2025.

During the three and nine months ended September 30, 2025, an aggregate of 296.9 thousand shares and 1.9 million shares, respectively, were repurchased under our stock repurchase program for a total purchase price of approximately $ 20.0 million and $ 123.6 million, respectively, and a weighted average price of $ 67.36 and $ 63.91 per share, respectively , excluding the excise tax accrued on our net share repurchases as a result of the Inflation Reduction Act of 2022.

We did no t repurchase any shares of common stock during the three months ended September 30, 2024.

During the nine months ended September 30, 2024, an aggregate of 651.9 thousand shares were repurchased for a total purchase price of approximately $ 53.1 million and a weighted average price of $ 81.49 per share.

During the nine months ended September 30, 2025 and 2024, shares of common stock at a total cost of $ 17.3 million and $ 10.5 million, respectively , were netted and surrendered as payment for minimum statutory withholding obligations in connection with the vesting of outstanding stock-based compensation awards.

Our stock repurchase program authorizes us to repurchase up to 4.5 million shares of our outstanding common stock, of which 1.8 million shares remained available to be repurchased as of March 31, 2026.

During the three months ended March 31, 2026 and 2025, an aggregate of 617.1 thousand shares and 753.3 thousand shares, respectively, were repurchased under our stock repurchase program for a total purchase price of approximately $ 40.0 million and $ 55.6 million, respectively, and a weighted average price of $ 64.82 and $ 73.76 per share, respectively , excluding the excise tax accrued on our net share repurchases as a result of the Inflation Reduction Act of 2022.

During the three months ended March 31, 2026 and 2025, shares of common stock at a total cost of $ 15.3 million and $ 17.2 million, respectively , were netted and surrendered as payment for minimum statutory withholding obligations in connection with the vesting of outstanding stock-based compensation awards.

Shares surrendered by the participants in accordance with the applicable award agreements and plan are deemed repurchased and retired by us but are not part of our publicly announced stock repurchase program.

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We use the treasury stock method to calculate earnings per share as our currently issued non-vested RSUs and PSUs do not have participating rights.

The following table sets forth the computation of basic and diluted earnings per share (which we refer to as “EPS”) for the three and nine months ended September 30, 2025 and 2024 (in thousands, except share and per share information):

Three Months Ended September 30,

Nine Months Ended September 30,

The following table sets forth the computation of basic and diluted earnings per share (which we refer to as “EPS”) for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share information):

Three Months Ended March 31,

Weighted average common shares outstanding - basic

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Stock-based awards are excluded from the calculation of diluted EPS in the event they are subject to unsatisfied performance conditions or are antidilutive.

We excluded 0.7 million and 0.7 million common stock unit equivalents from diluted earnings per share during the

three and nine months ended September 30, 2025, respectively, and we excluded 0.4 million and 0.4 million common stock unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2024 , respectively, related to the PSUs for which performance conditions remained unsatisfied.

We excluded 0.3 million and 0.3 million common stock unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2025, respectively, that were antidilutive.

No amounts were antidilutive during the three and nine months ended September 30, 2024.

We excluded 0.7 million and 0.7 million common stock unit equivalents from diluted earnings per share during the three months ended March 31, 2026 and 2025, respectively, related to the PSUs for which performance conditions remained unsatisfied, assuming maximum levels of performance achievement.

We excluded 0.3 million and 0.2 million common stock unit equivalents from diluted earnings per share during the three months ended March 31, 2026 and 2025 respectively, that were antidilutive.

Commitments and Contingencies

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In the normal course of business, we post letters of credit and performance and other bonds primarily related to our land development performance obligations with local municipalities.

As of September 30, 2025 and December 31, 2024, we had issued and outstanding letters of credit of $ 74.7 million and $ 97.5 million, respectively, and we had issued and outstanding performance and other bonds of $ 450.1 million and $ 466.0 million, respectively.

As of March 31, 2026 and December 31, 2025, we had issued and outstanding letters of credit under various facilities of $ 60.2 million and $ 65.3 million, respectively, and we had issued and outstanding performance and other bonds of $ 407.8 million and $ 445.1 million, respectively.

Legal Proceedings

We are subject to claims and lawsuits that arise primarily in the ordinary course of business, which consist primarily of construction claims.

It is the opinion of our management that if the claims have merit, parties other than the Company would be, at least in part, liable for the claims, and the eventual outcome of these claims will not have a material adverse effect upon our consolidated financial condition, results of operations, or cash flows.

When we believe that a loss is probable and estimable, we record a charge on our condensed consolidated statements of operations for our estimated loss.

The Company and our subsidiaries and affiliates are subject to claims, lawsuits and other legal actions from time to time that arise primarily in the ordinary course of business, which consist mostly of construction claims, but also could include warranty, workers’ compensation, tort, breach of contract, employment, personal injury, and other similar claims.

It is the opinion of management that if the construction or warranty claims have merit, parties other than the Company would be, at least in part, liable for the claims, and eventual outcome of these claims will not have a material adverse effect upon our consolidated financial condition, results of operations, or cash flows.

When we believe that a loss is probable and estimable, we record the estimated amount to other accrued liabilities included in accrued expenses and other liabilities on the condensed consolidated balance sheet.

We are also involved in other claims and/or legal proceedings for which a loss is reasonably possible, but for which we are unable to estimate a possible loss or range of loss due to evolving facts and inherent uncertainties.

Under various insurance policies, we have the ability to recoup costs in excess of applicable self-insured retentions.

Estimates of such amounts are recorded in other assets on our condensed consolidated balance sheet when recovery is probable.

We do not believe that the ultimate resolution of any claims and lawsuits will have a material adverse effect upon our consolidated financial position, results of operations, or cash flows.

Estimates of such amounts are recorded in accounts receivable on our condensed consolidated balance sheet when recovery is probable.

We do not believe that the ultimate resolution of any claims, lawsuits and other legal actions will have a material adverse effect upon our consolidated financial position, results of operations, or cash flows.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements