Century Communities, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS. Century Communities, Inc. Condensed Consolidated Balance Sheets As of March 31, 2026 and December 31, 2025 (in thousands, except share and per share amounts) March 31, December 31, 2026 2025 Assets (unaudited) (audited) Cash and cash equivalents $ 78,182 $ 109,443 Cash held in escrow 11,621 48,571 Accounts receivable 55,728 57,242 Inventories 3,525,742 3,361,158 Mortgage loans held for sale 213,947 299,145 Prepaid expenses and other assets 475,283 435,683 Property and equipment, net 70,822 69,368 Deferred tax assets, net 37,351 38,176 Goodwill 41,109 41,109 Total assets $ 4,509,785 $ 4,459,895 Liabilities and stockholders' equity Liabilities: Accounts payable $ 152,195 $ 114,416 Accrued expenses and other liabilities 276,770 310,602 Notes payable 1,112,751 1,102,376 Revolving line of credit 203,700 51,500 Mortgage repurchase facilities 211,170 289,269 Total liabilities 1,956,586 1,868,163 Stockholders' equity: Preferred stock, $ 0.01 par value, 50,000,000 shares authorized, none outstanding — — 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 288 291 Additional paid-in capital 332,425 385,962 Retained earnings 2,220,486 2,205,479 Total stockholders' equity 2,553,199 2,591,732 Total liabilities and stockholders' equity $ 4,509,785 $ 4,459,895 See Notes to Unaudited Condensed Consolidated Financial Statements ‎ 3 Table of Contents Century Communities, Inc. Unaudited Condensed Consolidated Statements of Operations For the Three Months Ended March 31, 2026 and 2025 (in thousands, except share and per share amounts) Three Months Ended March 31, 2026 2025 Revenues Homebuilding revenues Home sales revenues $ 734,106 $ 883,736 Land sales and other revenues 33,171 962 Total homebuilding revenues 767,277 884,698 Financial services revenues 22,396 18,534 Total revenues 789,673 903,232 Homebuilding cost of revenues Cost of home sales revenues ( 603,291 ) ( 707,915 ) Cost of land sales and other revenues ( 22,571 ) ( 827 ) Total homebuilding cost of revenues ( 625,862 ) ( 708,742 ) Financial services costs ( 14,751 ) ( 16,174 ) Selling, general and administrative expense ( 116,082 ) ( 120,760 ) Other income (expense), net 353 ( 5,038 ) Income before income tax expense 33,331 52,518 Income tax expense ( 8,922 ) ( 13,134 ) Net income $ 24,409 $ 39,384 Earnings per share: Basic $ 0.84 $ 1.28 Diluted $ 0.84 $ 1.26 Weighted average common shares outstanding: Basic 29,189,596 30,801,046 Diluted 29,217,503 31,145,867 See Notes to Unaudited Condensed Consolidated Financial Statements 4 Table of Contents Century Communities, Inc. Unaudited Condensed Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2026 and 2025 (in thousands) Three Months Ended March 31, 2026 2025 Operating activities Net income $ 24,409 $ 39,384 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 5,352 6,428 Stock-based compensation expense 1,780 292 Fair value adjustments of mortgage-related assets and liabilities ( 3,204 ) ( 4,654 ) Inventory impairment — 411 Abandonment of lot option contracts 954 1,506 Deferred income taxes 825 295 Other ( 339 ) 49 Changes in assets and liabilities: Cash held in escrow 36,950 ( 21,183 ) Accounts receivable 2,014 6,518 Inventories ( 164,653 ) ( 50,700 ) Mortgage loans held for sale 85,772 32,728 Prepaid expenses and other assets ( 35,691 ) ( 31,290 ) Accounts payable 37,779 1,170 Accrued expenses and other liabilities ( 42,269 ) ( 17,534 ) Net cash used in operating activities ( 50,321 ) ( 36,580 ) Investing activities Purchases of property and equipment ( 6,770 ) ( 3,380 ) Other investing activities ( 1,415 ) ( 713 ) Net cash used in investing activities ( 8,185 ) ( 4,093 ) Financing activities Borrowings under revolving credit facility 531,500 715,000 Payments on revolving credit facility ( 379,300 ) ( 613,500 ) Borrowing under construction loan agreements 14,569 15,642 Proceeds from issuance of notes and other 12,400 — Principal payments on notes and other ( 9,003 ) ( 7,789 ) Debt issuance costs — ( 572 ) Net payments for mortgage repurchase facilities ( 78,099 ) ( 28,530 ) Withholding of common stock upon settlement of stock-based compensation awards ( 15,279 ) ( 17,230 ) Repurchases of common stock under stock repurchase program ( 40,012 ) ( 55,578 ) Dividend payments ( 9,313 ) ( 8,922 ) Net cash provided by (used in) financing activities 27,463 ( 1,479 ) Net decrease $ ( 31,043 ) $ ( 42,152 ) Cash and cash equivalents and Restricted cash Beginning of period 139,554 175,323 End of period $ 108,511 $ 133,171 Supplemental cash flow disclosure Cash paid for income taxes $ — $ — Cash and cash equivalents and Restricted cash Cash and cash equivalents $ 78,182 $ 100,336 Restricted cash (Note 5) 30,329 32,835 Cash and cash equivalents and Restricted cash $ 108,511 $ 133,171 See Notes to Unaudited Condensed Consolidated Financial Statements 5 Table of Contents Century Communities, Inc. Unaudited Condensed Consolidated Statements of Stockholders’ Equity (in thousands) For the Three Months Ended March 31, 2026 and 2025 Common Stock Shares Amount Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Balance at December 31, 2025 29,051 $ 291 $ 385,962 $ 2,205,479 $ 2,591,732 Settlement of stock-based compensation awards 557 5 ( 5 ) — — Withholding of common stock upon settlement of stock-based compensation awards ( 222 ) ( 2 ) ( 15,277 ) — ( 15,279 ) Repurchases of common stock ( 617 ) ( 6 ) ( 40,006 ) — ( 40,012 ) Excise tax on repurchases of common stock — — ( 118 ) — ( 118 ) Stock-based compensation expense — — 1,780 — 1,780 Cash dividends declared and dividend equivalents — — 89 ( 9,402 ) ( 9,313 ) Net income — — — 24,409 24,409 Balance at March 31, 2026 28,769 $ 288 $ 332,425 $ 2,220,486 $ 2,553,199 Balance at December 31, 2024 30,961 $ 310 $ 526,959 $ 2,093,587 $ 2,620,856 Settlement of stock-based compensation awards 565 5 ( 5 ) — — Withholding of common stock upon settlement of stock-based compensation awards ( 226 ) ( 2 ) ( 17,228 ) — ( 17,230 ) Repurchases of common stock ( 753 ) ( 8 ) ( 55,570 ) — ( 55,578 ) Excise tax on repurchases of common stock — — ( 299 ) — ( 299 ) Stock-based compensation expense — — 292 — 292 Cash dividends declared and dividend equivalents — — 116 ( 9,038 ) ( 8,922 ) Net income — — — 39,384 39,384 Balance at March 31, 2025 30,547 $ 305 $ 454,265 $ 2,123,933 $ 2,578,503 See Notes to Unaudited Condensed Consolidated Financial Statements 6 Table of Contents Century Communities, Inc. Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2026 1. Basis of Presentation Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 16 states. In many of our projects, in addition to building homes, we entitle and develop the underlying land. We build and sell homes under our Century Communities and Century Complete brands. 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 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: West, Mountain, Texas, Southeast, and Century Complete. 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 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. generally accepted accounting principles (which we refer to as “GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (which we refer to as the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations for the periods presented. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2025, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 that was filed with the SEC on January 29, 2026. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We do not have any variable interest entities in which we are deemed the primary beneficiary. 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 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, 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. Recently Issued Accounting Standards In November 2024, the Financial Accounting Standards Board ( which we refer to as “FASB”) issued Accounting Standards Update ( which we refer to as “ASU”) No. 2024-03, “ Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) : Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. ASU 2024-03 will become effective for us for the fiscal year ending December 31, 2027. Early adoption is permitted, and guidance should be applied prospectively, with an option to apply guidance retrospectively. We are currently evaluating the impact of the adoption of ASU 2024-03 on our consolidated financial statements and related disclosures. 7 Table of Contents 2. Reporting Segments Our homebuilding operations are engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 16 states. We build and sell homes under our Century Communities and Century Complete brands. 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 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, centralized locations, and the internet, and generally provides no option or upgrade selections. 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)  Mountain (Arizona, Colorado, Nevada, and Utah)  Texas  Southeast (Florida, Georgia, North Carolina, South Carolina, and Tennessee)  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. Our Executive Chairman and our Chief Executive Officer, collectively, have been determined to be our Chief Operating Decision Makers (“CODMs”) to make key operating decisions and assess performance. The management of our four Century Communities geographic regions, Century Complete, our Financial Services segment, and our Century Living segment reports to our CODMs. The CODMs evaluate the segment’s operating performance and allocate resources for all of our reportable segments based on income before income tax expense. For all of the segments, the CODMs use segment income before income tax expense in the annual budget and forecasting process. 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 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 . 8 Table of Contents The following tables summarize total revenue, significant expenses, and income (loss) before income tax expense by segment (in thousands ): Three Months Ended March 31, 2026 West Mountain Texas Southeast Century Complete Financial Services Century Living Corporate Total Revenue $ 157,563 $ 160,216 $ 105,717 $ 156,651 $ 187,130 $ 22,396 $ — $ — $ 789,673 Cost of home sales revenues ( 131,471 ) ( 132,366 ) ( 87,178 ) ( 99,989 ) ( 151,769 ) — — ( 518 ) ( 603,291 ) Financial services costs — — — — — ( 14,751 ) — — ( 14,751 ) Selling, general and administrative expense ( 15,875 ) ( 19,052 ) ( 15,616 ) ( 14,536 ) ( 21,437 ) — ( 324 ) ( 29,242 ) ( 116,082 ) Other segment items (1) ( 268 ) ( 42 ) ( 115 ) ( 22,729 ) ( 355 ) — 391 900 ( 22,218 ) Income (loss) before tax expense $ 9,949 $ 8,756 $ 2,808 $ 19,397 $ 13,569 $ 7,645 $ 67 $ ( 28,860 ) $ 33,331 Three Months Ended March 31, 2025 West Mountain Texas Southeast Century Complete Financial Services Century Living Corporate Total Revenue $ 181,721 $ 225,031 $ 136,642 $ 134,445 $ 206,859 $ 18,534 $ — $ — $ 903,232 Cost of home sales revenues ( 141,509 ) ( 180,681 ) ( 109,305 ) ( 105,054 ) ( 169,181 ) — — ( 2,185 ) ( 707,915 ) Financial services costs — — — — — ( 16,174 ) — — ( 16,174 ) Selling, general and administrative expense ( 17,011 ) ( 20,419 ) ( 16,944 ) ( 14,949 ) ( 22,681 ) — ( 221 ) ( 28,535 ) ( 120,760 ) Other segment items (1) ( 1,807 ) ( 488 ) ( 42 ) ( 261 ) ( 1,175 ) — ( 1,208 ) ( 884 ) ( 5,865 ) Income (loss) before tax expense $ 21,394 $ 23,443 $ 10,351 $ 14,181 $ 13,822 $ 2,360 $ ( 1,429 ) $ ( 31,604 ) $ 52,518 (1) Includes cost of land sales and other revenues, and other income (expense). The following table summarizes total assets by segment (in thousands): March 31, December 31, 2026 2025 West $ 887,949 $ 891,808 Mountain 972,348 941,617 Texas 972,926 891,763 Southeast 588,039 581,228 Century Complete 414,192 389,954 Financial Services 326,697 436,515 Century Living 226,315 198,815 Corporate 121,319 128,195 Total assets $ 4,509,785 $ 4,459,895 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 certain prepaids and other assets, including prepaid insurance. 9 Table of Contents 3. Inventories Inventories included the following (in thousands): March 31, December 31, 2026 2025 Homes under construction $ 1,382,839 $ 1,213,810 Land and land development 2,037,944 2,046,438 Capitalized interest 104,959 100,910 Total inventories $ 3,525,742 $ 3,361,158 4. Financial Services Our Financial Services are principally comprised of our mortgage lending operations, Inspire Home Loans Inc. (which we refer to as “Inspire”). Inspire is a full-service mortgage lender and primarily originates mortgage loans for our homebuyers. Inspire sells substantially all of the loans it originates either as loans with servicing rights released, or with servicing rights retained, in the secondary mortgage market within a short period of time after origination, generally within 30 days. 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 condensed 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 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 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) the change in fair value of mortgage loans held for sale; (4) the change in fair value of derivatives instruments, including interest rate lock commitments and forward commitments on mortgage-backed securities; (5) provision for investor reserves; 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, 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. Derivative instruments used to economically hedge our market and interest rate risk are carried at fair value. Derivative instruments typically include interest rate lock commitments and forward commitments on mortgage-backed securities. Changes in fair value of these derivatives as well as any gains or losses upon settlement, are reflected in financial services revenue on our condensed consolidated statements of operations. Refer to Note 12 – Fair Value Disclosures for further information regarding our derivative instruments. ‎ 10 Table of Contents 5. Prepaid Expenses and Other Assets Prepaid expenses and other assets included the following (in thousands): March 31, December 31, 2026 2025 Prepaid insurance $ 28,163 $ 33,811 Lot option and escrow deposits 97,064 92,085 Performance deposits 10,660 10,626 Restricted cash (1) 30,329 30,111 Multi-family rental properties inventory (2) 216,505 188,543 Mortgage servicing rights 17,653 11,375 Right-of-use assets 10,525 10,944 Other assets and prepaid expenses 64,384 58,188 Total prepaid expenses and other assets $ 475,283 $ 435,683 (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) Multi-family rental properties inventory includes multi-family rental properties that are under construction and those in lease-up. 6. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities included the following (in thousands): March 31, December 31, 2026 2025 Earnest money deposits $ 6,561 $ 5,117 Warranty reserve 11,905 14,107 Self-insurance reserve 43,823 42,119 Accrued compensation costs 34,029 72,880 Land development and home construction accruals 118,479 110,431 Accrued interest 6,381 19,116 Income taxes payable 10,765 3,765 Lease liabilities - operating leases 11,127 11,611 Other accrued liabilities 33,700 31,456 Total accrued expenses and other liabilities $ 276,770 $ 310,602 7. Warranties Estimated future direct warranty costs are accrued and charged to cost of home sales revenues in the period when the related home sales revenues are recognized. 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 $ 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. 8. Self-Insurance Reserve We maintain general liability insurance coverage, including coverage for certain construction defects after homes have been delivered and premise operations during construction. These insurance policies are designed to protect us against a portion of the risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. We reserve for costs associated with such claims on an undiscounted basis at the time revenue is recognized for each home closing. Amounts accrued, which are included in accrued expenses and other liabilities on the condensed consolidated balance sheets, are based upon third party actuarial analyses that are primarily based on industry data and partially on our historical claims, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. 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 11 Table of Contents 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 months ended March 31, 2026 and 2025 are detailed in the table below (in thousands) : Three Months Ended March 31, 2026 2025 Beginning balance $ 42,119 $ 32,970 Self-insurance expense provisions 2,196 2,641 Payments ( 492 ) ( 163 ) Self-insurance adjustment — — Ending balance $ 43,823 $ 35,448 9. Debt Our outstanding debt obligations included the following as of March 31, 2026 and December 31, 2025 (in thousands): March 31, December 31, 2026 2025 3.875 % senior notes, due August 2029 (1) $ 497,394 $ 497,201 6.625 % senior notes, due September 2033 (1) 493,571 493,355 Construction loan agreements 104,838 90,269 Other financing obligations (2) 16,948 21,551 Notes payable 1,112,751 1,102,376 Revolving line of credit 203,700 51,500 Mortgage repurchase facilities 211,170 289,269 Total debt $ 1,527,621 $ 1,443,145 (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 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, 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 Certain wholly owned subsidiaries of Century Living, LLC are parties to secured construction loan agreements with various banks (which we collectively refer to as “the lenders”). These construction loan agreements collectively provide that we may borrow up to an aggregate of $ 140.1 million from the lenders for purposes of construction of multi-family projects in Colorado, with advances made by the lenders upon the satisfaction of certain conditions. 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 floating interest rates per 12 Table of Contents 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 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 We are party to a credit agreement (the “Credit Agreement”) with U.S. Bank National Association, as Administrative Agent, and the lenders party thereto, which provides us with a senior unsecured revolving credit facility (which we refer to as the “revolving line of credit”) of up to $ 1.0 billion. The revolving line of credit includes a $ 250.0 million sublimit for letters of credit. Subject to the terms and conditions of the Credit Agreement, we are entitled to request an increase in the size of the revolving line of credit by an amount not exceeding $ 400.0 million; and pursuant to those terms, on April 22, 2025, we increased our revolving line of credit from $ 900.0 million to $ 1.0 billion, resulting in $ 300.0 million remaining for possible future increases. The obligations under the Credit Agreement are guaranteed by certain of our subsidiaries. Funds are available under the revolving line of credit for the construction of homes, for the acquisition and development of land, land under development and lots for the eventual construction of homes thereon, and for working capital in the ordinary course of business. Unless terminated earlier, the revolving line of credit will mature on November 1, 2028 , and the principal amount thereunder, together with all accrued unpaid interest and other amounts owing thereunder, if any, will be payable in full on such date. Subject to the terms and conditions of the Credit Agreement, we may request once per year a one-year extension of the maturity date and up to three times during the term of the revolving line of credit, subject to the approval of the lenders and the Administrative Agent. The Credit Agreement contains customary affirmative and negative covenants (including limitations on our ability to grant liens, incur additional debt, pay dividends, redeem our common stock, make certain investments, issue certain equity securities, engage in transactions with affiliates and engage in certain merger, consolidation or asset sale transactions), as well as customary events of default. Borrowings under the Credit Agreement bear interest at a floating rate equal to Term SOFR or Daily Simple SOFR (in each case as defined in the Credit Agreement), plus an applicable margin between 1.45 % and 2.30 % per annum, or if selected by us, a base rate plus an applicable margin between 0.45 % and 1.30 % per annum. The “applicable margins” described above are determined by a schedule based on our leverage ratio, as defined in the Credit Agreement. 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 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 Inspire is party to mortgage warehouse facilities with J.P. 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 March 31, 2026, secured by the mortgage loans financed thereunder. The repurchase facilities have varying short term maturity dates through November 13, 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 5.4 % and 5.4 % as of March 31, 2026 and December 31, 2025, respectively. 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 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. 10. 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 months ended March 31, 2026 and 2025, we capitalized all interest costs incurred on these facilities during these periods. 13 Table of Contents Our interest costs were as follows (in thousands): Three Months Ended March 31, 2026 2025 Interest capitalized beginning of period $ 100,910 $ 84,325 Interest capitalized during period 17,219 17,470 Less: capitalized interest in cost of sales ( 13,170 ) ( 12,785 ) Interest capitalized end of period $ 104,959 $ 89,010 11 . Income Taxes 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 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 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 . 12. Fair Value Disclosures 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. The fair value hierarchy and its application to the Company’s assets and liabilities is as follows: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date.  Mortgage loans held for sale – Fair value is based on quoted market prices for committed and uncommitted mortgage loans.  Derivative assets and liabilities – Derivative assets are associated with interest rate lock commitments and investor commitments on loans and may also be associated with forward mortgage-backed securities contracts. Derivative liabilities are associated with forward mortgage-backed securities contracts. Fair value is based on market prices for similar instruments. Level 3 – Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at the measurement date.  Mortgage servicing rights - The fair value of the mortgage servicing rights is calculated using third-party valuations. 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. 14 Table of Contents 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): March 31, December 31, Balance Sheet Classification Hierarchy 2026 2025 Mortgage loans held for sale Mortgage loans held for sale Level 2 $ 213,947 $ 299,145 Mortgage servicing rights (1) Prepaid expenses and other assets Level 3 $ 17,653 $ 11,375 Derivative assets Prepaid expenses and other assets Level 2 $ 3,858 $ 2,157 Derivative liabilities Accrued expenses and other liabilities Level 2 $ — $ 519 (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 March 31, Mortgage servicing rights 2026 2025 Beginning of period $ 11,375 $ 42,404 Originations 5,867 3,735 Settlements ( 178 ) ( 702 ) Changes in fair value 589 ( 1,548 ) End of period $ 17,653 $ 43,889 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 Hierarchy Carrying Fair Value Carrying Fair Value Cash and cash equivalents Level 1 $ 78,182 $ 78,182 $ 109,443 $ 109,443 3.875 % senior notes (1)(2) Level 2 $ 497,394 $ 461,250 $ 497,201 $ 473,750 6.625 % senior notes (1)(2) Level 2 $ 493,571 $ 477,500 $ 493,355 $ 503,150 Construction loan agreements (3)(4) Level 3 $ 104,838 $ 104,838 $ 90,269 $ 90,269 Other financing obligations (3)(5) Level 3 $ 16,948 $ 16,948 $ 21,551 $ 21,551 Revolving line of credit (3) Level 2 $ 203,700 $ 203,700 $ 51,500 $ 51,500 Mortgage repurchase facilities (3) Level 2 $ 211,170 $ 211,170 $ 289,269 $ 289,269 (1) Estimated fair value of the senior notes is based on recent trading activity in inactive markets. (2) Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. 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 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. 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 15 Table of Contents 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. 13. Stock-Based Compensation 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 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 %. 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 period has been met. 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 657 Unrecognized compensation cost $ 33,482 Weighted-average years to recognize compensation cost 2.1 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 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. 14. 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 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. 2022 Omnibus Incentive Plan (which we refer to as the “2022 Incentive Plan”), which replaced the Century Communities, Inc. Amended and Restated 2017 Omnibus Incentive Plan (which we refer to as our “2017 Incentive Plan”). 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 three months ended March 31, 2026 and 2025, we issued 16 Table of Contents 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 Declaration Date Record Date Paid Date Per Share Amount February 4, 2026 February 25, 2026 March 11, 2026 $ 0.32 $ 9,313 Three Months Ended March 31, 2025 Cash Dividends Declared and Paid Declaration Date Record Date Paid Date Per Share Amount February 5, 2025 February 26, 2025 March 12, 2025 $ 0.29 $ 8,922 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 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. 15. Earnings Per Share 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 months ended March 31, 2026 and 2025 (in thousands, except share and per share information): Three Months Ended March 31, 2026 2025 Numerator Net income $ 24,409 $ 39,384 Denominator Weighted average common shares outstanding - basic 29,189,596 30,801,046 Dilutive effect of stock-based compensation awards 27,907 344,821 Weighted average common shares outstanding - diluted 29,217,503 31,145,867 Earnings per share: Basic $ 0.84 $ 1.28 Diluted $ 0.84 $ 1.26 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 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. 17 Table of Contents 16. Commitments and Contingencies Letters of Credit and Performance Bonds 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 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 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 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. 18 Table of Contents