What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-07-23 compared with 2026-04-23 · 146 added, 88 removed, 393 unchanged (37% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

As of March 31, 2026 and December 31, 2025

As of June 30, 2026 and December 31, 2025

(in thousands, except share and per share amounts)

15 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, 28,769,233 and 29,050,515 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

Common stock, $ 0.01 par value, 100,000,000 shares authorized, 28,432,620 and 29,050,515 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital

5 unchanged sentences

Unaudited Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2026 and 2025

For the Three and Six Months Ended June 30, 2026 and 2025

(in thousands, except share and per share amounts)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Homebuilding revenues

6 unchanged sentences

Cost of home sales revenues

( 1,338,659 )

( 1,512,437 )

Cost of land sales and other revenues

Total homebuilding cost of revenues

( 1,362,908 )

( 1,513,334 )

Financial services costs

8 unchanged sentences

Unaudited Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2026 and 2025

For the Six Months Ended June 30, 2026 and 2025

(in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities

16 unchanged sentences

Purchases of property and equipment

Proceeds from sale of mortgage servicing rights

Other investing activities

Net cash used in investing activities

Net cash (used in) provided by investing activities

Financing activities

1 unchanged sentence

Payments on revolving credit facility

( 1,260,500 )

Borrowing under construction loan agreements

5 unchanged sentences

Repurchases of common stock under stock repurchase program

Payments for excise tax on repurchases of common stock

Dividend payments

13 unchanged sentences

(in thousands)

For the Three Months Ended March 31, 2026 and 2025

For the Three Months Ended June 30, 2026 and 2025

Additional Paid-In Capital

1 unchanged sentence

Total Stockholders' Equity

Balance at December 31, 2025

Balance at March 31, 2026

Settlement of stock-based compensation awards

4 unchanged sentences

Cash dividends declared and dividend equivalents

Balance at June 30, 2026

Balance at March 31, 2025

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 June 30, 2025

For the Six Months Ended June 30, 2026 and 2025

Additional Paid-In Capital

Retained Earnings

Total Stockholders' Equity

Balance at December 31, 2025

5 unchanged sentences

Cash dividends declared and dividend equivalents

Balance at March 31, 2025

Balance at June 30, 2026

Balance at December 31, 2024

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 June 30, 2025

See Notes to Unaudited Condensed Consolidated Financial Statements

1 unchanged sentence

Notes to Unaudited Condensed Consolidated Financial Statements

March 31, 2026

June 30, 2026

Basis of Presentation

17 unchanged sentences

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.

The condensed consolidated financial statements include the accounts of the Company, and all subsidiaries in which we have a controlling interest, as well as 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.

21 unchanged sentences

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:

We have presented our homebuilding operations as the following reportable segments as of June 30, 2026:

 West (California and Washington)

12 unchanged sentences

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

Three Months Ended June 30, 2026

Century Complete

6 unchanged sentences

Income (loss) before tax expense

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Century Complete

6 unchanged sentences

Income (loss) before tax expense

Six Months Ended June 30, 2026

Century Complete

Financial Services

Century Living

Cost of home sales revenues

( 1,338,659 )

Financial services costs

Selling, general and administrative expense

Other segment items (1)

Income (loss) before tax expense

Six Months Ended June 30, 2025

Century Complete

Financial Services

Century Living

Cost of home sales revenues

( 1,512,437 )

Financial services costs

Selling, general and administrative expense

Other segment items (1)

Income (loss) before tax expense

(1) Includes cost of land sales and other revenues, and other income (expense).

3 unchanged sentences

Century Living

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.

Century Living assets primarily include 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 prepaids and other assets, including prepaid insurance, certain property and equipment, deferred tax assets, certain receivables, and certain cash and cash equivalents .

Inventories included the following (in thousands):

11 unchanged sentences

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.

As of June 30, 2026 and December 31, 2025, Inspire had mortgage loans held for sale with an aggregate fair value of $ 233.3 million and $ 299.1 million, respectively, and an aggregate outstanding principal balance of $ 238.0 million and $ 304.9 million, respectively.

The change in fair value for mortgage loans held for sale resulted in a gain of $ 0.4 million and $ 1.0 million f or the three and six months ended June 30, 2026, respectively, and resulted in a loss of $ 1.2 million and a gain of $ 2.0 million for the three and six months ended June 30, 2025 respectively.

The total unpaid principal balance of mortgage loans serviced at June 30, 2026 and December 31, 2025 was $ 1.7 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.

6 unchanged sentences

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 .

Net gains on the sale of mortgage loans were

$ 18.2 million and $ 34.2 million for the three and six months ended June 30, 202 6, respectively, and were $ 15.3 million and $ 28.1 million for the three and six months ended June 30, 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 $ 134.0 million and $ 67.5 million as of June 30, 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.

30 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.

As of June 30, 2026 and December 31, 2025, our warranty reserve was $ 12.5 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.

Based on warranty payment trends relative to our estimates at the time of home closing, we reduced our warranty reserve by $ 0.6 million and $ 3.6 million during the three and six months ended June 30, 2026, respectively, which is included as a reduction to cost of home sales revenues on our condensed consolidated statements of operations.

We increased our warranty reserve by $ 0.6 million during the three months ended June 30, 2025, and we reduced our warranty reserve by $ 1.4 million during the six months ended June 30, 2025.

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.

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

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 and six months ended June 30, 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,

Changes in our self-insurance reserve for incurred but not reported construction defect claims for the three and six months ended June 30, 2026 and 2025 are detailed in the table below (in thousands) :

Three Months Ended June 30,

Six Months Ended June 30,

Beginning balance

2 unchanged sentences

Ending balance

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

Our outstanding debt obligations included the following as of June 30, 2026 and December 31, 2025 (in thousands):

3.875 % senior notes, due August 2029 (1)

6 unchanged sentences

(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.

(2) As of June 30, 2026 and December 31, 2025, other financing obligations included certain secured borrowings and insurance premium notes, which bore a weighted average interest rate of 6.0 % 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.

As of June 30, 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.

As of June 30, 2026, the aggregate obligation, inclusive of unamortized financing costs on these notes, was $ 497.6 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.

As of June 30, 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.

As of June 30, 2026, the aggregate obligation, inclusive of unamortized financing costs on these notes, was $ 493.8 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 floating interest rates per

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

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.

1 unchanged sentence

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.

As of June 30, 2026 and December 31, 2025, $ 119.0 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 June 30, 2026 and December 31, 2025, respectively, and we were in compliance with all covenants thereunder.

Revolving Line of Credit

12 unchanged sentences

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.

As of June 30, 2026 and December 31, 2025, $ 329.6 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.

Morgan Chase Bank, N.A.

Bank National Association, which provide Inspire with uncommitted repurchase facilities, and Truist Bank, which provides Inspire with a committed repurchase facility, collectively providing up to an aggregate of $ 300.0 million as of June 30, 2026, secured by the mortgage loans financed thereunder.

The repurchase facilities have varying short term maturity dates through May 28, 2027 .

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 5.2 % and 5.4 % as of June 30, 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.

As of June 30, 2026 and December 31, 2025, we had $ 232.5 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 months ended March 31, 2026 and 2025, we capitalized all interest costs incurred on these facilities during these periods.

As our qualifying assets exceeded our outstanding debt during the three and six months ended June 30, 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 March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Interest capitalized beginning of period

4 unchanged sentences

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.

For the six months ended June 30, 2026, our estimated annual rate of 26.3 % was impacted by discrete items which increased our rate by 0.2 %, 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 .

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

For the three months ended June 30, 2026 and 2025, we recorded income tax expense of $ 12.9 million and $ 12.2 million, respectively .

For the six months ended June 30, 2026 and 2025, we recorded income tax expense of $ 21.8 million and $ 25.4 million, respectively.

Fair Value Disclosures

13 unchanged sentences

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.

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):

The following outlines the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025, respectively (in thousands):

Balance Sheet Classification

7 unchanged sentences

Accrued expenses and other liabilities

(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.

(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 7.5 %, 12.0 %, and $ 78 per year per loan, respectively, as of June 30, 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,

Three Months Ended June 30,

Six Months Ended June 30,

Mortgage servicing rights

2 unchanged sentences

End of period

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

For the financial assets and liabilities that the Company does not reflect at fair value, the following table presents both their respective carrying value and fair value at June 30, 2026 and December 31, 2025, respectively (in thousands).

The fair values of cash and cash equivalents, cash held in escrow, and restricted cash approximate their carrying values and are classified as Level 1 within the fair value hierarchy, and are not presented in the table below.

June 30, 2026

December 31, 2025

Cash and cash equivalents

3.875 % senior notes (1)(2)

6 unchanged sentences

(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 June 30, 2026, these amounts totaled $ 2.4 million and $ 6.2 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.

(4) As of June 30, 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 June 30, 2026 and December 31, 2025, other financing obligations related to certain secured borrowings and insurance premium notes, which bore a weighted average interest rate of 6.0 % 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

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.

No impairment charges were recorded during the three and six months ended June 30, 2026.

During the three months ended June 30, 2025, we recorded impairment charges of $ 7.4 million related to five communities with a carrying value before impairment of $ 31.6 million, and during the six months ended June 30, 2025, we recorded impairment charges of $ 7.8 million related to six communities with a carrying value before impairment of $ 33.7 million.

The estimated fair value of the communities was measured using a discounted cash flow approach with Level 3 inputs, and reflects estimated fair values in the periods the respective impairments were identified.

When estimating future discounted cash flows, we utilized weighted-average discount rates of approximately 12 % in our valuations during the three and six months ended June 30, 2025.

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

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.

During the six months ended June 30, 2026 and 2025, we granted restricted stock units (which we refer to as “RSUs”) covering 0.4 million and 0.2 million shares of common stock, respectively, with a grant date fair value of $ 61.22 and $ 76.38 per share, respectively, that vest over a three year period.

During the six months ended June 30, 2026 and 2025, we granted 16.1 thousand and 16.0 thousand shares of common stock, respectively, on an unrestricted basis (which we refer to as “stock awards”) with a grant date fair value of $ 54.27 and $ 53.26 per share, respectively, to our non-employee directors.

During the six months ended June 30, 2026 and 2025, we granted performance share units (which we refer to as “PSUs”) covering up to an aggregate of 0.5 million and 0.5 million shares of common stock, respectively, assuming maximum level of performance and market conditions are met with a weighted-average grant date fair value of $ 52.10 and $ 67.01 per share, respectively, 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.

1 unchanged sentence

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.

During the six months ended June 30, 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 1.2 million shares will be issued upon settlement from 2027 to 2029 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

June 30, 2026

Nonvested awards

1 unchanged sentence

Weighted-average years to recognize compensation cost

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 totaled $ 5.4 million and $ 7.9 million for the three months ended June 30, 2026 and 2025, and totaled $ 7.2 million and $ 8.2 million for the six months ended June 30, 2026 and 2025, 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 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.

During the three and six months ended June 30, 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.

Our estimate of the number of shares which will ultimately vest and be issued upon settlement of certain PSU awards increased on a net basis by approximately 0.2 million shares and 0.1 million shares during the three and six months ended June 30, 2026, respectively.

During the three and six months ended June 30, 2026, we recorded net cumulative adjustments to reduce stock-based compensation expense of $ 0.7 million ($ 0.6 million net of tax), or $ 0.02 per share (basic and diluted) and $ 4.2 million ($ 3.1 million net of tax), or $ 0.11 per share (basic and diluted) , respectively.

During the three and six months ended June 30, 2025, our estimate of the number of shares expected to vest increased by a total of 0.2 million shares and 40 thousand shares respectively.

During the three months ended June 30, 2025, we recorded a cumulative adjustment to increase stock-based compensation expense of $ 1.0 million ($ 0.8 million net of tax), or $ 0.03 per basic share and $ 0.02 per diluted share, and during the six months ended June 30, 2025, we recorded a cumulative adjustment to reduce stock-based compensation expense of $ 4.7 million ($ 3.5 million net of tax), or $ 0.12 per basic share and $ 0.11 per diluted share.

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.

As of June 30, 2026 and December 31, 2025, there were 28.4 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.

1 unchanged sentence

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

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

The 2022 Incentive Plan provides that 3.1 million shares of common stock are available for issuance to eligible participants under the plan, 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 were subsequently forfeited, cancelled, expired or otherwise terminated without the issuance of such shares.

During the six months ended June 30, 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 June 30, 2026, approximately 0.6 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 and six months ended June 30, 2026 and 2025, respectively (dollars in thousands, except per share information):

Six Month Ended June 30, 2026

Cash Dividends Declared and Paid

3 unchanged sentences

March 11, 2026

Three Months Ended March 31, 2025

June 10, 2026

Six Months Ended June 30, 2025

Cash Dividends Declared and Paid

3 unchanged sentences

March 12, 2025

June 11, 2025

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.

Our stock repurchase program authorizes us to repurchase up to 4.5 million shares of our outstanding common stock, of which 1.5 million shares remained available to be repurchased as of June 30, 2026.

During the three and six months ended June 30, 2026, an aggregate of 352.8 thousand shares and 969.9 thousand shares, respectively, were repurchased under our stock repurchase program for a total purchase price of approximately $ 19.6 million and $ 59.6 million, respectively, and a weighted average per share price of $ 55.54 and $ 61.44 , respectively , excluding the excise tax accrued on our net share repurchases as a result of the Inflation Reduction Act of 2022.

During the three and six months ended June 30, 2025, an aggregate of 883.6 thousand shares and 1.6 million shares, respectively, were repurchased for a total purchase price of approximately $ 48.0 million and $ 103.6 million, respectively, and a weighted average per share price of $ 54.35 and $ 63.28 , respectively.

During the six months ended June 30, 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 settlement 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.

1 unchanged sentence

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,

The following table sets forth the computation of basic and diluted earnings per share (which we refer to as “EPS”) for the three and six months ended June 30, 2026 and 2025 (in thousands, except share and per share information):

Three Months Ended June 30,

Six Months Ended June 30,

Weighted average common shares outstanding - basic

3 unchanged sentences

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.

We excluded 1.2 million and 1.0 million common stock unit equivalents from diluted earnings per share during the three and six months ended June 30, 2026, respectively, and we excluded 0.7 million and 0.7 million common stock unit equivalents from diluted earnings per share during the three and six months ended June 30, 2025, respectively, related to the PSUs for which performance conditions remained unsatisfied, assuming maximum levels of performance achievement.

We excluded 0.4 million and 0.4 million antidilutive common stock unit equivalents from diluted earnings per share during the three and six months ended June 30, 2026 and we excluded 0.3 million and 0.3 million antidilutive common stock unit equivalents from diluted earnings per share during the three and six months ended June 30, 2025, respectively .

Commitments and Contingencies

1 unchanged sentence

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.

As of June 30, 2026 and December 31, 2025, we had issued and outstanding letters of credit under various facilities of $ 56.2 million and $ 65.3 million, respectively, and we had issued and outstanding performance and other bonds of $ 426.7 million and $ 445.1 million, respectively.

Legal Proceedings

7 unchanged sentences

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