What changed in this filing

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Item 1. Business

2025-02-25 compared with 2024-02-29 · 101 added, 114 removed, 178 unchanged (55% of the section changed)

Company Overview

We design, build and sell homes in high-growth markets using our asset-light lot acquisition strategy.

Our primary focus is on constructing and selling single-family homes across entry-level, first-time move-up, second-time move-up homes, and active adult homes.

We design, build and sell homes primarily in high-growth markets using our asset-light lot acquisition strategy.

Our primary focus is on constructing and selling single-family homes across entry-level, first-time move-up, second-time move-up and active adult homes.

Our home offerings are marketed under various brands, including Dream Finders Homes, DF Luxury, Craft Homes, and Coventry Homes.

To fully serve our homebuyers and capture ancillary business opportunities, we have financial services operations that offer title insurance primarily through DF Title, LLC, doing business as Golden Dog Title & Trust or Golden Dog Title (“DF Title”) and mortgage banking solutions primarily through our mortgage banking joint venture, Jet HomeLoans, LP (“Jet HomeLoans”).

To fully serve our homebuyers and capture ancillary business opportunities, we have financial services operations that offer title insurance primarily through DF Title, LLC, doing business as Golden Dog Title & Trust or Golden Dog Title (“DF Title”) and mortgage banking solutions primarily through our wholly owned mortgage banking business, Jet HomeLoans, LLC (“Jet HomeLoans” or “Jet”).

Since breaking ground on our first home on January 1, 2009, we have closed over 38,000 homes through December 31, 2024 and have been profitable every year since inception.

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2019 – Entered the Hilton Head and Bluffton, South Carolina markets with our acquisition of Village Park Homes, LLC

2020 – Entered the Charlotte, Fayetteville, Raleigh, Piedmont Triad (consisting of Greensboro, High Point and Winston-Salem, North Carolina), Wilmington, North Carolina and Myrtle Beach, South Carolina markets with our acquisition of the homebuilding business of H&H Constructors of Fayetteville, LLC, a North Carolina limited liability company (“H&H”)

January 2021 – Expanded our presence in the Orlando, Florida market with our acquisition of Century Homes Florida, LLC

October 2021 – Significantly increased our operations in the Austin, Texas metro area and expanded into the Houston, Dallas and San Antonio, Texas markets with our acquisition of McGuyer Homebuilders, Inc.

October 2021 – Significantly increased our operations in the Austin, Texas metropolitan area and expanded into the Houston, Dallas and San Antonio, Texas markets with our acquisition of McGuyer Homebuilders, Inc.

October 2023 – Entered the Tampa, Florida market

February 2024 – Entered the Charleston and Greenville, South Carolina and Nashville, Tennessee markets with our acquisition of the majority of the homebuilding assets of Crescent Ventures, LLC (“Crescent Homes”)

We select the geographic markets in which we operate our homebuilding business through a rigorous selection process based on our evaluation of positive population and employment growth trends, favorable migration patterns, attractive housing affordability, low state and local income taxes and desirable lifestyle and weather characteristics.

As a result of our acquisitive and organic growth, and our overall strategy to maintain agility, the management of our homebuilding operations changed from a divisional level to a regional level during the third quarter of 2023.

Our operations are now organized into four reportable segments:

March 2024 – Entered markets in the southeast coast of Florida

June 2024 – Entered the Phoenix, Arizona market

July 2024 – Acquired the remaining interest in our mortgage banking joint venture, Jet HomeLoans, resulting in a wholly owned subsidiary that is consolidated within our financial statements

December 2024 – Entered the southwest Florida market

January 2025 – Entered the Atlanta, Georgia market and expanded our operations in Greenville, South Carolina with our acquisition of the majority of the homebuilding assets of Liberty Communities, LLC (“Liberty Communities”)

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We select the geographic markets in which we operate our homebuilding business through local relationships and a rigorous selection process based on our evaluation of positive population and employment growth trends, favorable migration patterns, attractive housing affordability, low state and local income taxes and desirable lifestyle and weather characteristics.

Our homebuilding operations are organized into four reportable segments:

Southeast, Mid-Atlantic, Midwest and Financial Services.

Our Southeast segment consists of the homebuilding operations in Jacksonville, Orlando, and Tampa, Florida;

Our Southeast segment consists of the homebuilding operations in Jacksonville, Orlando and Tampa, Florida, the southeast coast of Florida and southwest Florida;

Savannah, Georgia;

Hilton Head and Bluffton, South Carolina;

and our Active Adult and Custom Homes homebuilding operations in northeast Florida.

Our Mid-Atlantic segment consists of our North Carolina homebuilding operations in Charlotte, Fayetteville, Raleigh, Wilmington and the Triad (consisting of Greensboro, High Point and Winston-Salem) (together, “The Carolinas”) and DC Metro.

Our Midwest segment consists of our Texas homebuilding operations in Austin, Dallas, Houston and San Antonio, and our Colorado homebuilding operations in Denver.

Our Financial Services segment consists of our mortgage banking and title services operations, which primarily consist of Jet Home Loans and Golden Dog Title and Trust.

The homebuilding operations of Crescent Homes will be included in our Mid-Atlantic segment in 2024.

Hilton Head and Bluffton, South Carolina and our Active Adult and Custom Homes homebuilding operations in northeast Florida.

Our Mid-Atlantic segment consists of our operations in DC Metro;

Nashville, Tennessee;

Charlotte, Fayetteville, Raleigh and Wilmington, North Carolina and Charleston, Myrtle Beach and Greenville, South Carolina.

Our Midwest segment consists of our homebuilding operations in Austin, Dallas, Houston and San Antonio, Texas;

Denver, Colorado and Phoenix, Arizona.

Our Financial Services segment consists of our mortgage banking and title services operations, which primarily consist of Jet HomeLoans and Golden Dog Title and Trust.

The operations of Liberty Communities will be included in our Southeast segment as of the date of acquisition.

Refer to Note 9, Segment Reporting to our consolidated financial statements for more information.

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We operate an asset-light and capital-efficient lot acquisition strategy to meet our growth objectives.

We generally seek to avoid engaging in land development, which requires significant capital expenditures, and can take several years to realize returns on the investment.

We generally seek to avoid owning land under development on our balance sheet, which requires significant capital expenditures, and can take several years to realize returns on the investment.

Our asset-light lot acquisition strategy generally enables us to purchase land in a “just-in-time” manner in both new and existing markets with reduced up-front capital commitments, and, in turn, allows us to increase our inventory turnover rate, enhance our return on equity and contributes to our growth.

Our strategy is intended to avoid the financial commitments and risks associated with direct land ownership and land development by allowing us to increase optionality and control a significant number of lots for a relatively low capital cost.

Our strategy is intended to avoid the financial commitments and risks associated with direct land ownership by allowing us to increase optionality and control a significant number of lots for a relatively low capital cost.

We believe our asset-light business model reduces our balance sheet risk relative to homebuilders that own a higher percentage of their land supply.

Refer to “—Land Acquisition and Development Process” and Note 6, Variable Interest Entities to our consolidated financial statements for further information.

Refer to “—Land Acquisition and Development Process” for additional information.

Land Acquisition and Development Process

Locating and analyzing attractive land positions is a critical challenge for any homebuilder.

We remain focused on controlling as many quality land positions as possible while minimizing up-front capital outlay.

We remain focused on controlling as many quality land positions as possible while minimizing our up-front capital outlay.

Our land selection process begins with key economic drivers, such as demographic trends and employment growth.

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While our land selection process is driven mainly by the local division and regional leadership, the land sourcing process, including final approval to move forward with a project, is a collaboration involving corporate leadership, including our President and Chief Executive Officer.

Our multilevel cooperation allows us to remain flexible to react quickly to changing markets or project-specific con ditions and maximize the potential of each new land opportunity.

Our multi-level cooperation allows us to remain flexible to react quickly to changing markets or project-specific conditions and maximize the potential of each new land opportunity.

We believe our experience, top-down emphasis on relationship building with land market participants and collaborative involvement of local, regional and corporate management in the land sourcing and acquisition process enable us to identify the ideal developers and efficiently source and secure options to control and close acquisitions of lots to meet our growth needs while mitigating risk.

We primarily employ two variations of our asset-light strategy—finished lot option contracts and land bank option contracts—pursuant to which we secure the right to purchase finished lots at predetermined fixed contractual pricing from various land developers, land sellers and land bank partners.

When a land seller desires to sell finished lots in bulk or does not wish to develop finished lots, we often enter into land bank option contracts with land bank partners who fund any required land acquisition and land development costs and sell the finished lots to us over a period of time.

When a land seller desires to sell finished lots in bulk or does not wish to develop finished lots, we often enter into land bank option contracts with land bank partners who fund any required land acquisition and development costs and sell the finished lots to us over a period of time.

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These option contracts generally allow us, at our option, to forfeit our right to purchase the lots controlled for any reason, and our sole legal obligation and economic loss as a result of such forfeitures is limited to the amount of the deposits paid pursuant to such option contracts and, in the case of land bank option contracts, our loss is limited to the related lot option fees paid to the land bank partner, and for certain land bank option contracts, any potential performance obligations, management of the land development to completion and any cost overruns relative to the project.

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Lot option fees are based on the outstanding capital balance held by the land banker and often are reflective of provisions under which delays in land development and/or longer land takedown periods result in additional costs.

As of December 31, 2023, our lot deposits for finished lot option and land bank option contracts were $247 million.

As of December 31, 2023, we controlled 29,748 lots under finished lot option and land bank option contracts.

As of December 31, 2024 and 2023, our lot deposits for finished lot option and land bank option contracts were $458 million and $247 million, respectively.

As of December 31, 2024 and 2023, we controlled 54,698 and 29,748 lots under finished lot option and land bank option contracts, respectively.

In the past, we have supplemented our lot option acquisition strategies by entering into joint venture agreements with external investors to acquire, develop and control lots.

Due to the profit sharing requirements of the joint venture agreements, we have transitioned from these joint venture arrangements in favor of the more profitable option contract strategies described above.

Refer to Note 6, Variable Interest Entities to our consolidated financial statements for the disclosure of our remaining equity interests in these joint ventures.

Owned and Controlled Lots

The following table presents our owned finished lots purchased just-in-time for production and controlled lots through option contracts by homebuilding segment as of December 31, 2023 and 2022:

As of December 31,

Controlled Total (4)

Controlled Total % Change

Due to the profit sharing requirements of the joint venture agreements, we have transitioned from these joint venture arrangements in favor of the option contract strategies described above.

Controlled Lot Pipeline

The following table presents our controlled lots through option contracts by homebuilding segment as of December 31, 2024 and 2023 :

2024 2023 % Change

Southeast 21,362 13,063 64 %

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Midwest 16,237 11,890 37 %

Grand Total 6,929 29,748 36,677 5,943 37,615 43,558 -16 %

54,698 29,748 84 %

(1) Refer to Note 9, Segment Reporting to the consolidated financial statements for further explanation of our reportable segments.

(2) As of December 31, 2023 , the Company had 6,929 owned lots, of which 4,133 were included in construction in process (“CIP”) and finished homes within the Consolidated Balance Sheet.

Of the 4,133 owned lots included in CIP and finished homes, 3,632 were under construction, 391 were completed spec homes and 110 were model homes.

The remaining owned lots were purchased just-in-time to start construction through existing lot option contracts.

(3) As of December 31, 2023 and 2022, o wned land and lots, inclusive of lot option fees, property taxes, and due diligence costs, represented 13% and 17%, respectively, of total inventories.

(4) As of December 31, 2023, the Company had 1,782 owned lots and 1,413 controlled lots under built-for-rent contracts (see “—Sales and Backlog” for a definition of built-for-rent contracts).

DF Capital Management, LLC

(2) As of December 31, 2024 and 2023, the Company had 603 and 1,413 controlled lots under built-for-rent contracts, respectively.

Controlling a sufficient supply of finished lots is an important component of our asset-light strategy.

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Refer to Note 11, Related Party Transactions to the consolidated financial statements for more information.

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Sales and Backlog

A new order (“new sale”) is reported when a customer has received preliminary mortgage approval and the sales contract has been signed by the customer, approved by us and secured by a deposit, which generally averages approximatel y 9% of the purchase price of the home.

A new order (“new sale”) is reported when a customer has received preliminary mortgage approval and the sales contract has been signed by the customer, approved by us and secured by a deposit.

These deposits are typically nonrefundable, but each customer situation is evaluated individually.

Sales to third-party investors that intend to lease the homes (“built-for-rent contracts”) are reported when the Company has received a nonrefundable deposit.

Net new orders are sales of homes during the period less cancellations of existing sales contracts during the period.

Our cancellation rate for a given period is calculated as the total number of new sales contracts cancelled during the period, divided by the total number of new sales contracts entered into during the period.

Net new orders (or “net sales”) are sales of homes during the period less cancellations of existing sales contracts during the period.

Our cancellation rate for a given period is calculated as the total number of sales contracts cancelled during the period, divided by the total number of new sales contracts entered into during the period.

When a cancellation occurs, we generally retain the customer deposit and resell the home to a new customer.

Cancellations can occur for various reasons outside of our control, including customer credit issues or changes in other personal circumstances.

Our backlog consists of homes under contract that have not yet been delivered to a homebuyer or third-party investor.

Ending backlog represents the number of homes in backlog from the previous period, plus sales of homes during the current period less cancellations of existing sales contracts during the period (“net sales”) , minus the number of home closings during the current period.

Our backlog at any given time will be affected by cancellations and the number of our active communities.

Our backlog of sold homes (“backlog”) consists of homes under contract that have not yet been delivered to a homebuyer or third-party investor.

Backlog represents the number of homes in backlog from the previous period, plus net sales, minus the number of home closings during the period.

Our backlog at any given time will be affected by cancellations, the number of our active communities, and changes in the percentage of spec home sales versus pre-order sales and built-for-rent contracts, which are customarily delivered over a longer period of time.

Homes in backlog are generally closed within one to nine months.

Sustained supply chain challenges during 2022 and early 2023 have contributed to temporarily elongated cycle times impacting the Company’s backlog turnover rate.

In addition, certain circumstances may impact our backlog conversion, such as built-for-rent contracts, which are customarily delivered over a longer period of time, as well as pre-sales in new communities.

The Company’s backlog may be impacted by customer cancellations for various reasons that are beyond our control, and, in light of our minimal required deposit, there is little negative impact to the potential homebuyer from the cancellation of the purchase contract.

As of December 31, 2023 and 2022, ending backlog was 3,978 homes and 5,548 homes, valued at approximately $2 billion and $3 billion, respectively, based on average sales price.

Homes in ending backlog are typically converted to closings in the subsequent year.

As of December 31, 2024 and 2023, our backlog was 2,599 homes and 3,978 homes, valued at approximately $1.3 billion and $1.9 billion, respectively, based on average sales price.

Homes in backlog are typically converted to closings in the subsequent year.

At present, our backlog turnover is closer to one to five months, due to a higher volume of speculative inventory sales.

Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations— Net Sales, Backlog and Closings ” for additional information.

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We offer a range of single-family homes in each of our markets, placing a primary emphasis on entry-level and first-time move-up homes.

We also provide second-time move-up homes and homes in the active adult market.

We also provide second-time move-up and active adult homes as well as homes under built-for-rent contracts, which are available for sale to investors.

Price points are tailored to each of these levels.

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Active community count is an important metric to forecast future net new orders for our business.

As of December 31, 2023, we had 221 active communities, an increase of 15 communities, or 7%, when compared to 206 active communities as of December 31, 2022.

Our active community count excludes communities under the Company's built-for-rent contracts, as all sales to third-party investors occur at one point in time and these communities would have no homesites remaining to sell.

As of December 31, 2023 , the Company had 15 communities delivering closings under built-for-rent contracts.

As of December 31, 2024, we had 242 active communities, an increase of 21 communities, or 10%, as compared to 221 active communities as of December 31, 2023.

Our active community count excludes communities under built-for-rent contracts, as all sales to third-party investors occur at one point in time and these communities would have no homesites remaining to sell.

As of December 31, 2024, the Company had 10 communities delivering closings under built-for-rent contracts, as compared to 15 communities as of December 31, 2023.

Construction and Materials

When constructing our homes, we are dependent upon building material suppliers to provide a continuous flow of raw materials.

It typically tak es us between 150 and 240 days to construct a single-family home.

It typically takes us between 150 and 240 days to construct a single-family home.

The construction period for our custom homes is typically longer.

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We have extensive experience managing construction processes without employing subcontractors directly.

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Each division is led by a construction director, manager, or vice president who oversees area managers.

Communities have dedicated superintendents supervising the work performed by the subcontractors.

Communities have dedicated construction managers supervising the work performed by the subcontractors.

We use enterprise resource planning and integrated scheduling software for close construction progress monitoring and timely issue identification.

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We leverage our national presence and volume to secure better prices with manufacturers.

Our cost of sales includes the acquisition and finance costs of homesites or lots, municipality fees, the costs associated with obtaining building permits, materials and labor to construct the home, interest costs for construction loans, internal and external realtor commissions and other miscellaneous closing costs.

Our homebuilding cost of sales includes the acquisition and finance costs of homesites or lots, municipality fees, the costs associated with obtaining building permits, materials and labor to construct the home, interest costs for construction loans, internal and external realtor commissions and other miscellaneous closing costs.

Homesite costs range from 30-35% of the average cost of a home.

Building materials range from 35-40% of the average cost to build the home, labor ranges from 25-30% of the average cost to build the hom e, and interest, co mmissions and closing costs range from 4-10% of the average cost to build the home.

Building materials range from 30-35% of the average cost to build the home, labor ranges from 20-25% of the average cost to build the home, and interest, commissions and closing costs range from 5-10% of the average cost to build the home.

Our materials are subject to price fluctuations.

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The price changes that most significantly influence our operations are price increases in commodities.

Significant price increases of these materials may negatively impact our cost of sales and, in turn, our net income.

Significant price increases of these materials may negatively impact our homebuilding cost of sales and, in turn, our net income.

Customer Relations, Quality Control and Warranty Program

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We enforce work quality standards through onboarding processes, require insurance from vendors, and conduct regular inspections.

Our customer service team ensures quality assurance and positive experiences for customers from pre-sale to post-closing, utilizing feedback to enhance our standards.

Our customer service team ensures quality assurance and positive experiences for customers from pre-sale to post-closing.

We maintain professional staff dedicated to delivering excellent customer experiences, including pre-sale, construction, closing, and after-sales service.

We utilize customer feedback and comprehensive home tours before closing to improve quality and satisfaction.

We utilize customer feedback and comprehensive home tours before closing to improve quality and satisfaction, and enhance our standards.

We highly value customers' willingness to refer us, which influences our team's compensation and quality control efforts.

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By providing comprehensive mortgage and title services in markets where we operate, our Financial Services segment serves as a valuable resource to customers navigating the homebuying process and, in turn, enhances our efficiency in converting our backlog into home closings.

Our mortgage banking joint venture, Jet HomeLoans, offers conforming and non-conforming mortgage financing to our homebuyers.

We own a 60% interest in Jet HomeLoans, and our joint venture partner, FBC Mortgage, LLC, an Orlando-based mortgage lender, owns the remaining 40% interest and performs a number of back-office functions, such as accounting, compliance and secondary marketing activities.

Our interest in Jet HomeLoans is accounted for under the equity method and is not consolidated in our consolidated financial statements, as we do not control and are not deemed the primary beneficiary of the variable interest entity (“VIE”).

Refer to N ote 1, Nature of Business and Significant Accounting Policies, to our consolidated financial statements for a discussion of accounting treatment of VIEs.

Our wholly owned mortgage banking subsidiary, Jet HomeLoans, offers conforming and non-conforming mortgage financing to our homebuyers.

On July 1, 2024, we acquired the remaining interest in Jet HomeLoans, which is consolidated in the Company’s financial statements as of that date.

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Our wholly owned subsidiary, DF Title, is a title insurance agency licensed in multiple states that provides closing, escrow and title insurance services.

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Closing, escrow and title insurance is primarily regulated at a state level, requiring that transactions be conducted by skilled attorneys and/or licensed title insurance agents.

Expansion of title operations into our markets is ongoing and consideration of further expansion in our markets is driven by unit volume, average sales price for homes sold and state-level legal considerations.

Expansion of title operations into our markets is ongoing and consideration of further expansion in our markets is driven by unit volume, average sales price for homes sold, state-level legal considerations and acquisitions.

Marketing and Sales

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We provide attentive one-on-one customer service throughout the home buying process, empowering our customers with flexibility to personalize their homes, and actively soliciting feedback from all of our customers.

T he willingness of our customers t o refer friends and family to us as homebuyers is a direct result of customer satisfaction, and we strive to ensure that each of our customers will make such referrals.

While we occasionally utilize traditional printed media to advertise directly to potential homebuyers, digital marketing is the primary component of our marketing strategy, and we have refined our digital sales efforts in recent years through the work of our dedicated digital sales coordinators.

We believe our online marketing efforts have become a key strength of our business, allowing us to reach a broad range of potential homebuyers at a relatively low expense compared to traditional advertising platforms.

The digital marketing methods that we employ include strategic e-marketing efforts to our current database of potential customers, internet advertising enhanced by search engine marketing and search engine optimization, and campaigns and promotions across an array of social media platforms.

We also strategically open communities in high-visibility areas that allow us to take advantage of local traffic patterns.

Model homes play a significant role in our marketing efforts by not only creating an attractive atmosphere, but by also displaying options and upgrades.

As the Official Homebuilder of the Jacksonville Jaguars, we maintain a fully decorated model home at the team’s stadium, which attract s thousands of fans ea ch game day.

We are also the Official Homebuilder of the PGA TOUR.

The willingness of our customers to refer friends and family to us as homebuyers is a direct result of customer satisfaction, and we strive to ensure that each of our customers will make such referrals.

While we utilize a diverse marketing mix, digital marketing is the primary component of our strategy.

We have maximized the results of our digital marketing efforts in recent years through the development of a dedicated online sales team.

We believe these efforts have become a key strength of our business, allowing us to reach a broad range of potential homebuyers at a relatively low cost compared to traditional advertising.

We strategically select digital marketing methods that target our potential customers at various stages of the purchasing cycle.

These include channels such as search engine optimization, pay-per-click advertising, social media marketing, email marketing and display advertising.

We strategically open communities in high-visibility areas that allow us to take advantage of local traffic patterns.

Model homes play a significant role in our marketing efforts by not only creating an attractive atmosphere, but also displaying options and upgrades.

As the Official Home Builder of the Jacksonville Jaguars, we maintain a fully decorated model home at the team’s stadium, which attracts thousands of fans each NFL game day.

We are also the Official Home Builder of the PGA TOUR.

This strategic alliance provides a national marketing footprint in regions where we operate and where high-profile, annual PGA TOUR golf tournaments are held.

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We believe that every home is as important as the next, regardless of price point, and that everyone deserves the ability to purchase a home that suits their needs.

Accordingly, we are able to offer a range of optionality within the homebuilding process, from move-in-ready inventory homes to homes that can be tailored with additional features, including structural modifications.

While most of our customers opt for inventory homes, for those seeking more options, we are able to provide access to a diverse range of materials and upgrades to cater to their specific preferences.

Our architectural design team continually adapts floor plans in response to customer buying trends in various markets and collaborates with our land team to secure suitable lots for these customized plans.

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Competition and Market Factors

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Such raw materials have been generally available to us in adequate supply.

Our operations in financial services generally compete with other lenders and title companies throughout the country, from small local operations to companies with nation-wide footprints, in the forms of banks, brokers, credit unions, title agencies, insurance agencies, underwriters and other financial institutions.

The main competitive factors for our mortgage banking business are mortgage interest rates and efficiency in operations for our customers while the main factors for our title services include price and offered services.

In all of our markets, we have historically experienced similar variability in our results of operations and capital requirements from quarter to quarter due to the seasonal nature of the homebuilding industry.

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Environmental requirements that apply to any given homebuilding site vary according to the location, environmental conditions, the presence or absence of endangered plants or species or sensitive habitats and the present and former uses of the site, as well as nearby or adjoining properties.

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Our operations that provide mortgage and title services within our Financial Services segment are subject to various local, state and federal laws, statutes, ordinances, administrative rules and other regulations, including requirements for participants in programs offered by FHA, VA, USDA, Government National Mortgage Association, Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”).

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Environmental, Social, and Corporate Governance (“ESG”)

During 2023, under the oversight of our Nominating and Governance Committee, we continued to prioritize our ESG focus areas.

Among other things, this included collecting data from leadership within the Company regarding our home energy efficiency efforts, goals and achievements, providing increased incentives to promote home affordability, enhancing employee benefits and increasing communication with our Board of Directors regarding ESG initiatives.

We are formalizing processes for measurement, mitigation, monitoring and reporting of our ESG efforts.

During 2024, under the oversight of our Nominating and Governance Committee, we continued to prioritize our ESG initiatives.

Among other things, this included continuing to collect data from leadership within the Company regarding our home energy efficiency efforts, goals and achievements, providing increased incentives to promote home affordability and communicating regularly with our Board of Directors regarding ESG initiatives.

We made progress toward formalizing our processes to measure, monitor and report our ESG efforts, including evaluating opportunities to leverage third-party advisory services.

Human Capital Resources

As of December 31, 2023, we had 1,236 full-time employees.

As of December 31, 2024, we had 1,686 full-time employees, inclusive of 251 employees related to our financial services operations.

Of our full-time employees, 138 worked in our corporate office, 116 in divisional management and 370 in sales.

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Additionally, we offer retirement savings in the form of a 401(k) plan.

The 401(k) plan includes matching safe harbor contributions equal to 100% of the first one percent of eligible compensation and 50% of the next five percent of eligible compensation.

The 401(k) plan includes matching safe harbor contributions equal to 100% of the first two percent of eligible compensation and 50% of the next four percent of eligible compensation.

The Company may also make additional discretionary contributions.

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The Company has made an ethics hotline available to all associates of the Company where they are able to report any violations of the Standards of Conduct, including violations related to the harassment or discrimination of any associate.

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Available Information

We are a Delaware corporation incorporated on September 11, 2020.

We make available, as soon as reasonably practicable, on our website, www.dreamfindershomes.com, all of our reports required to be filed with the Securities and Exchange Commission (“SEC”).

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Our SEC filings are also available to the public on the SEC’s website at www.sec.gov.

We are a Delaware corporation that was incorporated on September 11, 2020.

Our principal executive offices are located at 14701 Philips Highway, Suite 300, Jacksonville, Florida 32256, and our telephone number is (904)-644-7670.

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44 President, Chief Executive Officer and Chairman of the Board of Directors

52 Senior Vice President and Chief Operations Officer

Anabel Fernandez

Anabel Ramsay

43 Senior Vice President and Chief Financial Officer

Executive Employees

Zalupski—President, Chief Executive Officer and Chairman of the Board of Directors

Patrick Zalupski has served as our President, Chief Executive Officer and has served as Chairman of the Board of Directors since 2021.

Zalupski is our President and Chief Executive Officer and has served as Chairman of the Board of Directors since January 2021.

He has served as the Chief Executive Officer of our primary operating subsidiary, Dream Finders Homes LLC, a Florida limited liability company (“DFH LLC”), since forming the company in December 2008, and as the Chief Executive Officer and a member of the board of managers of DFH LLC since its formation in 2014.

He is responsible for our overall operations and management and is heavily involved in the origination, underwriting and structuring of all land investment activities.

Zalupski’s leadership, we have grown from closing 27 homes in Jacksonville, Florida during our inaugural year in 2009 to establishing operations in markets across the state of Texas and the Southeast, Mid-Atlantic and Mountain Regions of the United States and closing over 29,500 homes since our inception through the end of 2023.

Zalupski’s leadership, we have grown from closing 27 homes in Jacksonville, Florida during our inaugural year in 2009 to establishing operations in markets across the Southeast, Mid-West and Mid-Atlantic regions of the United States, and have closed over 38,000 homes since our inception through the end of 2024 .

Prior to founding DFH LLC, Mr.

Zalupski was a Financial Auditor for FedEx Corporation’s Internal Audit Department in Memphis, Tennessee and worked in the real estate sales and construction industry as Managing Partner of Bay Street Condominiums, LLC from 2006 to 2008.

He has served on the investment committee of DF Capital Management, LLC, a Florida limited liability company (“DF Capital”), an investment manager focused on investments in land banks and land development joint ventures to deliver finished lots to us and other homebuilders for the construction of new homes, since April 2018 and on the board of directors for our mortgage banking joint venture, Jet HomeLoans, LLC, a Florida limited liability company, since December 2017.

He has served on the investment committee of DF Capital Management, LLC, an investment manager focused on investments in land banks and land development joint ventures to deliver finished lots to us and other homebuilders for the construction of new homes, since April 2018.

Zalupski received a B.A in Finance from Stetson University.

Douglas Moran—Senior Vice President and Chief Operations Officer

Doug Moran has served as our Senior Vice President and Chief Operations Officer since our formation in September 2020, and has served as the Chief Operations Officer of DFH LLC since January 2017.

He joined Dream Finders as the Division President in Northeast Florida in August 2015 while also overseeing the management and growth of our business in other markets.

Moran is responsible for sales, marketing, land acquisition and development, home construction, operations and purchasing.

Moran has over 20 years of broad industry experience in all aspects of operating a real estate company, including as an executive with publicly traded homebuilders and has overseen the construction of over 22,200 homes throughout his career.

He previously worked at Richmond American Homes (“RAH”), a subsidiary of M.D.C.

Holdings, Inc.

MDC), from 2012 to 2015, where he served as Regional President for Florida.

Prior to joining RAH, Mr.

Moran worked at KB Home (NYSE:

KBH) from 2007 to 2012, where he served as DC Metro Division President.

Prior to joining KB Home, Mr.

Moran served his first of two stints at RAH from 1997 to 2007, where he joined as a member of the Mergers & Acquisitions team that acquired two homebuilders in Florida, before ascending the ranks to become RAH’s Southeast Regional Division President.

Moran received a B.S.

in Business from the University of Maryland.

Anabel Fernandez—Senior Vice President and Chief Financial Officer

Anabel Fernandez joined us in 2 018, serving in the position of Treasurer and Vice President and as a member of the Asset Management Committee and was appointed Interim Chief Financial Officer on October 6, 2021 and promoted to Chief Financial Officer and Senior Vice President on April 1, 2022.

Fernandez has been responsible for balance sheet management, capital allocation, cash forecasting and overall supervision of our accounting and treasury functions, including overall management of our debt, compliance, and reporting for lenders, investors and shareholders.

Post-IPO, Ms.

Fernandez developed the Company’s Investor Relations function.

Prior to joining us, Ms.

Fernandez served as the Vice President of Finance for the Americas region at Macquarie Group Limited, an Australian multinational independent investment bank and financial services company, from April 2016 to May 2018, overseeing financial and internal tax reporting for over 200 U.S.

Anabel Ramsay—Senior Vice President and Chief Financial Officer

Ramsay joined us in 2018, serving in the position of Vice President and Treasurer, and as a member of the Asset Management Committee.

Ramsay was appointed to Interim Chief Financial Officer on October 6, 2021, and promoted to Senior Vice President and Chief Financial Officer on April 1, 2022.

Ramsay has been responsible for balance sheet management, capital allocation, cash forecasting and overall supervision of our accounting, tax and treasury functions, including overall management of our debt, compliance, and reporting for lenders, investors and shareholders.

Prior to joining the Company, Ms.

Ramsay served as the Vice President of Finance for the Americas region at Macquarie Group Limited, an Australian multinational independent investment bank and financial services company, from April 2016 to May 2018, overseeing financial and internal tax reporting for over 200 U.S.

legal entities in the energy, capital and credit markets space and subsequently managing the financial audit process for Macquarie Group Limited’s aircraft leasing business.

Prior to joining Macquarie Group Limited, Ms.

Fernandez served as the Corporate Accounting Manager at Fidelity National Financial, a provider of title insurance and settlement services to the real estate and mortgage industries, in the title insurance business from 2014 to April 2016.

Fernandez started her career at Aeroflex Incorporated (NASDAQ:

ARX INC), a publicly listed aerospace and defense electronics manufacturer, where she worked from 2002 to 2014.

Fernandez is a Certified Public Accountant.

Fernandez received a B.B.A in Accounting, Financial Economics and Economics from Lincoln Memorial University.

Ramsay served as the Corporate Accounting Manager at Fidelity National Financial, a provider of title insurance and settlement services to the real estate and mortgage industries, in the title insurance business from November 2014 to April 2016.

Ramsay started her career at Aeroflex Incorporated, a former publicly listed aerospace and defense electronics manufacturer, where she worked from 2002 to 2014.

Ramsay is a Certified Public Accountant and received a B.B.A in Accounting, Financial Economics and Economics from Lincoln Memorial University.

Table Contents

Board of Directors

2 unchanged sentences

Radford Lovett II– Founder, Chairman and Chief Executive Officer of TowerCom, Ltd, an owner and developer of broadcast communication towers, and TowerCom Development, LP, a developer of wireless communications infrastructure.

Udelhofen– Private investor and former founder and Principal of Durant Partners, LLC, an investment fund that focuses on small-to-mid-capitalization equities.

Parekh– Senior Vice President and Chief Legal Officer of the Jacksonville Jaguars, a National Football League franchise.

Sturm– Retired audit partner of KPMG LLP (“KPMG”) after a thirty-seven year career conducting financial statement audits of primarily public companies and audits of internal controls under Section 404 of the Sarbanes-Oxley Act.

Justin Udelhofen– Private investor and former founder and Principal of Durant Partners, LLC, an investment fund that focuses on small-to-mid-capitalization equities.

Sturm– Retired audit partner of KPMG LLP after a thirty-seven year career conducting financial statement audits of primarily public companies and audits of internal controls under Section 404 of the Sarbanes-Oxley Act.

Weatherford– Managing partner of Weatherford Capital, which he co-founded in 2015.

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-K

Item 1. Business