What changed in this filing

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Item 1. Financial Statements

2026-08-05 compared with 2026-05-07 · 206 added, 149 removed, 548 unchanged (39% of the section changed)

2 unchanged sentences

BALANCE SHEETS

(in thousands, except share and per value data)

2026 (unaudited)

(in thousands, except share data)

Current assets:

Accounts receivable, net

Interest receivable loan portfolios, net

Interest receivable from loan portfolios, net

Income tax refund receivable

Dealer financed receivables, net

Consumer loans receivable, net

Notes receivable from mobile home parks (“MHP”), net

Other notes receivable, net

Consumer loans receivable, current portion, net

Notes receivable from mobile home parks (“MHP”), current portion, net

Other notes receivable, current

Inventories, net

15 unchanged sentences

Escrow liability

Operating lease obligation

Operating lease obligation, current

Total current liabilities

Long‑term liabilities:

Operating lease obligation, less current portion

Operating lease obligation, net

Lines of credit

6 unchanged sentences

Common stock, $ .001 par value, 90,000,000 shares authorized;

24,866,342 and 24,866,342 issued and 23,781,601 and 23,812,341 outstanding at March 31, 2026 and December 31, 2025, respectively

Treasury stock at cost, 1,084,741 and 1,054,001 shares at March 31, 2026 and December 31, 2025, respectively

24,866,342 issued and 23,781,601 and 23,812,341 outstanding at June 30, 2026 and December 31, 2025, respectively

Treasury stock at cost, 1,084,741 and 1,054,001 shares at June 30, 2026 and December 31, 2025, respectively

Additional paid-in-capital

6 unchanged sentences

(in thousands, except share data)

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Product sales

6 unchanged sentences

Selling, general and administrative expenses

Provision for loan loss (income) (1)

Total operating expenses

4 unchanged sentences

Interest expense

Total other income

Total other income (loss)

Income before income tax expense

2 unchanged sentences

Earnings per share:

(1) Provision for loan loss is broken out from SG&A this period.

Prior period amounts were reclassified.

See accompanying notes to unaudited interim financial statements.

7 unchanged sentences

Balances, March 31, 2025

Share based compensation

Purchase of treasury stock

Balances, June 30, 2025

paid-in-capital

3 unchanged sentences

Balances, March 31, 2026

Share based compensation

Purchase of treasury stock

Balances, June 30, 2026

(1) Shares are net of treasury shares.

3 unchanged sentences

(unaudited, in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities:

2 unchanged sentences

Amortization of deferred revenue

Operating lease amortization, net

Amortization of lines of credit cost

Provision for accounts and notes receivable

(Gain) or Loss from sale of property

Gain from sale of property

Gain on foreclosure of property

Non-cash operating lease expense

Writeoff of investment in Corpus AmeriCasa

Provision for inventories

Amortization of operating lease right of use asset

Deferred income taxes

20 unchanged sentences

Notes receivable collections

Purchases of loans

Collections from purchased loans

27 unchanged sentences

In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented.

The results for the three months ending March 31, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026, or any other period.

The results for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026, or any other period.

The accompanying balance sheet as of December 31, 2025 was derived from audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”), filed on March 12, 2026.

11 unchanged sentences

We also provide financing options for customers to facilitate home sales.

Accordingly, all significant operating and strategic decisions by the co-chief operating decision makers, the Executive Chairman and Chief Executive Officer, are based upon analyses of our company as one operating segment.

Accordingly, all significant operating and strategic decisions by the co-chief operating decision makers, the Executive Chairman and Chief Executive Officer, and are based upon analyses of our Company as one operating segment.

We generate revenues through the manufacture and sales of manufactured homes and “Tiny Houses” and the related interest income associated with financing these homes sales.

We define the segment primarily based on how internally reported financial and operating information is regularly reviewed by our co-chief operating decision makers (“co-CODMs”) to evaluate financial performance, make decisions and allocate resources.

Our co-CODMs are our Executive Chairman and Chief Executive Officer.

The co-CODMs assess performance for the segment based on net

The co-CODMs assess performance for the segment based on net income and total assets that are also reported on the statements of income and

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

income and total assets that are also reported on the statements of income and balance sheet as net income and total assets, respectively.

balance sheet as net income and total assets, respectively.

The accounting policies of the segment are the same as those described in the summary of significant accounting policies.

The co-CODMs assess our operating and financial performance on a company-wide or consolidated basis.

On July 17, 2026, subsequent to the interim balance sheet, the Executive Chairman notified the Company of his retirement, effective July 21, 2026 (see Note 17 — Subsequent Events), and the Chief Executive Officer became the Company's sole chief operating decision maker.

This change did not affect the Company's single reportable segment or the manner in which financial and operating performance is reviewed and resources are allocated.

Revenue Recognition

15 unchanged sentences

The Company establishes an allowance for doubtful accounts for amounts that are deemed to be uncollectible.

At March 31, 2026, December 31, 2025, and December 31, 2024, the allowance for doubtful accounts totaled $ 1.7 million, $ 1.5 million, and $ 0.6 million, respectively.

At March 31, 2026, December 31, 2025, and December 31, 2024 accounts receivable, net was $ 5.1 million, $ 5.5 million, and $ 4.0 million, respectively.

Interest Receivable Loan Portfolios

At June 30, 2026, December 31, 2025, and December 31, 2024, the allowance for doubtful accounts totaled $ 1.5 million, $ 1.5 million, and $ 0.6 million, respectively.

At June 30, 2026, December 31, 2025, and December 31, 2024 accounts receivable, net was $ 7.0 million, $ 5.5 million, and $ 4.0 million, respectively.

Interest Receivable from Loan Portfolios

Interest receivable loan portfolios, net relates to accrued interest for consumer loans receivable, notes receivable from mobile home parks, and other notes receivable.

2 unchanged sentences

The interest receivable is stated net of the allowance.

At March 31, 2026, December 31, 2025, and December 31, 2024 the interest receivable, net was $ 3.7 million, $ 3.5 million, and $ 3.3 million, respectively.

At June 30, 2026, December 31, 2025, and December 31, 2024, the interest receivable, net was $ 3.6 million, $ 3.5 million, and $ 3.3 million, respectively.

The interest receivable is stated net of an allowance of $ 0.9 million and $ 0.7 million at June 30, 2026 and December 31, 2025, respectively.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Leased Property

4 unchanged sentences

It provides the lessee with a termination option for a fee, an option to extend the lease and a purchase option at fair market value.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The leased manufactured homes are included in other assets on the Company’s balance sheet, capitalized at manufactured cost and depreciated over a 15 year useful life.

Homes returned to the Company upon expiration of the lease or in the event of default are sold by the Company through its standard sales and distribution channels.

Future minimum lease income under all operating leases for each of the next five years at March 31, 2026, is as follows (in thousands):

Future minimum lease income under all operating leases for each of the next five years at June 30, 2026, is as follows (in thousands):

Product Warranties

6 unchanged sentences

The following table summarizes activity within the warranty liability (in thousands):

Three Months Ended March 31,

Three months ended June 30,

Six Months Ended June 30,

Warranty liability, beginning of period

2 unchanged sentences

Warranty liability, end of period

Intangible Assets, Net

Intangible Assets

Our intangible assets consist of trade name, internally developed software, customer contracts, and non-compete agreements, are considered finite-lived, and are amortized over their useful lives.

Finite-lived intangibles are generally amortized over 1 to 15 years on a straight-line depreciation basis and are reviewed for possible impairment

whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.

Amortization expenses recognized on intangible assets was $ 0.2 million for the three months ended March 31, 2026.

Finite-lived intangible have a weighted average remaining life of 10.1 years.

The following table summarizes intangible asset amortization expense (in thousands):

As of March 31,

Finite-lived intangibles are generally amortized over 1 to 15 years on a straight-line depreciation basis and are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.

Amortization expenses recognized on intangible assets was $ 0.2 million and $ 0.5 million for the three months and six months ended June 30, 2026, respectively.

Finite-lived intangibles have a weighted average remaining life of 10.1 years.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The following table shows the book value of our intangible assets, net of amortization (in thousands):

As of June 30,

As of December 31,

Developed technology

Noncompete agreement

Customer relationships

Accumulated Amortization

Total intangible assets

The following table summarizes future amortization expense related to intangible assets (in thousands):

As of June 30,

Share-Based Compensation

10 unchanged sentences

The Company does not expect to pay dividends on its common stock.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Pursuant to the Legacy Housing Corporation 2018 Incentive Compensation Plan (the “Plan”), the Company may issue up to 10.0 million equity awards to employees, directors, consultants, and nonemployee service providers in the form of stock options, stock, restricted stock, and stock appreciation rights.

Stock options may be granted with a contractual life of up to ten years .

At March 31, 2026, the Company had 9.2 million shares available for grant under the Plan.

As of March 31, 2026, stock options to purchase approximately 50,000 shares of common stock were outstanding under the Plan at an exercise price of $ 19.85 , and expire on dates ranging from December 2030 to December 2035, none of which are currently exercisable.

Unrecognized compensation expense related to these options at March 31, 2026 was $ 0.4 million and is expected to be recognized over 7.7 years .

Total share-based compensation expense was immaterial for the three months ended March 31, 2026 and 2025.

At June 30, 2026, the Company had 9.2 million shares available for grant under the Plan.

As of June 30, 2026, stock options to purchase approximately 50,000 shares of common stock were outstanding under the Plan at an exercise price of $ 19.85 , and expire on dates ranging from December 2030 to December 2035, none of which are currently exercisable.

Unrecognized compensation expense related to these options at June 30, 2026 was $ 0.4 million and is expected to be recognized over 7.5 years .

Total share-based compensation expense was immaterial for the three and six months ended June 30, 2026 and 2025.

Recent Accounting Pronouncements

12 unchanged sentences

Inventory Finance Sales and Retail Store Sales of homes may be financed by the Company or a third party, or they may be paid in cash.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Revenue from product sales is recognized when the performance obligation under the terms of a contract with our customer is satisfied, which typically occurs upon delivery and transfer of title of the home, as this depicts when control of the promised good is transferred to our customers.

3 unchanged sentences

These financed sales contain a significant financing component and any interest income is recorded separately in the statement of income.

Revenue is measured as the amount of consideration expected to be received in exchange for transferring the homes to the customers.

Revenue is measured at the amount of consideration expected to be received in exchange for transferring the homes to the customers.

Sales and other similar taxes collected concurrently with revenue-producing activities are excluded from revenue.

1 unchanged sentence

Warranty obligations associated with the sale of a unit are assurance-type warranties for a period of twelve months that are a guarantee of the home’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract.

The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract if the amortization period of the asset that the Company would have otherwise recognized is one year or less.

The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

if the amortization period of the asset that the Company would have otherwise recognized is one year or less.

Warranty costs are included in selling, general, and administrative expenses, in the statements of income.

Warranty and contract costs were $ 0.3 million and $ 0.5 million for the three months ended March 31, 2026 and 2025, respectively.

For the three months ended March 31, 2026 and 2025, total cost of product sales included $ 1.7 million for both comparison periods consisting of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.

Warranty costs were $ 0.6 million and $ 0.5 million for the three months ended June 30, 2026 and 2025, respectively.

Warranty costs were $ 1.1 million and $ 1.0 million for the six months ended June 30, 2026 and 2025, respectively.

For the three months ended June 30, 2026 and 2025, total cost of product sales included $ 3.0 million and $ 2.5 million, respectively, consisting of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.

For the six months ended June 30, 2026 and 2025, total cost of product sales included $ 4.7 million and $ 4.2 million, respectively, consisting of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.

Other revenue consists of contract deposit forfeitures, consignment fees, commercial lease rents, land sales, service fees and other miscellaneous income.

5 unchanged sentences

Land sales revenue is comprised of sales of land (real property) that was acquired as a result of maintaining or furthering our primary business of producing, selling, and financing manufactured homes.

Land sale revenue for the three months ended March 31, 2026 and 2025 were $ 1.1 million and $ 0.1 million, respectively.

For the three months ended March 31, 2026, there was one mobile home park (“MHP”) customer that accounted for more than 5.0 % of our total product sales.

Their MHP sales accounted for $ 1.4 million or 6.6 % of our total product sales.

For the three months ended March 31, 2025, there were no MHP customers that accounted for more than 5.0 % of our total product sales.

During the three months ended March 31, 2026, the Company received a non-refundable advance deposit of approximately $ 7.1 million from a single customer in connection with a large order of manufactured homes intended for use as workforce housing.

Production of the related units commenced during the first quarter of 2026, however no units had shipped and no revenue had been recognized in respect of the deposit as of March 31, 2026.

The deposit is included in customer deposits on the accompanying balance sheet.

Deliveries are expected to begin during the second quarter of 2026, and the Company expects to recognize substantially all of the related product sales revenue during the remainder of 2026 upon delivery and transfer of title of the units.

Land sale revenue for the three months ended June 30, 2026 and 2025 were $ 0.3 million and $ 0.1 million, respectively.

Land sale revenue for the six months ended June 30, 2026 and 2025 were $ 1.4 million and $ 0.1 million, respectively.

For the three months ended June 30, 2026, two customers accounted for 41.6 % of our total product sales.

For the six months ended June 30, 2026, two customers accounted for 29.7 % of our total product sales.

For the three and six months ended June 30, 2025, there were no customers that accounted for more than 5 % of our total product sales.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

During the first quarter of 2026, the Company received a non-refundable advance deposit of approximately $ 7.1 million from a single customer in connection with a large order of manufactured homes ( 380 units) intended for use as workforce housing.

Production commenced in the first quarter of 2026, and the Company began deliveries during the second quarter of 2026, delivering 113 units and recognizing the related product sales upon delivery and transfer of title.

Amounts received in advance of delivery are recorded in customer deposits as deferred revenue.

The Company expects to complete deliveries under the contract during the remainder of 2026.

In addition, there was a customer with five workforce housing contracts.

The company shipped 136 units to the customer and recognized the revenue when the homes shipped.

All houses related to the five contracts shipped.

Disaggregation of Revenue.

1 unchanged sentence

Three months ended

Six months ended

Product sales:

2 unchanged sentences

Retail store sales

Workforce Housing (1)

Other product sales (2)

7 unchanged sentences

Total net revenue

(1) In 2026, Workforce Housing is presented as a separate product sales category.

Prior-year amounts related to Workforce Housing were reclassified from Direct Sales, Commercial Sales, and Inventory Finance Sales to the Workforce Housing line to conform to the current-year presentation.

This reclassification affects presentation only and does not change Total Product Sales or Total Net Revenue.

(2) Other product sales revenue from ancillary products and services including parts, freight and other services

3 unchanged sentences

Interest income is recognized monthly per the terms of the financing agreement.

The average contractual interest rate per loan was approximately 13.1 % for March 31, 2026 and December 31, 2025.

The average contractual interest rate per loan was approximately 13.1 % for June 30, 2026 and December 31, 2025.

Consumer loans receivable have maturities that range from 3 to 30 years .

The Company reviews loan applications in an underwriting process which considers credit history, among other things, to evaluate credit risk of the consumer and determines interest rates on approved loans based on consumer credit score, payment ability and down payment amount.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The Company uses payment history to monitor the credit quality of the consumer loans on an ongoing basis.

The Company may also receive escrow payments for property taxes and insurance included in its consumer loan collections.

The liabilities associated with these escrow collections totaled $ 13.5 million and $ 13.1 million as of March 31, 2026 and December 31, 2025, respectively, and are included in escrow liability in the accompanying balance sheets.

The liabilities associated with these escrow collections totaled $ 14.6 million and $ 13.1 million as of June 30, 2026 and December 31, 2025, respectively, and are included in escrow liability in the accompanying balance sheets.

Allowance for Loan Losses—Consumer Loans Receivable

1 unchanged sentence

An allowance for loan losses is determined after giving consideration to, among other things, the loan characteristics, including the financial condition of borrowers, the value and liquidity of collateral, delinquency and historical loss experience.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The allowance for loan losses is comprised of two components:

1 unchanged sentence

The Company’s calculation of the general reserve considers the historical loan default rates and collateral recovery rates for the last three years and any qualitative factors both internal and external to the Company.

Specific reserves are determined based on probable losses on specific classified impaired loans.

Specific reserves are determined based on analysis of identified loans more than 90 days past due.

The Company’s policy is to place a loan on nonaccrual status when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which generally is when either principal or interest is past due and remains unpaid for more than 90 days.

19 unchanged sentences

At each reporting period, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information.

Repossessed homes from the consumer loan portfolio totaled $ 10.6 million and $ 8.4 million as of March 31, 2026 and December 31, 2025, respectively, and are included in other assets in the accompanying balance sheets.

Repossessed homes from the consumer loan portfolio totaled $ 10.7 million and $ 8.4 million as of June 30, 2026 and December 31, 2025, respectively, and are included in other assets in the accompanying balance sheets.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Consumer loans receivable, net of allowance for loan losses and deferred financing fees, consists of the following (in thousands):

As of March 31,

As of June 30,

As of December 31,

4 unchanged sentences

Consumer loans receivable, net

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The following table presents a detail of the activity in the allowance for loan losses (in thousands):

Three months ended March 31,

Three months ended June 30,

Six Months Ended June 30,

Allowance for loan losses, beginning of period

3 unchanged sentences

A detailed aging of consumer loans receivable that are past due is as follows (in thousands):

As of March 31,

As of June 30,

As of December 31,

8 unchanged sentences

Loan delinquency reporting generally is based on borrower payment activity relative to the contractual terms of the loan.

The following table disaggregates the outstanding principal balance of consumer loans receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of March 31, 2026:

Year of Origination

3 unchanged sentences

> 90 days past due

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTES RECEIVABLE FROM MOBILE HOME PARKS

The notes receivable from mobile home parks (“MHP Notes”) relate to manufactured homes sold to mobile home parks and financed through notes receivable.

The MHP Notes have varying maturity dates and require monthly principal and interest payments.

The MHP Notes have varying maturity dates and require monthly principal

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

and interest payments.

The interest rate on the MHP Notes can be fixed or variable, and the interest rates range from 4.9 % to 17.5 %.

The average interest rate per loan was approximately 8.2 % as of March 31, 2026 and 8.1 % as of December 31, 2025, with maturities that range from 1 to 10 years .

The average interest rate per loan was approximately 8.3 % as of June 30, 2026 and 8.1 % as of December 31, 2025, with maturities that range from 1 to 10 years .

The collateral underlying the MHP Notes are individual manufactured homes which can be repossessed and resold.

The MHP Notes are generally personally guaranteed by borrowers.

As of March 31, 2026, the Company had concentrations of MHP Notes with three independent third parties and their respective affiliates that equated to 24.3 %, 11.1 %, and 8.7 % of the principal balance outstanding, all of which were secured by the manufactured homes.

As of June 30, 2026, the Company had concentrations of MHP Notes with three independent third parties and their respective affiliates that equated to 23.0 %, 10.4 %, and 7.0 % of the principal balance outstanding, all of which were secured by the manufactured homes.

As of December 31, 2025, the Company had concentrations of MHP Notes with three independent third-parties and their respective affiliates that equated to 24.7 %, 9.6 %, and 7.4 % of the principal balance outstanding, all of which were secured by the manufactured homes.

2 unchanged sentences

The Company establishes an allowance composed of specific and general reserve amounts.

As of March 31, 2026 and December 31, 2025, the MHP Notes balance is presented net of unamortized finance fees of $ 1.0 million and $ 1.1 million, respectively.

As of June 30, 2026 and December 31, 2025, the MHP Notes balance is presented net of unamortized finance fees of $ 1.1 million and $ 1.1 million, respectively.

The finance fees are amortized over the life of the MHP Notes.

As of March 31, 2026, there were past due balances of $ 0.2 million on MHP Notes.

As of June 30, 2026, there were past due balances of $ 0.4 million on MHP Notes.

As of December 31, 2025, there were past due balances of $ 0.6 million on the MHP Notes.

3 unchanged sentences

The New Note is secured by a first-priority interest in more than 1,000 manufactured homes and two mobile-home parks located in Louisiana and is personally guaranteed by the individual borrowers.

As of March 31, 2026, the Company evaluated the recoverability of the New Note and based on an analysis of the fair value of the underlying collateral, the current payment status of the borrowers, and other relevant credit quality indicators, determined that a provision for expected loan losses on the New Note was not necessary.

As of June 30, 2026, the Company evaluated the recoverability of the New Note and, based on an analysis of the fair value of the underlying collateral, the current payment status of the borrowers, and other relevant credit quality indicators, determined that a provision for expected loan losses on the New Note was not necessary as of that date.

The New Note matured in July 2026 and was not repaid in full at maturity.

Subsequent to June 30, 2026, the Company received a principal reduction payment of $ 2.0 million and agreed with the borrowers to a forbearance and modification of the New Note, including additional collateral and an increased personal guaranty.

See Note 17 — Subsequent Events.

Notes receivable from mobile home parks, net of allowance for loan losses and deferred financing fees, consisted of the following (in thousands):

As of March 31,

As of June 30,

As of December 31,

7 unchanged sentences

Three months ended

Six months ended

Allowance for loan losses, beginning of period

3 unchanged sentences

Loan delinquency reporting is generally based upon borrower payment activity relative to the contractual terms of the loan.

The following table disaggregates the outstanding principal balance of MHP receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of March 31, 2026 (in thousands):

Year of Origination

10 unchanged sentences

The Company reserves for estimated losses on the other notes based on current economic conditions that may affect the borrower’s ability to pay, the borrower’s financial strength, and historical loss experience.

As of March 31, 2026, the Company had concentrations of other notes receivable with three independent third-parties and their respective affiliates that equated to 53.0 %, 10.2 %, and 9.0 % of the principal balance outstanding, all of which were secured by the manufactured homes.

As of June 30, 2026, the Company had concentrations of other notes receivable with three independent third-parties and their respective affiliates that equated to 19.2 %, 18.1 %, and 17.1 % of the principal balance outstanding, all of which were secured by the manufactured homes.

As of December 31, 2025, the Company had concentrations of other notes receivable with three independent third-parties and their respective affiliates that equated to 54.9 %, 10.6 %, and 9.2 % of the principal balance outstanding, all of which were secured by the manufactured homes.

As of March 31, 2026, there were past due balances of $ 0.2 million on other notes.

As of December 31, 2025, there were past due balances of $ 0.2 million on other notes.

For the three months ended March 31, 2026 and 2025, there were no charge offs recorded for other notes .

Allowance for loan loss for the other notes was $ 0.2 million as of March 31, 2026 and December 31, 2025.

As of March 31, 2026 and December 31, 2025, the impaired balance of other notes was $ 0.1 million.

As of June 30, 2026, and December 31, 2025 there were past due balances of $ 0.2 million on other notes.

For the three months and six months ended June 30, 2026 and 2025, there were no charge offs recorded for other notes .

Allowance for loan loss for the other notes was $ 0.2 million as of June 30, 2026 and December 31, 2025.

As of June 30, 2026 and December 31, 2025, the impaired balance of other notes was $ 0.1 million.

Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell.

2 unchanged sentences

Other notes receivable, net of allowance for loan losses and deferred financing fees, consisted of the following (in thousands):

As of March 31,

As of June 30,

As of December 31,

5 unchanged sentences

Three months ended

Six months ended

Allowance for loan losses, beginning of period

3 unchanged sentences

Loan delinquency reporting generally is based on borrower payment activity relative to the contractual terms of the loan.

The following table disaggregates the outstanding principal balance of Other notes receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of March 31, 2026 (in thousands):

Year of Origination

8 unchanged sentences

The terms of the financing typically include a three year term, a monthly interest payment, an annual curtailment payment and require the retailer to pay the principal amount of the loan to the Company upon the earlier of the sale of the home by the retailer to its customer or the end of the term.

Dealer financed notes receivable, net of allowance for loan losses, consisted of the following at March 31, 2026, December 31, 2025 and December 31, 2024 (in thousands):

As of March 31,

Dealer financed notes receivable, net of allowance for loan losses, consisted of the following (in thousands):

As of June 30,

As of December 31,

6 unchanged sentences

Three months ended

Six months ended

Allowance for loan losses, beginning of period

13 unchanged sentences

Inventories, net consisted of the following (in thousands):

As of March 31,

As of June 30,

As of December 31,

2 unchanged sentences

Finished goods, net

Finished goods includes an allowance of $ 534 and $ 559 as of March 31, 2026 and December 31, 2025, respectively.

Finished goods includes an allowance of $ 529 and $ 559 as of June 30, 2026 and December 31, 2025, respectively.

LEGACY HOUSING CORPORATION

2 unchanged sentences

Property, plant and equipment consisted of the following (in thousands):

As of March 31,

As of June 30,

As of December 31,

5 unchanged sentences

Total property, plant and equipment

Depreciation expense was $ 0.4 million for the three months ended March 31, 2026 and 2025, and includes depreciation expense for leased manufactured homes.

Depreciation expense also includes $ 0.3 million and $ 0.2 million as a component of cost of product sales for the three months ended March 31, 2026 and 2025, respectively.

Depreciation expense was $ 0.4 million for the three months ended June 30, 2026 and 2025, and includes depreciation expense for leased manufactured homes.

Depreciation expense also includes $ 0.2 million as a component of cost of product sales for the three months ended June 30, 2026 and 2025.

Depreciation expense was $ 0.8 million for the six months ended June 30, 2026 and 2025, and includes depreciation expense for leased manufactured homes.

Depreciation expense also includes $ 0.5 million and $ 0.3 million as a component of cost of product sales for the six months ended June 30, 2026 and 2025 respectively.

Land includes foreclosed property of $ 5.5 million and $ 6.6 million as of June 30, 2026 and December 31, 2025, respectively, which was collateral for MHP and Other notes.

Other assets consisted of the following (in thousands):

As of March 31,

As of June 30,

As of December 31,

1 unchanged sentence

Investment in Corpus AmeriCasa

Repossessed homes, net of allowances, as of March 31, 2026 include $ 10.6 million for homes repossessed from the consumer loan portfolio, $ 1.8 million for homes repossessed from the MHP loan portfolio, and $ 2.2 million for homes repossessed from dealers.

Repossessed homes, net of allowances, as of June 30, 2026 include $ 10.7 million for homes repossessed from the consumer loan portfolio, $ 1.8 million for homes repossessed from the MHP loan portfolio, and $ 2.2 million for homes repossessed from dealers.

Repossessed homes, net of allowances, as of December 31, 2025 include $ 8.4 million for homes repossessed from the consumer loan portfolio, $ 1.8 million for homes repossessed from the MHP loan portfolio, and $ 2.4 million for homes repossessed from dealers.

The Company also held a 28.75 % equity interest in Corpus AmeriCasa, an entity affiliated with AmeriCasa, which was included in other assets at approximately $ 0.6 million as of December 31, 2025.

As of June 30, 2026, the Company determined that this investment was not recoverable and wrote down its entire carrying value to zero as a non-operating expense.

LEGACY HOUSING CORPORATION

2 unchanged sentences

Accrued liabilities consisted of the following (in thousands):

As of March 31,

As of June 30,

As of December 31,

13 unchanged sentences

The Revolver matures July 28, 2027.

For the three months ended March 31, 2026 and 2025, interest expense under the Revolver was $ 11 thousand and $ 0 respectively.

The outstanding balance of the Revolver as of March 31, 2026 and December 31, 2025 was $ 0.9 million and $ 0 respectively.

The interest rate in effect as of March 31, 2026 and December 31, 2025 for the Revolver was 6.13 % and 6.69 %, respectively.

The amount of available credit under the Revolver was $ 49.1 million and $ 50 million as of March 31, 2026 and December 31, 2025, respectively.

For the three months ended June 30, 2026 and 2025, interest expense under the Revolver was $ 0 and $ 3 thousand respectively.

For the six months ended June 30, 2026 and 2025, interest expense under the Revolver was $ 11 thousand and $ 3 thousand, respectively The outstanding balance of the Revolver as of June 30, 2026 and December 31, 2025 was $ 0 .

The interest rate in effect as of June 30, 2026 and December 31, 2025 for the Revolver was 6.13 % and 6.69 %, respectively.

The amount of available credit under the Revolver was $ 50 million as of June 30, 2026 and December 31, 2025, respectively.

The Revolver requires the Company to comply with certain financial and non-financial covenants.

As of March 31, 2026, the Company was in compliance with all financial covenants, including that it maintains a maximum leverage ratio of no more than 1.00 to 1.00 and a minimum fixed charge coverage ratio of no less than 1.75 to 1.00.

As part of the acquisition of AmeriCasa, we assumed a line of credit with 21st Mortgage in the amount of $ 1.3 million at the time of the acquisition.

As of December 31, 2025, the balance of the line of credit was $ 1.2 million which we paid off in January 2026.

The provision for income tax expense for the three months ended March 31, 2026 and 2025 was $ 2.1 million and $ 2.5 million respectively.

The Company's effective tax rate for the three month period ended March 31, 2026 was 16.1 %.

The primary drivers of the variance from the federal statutory tax rate of 21.0 % were the Federal Energy Efficient Home Improvement credit and a discount for transferable tax credits purchased during the quarter ended March

As of June 30, 2026, the Company was in compliance with all financial covenants, including that it maintains a maximum leverage ratio of no more than 1.00 to 1.00 and a minimum fixed charge coverage ratio of no less than 1.75 to 1.00.

The provision for income tax expense for the three months ended June 30, 2026 and 2025 was $ 3.0 million and $ 3.1 million, respectively.

The Company's effective tax rate for the three month periods ended June 30, 2026 and June 30, 2025 was 11.2 % and 17.3 %, respectively.

The primary drivers of the variance from the federal statutory tax rate for the three month period ended June 30, 2026 were discrete activity related to the release of uncertain tax benefits, Federal Energy Efficient Home Improvement credit, and the discount on transferable tax credits.

The primary driver of the

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The Company's effective tax rate for the three month period ended March 31, 2025 was 19.3 %.

The primary driver of the variance from the federal statutory tax rate of 21.0 % was the Federal Energy Efficient Home Improvement credit, which was partially offset by state income taxes.

The §45L tax credit was initially established under the Federal Energy Policy Act of 2005 and ends June 30, 2026 pursuant to the One, Big, Beautiful Bill Act of 2025.

variance from the federal statutory tax rate for the three month period ended June 30, 2025 was the Federal Energy Efficient Home Improvement credit, which was partially offset by state income taxes.

The provision for income tax expense for the six months ended June 30, 2026 and 2025 was $ 5.1 million and $ 5.5 million, respectively.

The Company's effective tax rate for the six month period ended June 30, 2026 and June 30, 2025 was 12.8 % and 18.1 %, respectively.

The primary drivers of the variance from the federal statutory tax rate for the six month period ended June 30, 2026 were discrete activity related to the release of uncertain tax benefits, Federal Energy Efficient Home Improvement credit, and the discount on transferable tax credits.

The primary driver of the variance from the federal statutory tax rate for the six month period ended June 30, 2025 was the Federal Energy Efficient Home Improvement credit, which was partially offset by state income taxes.

COMMITMENTS AND CONTINGENCIES

3 unchanged sentences

The Company will adjust its self-insured medical benefits reserve based on actual experience, estimated costs and changes to assumptions.

As of March 31, 2026 and December 31, 2025, the Company accrued a $ 0.2 million and $ 0.8 million liability for incurred but not reported claims, respectively.

As of June 30, 2026 and December 31, 2025, the Company accrued a $ 0.2 million and $ 0.8 million liability for incurred but not reported claims, respectively.

These accrued amounts are included in accrued liabilities on the accompanying balance sheet.

3 unchanged sentences

The Company believes that risk of loss is mitigated due to the resale value of the repurchased homes and the fact that the agreements are spread over many retailers.

The maximum amount for which the Company was liable under such agreements approximated $ 1.4 million and $ 0.8 million at March 31, 2026 and December 31, 2025 respectively without reduction for the resale value of the homes.

The Company considers its obligations on current contracts to be immaterial and accordingly has not recorded any reserve for repurchase commitment as of March 31, 2026 and December 31, 2025.

The maximum amount for which the Company was liable under such agreements approximated $ 0.5 million and $ 0.8 million at June 30, 2026 and December 31, 2025 respectively without reduction for the resale value of the homes.

The Company considers its obligations on current contracts to be immaterial and accordingly has not recorded any reserve for repurchase commitment as of June 30, 2026 and December 31, 2025.

The Company leases facilities under operating leases that typically have 10 year terms.

These leases usually offer the Company a right of first refusal that affords the Company the option to purchase the leased premises under certain terms in the event the landlord attempts to sell the leased premises to a third party.

Rent expense for the three months ended March 31, 2026 and 2025 was $ 0.2 million and $ 0.1 million respectively.

Rent expense for the three months ended June 30, 2026 and 2025 was $ 0.2 million and $ 0.1 million respectively.

Rent expense for the six months ended June 30, 2026 and 2025 was $ 0.3 million.

The Company also subleases properties to third parties, ranging from 3-year to 11-year terms with various renewal options.

Rental income from the subleased properties for the three months ended March 31, 2026 and 2025 was immaterial.

Rental income from the subleased properties for the three and six months ended June 30, 2026 and 2025 was immaterial.

Legal Matters

3 unchanged sentences

The Company has determined that it is probable that it has some liability related to such claims.

The Company has included legal reserves of $ 1.0 million as of March 31, 2026 and December 31, 2025, in accrued liabilities on the accompanying balance sheets.

The Company has included legal reserves of $ 0.9 million and $ 1.0 million as of June 30, 2026 and December 31, 2025 respectively, in accrued liabilities on the accompanying balance sheets.

Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened ordinary course litigation or claims will have a material adverse effect on the Company's financial position, liquidity, or results of operations.

However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company's financial position, liquidity, or results of operations in any future reporting.

AmeriCasa Litigation

On March 13, 2026, the Company filed an Original Petition in the District Court of Tarrant County, Texas against the seller entities and certain individuals related to the Company's November 2025 acquisition of substantially all

However, future events or

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

of the assets of AmeriCasa Solutions, LLC and its affiliates.

circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company's financial position, liquidity, or results of operations in any future reporting.

AmeriCasa Litigation

The Company's claims relate principally to alleged misrepresentations and omissions made in connection with the acquisition and to the alleged post-closing misappropriation of receipts attributable to the acquired assets.

A description of the proceeding is included in Part II, Item 1, Legal Proceedings, of this Quarterly Report on Form 10-Q.

For information regarding events occurring subsequent to March 31, 2026 related to this matter, see Note 17 — Subsequent Events.

The litigation is not material to the Company's financial position, liquidity, or results of operations.

18 unchanged sentences

The Company’s financial instruments consist primarily of cash, accounts receivable, consumer loans, MHP Notes, other notes, accounts payable, and lines of credit.

The carrying amounts of cash, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments.

This is considered a Level I valuation technique.

The following table shows the estimated fair

The carrying amounts of cash, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

market value and book value of our consumer loan portfolio, MHP Notes and other notes, net of allowances, loan discount fees and deferred financing fees (in thousands):

As of March 31,

dates of these instruments.

This is considered a Level I valuation technique.

The following table shows the estimated fair market value and book value of our consumer loan portfolio, MHP Notes and other notes, net of allowances, loan discount fees and deferred financing fees (in thousands):

As of June 30,

As of December 31,

6 unchanged sentences

Fixed rate other notes, book value

Variable rate other notes, book value

Part of the MHP Notes, part of the other notes receivable, and our line of credit have variable interest rates that reflect market rates, and their fair value approximates their carrying value.

8 unchanged sentences

Three months ended

Six months ended

Net income (in 000's)

6 unchanged sentences

We repurchased 29,385 shares of common stock for $ 0.7 million in the open market during the three months ended March 31, 2025.

We repurchased 346,406 shares of common stock for $ 7.6 million in the open market during the year ended December 31, 2025.

We repurchased 260,635 shares of common stock for $ 5.8 million in the open market during the three months ended June 30, 2025.

We repurchased 56,386 shares of common stock for $ 1.1 million in the open market during the three months ended December 31, 2025.

We repurchased a total of 346,406 shares of common stock for $ 7.6 million in the open market during the year ended December 31, 2025.

The November 2022 share repurchase program expired on October 31, 2025.

1 unchanged sentence

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

On February 6, 2026, the Board of Directors authorized a stock repurchase program (the "Repurchase Program") under which the Company may repurchase up to $ 10.0 million of its outstanding common stock from time to time through February 28, 2029.

On February 6, 2026, the Board of Directors authorized a new stock repurchase program (the "Repurchase Program") under which the Company may repurchase up to $ 10.0 million of its outstanding common stock from time to time through February 28, 2029.

Repurchases may be made in the open market or through privately negotiated transactions, with the timing, manner, price and volume of any repurchases determined by the Company's Executive Chairman and Chief Executive Officer, or either of them, in their sole discretion, based on market conditions, the Company's cash reserves and cash flow, and the relative attractiveness of alternative uses of capital for operations, growth and share repurchases.

During the three months ended March 31, 2026, the Company repurchased 30,740 shares of its common stock under the Repurchase Program at an aggregate cost of approximately $ 0.6 million, or an average price of $ 18.63 per share, leaving approximately $ 9.4 million available for future repurchases under the Repurchase Program.

During the six months ended June 30, 2026, the Company repurchased 30,740 shares of its common stock under the Repurchase Program at an aggregate cost of approximately $ 0.7 million, or an average price of $ 21.66 per share, of which none were made in the three months ended June 30, 2026, leaving approximately $ 9.3 million available for future repurchases under the Repurchase Program.

Open market repurchases under the Repurchase Program are intended to be made in compliance with the non-exclusive safe harbor conditions of Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

4 unchanged sentences

Bell Mobile Homes (“Bell”), a retailer owned by one of the Company’s significant stockholders, purchases manufactured homes from the Company.

Accounts receivable balances due from Bell were $ 0.2 million and $ 0.6 million as of March 31, 2026 and December 31, 2025, respectively.

Accounts payable balances due to Bell were immaterial as of March 31, 2026 and December 31, 2025, respectively.

Home sales to Bell were $ 1.0 million and $ 0.4 million for the three months ended March 31, 2026 and 2025, respectively.

Accounts receivable balances due from Bell were $ 0.4 million and $ 0.6 million as of June 30, 2026 and December 31, 2025, respectively.

Home sales to Bell were $ 0.7 million and $ 1.2 million for the three months ended June 30, 2026 and 2025, respectively.

Home sales to Bell were $ 1.6 million and $ 1.5 million for the six months ended June 30, 2026 and 2025, respectively

Shipley Bros., Ltd.

and Crazy Red’s Mobile Homes (together, “Shipley”), retailers owned by one of the Company’s significant shareholders, purchase manufactured homes from the Company.

Accounts receivable balances due from Shipley were $ 0.1 million as of March 31, 2026 and December 31, 2025, respectively.

Accounts payable balances due to Shipley were immaterial as of March 31, 2026 and December 31, 2025, respectively.

Home sales to Shipley were $ 0.1 million and $ 0.4 million for the three months ended March 31, 2026 and 2025, respectively.

Accounts receivable balances due from Shipley were $ 0.2 million and $ 0.1 million as of June 30, 2026 and December 31, 2025, respectively.

Home sales to Shipley were $ 0.4 million and $ 0.8 million for the three months ended June 30, 2026 and 2025, respectively.

Home sales to Shipley were $ 0.5 million and $ 1.2 million for the six months ended June 30, 2026 and 2025, respectively.

AmeriCasa Solutions, LLC and its affiliates ("AmeriCasa") are the seller entities from which the Company acquired substantially all of the assets of AmeriCasa's business in November 2025 pursuant to the Asset and Membership Interest Purchase Agreement dated October 30, 2025, as amended.

The Company and AmeriCasa continue to reconcile amounts arising from operations of the acquired business between the November 1, 2025 effective date and March 31, 2026.

As of March 31, 2026, the Company had recorded approximately $ 1.0 million in accounts receivable from AmeriCasa, included in accounts receivable, net, and approximately $ 0.8 million payable to AmeriCasa, included in accrued liabilities, on the accompanying balance sheet.

The Company and AmeriCasa continue to reconcile amounts arising from operations of the acquired business between the November 1, 2025 effective date and June 30, 2026.

As of June 30, 2026, the Company had recorded approximately $ 1.0 million in accounts receivable from AmeriCasa, included in accounts receivable, net, and approximately $ 0.8 million payable to AmeriCasa, included in accrued liabilities, on the accompanying balance sheet.

These amounts do not include any amounts held in escrow or subject to purchase-price holdbacks under the Asset and Membership Interest Purchase Agreement.

Realization of the recorded receivable and the ultimate amount of any payable to AmeriCasa are subject to the matters described in Note 13 — Commitments and Contingencies and Part II, Item 1 — Legal Proceedings of this Quarterly Report.

SUBSEQUENT EVENTS

The Company has evaluated subsequent events through May 7, 2026, the date these unaudited financial statements were available to be issued.

Other than the matter described below, the Company is not aware of any subsequent events that would require recognition or disclosure in these unaudited financial statements.

The Company also held a 28.75 % equity interest in Corpus AmeriCasa, an entity affiliated with AmeriCasa, which was included in other assets at approximately $ 0.6 million as of December 31, 2025.

As of June 30, 2026, the Company determined that this investment was not recoverable and wrote down its entire carrying value to zero .

See Note 9 — Other Assets.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

AmeriCasa Litigation — Subsequent Developments

As described in Note 13 — Commitments and Contingencies and in Part II, Item 1, Legal Proceedings, of this Quarterly Report on Form 10-Q, on March 13, 2026, the Company filed an action in the District Court of Tarrant County, Texas against the seller entities and certain individuals related to the Company's November 2025 acquisition of substantially all of the assets of AmeriCasa Solutions, LLC and its affiliates.

On April 7, 2026, the Company filed an Amended Petition and Application for Temporary Restraining Order, Temporary Injunction, and Permanent Injunction.

On April 10, 2026, the District Court declined to issue the temporary restraining order, citing the availability of an adequate remedy at law.

The Company's application for temporary and permanent injunctive relief, along with its claims for damages and other relief, remains pending.

On April 16, 2026, the seller defendants removed the matter to the Texas Business Court, Eighth Division (Cause No.

26-BC08B-0013), where it is now pending.

On April 20, 2026, the seller defendants filed an answer asserting affirmative defenses and counterclaims against the Company.

The counterclaims allege breach of contract (including alleged underpayment of the purchase price under the Asset and Membership Interest Purchase Agreement and alleged failure to honor assumed contracts), unjust enrichment, constructive termination of Norman Newton’s employment, and fraud, and seek monetary damages stated as $ 1.0 million or more, exemplary damages, and attorneys' fees.

The Company believes the counterclaims are without merit and intends to defend against them.

The Company does not believe that the counterclaims, even if resolved adversely to the Company, would result in a loss that is material to the Company's financial position, liquidity, or results of operations.

The Company has not accrued a loss contingency with respect to the counterclaims.

SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date these financial statements were issued.

Retirement of Executive Chairman

On July 17, 2026, Curtis D.

Hodgson notified the Company of his decision to retire from his positions as Executive Chairman and as a member of the Board of Directors, effective July 21, 2026.

The Company reported Mr.

Hodgson's retirement in a Current Report on Form 8-K filed with the Securities and Exchange Commission on July 22, 2026, which included Mr.

Hodgson's related correspondence as an exhibit.

The Board of Directors has not yet named a successor Chairman or appointed a replacement director, and the timing of any such action has not been determined.

Shipley continues as Chief Executive Officer and, following Mr.

Hodgson's retirement, serves as the Company's sole chief operating decision maker.

Mobile Home Park Note — Subsequent Maturity and Modification

The New Note described in Note 4, with an outstanding principal balance of approximately $ 48.6 million at June 30, 2026, matured in July 2026 and was not repaid in full at maturity.

Subsequent to June 30, 2026, the Company received a principal reduction payment of $ 2.0 million and agreed with the borrowers to a forbearance and modification of the New Note that provides for a 90-day forbearance period followed by an 18-month interest-only period (subject to a further six-month extension) and, thereafter, amortizing principal and interest payments at a market-based variable rate.

The modification also includes additional collateral consisting of a manufactured housing community in Mississippi valued at approximately $ 4.0 million and an increased personal guaranty.

The Company does not currently expect to recognize a loss with respect to the New Note.

The Company is finalizing the definitive loan documentation.

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