What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-10-03 compared with 2025-07-01 · 200 added, 222 removed, 406 unchanged (51% of the section changed)

1 unchanged sentence

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and accompanying notes included under Item 1 of this Quarterly Report on Form 10-Q and our audited consolidated financial statements and accompanying notes included in our 2024 Form 10-K.

In the second quarter of 2025, our company navigated through a challenging economic environment.

Despite these challenges, we remained steadfast in our strategy to drive volume and growth, matching production and sales pace while using margin as the shock absorber to enable affordability and avoid the build-up of excess inventory.

Our focus on volume and even-flow production enabled us to re-rationalize our cost structure in order to find a floor and rebuild margin even as the overall housing market continues to soften.

The macroeconomic landscape remains challenging, with higher mortgage interest rates and diminished consumer confidence being affected by a wide range of uncertainties, both domestic and global.

At the same time, supply remains constrained by years of underproduction.

New construction has slowed as builders have pulled back on production due to mixed demand signals, exacerbating the chronic supply shortage.

Additionally, restrictive land permitting, along with higher impact fees, remain as constraints on supply, while labor and material costs, and costs of lumber, in particular, are generally increasing.

Demand, however, is still high, as people want and need homes.

Millennials are reaching the prime buying age and are realizing the benefit, and perhaps importance, of homeownership.

But affordability and waning confidence are sending confusing signals.

Actionable demand continues to cool.

This is a difficult cycle, as low supply fuels high prices which lock out many of our homebuyers.

Our operational strategy is clear:

we are building and delivering consistent volume by meeting the market at affordability and pushing efficiencies through our platform.

We strongly believe this will produce greater efficiencies and drive down costs.

Our third quarter results reflect the continued softening of market conditions and affordability challenges against the backdrop of what might be the beginnings of an improving economic landscape for the housing market.

While our deliveries were just below our goal and we sold more homes than expected during the quarter, it was at the expense of margin deterioration.

Sales volume was difficult to maintain and required additional incentives in order to achieve our expected pace and avoid a buildup of excess inventory.

Accordingly, we remained focused on volume and even flow production, although at a slightly slower pace.

We will maintain responsible volume to maintain an affordable cost structure and relieve pressure on sales and deliveries which will establish a floor on margin as the overall housing market continues to remain short on supply.

The macroeconomic landscape remains challenging, and diminished consumer confidence is being affected by a wide range of uncertainties, both domestic and global.

We have begun to see interest rates drift downwards and we’re just beginning to see consumers return to the market.

Against that backdrop, supply remains constrained in most markets driven by years of underproduction.

New construction has slowed as builders have pulled back on production due to slow sales and affordability concerns therefore exacerbating the chronic supply shortage.

Demand is still high as people want and need homes, but affordability and waning confidence around buying now have been constraining that demand.

We are optimistic that if mortgage rates approach the 6% level, or even lower, we will soon see some firming in the market, and we will benefit from stronger affordability and therefore demand.

Operationally, we will continue to drive growth, production and volume to fill the housing shortage that we know persists across our markets.

We remain focused on leveraging advanced technology throughout our homebuilding operations.

We look to position ourselves as the leading technology-enabled, low-cost homebuilding manufacturer.

We are now situated with a lower cost structure, efficient product offerings, and strong market positions to accommodate pent-up demand as rates moderate and confidence ultimately returns.

Financially, we are focused on driving an efficient, land-light balance sheet to effectively have land banks and third parties hold and develop our land assets while we build cash flow.

We have intentionally maintained volume rather than protecting our margin.

In the past, we protected margin as market conditions slowed.

However, we have learned that once we step backwards and lose momentum, it becomes difficult to restart and recapture volume.

The recovery is difficult and expensive, and we end up coming back as the exact same company that we were before, with no significant changes for the future.

We believe we are starting to see a bottom in the free fall in our margin that began with the spike in interest rates in 2022.

Our construction costs have decreased over the past two and a half years, and we believe our margins will stabilize as we use our growing volume to work with our trade partners to reduce costs and build efficiencies.

With regard to our financial strategy of driving a land-light balance sheet, the Millrose spin-off was a critical part of this strategy, but there is more to accomplish.

Predictable volume creates greater certainty for the capital markets and will help build more capital-efficient land banking vehicles to interface with our business.

We are continuing to drive certainty with dependable volume for our land banking partners.

That dependability will translate into certainty and predictability for us.

Additionally, this part of our strategy benefits from efficiencies derived from our technology-enabled solutions.

We have spent considerable time working with, investing in, and exploring technology, and we believe that productivity and efficiencies can be significantly enhanced when these solutions achieve company-wide adoption.

But modern technology is not plug-and-play.

It requires substantial monetary investment, management time, and widespread engagement.

Looking ahead to the third quarter of 2025, we anticipate selling and delivering between 22,000 and 23,000 homes.

Looking ahead to the fourth quarter of 2025, we anticipate selling between 20,000 to 21,000 homes and delivering between 22,000 and 23,000 homes.

Our average sales price is expected to be between $380,000 and $390,000, as we continue to see pricing pressure on homes sold during the quarter.

1 unchanged sentence

We expect our margin to come in at approximately 17.5%, depending on market conditions.

For the full year, we expect to deliver at the low end of our previously stated range of 86,000 to 88,000 homes in 2025.

While the short-term road ahead may seem choppy, we are optimistic about our future.

3 unchanged sentences

We historically have experienced, and expect to continue to experience, variability in quarterly results.

Our results of operations for the three and six months ended May 31, 2025 are not necessarily indicative of the results to be expected for the full year.

Our results of operations for the three and nine months ended August 31, 2025 are not necessarily indicative of the results to be expected for the full year.

Our homebuilding business is seasonal in nature and generally reflects higher levels of new home order activity in our second and third fiscal quarters and increased deliveries in the second half of our fiscal year.

However, a variety of factors can alter seasonal patterns.

Our net earnings attributable to Lennar were $477.4 million, or $1.81 per diluted share, in the second quarter of 2025, compared to our second quarter net earnings attributable to Lennar in 2024 of $954.3 million, or $3.45 per diluted share.

Excluding mark-to-market losses on technology investments, second quarter net earnings attributable to Lennar in 2025 were $499.5 million, or $1.90 per diluted share.

Excluding mark-to-market losses on technology investments and one-time gain on the sale of a technology investment, our second quarter net earnings attributable to Lennar in 2024 were $935.3 million or $3.38 per diluted share.

Our net earnings attributable to Lennar were $591.0 million, or $2.29 per diluted share, in the third quarter of 2025, compared to our third quarter net earnings attributable to Lennar in 2024 of $1.2 billion, or $4.26 per diluted share.

Excluding mark-to-market gains of $99.2 million on technology investments, third quarter net earnings attributable to Lennar in 2025 were $516.0 million, or $2.00 per diluted share.

Excluding mark-to-market gains of $39.1 million on technology investments and one-time items of $89.0 million in our Multifamily segment, third quarter net earnings attributable to Lennar in 2024 were $1.1 billion or $3.90 per diluted share.

Financial information relating to our operations was as follows:

Three Months Ended May 31, 2025

Three Months Ended August 31, 2025

(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total

10 unchanged sentences

Equity in earnings (losses) from unconsolidated entities 10,190 — (6,790) 7,422 — 10,822

Other income, net and other gains 14,208 — 14,887 1,664 — 30,759

Lennar Other unrealized losses from technology investments — — — (29,440) — (29,440)

Other income (expense), net and other gains (losses), net (6,961) — 645 (12,640) — (18,956)

Lennar Other realized and unrealized gains from technology investments — — — 99,223 — 99,223

Operating earnings (loss) $ 759,785 177,872 (16,471) 62,498 — 983,684

2 unchanged sentences

Earnings (loss) before income taxes $ 759,785 177,872 (16,471) 62,498 (192,981) 790,703

Three Months Ended May 31, 2024

Three Months Ended August 31, 2024

(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total

10 unchanged sentences

Equity in earnings (losses) from unconsolidated entities 25,220 — 170,266 (8,865) — 186,621

Other income (expense), net and other gains (losses) 50,035 — (212) 18,349 — 68,172

Lennar Other unrealized losses from technology investments — — — (21,514) — (21,514)

Operating earnings (loss) $ 1,340,155 147,012 (20,474) (28,964) — 1,437,729

Other income (expense), net and other gains (losses), net 20,048 — (93) 3,376 — 23,331

Lennar Other unrealized gains from technology investments — — — 39,123 — 39,123

Operating earnings $ 1,477,918 144,400 78,908 20,095 — 1,721,321

Corporate general and administrative expenses — — — — 164,672 164,672

1 unchanged sentence

Earnings (loss) before income taxes $ 1,477,918 144,400 78,908 20,095 (186,188) 1,535,133

Six Months Ended May 31, 2025

Nine Months Ended August 31, 2025

(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total

10 unchanged sentences

Equity in earnings (losses) from unconsolidated entities 62,910 — (11,332) 4,594 — 56,172

Other income (expense), net and other gains (losses) 44,567 — 24,317 (6,458) — 62,426

Lennar Other realized and unrealized losses from technology investments — — — (91,943) — (91,943)

Other income (expense), net and other gains (losses), net 37,606 — 24,962 (19,097) — 43,471

Lennar Other realized and unrealized gains from technology investments — — — 7,280 — 7,280

Operating earnings (loss) $ 2,297,292 478,635 (31,248) (79,680) — 2,664,999

2 unchanged sentences

Earnings (loss) before income taxes $ 2,297,292 478,635 (31,248) (79,680) (534,177) 2,130,822

Six Months Ended May 31, 2024

Nine Months Ended August 31, 2024

(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total

10 unchanged sentences

Equity in earnings (losses) from unconsolidated entities 54,038 — 140,103 (42,374) — 151,767

Other income (expense), net and other gains (losses) 112,074 — (255) 21,725 — 133,544

Lennar Other unrealized losses from technology investments — — — (26,651) — (26,651)

Other income (expense), net and other gains (losses), net 132,122 — (348) 25,101 — 156,875

Lennar Other unrealized gains from technology investments — — — 12,472 — 12,472

Operating earnings (loss) $ 3,846,869 422,708 42,795 (48,417) — 4,263,955

3 unchanged sentences

On February 10, 2025, we completed our acquisition of Rausch Coleman Homes ("Rausch").

Prior year information includes only stand-alone data for Lennar Corporation for the three and six months ended May 31, 2024.

Three Months Ended May 31, 2025 versus Three Months Ended May 31, 2024

Revenues from home sales decreased 7% in the second quarter of 2025 to $7.8 billion from $8.4 billion in the second quarter of 2024.

Revenues were lower primarily due to a 9% decrease in the average sales price of homes delivered, partially offset by a 2% increase in the number of home deliveries.

New home deliveries increased to 20,131 homes in the second quarter of 2025 from 19,690 homes in the second quarter of 2024.

The average sales price of homes delivered was $389,000 in the second quarter of 2025, compared to $426,000 in the second quarter of 2024.

The decrease in average sales price of homes delivered in the second quarter of 2025 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $1.4 billion, or 17.8% (18.0% excluding purchase accounting), in the second quarter of 2025, compared to $1.9 billion, or 22.6%, in the second quarter of 2024.

During the second quarter of 2025, gross margins decreased due to an increase in land costs year over year, as well as a decrease in revenue per square foot, which was partially offset by a decrease in construction costs as we continue to focus on construction cost savings.

Selling, general and administrative expenses were $688.8 million in the second quarter of 2025, compared to $629.6 million in the second quarter of 2024.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.8% in the second quarter of 2025, from 7.5% in the second quarter of 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the three months ended May 31, 2025, our homebuilding operating earnings included $13.8 million of interest income, compared to $43.2 million of interest income in the three months ended May 31, 2024.

Prior year information includes only stand-alone data for Lennar Corporation for the three and nine months ended August 31, 2024.

Three Months Ended August 31, 2025 versus Three Months Ended August 31, 2024

Revenues from home sales decreased 9% in the third quarter of 2025 to $8.2 billion from $9.0 billion in the third quarter of 2024.

Revenues were lower primarily due to a 9% decrease in the average sales price of homes delivered.

New home deliveries were 21,584 homes in the third quarter of 2025, compared to 21,516 homes in the third quarter of 2024.

The average sales price of homes delivered was $383,000 in the third quarter of 2025, compared to $422,000 in the third quarter of 2024.

The decrease in average sales price of homes delivered in the third quarter of 2025 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $1.4 billion, or 17.5%, in the third quarter of 2025, compared to $2.0 billion, or 22.5%, in the third quarter of 2024.

During the third quarter of 2025, gross margins decreased primarily due to a lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.

Selling, general and administrative expenses were $676.5 million in the third quarter of 2025, compared to $600.7 million in the third quarter of 2024.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.2% in the third quarter of 2025, from 6.7% in the third quarter of 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the three months ended August 31, 2025, our homebuilding operating earnings included $8.7 million of interest income, compared to $33.8 million of interest income in the three months ended August 31, 2024.

The decrease in interest income was primarily due to lower cash balances year over year.

Operating earnings for the Financial Services segment were $156.6 million in the second quarter of 2025, compared to $146.3 million in the second quarter of 2024.

Operating earnings for the Financial Services segment were $177.4 million in the third quarter of 2025, compared to $143.6 million in the third quarter of 2024.

The increase in operating earnings was primarily due to higher profit per locked loan in the mortgage business as a result of higher margins.

Operating loss for the Multifamily segment was $14.8 million in the second quarter of 2025, compared to an operating loss of $20.4 million in the second quarter of 2024.

Operating loss for the Lennar Other segment was $52.9 million in the second quarter of 2025, compared to an operating loss of $27.9 million in the second quarter of 2024.

The Lennar Other operating loss

for the second quarter of 2025 was primarily due to losses on our technology investments.

The Lennar Other operating loss for the second quarter of 2024 includes $21.5 million of mark-to-market losses on our publicly traded technology investments and a $46.5 million one-time gain on the sale of a technology investment.

In the second quarter of 2025 and 2024, we had tax provisions of $160.1 million and $300.5 million, which resulted in an overall effective income tax rate of 25.1% and 23.9%, respectively.

Operating loss for the Multifamily segment was $16.4 million in the third quarter of 2025, compared to operating earnings of $79.0 million in the third quarter of 2024, which were positively impacted by a $179.0 million one-time net gain from the sale of assets in our LMV Fund I, partially offset by a one-time $90.0 million write-down of non-core assets.

Operating earnings for the Lennar Other segment were $62.5 million in the third quarter of 2025, compared to operating earnings of $20.1 million in the third quarter of 2024.

The Lennar Other operating earnings for both the third quarter of 2025 and 2024 were primarily related to $99.2 million and $39.1 million mark-to-market gains on our technology investments, respectively.

In the third quarter of 2025 and 2024, we had tax provisions of $190.9 million and $347.9 million, which resulted in an overall effective income tax rate of 24.4% and 23.0%, respectively.

For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

The increase in the effective tax rate in the second quarter of 2025 from the prior year was primarily due to a decrease in solar tax credits.

Six Months Ended May 31, 2025 versus Six Months Ended May 31, 2024

Revenues from home sales were $15.0 billion and $15.3 billion in the six months ended May 31, 2025 and 2024, respectively.

Revenues were flat primarily because of a 4% increase in the number of home deliveries, which was offset by a 5% decrease in average sales price of home deliveries.

New home deliveries increased to 37,965 homes in the six months ended May 31, 2025 from 36,488 homes in the six months ended May 31, 2024.

The average sales price of homes delivered was $398,000 in the six months ended May 31, 2025, compared to $420,000 in the six months ended May 31, 2024.

The decrease in average sales price of homes delivered in the six months ended May 31, 2025 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $2.7 billion, or 18.2% (18.4% excluding purchase accounting), in the six months ended May 31, 2025, compared to $3.4 billion, or 22.2%, in the six months ended May 31, 2024.

During the six months ended May 31, 2025, gross margins decreased due to an increase in land costs year over year, as well as a decrease in revenue per square foot, which was partially offset by a decrease in construction costs as we continue to focus on construction cost savings.

Selling, general and administrative expenses were $1.3 billion in the six months ended May 31, 2025, compared to $1.2 billion in the six months ended May 31, 2024.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.7% in the six months ended May 31, 2025, from 7.8% in the six months ended May 31, 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the six months ended May 31, 2025, our homebuilding operating earnings included $37.0 million of interest income, compared to $100.8 million of interest income in the six months ended May 31, 2024.

The increase in our effective tax rate for the third quarter of 2025 compared to the prior period was primarily due to a decrease in tax credits.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted, introducing various changes to U.S.

federal tax law.

We do not expect the Act to have a material impact on our consolidated financial statements for the fiscal year ending November 30, 2025 and are currently evaluating the potential impact of the Act on our future periods.

Nine Months Ended August 31, 2025 versus Nine Months Ended August 31, 2024

Revenues from home sales were $23.2 billion and $24.3 billion in the nine months ended August 31, 2025 and 2024, respectively.

Revenues decreased primarily due to a 7% decrease in the average sales price of homes delivered, partially offset by a 3% increase in the number of homes delivered.

New home deliveries increased to 59,549 homes in the nine months ended August 31, 2025 from 58,004 homes in the nine months ended August 31, 2024.

The average sales price of homes delivered was $393,000 in the nine months ended August 31, 2025, compared to $421,000 in the nine months ended August 31, 2024.

The decrease in average sales price of homes delivered in the nine months ended August 31, 2025 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $4.2 billion, or 18.0%, in the nine months ended August 31, 2025, compared to $5.4 billion, or 22.3%, in the nine months ended August 31, 2024.

During the nine months ended August 31, 2025, gross margins decreased primarily due to lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.

Selling, general and administrative expenses were $2.0 billion in the nine months ended August 31, 2025, compared to $1.8 billion in the nine months ended August 31, 2024.

As a percentage of revenues from home sales, selling, general and

administrative expenses increased to 8.5% in the nine months ended August 31, 2025, from 7.4% in the nine months ended August 31, 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the nine months ended August 31, 2025, our homebuilding operating earnings included $45.7 million of interest income, compared to $134.6 million of interest income in the nine months ended August 31, 2024.

The decrease in interest income was primarily due to lower cash balances year over year.

Operating earnings for the Financial Services segment were $299.5 million in the six months ended May 31, 2025, compared to $276.9 million in the six months ended May 31, 2024.

Operating earnings for the Financial Services segment were $476.9 million in the nine months ended August 31, 2025, compared to $420.5 million in the nine months ended August 31, 2024.

The increase in operating earnings was primarily due to higher profit per locked loan in the mortgage business as a result of higher margins.

Operating loss for the Multifamily segment was $14.5 million in the six months ended May 31, 2025, compared to operating loss of $35.9 million in the six months ended May 31, 2024.

Operating loss for the Lennar Other segment was $142.2 million in the six months ended May 31, 2025, compared to operating loss of $67.4 million in the six months ended May 31, 2024.

The Lennar Other operating loss for the second quarter of 2025 was primarily due to losses on our technology investments.

The Lennar Other operating loss for the six months ended May 31, 2024 included $26.7 million of mark-to-market losses on our publicly traded technology investments and a $46.5 million one-time gain on the sale of a technology investment.

For the six months ended May 31, 2025 and 2024, we had tax provisions of $329.6 million and $511.3 million, respectively, which resulted in overall effective income tax rates of 24.8% and 23.4%, respectively.

Operating loss for the Multifamily segment was $30.9 million in the nine months ended August 31, 2025, compared to operating earnings of $43.1 million in the nine months ended August 31, 2024, which was positively impacted by a $179.0 million one-time net gain from the sale of assets in our LMV Fund I, partially offset by a one-time $90.0 million write-down of non-core assets.

Operating loss for the Lennar Other segment was $79.7 million in the nine months ended August 31, 2025, compared to operating loss of $47.3 million in the nine months ended August 31, 2024.

The Lennar Other operating loss for nine months ended August 31, 2025 was primarily due to losses from certain strategic investments, partially offset by mark-to-market gains on our technology investments.

The Lennar Other operating loss for the nine months ended August 31, 2024 was primarily related to operating losses from certain strategic investments, which was partially offset by $12.5 million of mark-to-market gains on our technology investments and a $46.5 million one-time gain on the sale of a technology investment.

For the nine months ended August 31, 2025 and 2024, we had tax provisions of $520.5 million and $859.2 million, respectively, which resulted in overall effective income tax rates of 24.7% and 23.2%, respectively.

For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

The increase in the effective tax rate in the six months ended May 31, 2025 from the prior year was primarily due to a decrease in excess tax benefits from share-based compensation and a decrease in solar tax credits.

The increase in the effective tax rate for the nine months ended August 31, 2025 from the prior year was primarily due to a decrease in tax credits and a decrease in excess tax benefits from share-based compensation.

Homebuilding Segments

At May 31, 2025, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 3 of the Notes to Condensed Consolidated Financial Statements.

At August 31, 2025, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 3 of the Notes to Condensed Consolidated Financial Statements.

The following tables set forth selected financial and operational information related to our homebuilding operations for the periods indicated:

Selected Financial and Operational Data

Three Months Ended May 31, 2025

Three Months Ended August 31, 2025

Gross Margins Operating Earnings

($ in thousands) Sales of Homes Revenue Costs of Sales of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on Sales of Land Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income (Expense), net Operating Earnings

East $ 1,679,796 1,362,858 18.9 % 163,716 1,282 3,521 14,338 (1,209) 181,648

4 unchanged sentences

$ 8,213,580 6,779,563 17.5 % 757,526 (10,544) 9,574 10,190 (6,961) 759,785

Three Months Ended May 31, 2024

Three Months Ended August 31, 2024

Gross Margins Operating Earnings

($ in thousands) Sales of Homes Revenue Costs of Sales of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on Sales of Land Other Revenues Equity in Earnings from Unconsolidated Entities Other Income, net Operating Earnings

East $ 2,058,158 1,511,468 26.6 % 388,707 1,810 2,802 8,186 403 401,908

4 unchanged sentences

$ 9,017,627 6,989,603 22.5 % 1,427,305 (3,254) 8,599 25,220 20,048 1,477,918

Six Months Ended May 31, 2025

Nine Months Ended August 31, 2025

Gross Margins Operating Earnings

($ in thousands) Sales of Homes Revenue Costs of Sales of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on Sales of Land Other Revenue Equity in Earnings (Losses) from Unconsolidated Entities Other Income (Expense), net Operating Earnings

East $ 4,996,822 4,009,377 19.8 % 506,631 2,147 9,970 29,271 31,255 579,274

4 unchanged sentences

$ 23,242,401 19,070,239 18.0 % 2,191,085 (24,273) 29,964 62,910 37,606 2,297,292

Six Months Ended May 31, 2024

Nine Months Ended August 31, 2024

Gross Margins Operating Earnings

($ in thousands) Sales of Homes Revenue Costs of Sales of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on

Sales of Land Other Revenue Equity in Earnings (Losses) from Unconsolidated Entities Other Income, net Operating Earnings

Sales of Land Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income, net Operating Earnings

East $ 6,044,179 4,410,341 27.0 % 1,124,900 13,406 8,009 20,600 38,951 1,205,866

7 unchanged sentences

Summary of Homebuilding Data

Three Months Ended May 31,

Three Months Ended August 31,

2025 2024 2025 2024 2025 2024

7 unchanged sentences

Total 21,584 21,516 $ 8,278,660 9,067,499 $ 383,000 422,000

Of the total homes delivered listed above, 113 homes with a dollar value of $51.1 million and an average sales price of $452,000 represent homes from unconsolidated entities for the three months ended May 31, 2025, compared to 70 homes with a dollar value of $35.2 million and an average sales price of $503,000 for the three months ended May 31, 2024.

Six Months Ended May 31,

Of the total homes delivered listed above, 146 homes with a dollar value of $65.1 million and an average sales price of $446,000 represent homes from unconsolidated entities for the three months ended August 31, 2025, compared to 124 homes with a dollar value of $49.9 million and an average sales price of $402,000 for the three months ended August 31, 2024.

Nine Months Ended August 31,

2025 2024 2025 2024 2025 2024

7 unchanged sentences

Total 59,549 58,004 $ 23,399,515 24,405,171 $ 393,000 421,000

Of the total homes delivered listed above, 193 homes with a dollar value of $92.0 million and an average sales price of $477,000 represent homes from unconsolidated entities for the six months ended May 31, 2025, compared to 147 homes with a dollar value of $78.1 million and an average sales price of $532,000 for the six months ended May 31, 2024.

Of the total homes delivered listed above, 339 homes with a dollar value of $157.1 million and an average sales price of $463,000 represent homes from unconsolidated entities for the nine months ended August 31, 2025, compared to 271 homes with a dollar value of $128.0 million and an average sales price of $472,000 for the nine months ended August 31, 2024.

Sales Incentives (1):

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

2025 2024 2025 2024 2025 2024 2025 2024

12 unchanged sentences

New Orders (2):

Three Months Ended May 31,

At August 31, Three Months Ended August 31,

2025 2024 2025 2024 2025 2024 2025 2024

7 unchanged sentences

Total 1,664 1,283 23,004 20,587 $ 8,439,732 8,562,059 $ 367,000 416,000

Of the total new orders listed above, 141 homes with a dollar value of $69.8 million and an average sales price of $495,000 represent homes in 10 active communities from unconsolidated entities for the three months ended May 31, 2025, compared to 74 homes with a dollar value of $40.0 million and an average sales price of $540,000 in eight active communities for the three months ended May 31, 2024.

Six Months Ended May 31,

Of the total new orders listed above, 104 homes with a dollar value of $56.7 million and an average sales price of $546,000 represent homes in nine active communities from unconsolidated entities for the three months ended August 31, 2025, compared to 114 homes with a dollar value of $69.1 million and an average sales price of $606,000 in 10 active communities for the three months ended August 31, 2024.

Nine Months Ended August 31,

2025 2024 2025 2024 2025 2024

6 unchanged sentences

Total 63,960 60,056 $ 24,445,727 $ 25,499,317 $ 382,000 425,000

Of the total new orders listed above, 242 homes with a dollar value of $129.7 million and an average sales price of $536,000 represent homes from unconsolidated entities for the six months ended May 31, 2025, compared to 120 homes with a dollar value of $65.2 million and an average sales price of $543,000 for the six months ended May 31, 2024.

(2) Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three and six months ended May 31, 2025 and May 31, 2024.

Of the total new orders listed above, 346 homes with a dollar value of $186.4 million and an average sales price of $539,000 represent homes from unconsolidated entities for the nine months ended August 31, 2025, compared to 234 homes with a dollar value of $134.3 million and an average sales price of $574,000 for the nine months ended August 31, 2024.

(2) Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three and nine months ended August 31, 2025 and 2024.

We experienced cancellation rates in our Homebuilding segments and Homebuilding Other as follows:

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

2025 2024 2025 2024

5 unchanged sentences

Total 14 % 14 % 14 % 14 %

At August 31,

2025 2024 2025 2024 2025 2024

7 unchanged sentences

Total 16,953 16,944 $ 6,647,990 7,747,542 $ 392,000 457,000

Of the total homes in backlog listed above, 128 homes with a backlog dollar value of $101.4 million and an average sales price of $792,000 represent the backlog from unconsolidated entities at May 31, 2025, compared to 120 homes with a backlog dollar value of $61.5 million and an average sales price of $513,000 at May 31, 2024.

(3) During the six months ended May 31, 2025, backlog includes 914 acquired homes of which 186, 717 and 11 homes were in the Central, South Central and West homebuilding segments, respectively.

Of the total homes in backlog listed above, 86 homes with a backlog dollar value of $93.1 million and an average sales price of $1.1 million represent the backlog from unconsolidated entities at August 31, 2025, compared to 110 homes with a backlog dollar value of $80.7 million and an average sales price of $734,000 at August 31, 2024.

(3) During the nine months ended August 31, 2025, backlog includes 909 acquired homes of which 181, 717 and 11 homes were in the Central, South Central and West homebuilding segments, respectively.

Backlog represents the number of homes under sales contracts.

3 unchanged sentences

We do not recognize revenue on homes under sales contracts until the sales are closed and title passes to the new homeowners.

Three Months Ended May 31, 2025 versus Three Months Ended May 31, 2024

Three Months Ended August 31, 2025 versus Three Months Ended August 31, 2024

Homebuilding East:

Revenues from home sales decreased in the second quarter of 2025 compared to the second quarter of 2024, primarily due to a decrease in the number of homes delivered in all the states of the segment and lower average sales price on homes delivered in all the states of the segment except in New Jersey.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of opening and closing of communities.

Revenues from home sales decreased in the third quarter of 2025 compared to the third quarter of 2024, primarily due to decreases in the number of homes delivered and the average sales price of homes delivered in all the states of the segment except in New Jersey.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of homes delivered.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix.

In the second quarter of 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot.

In addition, land costs increased year over year.

Overall, gross margin percentage of homes delivered decreased year over year.

In the third quarter of 2025, gross margin percentage of homes delivered decreased due to lower revenue per square foot and higher land costs year over year, partially offset by a decrease in construction costs.

Homebuilding Central:

Revenues from home sales were flat in the second quarter of 2025 compared to the second quarter of 2024, primarily due to an increase in the number of homes delivered in all states of the segment except in Georgia, Illinois, Indiana, Maryland, Minnesota and South Carolina, which was offset by a decrease in the average sales price of homes delivered in Alabama, Illinois, Maryland, North Carolina, South Carolina and Virginia.

The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities including communities acquired from Rausch.

Revenues from home sales decreased in the third quarter of 2025 compared to the third quarter of 2024, primarily due to decreases in the number of homes delivered in all states of the segment except in Alabama, Illinois, North Carolina and South Carolina and in the average sales price of homes delivered in Alabama, Illinois, Maryland, North Carolina and Virginia.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of homes delivered.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix.

In the second quarter of 2025, a decrease in revenues per square foot was offset by a decrease in costs per square foot.

In addition, land costs increased year over year.

Overall, gross margin percentage of homes delivered decreased year over year.

Homebuilding South Central:

Revenues from home sales increased in the second quarter of 2025 compared to the second quarter of 2024, primarily due to the Rausch acquisition which resulted in an increase in the number of homes delivered in all states in the segment, partially offset by a decrease in the average sales price of homes delivered.

Revenues from home sales increased in the third quarter of 2025 compared to the third quarter of 2024, primarily due to the Rausch acquisition which resulted in an increase in the number of homes delivered in all states in the segment, partially offset by a decrease in the average sales price of homes delivered.

The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities including communities acquired from Rausch.

The decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix and product mix.

In the second quarter of 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot.

In addition, land costs increased year over year.

Overall, the gross margin percentage of homes delivered decreased year over year.

The decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix.

Homebuilding West:

Revenues from home sales decreased in the second quarter of 2025 compared to the second quarter of 2024, primarily due to decreases in the number of homes delivered in all the states in the segment except in Idaho and Utah and in the average sales price of homes delivered in all the states in the segment except California and Idaho.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities.

Revenues from home sales decreased in the third quarter of 2025 compared to the third quarter of 2024, primarily due to decreases in the number of homes delivered in all the states in the segment except in Idaho and Utah and the average sales price of homes delivered in all the states in the segment except Colorado, Idaho and Washington.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of deliveries per active community due to the timing of homes delivered.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives.

In the second quarter of 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot.

In addition, land costs increased year over year.

Overall, the gross margin percentage of homes delivered decreased year over year.

Six Months Ended May 31, 2025 versus Six Months Ended May 31, 2024

Nine Months Ended August 31, 2025 versus Nine Months Ended August 31, 2024

Homebuilding East:

Revenues from home sales decreased in the six months ended May 31, 2025 compared to the six months ended May 31, 2024, primarily due to decreases in the number of homes delivered in all the states in the segment and the average sales price of homes delivered in all the states in the segment except in New Jersey.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of opening and closing of communities.

Revenues from home sales decreased in the nine months ended August 31, 2025 compared to the nine months ended August 31, 2024, primarily due to decreases in the number of homes delivered and the average sales price of homes delivered in all the states in the segment except in New Jersey.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of homes delivered.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix.

In the six months ended May 31, 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot.

In addition, land costs increased year over year.

Overall, gross margin percentage of homes delivered decreased year over year.

In the nine months ended August 31, 2025, gross margin percentage of homes delivered decreased due to lower revenue per square foot and higher land costs year over year, partially offset by a decrease in construction costs.

Homebuilding Central:

Revenues from home sales increased in the six months ended May 31, 2025 compared to the six months ended May 31, 2024, primarily due to an increase in the number of homes delivered in all the states in the segment except in Maryland, Minnesota and South Carolina, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Indiana, Minnesota and Tennessee.

Revenues from home sales were flat in the nine months ended August 31, 2025 compared to the nine months ended August 31, 2024, primarily due to an increase in the number of homes delivered in Alabama, Illinois, North Carolina, South Carolina and Virginia, which was offset by a decrease in the average sales price of homes delivered in Alabama, Illinois, Maryland, North Carolina, South Carolina and Virginia.

The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities including communities acquired from Rausch.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix.

In the six months ended May 31, 2025, a decrease in revenues per square foot was partially offset by a decreas

e in costs per square foot.

In addition, land costs increased year over year.

Overall, gross margin percentage of homes delivered decreased year over year.

Homebuilding South Central:

Revenues from home sales increased in the six months ended May 31, 2025, compared to the six months ended May 31, 2024, primarily due to the Rausch acquisition which resulted in an increase in the number of homes delivered in all states in the segment, partially offset by a decrease in the average sales price of homes delivered.

Revenues from home sales increased in the nine months ended August 31, 2025, compared to the nine months ended August 31, 2024, primarily due to the Rausch acquisition which resulted in an increase in the number of homes delivered in all states in the segment, partially offset by a decrease in the average sales price of homes delivered.

The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities including communities acquired from Rausch.

The decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix.

In the six months ended May 31, 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot.

In addition, land costs increased year over year.

Overall, the gross margin percentage of homes delivered decreased year over year.

Homebuilding West:

Revenues from home sales decreased in the six months ended May 31, 2025 compared to the six months ended May 31, 2024, primarily due to a decrease in the number of homes delivered in all the states in the segment except in Arizona, Idaho, Utah and Washington.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of opening and closing of communities.

In the six months ended May 31, 2025, revenues per square foot were flat while costs per square foot decreased.

In addition, land costs increased year over year.

Overall, the gross margin percentage of homes delivered decreased year over year.

Revenues from home sales decreased in the nine months ended August 31, 2025 compared to the nine months ended August 31, 2024, primarily due to decreases in the number of homes delivered in all the states in the segment except in Idaho and Utah and the average sales price of homes delivered in all states in the segment except in California and Idaho.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of homes delivered.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives.

Financial Services Segment

4 unchanged sentences

The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment:

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(Dollars in thousands) 2025 2024 2025 2024

3 unchanged sentences

Number of title and closing service transactions 22,700 21,900 62,000 59,900

At May 31, 2025 and November 30, 2024, the carrying value of Financial Services' commercial mortgage-backed securities was $134.3 million and $135.6 million, respectively.

At August 31, 2025 and November 30, 2024, the carrying value of Financial Services' commercial mortgage-backed securities was $133.6 million and $135.6 million, respectively.

Details of these securities and related debt are disclosed in Note 3 of the Notes to Condensed Consolidated Financial Statements.

3 unchanged sentences

The following table provides information related to our investment in the Multifamily segment:

Balance Sheets

(In thousands) At May 31, 2025 At November 30, 2024

Balance Sheets At

(In thousands) August 31, 2025 November 30, 2024

Multifamily investments in unconsolidated entities $ 519,510 503,303

2 unchanged sentences

During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers.

During the six months ended May 31, 2025, two additional LMV I rental operation projects were sold to third-party buyers.

During the nine months ended August 31, 2025, two additional LMV I rental operation projects were sold to third-party buyers.

Lennar Other Segment

Our Lennar Other segment includes fund investments we retained subsequent to our sale of the Rialto investment and asset management platform, as well as strategic investments in technology companies that are looking to improve the homebuilding and financial services industries to better serve homebuyers and homeowners and increase efficiencies.

At May 31, 2025 and November 30, 2024, we had $790.5 million and $894.9 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $368.0 million and $379.4 million, respectively.

At August 31, 2025 and November 30, 2024, we had $844.6 million and $894.9 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $372.3 million and $379.4 million, respectively.

We have/had investments in Blend Labs, Inc.

6 unchanged sentences

Details of these investments are included within Note 3 of the Notes to Condensed Consolidated Financial Statements.

The following is a detail of Lennar Other realized and unrealized losses from sales of shares and mark-to-market adjustments on our publicly traded technology investments:

Three Months Ended Six Months Ended

May 31, May 31,

The following is a detail of Lennar Other realized and unrealized gains from sales of shares and mark-to-market adjustments on our publicly traded technology investments:

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

5 unchanged sentences

Sunnova (NOVA) 124 36,371 (23,521) 1,036

Lennar Other realized and unrealized losses from technology investments (1) $ (29,440) (21,514) (91,943) (26,651)

(1) During the six months ended May 31, 2025, we realized a loss of $28.4 million on the sale of our shares in Blend Labs, SmartRent, Sonder and Sunnova and, as of May 31, 2025, have a small remaining interest in Sunnova.

Lennar Other realized and unrealized gains from technology investments (1) $ 99,223 39,123 7,280 12,472

(1) During the nine months ended August 31, 2025, we generated $44.7 million of cash and realized a loss of $25.9 million on the sale of our shares in Blend Labs, Hippo, SmartRent, Sonder and Sunnova.

(2) Financial Condition and Capital Resources

At May 31, 2025, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $1.5 billion, compared to $5.0 billion at November 30, 2024 and $3.9 billion at May 31, 2024.

At August 31, 2025, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $1.8 billion, compared to $5.0 billion at November 30, 2024 and $4.3 billion at August 31, 2024.

We finance all of our activities, including homebuilding, financial services, multifamily, other and general operating needs, primarily with cash generated from our operations, debt issuances and cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility (the “Credit Facility”).

At May 31, 2025, we had $1.2 billion of homebuilding cash and cash equivalents and ended the second quarter with a total liquidity of $5.4 billion.

At August 31, 2025, we had $1.4 billion of homebuilding cash and cash equivalents and ended the third quarter of 2025 with total liquidity of $5.1 billion.

Operating Cash Flow Activities

During the six months ended May 31, 2025 and 2024, cash (used in) provided by operating activities totaled ($1.4) billion and $610 million, respectively.

During the six months ended May 31, 2025, cash used in operating activities was impacted by an increase in inventories due to land purchases, land development and construction costs of $1.6 billion, an increase in deposits and pre-acquisition costs on real estate of $782 million as we increased the percentage of controlled homesites primarily as a result of option contracts with Millrose, and a decrease in accounts payable and other liabilities of $600 million.

This was offset by our net earnings and a decrease in loans held-for-sale of $361 million primarily related to the sale of loans originated by our Financial Services segment.

During the six months ended May 31, 2024, cash provided by operating activities was impacted primarily by our net earnings, a decrease in loans held-for-sale of $336 million primarily related to the sale of loans originated by our Financial Services segment.

This was partially offset by an increase in inventories due to strategic land purchases, land development and construction costs of $631 million, an increase in deposits and pre-acquisition costs on real estate of $755 million as we increased the percentage of controlled homesites, and a decrease in accounts payable and other liabilities of $381 million.

During the nine months ended August 31, 2025 and 2024, cash (used in) provided by operating activities totaled ($1.5) billion and $1.4 billion, respectively.

During the nine months ended August 31, 2025, cash used in operating activities was impacted by (1) an increase in inventories due to land purchases and construction costs of $1.3 billion;

(2) an increase in deposits and pre-acquisition costs on real estate of $1.2 billion as we increased the percentage of controlled homesites primarily as a result of option contracts with Millrose;

(3) an increase in other assets of $210 million;

and (4) a decrease in accounts payable and other liabilities of $978 million.

This was partially offset by our net earnings and a decrease in loans held-for-sale of $240 million primarily related to the sale of loans originated by our Financial Services segment.

During the nine months ended August 31, 2024, cash provided by operating activities was impacted primarily by our net earnings, a decrease in loans held-for-sale of $245 million primarily related to the sale of loans originated by our Financial Services segment.

This was offset by (1) an increase in inventories due to strategic land purchases, land development and construction costs of $708 million;

(2) an increase in deposits and pre-acquisition costs on real estate of $985 million as we increased the percentage of controlled homesites;

and (3) a decrease in accounts payable and other liabilities of $176 million.

Investing Cash Flow Activities

During the six months ended May 31, 2025 and 2024, cash provided by (used in) investing activities totaled $183 million and ($275) million, respectively.

During the six months ended May 31, 2025, our cash provided by investing activities was primarily due to $233 million received from the sale of an investment in a joint venture, $72 million proceeds from the sale of investments and distributions of capital from unconsolidated entities of $175 million, which primarily included (1) $32 million from Homebuilding unconsolidated entities, (2) $129 million from Multifamily entities and (3) $15 million from our Lennar Other

unconsolidated entities and $115 million proceeds from the sale of notes receivables.

During the nine months ended August 31, 2025 and 2024, cash provided by (used in) investing activities totaled $176 million and ($177) million, respectively.

During the nine months ended August 31, 2025, our cash provided by investing activities was primarily due to (1) $233 million received from the sale of an investment in a joint venture, $87 million proceeds from the sale of investments and distributions of capital from unconsolidated entities of $236 million, which primarily included

(1) $86 million from Homebuilding unconsolidated entities, (2) $129 million from Multifamily entities and (3) $21 million from our Lennar Other unconsolidated entities and $115 million proceeds from the sale of notes receivables.

This was partially offset by the $254 million acquisition of Rausch, net of cash acquired.

In addition, we had cash contributions of $203 million to unconsolidated entities, which included (1) $169 million to Homebuilding unconsolidated entities, (2) $10 million to Lennar other unconsolidated entities and (3) $24 million to Multifamily unconsolidated entities and $103 million of net additions of operating properties and equipment.

During the six months ended May 31, 2024, our cash used in investing activities was primarily due to cash contributions of $248 million to unconsolidated entities, which included (1) $118 million to Homebuilding unconsolidated entities, (2) $117 million to Lennar Other unconsolidated entities, and (3) $13 million to Multifamily unconsolidated entities and $112 million of net additions of operating properties and equipment.

During the nine months ended August 31, 2024, our cash used in investing activities was primarily due to cash contributions of $312 million to unconsolidated entities, which included (1) $164 million to Homebuilding unconsolidated entities, (2) $131 million to Lennar Other unconsolidated entities, and (3) $17 million to Multifamily unconsolidated entities and $130 million of net additions of operating properties and equipment.

This was partially offset by distributions of capital from unconsolidated entities of $237 million, which primarily included (1) $53 million from Homebuilding unconsolidated entities, (2) $18 million from our Lennar Other unconsolidated entities, and (3) $166 million from Multifamily entities.

Financing Cash Flow Activities

During the six months ended May 31, 2025 and 2024, cash used in financing activities totaled $2.3 billion and $3.0 billion, respectively.

During the six months ended May 31, 2025, cash used in financing activities was primarily due to (1) $515 million of net repayments under our Financial Services' warehouse facilities;

(2) redemption of $500 million aggregate principal amount of our 4.75% senior notes due May 2025;

(3) $416 million net cash in connection with the Millrose spin-off;

During the nine months ended August 31, 2025 and 2024, cash used in financing activities totaled $1.9 billion and $3.5 billion, respectively.

During the nine months ended August 31, 2025, cash used in financing activities was primarily due to (1) $1.8 billion of repurchases of our common stock, which included $1.7 billion of repurchases under our repurchase program and $66 million of repurchases related to our equity compensation plan;

(2) $394 million of dividend payments;

(3) $479 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks;

(5) $1.3 billion of repurchases of our common stock, which included $1.2 billion of repurchases under our repurchase program and $65 million of repurchases related to our equity compensation plan;

and (6) $265 million of dividend payments.

The cash used in financing activities was partially offset by the receipt of proceeds of the sale of $700 million aggregate principal amount of our 5.20% senior notes due 2030 and $400 million of net borrowings under our unsecured revolving credit facility.

During the six months ended May 31, 2024, cash used in financing activities was primarily due to (1) $754 million of net repayments under our Financial Services' warehouse facilities;

(2) redemption of $454 million aggregate principal amount of our 4.50% senior notes due April 2024;

(3) $100 million of partial repurchase of our 4.75% senior notes due 2027 (4) $1.2 billion of repurchases of our common stock, which included $1.1 billion of repurchases under our repurchase program and $86 million of repurchases related to our equity compensation plan;

(4) $416 million net cash in connection with the Millrose spin-off;

(5) redemption of $500 million aggregate principal amount of our 4.75% senior notes due May 2025;

and (6) $67 million of net repayments under our Financial Services' warehouse facilities.

The cash used in financing activities was partially offset by the receipt of proceeds of the sale of $700 million aggregate principal amount of our 5.20% senior notes due 2030 and $1.1 billion of net borrowings under our unsecured revolving Credit Facility.

During the nine months ended August 31, 2024, cash used in financing activities was primarily due to (1) $1.7 billion of repurchases of our common stock, which included $1.6 billion of repurchases under our repurchase program and $86 million of repurchases related to our equity compensation plan;

(2) $414 million of dividend payments;

(3) $618 million of net repayments under our Financial Services' warehouse facilities;

(4) redemption of $454 million aggregate principal amount of our 4.50% senior notes due April 2024;

(5) $100 million of partial repurchase of our 4.75% senior notes due 2027;

and (6) $125 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

1 unchanged sentence

Homebuilding debt to total capital and net Homebuilding debt to total capital are calculated as follows:

(Dollars in thousands) May 31, 2025 November 30, 2024 May 31, 2024

(Dollars in thousands) August 31, 2025 November 30, 2024 August 31, 2024

Homebuilding debt $ 3,523,766 2,258,283 2,263,256

10 unchanged sentences

Rather, this non-GAAP financial measure should be used to supplement our GAAP results.

At May 31, 2025, Homebuilding debt to total capital was higher compared to November 30, 2024, primarily as a result of a decrease in stockholders' equity due to the spin-off of Millrose, share repurchases, issuance of senior notes and outstanding borrowings under our Credit Facility, partially offset by net earnings and a decrease in Homebuilding debt due to debt paydowns.

At May 31, 2025, Homebuilding debt to total capital was higher compared to May 31, 2024, primarily as a result of a decrease in stockholders' equity due to the spin-off of Millrose, share repurchases, issuance of senior notes and outstanding borrowings under our Credit Facility, partially offset by net earnings and a decrease in Homebuilding debt due to debt paydowns.

At August 31, 2025, Homebuilding debt to total capital was higher compared to November 30, 2024 and August 31, 2024, primarily as a result of a decrease in stockholders' equity due to the spin-off of Millrose and share repurchases, an increase in Homebuilding debt due to issuance of senior notes and outstanding borrowings under our Credit Facility, and net earnings.

We are continually exploring various types of transactions to manage our leverage and liquidity positions, take advantage of market opportunities and increase our revenues and earnings.

2 unchanged sentences

On February 7, 2025, we successfully completed the taxable spin-off of Millrose from Lennar through a distribution of approximately 80% of Millrose's stock to our stockholders.

We temporarily retain, but do not vote, the remaining 20% of the total outstanding shares of Millrose common stock, which we expect to dispose of through a subsequent spin-off, split-off, public offering, private sale or any combination of these potential transactions later in the year.

We temporarily retain, but do not vote, the remaining 20% of the total outstanding shares of Millrose common stock, which we expect to dispose of through a split-off, a stock sale or another transaction.

In connection with the spin-off, we contributed to Millrose $5.6 billion in land assets and cash of $1.0 billion, which included $584 million of cash deposits related to option contracts.

5 unchanged sentences

Our Homebuilding average debt outstanding and the average rates of interest was as follows:

Six Months Ended May 31,

Nine Months Ended August 31,

(Dollars in thousands) 2025 2024

9 unchanged sentences

In May 2025, we entered into a new unsecured delayed draw term loan facility with an initial committed borrowing availability of approximately $1.6 billion (the “Delayed Draw Term Loan Facility”), which can be increased by an additional $500 million via an accordion feature.

The credit agreement governing our new unsecured Delayed Draw Term Loan Facility permits us to draw up to six times in the first 180 days after the effective date of the credit agreement or May 2028.

In July 2025, the total commitment under the Delayed Draw Term Loan Facility was increased by $100 million, thereby increasing the borrowing available capacity to $1.7 billion.

The credit agreement governing our new unsecured Delayed Draw Term Loan Facility permits us to draw up to six times in the first 180 days after the effective date of the credit agreement.

Once drawn, we may at any time prepay the loan, in whole or in part, without premium or penalty.

The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement, and at our discretion, it can be extended for an additional year, subject to the satisfaction of certain conditions.

Under the Delayed Draw Term Loan Facility, interest rates equal the

adjusted term SOFR determined for the interest period plus the applicable margin.

As of May 31, 2025, there were no borrowings under the credit agreement governing the new unsecured Delayed Draw Term Loan Facility.

The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement or May 2028, and at our discretion, it can be extended for an additional year until May 2029, subject to the satisfaction of certain conditions.

Under the Delayed Draw Term Loan Facility, interest rates are equal to the adjusted term SOFR determined for the interest period plus the

applicable margin.

As of August 31, 2025, there were no borrowings under the credit agreement governing the new unsecured Delayed Draw Term Loan Facility.

The maximum available borrowings on our Credit Facility were as follows:

(In thousands) At May 31, 2025

(In thousands) At August 31, 2025

Commitments - maturing in May 2027 $ 225,000

5 unchanged sentences

In the first quarter of 2025, we received an additional $150 million in commitments.

In the third quarter of 2025, we secured an additional $100 million in commitments.

The Credit Facility also provides that up to $477.5 million in commitments may be used for letters of credit.

3 unchanged sentences

These ratios are calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements , which involve adjustments to GAAP financial measures.

We believe we were in compliance with our debt covenants as of May 31, 2025.

The following summarizes our debt covenant requirements and our actual levels or ratios with respect to those covenants as calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements as of May 31, 2025:

(Dollars in thousands) Covenant Level Level Achieved as of

We believe we were in compliance with our debt covenants as of August 31, 2025.

(Dollars in thousands) Covenant Level Level Achieved

Minimum net worth test $ 10,000,000 16,675,053

10 unchanged sentences

The repurchase authorization has no expiration date.

At May 31, 2025, we have a remaining authorization to repurchase $2.2 billion in value of our Class A or Class B common stock.

The details of our Class A and Class B common stock repurchases under the authorized repurchase program for the six months ended May 31, 2025 and May 31, 2024 are included in Note 5 of the Notes to Condensed Consolidated Financial Statements.

During the six months ended May 31, 2025, treasury shares increased by 10.6 million shares primarily due to our repurchase of 9.9 million shares of Class A and Class B common stock through our stock repurchase program.

During the six months ended May 31, 2024, treasury shares increased by 7.8 million shares primarily due to our repurchase of 7.2 million shares of Class A and Class B common stock through our stock repurchase program.

At August 31, 2025, we have a remaining authorization to repurchase $1.7 billion in value of our Class A or Class B common stock.

The details of our Class A and Class B common stock repurchases under the authorized repurchase program for the nine months ended August 31, 2025 and August 31, 2024 are included in Note 5 of the Notes to Condensed Consolidated Financial Statements.

During the nine months ended August 31, 2025, treasury shares increased by 14.8 million shares primarily due to our repurchase of 14.1 million shares of Class A and Class B common stock through our stock repurchase program.

During the nine months ended August 31, 2024, treasury shares increased by 11.2 million shares primarily due to our repurchase of $10.6 million shares of Class A and Class B common stock through our stock repurchase program.

On February 7, 2025, we distributed a stock dividend consisting of 120,980,401 shares of Millrose Class A common stock and 11,819,811 shares of Millrose Class B common stock (representing approximately 80% of the total outstanding shares of Millrose common stock) to the holders of Lennar Class A or Class B common stock as of the close of business on January 21, 2025, the record date of the Millrose spin-off.

On June 19, 2025, our Board of Directors declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on July 18, 2025 to holders of record at the close of business on July 3, 2025.

On May 7, 2025, we paid a quarterly cash dividend of 0.50 per share for both our Class A and Class B common stock to holders of record at the close of business day April 23, 2025.

On September 26, 2025, our Board of Directors declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on October 27, 2025 to holders of record at the close of business on October 10, 2025.

On July 18, 2025, we paid a quarterly cash dividend of 0.50 per share for both our Class A and Class B common stock to holders of record at the close of business day July 3, 2025.

We approved and paid cash dividends of $0.50 per share for each of the four quarters of 2024 for both our Class A and Class B common stock.

3 unchanged sentences

These guarantees are full and unconditional.

The guarantors of our senior notes are currently those subsidiaries that also guarantee Lennar Corporation's letter of credit facilities and its Credit Facility, which is disclosed in Note 8 of the Notes to Condensed Consolidated Financial Statements.

The guarantors of our senior notes are currently those subsidiaries that also guarantee Lennar Corporation's letter of credit facilities, its Credit Facility and Delayed Draw Term Loan Facility, which are disclosed in Note 8 of the Notes to Condensed Consolidated Financial Statements.

Under the indentures governing our senior notes, guarantees may be suspended or released under certain circumstances.

Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at May 31, 2025 is included in the following tables.

Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at August 31, 2025 is included in the following tables.

Intercompany balances and transactions within the Obligors have been eliminated and amounts attributable to the Obligors' investment in consolidated subsidiaries that have not issued or guaranteed the senior notes have been excluded.

Amounts due from and transactions with nonobligor subsidiaries and related parties are separately disclosed:

(In thousands) At May 31, 2025 At November 30, 2024

(In thousands) At August 31, 2025 At November 30, 2024

Due from non-guarantor subsidiaries $ 14,201,862 18,396,060

2 unchanged sentences

Total liabilities 9,008,390 10,067,424

Six Months Ended

(In thousands) May 31, 2025

Nine Months Ended

(In thousands) August 31, 2025

Total revenues $ 22,131,952

6 unchanged sentences

For those joint ventures not in compliance with the debt covenants, we evaluate and assess possible impairment of our investments.

We believe that substantially all of the joint ventures were in compliance with applicable debt covenants at May 31, 2025.

We believe that substantially all of the joint ventures were in compliance with applicable debt covenants at August 31, 2025.

Homebuilding:

Investments in Unconsolidated Entities

As of May 31, 2025, we had equity investments in 54 active Homebuilding and land unconsolidated entities (of which 4 had recourse debt, 14 had non-recourse debt and 36 had no debt) compared to 51 active Homebuilding and land unconsolidated entities at November 30, 2024.

As of August 31, 2025, we had equity investments in 53 active Homebuilding and land unconsolidated entities (of which 4 had recourse debt, 15 had non-recourse debt and 34 had no debt) compared to 51 active Homebuilding and land unconsolidated entities at November 30, 2024.

Historically, we have invested in unconsolidated entities that acquired and developed land (1) for our homebuilding operations or for sale to third parties or (2) for the construction of homes for sale to third-party homebuyers.

9 unchanged sentences

Details regarding these investments, balances and debt are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Homebuilding unconsolidated entities (“JVs”) debt as per current debt arrangements as of May 31, 2025.

The following table summarizes the principal maturities of our Homebuilding unconsolidated entities (“JVs”) debt as per current debt arrangements as of August 31, 2025.

It does not represent estimates of future cash payments that will be made to reduce debt balances.

3 unchanged sentences

Bank debt without recourse to Lennar $ 1,444,787 217,262 151,462 403,654 672,409 —

Land seller and other debt without recourse to Lennar (1,242) — — — (1,242) —

Maximum recourse debt exposure to Lennar 31,423 — 9,513 — 21,910 —

2 unchanged sentences

We own an approximately 40% interest in FivePoint Holdings, LLC., a NYSE listed company, and companies it manages, which own three large multi-use properties in California.

We temporarily hold an approximately 20% investment in the total outstanding shares of Millrose common stock, which we expect to dispose of through a subsequent spin-off, split-off, public offering, private sale or any combination of these potential transactions later in the year.

We temporarily hold an approximately 20% investment in the total outstanding shares of Millrose common stock, which we expect to dispose of through a split-off, a stock sale or another transaction.

Investments in Unconsolidated Entities

At May 31, 2025, Multifamily had equity investments in 25 active unconsolidated entities that are engaged in multifamily residential developments (of which 17 had non-recourse debt and 8 had no debt) compared to 23 active unconsolidated entities at November 30, 2024.

At August 31, 2025, Multifamily had equity investments in 25 active unconsolidated entities that are engaged in multifamily residential developments (of which 18 had non-recourse debt and 7 had no debt) compared to 23 active unconsolidated entities at November 30, 2024.

We invest in unconsolidated entities that acquire and develop land to construct multifamily rental properties.

5 unchanged sentences

The Multifamily segment includes LMV I, LMV II, the CPPIB Fund and the Institutional JV, which are long-term multifamily development investment vehicles involved in the development and construction of class-A multifamily assets.

Details of each fund as of and during the six months ended May 31, 2025 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of May 31, 2025.

Details of each fund as of and during the nine months ended August 31, 2025 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of August 31, 2025.

It does not represent estimates of future cash payments that will be made to reduce debt balances.

9 unchanged sentences

These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and are recorded as equity in earnings (losses) in the condensed consolidated statement of operations.

Our investment in the Rialto funds totaled $132.9 million and $140.1 million as of May 31, 2025 and November 30, 2024, respectively.

As of May 31, 2025 and November 30, 2024, we had strategic technology investments in unconsolidated entities of $235.1 million and $239.3 million, respectively, accounted for under the equity method of accounting.

Our investment in the Rialto funds totaled $134.3 million and $140.1 million as of August 31, 2025 and November 30, 2024, respectively.

As of August 31, 2025 and November 30, 2024, we had strategic technology investments in unconsolidated entities of $238.0 million and $239.3 million, respectively, accounted for under the equity method of accounting.

Our strategic technology investments through our LEN X business help to enhance the homebuying and homeownership experience, and are an important part of our focus on using technology to reduce costs.

4 unchanged sentences

The table below indicates the number of homesites to which we had access through option contracts with third parties and unconsolidated JVs (i.e., controlled homesites) and homesites owned (excluding homes in inventory):

May 31, 2025 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)

August 31, 2025 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)

East 111,916 913 112,829

5 unchanged sentences

% of total homesites 98% 2%

May 31, 2024 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)

August 31, 2024 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)

East 90,402 16,172 106,574

8 unchanged sentences

Contractual Obligations and Commercial Commitments

Our contractual obligations and commercial commitments have not changed materially from those reported in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K, except for a decrease of $515 million in borrowings under the Financial Services' warehouse repurchase facilities, a decrease of $449 million in land purchase contract obligations, and an increase of $540 million in Homebuilding senior notes and other debts payable, net.

Our contractual obligations and commercial commitments have not changed materially from those reported in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K, except for a decrease of $1.0 billion in land purchase contract obligations and an increase of $1.3 billion in Homebuilding senior notes and other debts payable, net.

(3) Recently Adopted Accounting Pronouncements

1 unchanged sentence

(4) Critical Accounting Policies

There have been no significant changes to our critical accounting policies during the six months ended May 31, 2025 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Form 10-K.

There have been no significant changes to our critical accounting policies during the nine months ended August 31, 2025 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Form 10-K.

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 2. Management’s Discussion and Analysis