LEN filing — read by section

Item 1. Financial Statements

Item 1. Financial Statements 
 
 
 
 Lennar Corporation and Subsidiaries 
 Condensed Consolidated Balance Sheets 
 (Dollars in thousands) 
 (Unaudited) 
 
 August 31, November 30, 
 2025 (1) 2024 (1) 
 
 ASSETS 
 Homebuilding: 
 Cash and cash equivalents $ 1,406,215 4,662,643 
 Restricted cash 29,928 11,799 
 Receivables, net 948,295 1,053,211 
 Inventories: 
 Finished homes and construction in progress 10,049,466 10,884,861 
 Land and land under development 1,069,620 4,750,025 
 Inventory owned 11,119,086 15,634,886 
 Consolidated inventory not owned 2,258,568 4,084,665 
 Inventory owned and consolidated inventory not owned 13,377,654 19,719,551 
 Deposits and pre-acquisition costs on real estate 6,012,493 3,625,372 
 Investments in unconsolidated entities 2,648,329 1,344,836 
 Goodwill 3,442,359 3,442,359 
 Other assets 1,798,459 1,734,698 
 29,663,732 35,594,469 
 Financial Services 3,368,588 3,516,550 
 Multifamily 1,001,478 1,306,818 
 Lennar Other 844,603 894,944 
 Total assets $ 34,878,401 41,312,781 

 (1) Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. 
 As of August 31, 2025, total assets include $ 2.1 billion related to consolidated VIEs of which $ 77.6 million is included in Homebuilding cash and cash equivalents, $ 2.0 million in Homebuilding receivables, net, $ 51.7 million in Homebuilding finished homes and construction in progress, $ 336.1 million in Homebuilding land and land under development, $ 1.5 billion in Homebuilding consolidated inventory not owned, $ 83.6 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.1 million in Homebuilding investments in unconsolidated entities, $ 8.6 million in Homebuilding other assets and $ 25.3 million in Multifamily assets. 
 As of November 30, 2024, total assets include $ 3.7 billion related to consolidated VIEs of which $ 67.0 million is included in Homebuilding cash and cash equivalents, $ 6.0 million in Homebuilding receivables, net, $ 9.7 million in Homebuilding finished homes and construction in progress, $ 602.9 million in Homebuilding land and land under development, $ 2.8 billion in Homebuilding consolidated inventory not owned, $ 71.8 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities, $ 42.3 million in Homebuilding other assets and $ 33.9 million in Multifamily assets. 
 See accompanying notes to condensed consolidated financial statements. 
 3 

 
 Lennar Corporation and Subsidiaries 
 Condensed Consolidated Balance Sheets (Continued) 
 (In thousands, except share amounts) 
 (Unaudited) 

 
 August 31, November 30, 
 2025 (2) 2024 (2) 
 
 LIABILITIES AND EQUITY 
 Homebuilding: 
 Accounts payable $ 1,521,244 1,839,440 
 Liabilities related to consolidated inventory not owned 1,987,263 3,563,934 
 Senior notes and other debts payable, net 3,523,766 2,258,283 
 Other liabilities 2,809,923 3,201,552 
 9,842,196 10,863,209 
 Financial Services 2,070,051 2,140,708 
 Multifamily 116,014 181,883 
 Lennar Other 98,585 105,756 
 Total liabilities 12,126,846 13,291,556 
 Commitments and contingent liabilities (See Note 11) 
 Stockholders’ equity: 
 Preferred stock — — 
 Class A common stock of $ 0.10 par value; Authorized: August 31, 2025 and November 30, 2024 - 400,000,000 shares; Issued: August 31, 2025 - 261,530,577 shares and November 30, 2024 - 259,979,453 shares 
 26,153 25,998 
 Class B common stock of $ 0.10 par value; Authorized: August 31, 2025 and November 30, 2024 - 90,000,000 shares; Issued: August 31, 2025 - 36,601,215 shares and November 30, 2024 - 36,601,215 shares 
 3,660 3,660 
 Additional paid-in capital 5,884,528 5,729,434 
 Retained earnings 22,107,836 25,753,078 
 Treasury stock, at cost; August 31, 2025 - 37,727,047 shares of Class A common stock and 5,384,202 shares of Class B common stock; November 30, 2024 - 23,814,148 shares of Class A common stock and 4,532,701 shares of Class B common stock 
 ( 5,457,876 ) ( 3,649,564 ) 
 Accumulated other comprehensive income 6,019 7,529 
 Total stockholders’ equity 22,570,320 27,870,135 
 Noncontrolling interests 181,235 151,090 
 Total equity 22,751,555 28,021,225 
 Total liabilities and equity $ 34,878,401 41,312,781 

 (2) As of August 31, 2025, total liabilities include $ 1.4 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 39.0 million is included in Homebuilding accounts payable, $ 1.4 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debt payable, $ 1.3 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities. 
 As of November 30, 2024, total liabilities include $ 2.7 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 67.3 million is included in Homebuilding accounts payable, $ 2.6 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debts payable, net, $ 45.8 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities. 
 See accompanying notes to condensed consolidated financial statements. 
 4 

 
 Lennar Corporation and Subsidiaries 
 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) 
 (In thousands, except per share amounts) 
 (Unaudited) 
 
 

 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 2025 2024 2025 2024 
 Revenues: 
 Homebuilding $ 8,253,675 9,045,692 23,381,407 24,357,742 
 Financial Services 314,195 273,270 889,370 804,713 
 Multifamily 228,465 93,443 521,966 322,620 
 Lennar Other 13,943 3,637 26,582 9,489 
 Total revenues 8,810,278 9,416,042 24,819,325 25,494,564 
 Costs and expenses: 
 Homebuilding 7,497,119 7,613,042 21,184,631 20,697,033 
 Financial Services 136,323 128,870 410,735 382,005 
 Multifamily 238,791 184,708 566,844 419,580 
 Lennar Other 45,450 17,176 99,039 53,105 
 Corporate general and administrative 171,397 164,672 474,628 478,975 
 Charitable foundation contribution 21,584 21,516 59,549 58,004 
 Total costs and expenses 8,110,664 8,129,984 22,795,426 22,088,702 
 Equity in earnings from unconsolidated entities 10,822 186,621 56,172 151,767 
 Other income (expense), net and other gains (losses), net ( 18,956 ) 23,331 43,471 156,875 
 
 
 
 Lennar Other realized and unrealized gains from technology investments 99,223 39,123 7,280 12,472 
 Earnings before income taxes 790,703 1,535,133 2,130,822 3,726,976 
 Provision for income taxes ( 190,892 ) ( 347,859 ) ( 520,478 ) ( 859,195 ) 
 Net earnings (including net earnings attributable to noncontrolling interests) 599,811 1,187,274 1,610,344 2,867,781 
 Less: Net earnings attributable to noncontrolling interests 8,844 24,600 22,402 31,462 
 Net earnings attributable to Lennar $ 590,967 1,162,674 1,587,942 2,836,319 
 Other comprehensive income (loss), net of tax: 
 Net unrealized gains (losses) on securities available-for-sale $ — 444 ( 1,510 ) 2,161 
 
 Total other comprehensive income (loss), net of tax $ — 444 ( 1,510 ) 2,161 
 Total comprehensive income attributable to Lennar $ 590,967 1,163,118 1,586,432 2,838,480 
 Total comprehensive income attributable to noncontrolling interests $ 8,844 24,600 22,402 31,462 
 Basic and diluted earnings per share $ 2.29 4.26 6.06 10.26 
 
 

 
 
 
 
 
 
 
 
 
 See accompanying notes to condensed consolidated financial statements. 
 5 

 
 Lennar Corporation and Subsidiaries 
 Condensed Consolidated Statements of Cash Flows 
 (In thousands) 
 (Unaudited) 

 
 Nine Months Ended 
 August 31, 
 2025 2024 
 Cash flows from operating activities: 
 Net earnings (including net earnings attributable to noncontrolling interests) $ 1,610,344 2,867,781 
 Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: 
 Depreciation and amortization 99,326 85,119 
 Amortization of discount/premium and accretion on debt, net ( 33 ) 407 
 Equity in earnings from unconsolidated entities ( 56,172 ) ( 151,767 ) 
 Distributions of earnings from unconsolidated entities 28,266 34,108 
 Share-based compensation expense 138,363 154,094 
 
 Deferred income tax expense 77,332 99,368 
 Gains on redemption/repurchase of senior notes — ( 825 ) 
 Loans held-for-sale unrealized gains ( 10,293 ) ( 1,617 ) 
 Lennar Other realized and unrealized losses (gains) from technology investments and other losses (gains), net 14,218 ( 35,189 ) 
 Gains on sale of other assets and loans receivables ( 34,086 ) ( 15,428 ) 
 
 
 
 Gain on sale of investments in unconsolidated entities and other ( 35,678 ) — 
 
 
 
 
 Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets 146,893 125,777 
 
 Changes in assets and liabilities: 
 
 Increase in receivables ( 10,286 ) ( 24,170 ) 
 Increase in inventories, excluding valuation adjustments ( 1,314,933 ) ( 707,702 ) 
 Increase in deposits and pre-acquisition costs on real estate ( 1,248,390 ) ( 984,843 ) 
 Increase in other assets ( 209,892 ) ( 84,751 ) 
 Decrease in loans held-for-sale 240,394 245,004 
 Decrease in accounts payable and other liabilities ( 978,048 ) ( 176,492 ) 
 Net cash (used in) provided by operating activities ( 1,542,675 ) 1,428,874 
 Cash flows from investing activities: 
 
 Net additions of operating properties and equipment ( 103,424 ) ( 130,138 ) 
 Proceeds from sale of other assets 54,803 31,435 
 Proceeds from sale of investments in unconsolidated joint venture 233,007 — 
 
 Proceeds from sales of investments 86,862 — 
 Investments in and contributions to unconsolidated entities ( 203,010 ) ( 311,904 ) 
 Distributions of capital from unconsolidated entities 235,593 236,527 
 
 
 
 
 
 
 
 
 Proceeds from sale of loan receivables 114,661 — 
 Acquisition, net of cash and restricted cash acquired ( 254,492 ) — 
 
 
 
 
 Decrease (increase) in Financial Services loans held-for-investment 11,572 ( 2,479 ) 
 Purchases of investment securities ( 3,456 ) ( 4,519 ) 
 
 Proceeds from maturities/sales of investment securities 3,518 4,254 
 
 
 Net cash provided by (used in) investing activities $ 175,634 ( 176,824 ) 

 
 
 
 
 
 
 
 
 
 
 
 See accompanying notes to condensed consolidated financial statements. 
 6 

 Lennar Corporation and Subsidiaries 
 Condensed Consolidated Statements of Cash Flows (Continued) 
 (In thousands) 
 (Unaudited) 
 
 

 
 Nine Months Ended 
 August 31, 
 2025 2024 
 Cash flows from financing activities: 
 Net borrowings under revolving credit facility $ 1,140,000 — 
 Net repayments under warehouse facilities ( 67,111 ) ( 618,388 ) 
 Proceeds from issuance of senior notes 700,000 — 
 
 Redemption/repurchases of senior notes ( 500,000 ) ( 553,865 ) 
 
 Principal payments on notes payable and other borrowings ( 48,659 ) ( 43,995 ) 
 
 Net cash distributed in connection with Millrose Properties, Inc. spin-off ( 416,006 ) — 
 Proceeds from liabilities related to consolidated inventory not owned 259 130,440 
 Proceeds from other borrowings — 6,231 
 
 Payments for liabilities related to consolidated inventory not owned ( 479,426 ) ( 255,753 ) 
 Payments related to other liabilities, net ( 4,263 ) ( 4,263 ) 
 
 
 Receipts related to noncontrolling interests 25,982 17,044 
 Payments related to noncontrolling interests ( 7,777 ) ( 45,819 ) 
 Debt issuance costs ( 6,502 ) — 
 
 Common stock: 
 
 Repurchases ( 1,808,312 ) ( 1,729,308 ) 
 Dividends ( 394,357 ) ( 414,168 ) 
 Net cash used in financing activities ( 1,866,172 ) ( 3,511,844 ) 
 Net decrease in cash and cash equivalents and restricted cash ( 3,233,213 ) ( 2,259,794 ) 
 Cash and cash equivalents and restricted cash at beginning of period 4,990,210 6,570,938 
 Cash and cash equivalents and restricted cash at end of period $ 1,756,997 4,311,144 
 Summary of cash and cash equivalents and restricted cash: 
 Homebuilding $ 1,406,215 4,037,405 
 Financial Services 216,129 156,840 
 Multifamily 17,337 24,755 
 Lennar Other 22,532 33,662 
 Homebuilding restricted cash 29,928 12,600 
 Financial Services restricted cash 64,856 45,882 
 $ 1,756,997 4,311,144 
 
 
 
 
 Supplemental disclosures of non-cash investing and financing activities: 
 Homebuilding: 
 Payments of inventories financed by sellers $ 320 34,245 
 
 Net non-cash contributions to unconsolidated entities 162,454 14,453 
 
 
 
 
 
 
 
 
 
 
 
 Non-cash impact of Millrose Properties, Inc. spin-off: 
 Inventories $ ( 5,578,704 ) — 
 Investments in unconsolidated entities 1,197,039 — 
 Other assets ( 60,156 ) — 
 Notes payable 19,000 — 
 Retained earnings 4,422,821 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 See accompanying notes to condensed consolidated financial statements. 
 7 

 
 
 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) 
 
 (1) Basis of Presentation 
 Basis of Consolidation 
 The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2024 ("2024 Form 10-K"). The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its 2024 Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. 
 Seasonality 
 The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements 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. 
 Use of Estimates 
 The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. 
 Cash and Cash Equivalents 
 Homebuilding cash and cash equivalents as of August 31, 2025 and November 30, 2024 included $ 673.7 million and $ 265.6 million, respectively, of cash held in escrow for approximately two days . 
 Share-based Payments 
 During both the three months ended August 31, 2025 and 2024, the Company granted employees an immaterial number of nonvested shares. During the nine months ended August 31, 2025 and 2024, the Company granted employees 1.4 million and 1.3 million of nonvested shares of Class A common stock, respectively. 
 Recently Adopted Accounting Pronouncements 
 In November 2023, the FASB issued ASU 2023-07, “ Improvements to Reportable Segment Disclosures ” (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the segment measure of profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. ASU 2023-07 will be applied retrospectively and is effective for the Company's fiscal year ending November 30, 2025 and interim reporting periods starting in the first quarter of fiscal 2026. The Company is currently reviewing the impact that the adoption of ASU 2023-07 will have on its condensed consolidated financial statements and disclosures. 
 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):Improvements to Income Tax Disclosure ("ASU 2023-09"). ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the Company's fiscal year ending November 30, 2026 and may be applied either retrospectively or prospectively. The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on its condensed consolidated financial statements and disclosures. 
 In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure s (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the Company's fiscal year ending November 30, 2028. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its condensed consolidated financial statements and disclosures. 
 8 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 Reclassifications 
 As a result of the Company's change in Homebuilding reportable segments following the acquisition of Rausch Coleman Homes ("Rausch") (refer to Note 2 of the Notes to Condensed Consolidated Financial Statements for more information), the Company reclassified certain prior year segment information in the condensed consolidated financial statements to conform with the 2025 presentation. This reclassification was for operational purposes and between segments and had no impact on the Company's total assets, total equity, revenues or net earnings in the condensed consolidated financial statements. In addition, certain amounts in the prior year's statement of cash flows were reclassified to conform with the 2025 presentation. 
 
 (2) Business Transactions 
 Spin-off of Millrose Properties, Inc. 
 On February 7, 2025, the Company completed the taxable spin-off of Millrose Properties, Inc. ("Millrose") through a distribution of approximately 80 % of Millrose's stock to its stockholders. The Company temporarily retains, but does not vote, the remaining 20 % of the total outstanding shares of Millrose common stock, which it expects to dispose of through a split-off, a stock sale or another transaction. In connection with the spin-off, the Company contributed to Millrose $ 5.6 billion in land assets, representing approximately 87,000 homesites, and cash of $ 1.0 billion, which included $ 584.0 million of cash deposits related to option contracts. The spin-off transaction accelerates Lennar's longstanding strategy of becoming a pure-play, asset-light, new home manufacturing company. 
 Acquisition of Rausch Coleman Homes 
 On February 10, 2025, the Company acquired Rausch, a residential homebuilder based in Fayetteville, Arkansas. The Company acquired Rausch’s homebuilding operations while Millrose acquired Rausch's land assets and the Company has options on the land. With this acquisition, the Company expanded its footprint into new markets in Arkansas (Bentonville/Fayetteville, Little Rock and Jonesboro), Oklahoma (Tulsa and Stillwater), Alabama (Birmingham and Tuscaloosa), and Kansas/Missouri (Kansas City), while adding to its existing footprint in Texas (Houston and San Antonio), Oklahoma (Oklahoma City), Alabama (Huntsville) and Florida (Gulf Coast). The Company acquired $ 312.6 million of assets, primarily consisting of homes under construction, finished homesites, cash and other assets, and assumed liabilities of $ 73.0 million, primarily consisting of accounts payable and other liabilities. The cash consideration paid by the Company to Rausch was funded from working capital. 
 
 (3) Operating and Reporting Segments 
 The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company’s performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting , and determined that the following are its operating and reportable segments: 
 Homebuilding segments: (1) East (2) Central (3) South Central (4) West 
 (5) Financial Services 
 (6) Multifamily 
 (7) Lennar Other 
 The assets and liabilities related to the Company’s segments were as follows: 
 9 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 
 (In thousands) At August 31, 2025 
 Assets: Homebuilding Financial
Services Multifamily Lennar 
Other Total 
 Cash and cash equivalents $ 1,406,215 216,129 17,337 22,532 1,662,213 
 Restricted cash 29,928 64,856 — — 94,784 
 Receivables, net (1) 948,295 556,273 45,715 — 1,550,283 
 Inventory owned and consolidated inventory not owned 13,377,654 — 322,502 — 13,700,156 
 Deposits and pre-acquisition costs on real estate 6,012,493 — 15,425 — 6,027,918 
 Investments in unconsolidated entities (2) 2,648,329 2,657 519,510 372,256 3,542,752 
 Loans held-for-sale (3) (6) — 2,081,628 — — 2,081,628 
 
 Investments in equity securities (4) — — — 285,589 285,589 
 Investments available-for-sale (5) — — — 39,069 39,069 
 
 Investments held-to-maturity — 133,558 — — 133,558 
 
 
 Goodwill 3,442,359 189,699 — — 3,632,058 
 Other assets 1,798,459 123,788 80,989 125,157 2,128,393 
 Total assets $ 29,663,732 3,368,588 1,001,478 844,603 34,878,401 
 Liabilities: 
 Senior notes and other debts payable, net $ 3,523,766 1,863,845 — — 5,387,611 
 Liabilities related to consolidated inventory not owned 1,987,263 — — — 1,987,263 
 Accounts payable and other liabilities 4,331,167 206,206 116,014 98,585 4,751,972 
 Total liabilities $ 9,842,196 2,070,051 116,014 98,585 12,126,846 

 
 (In thousands) At November 30, 2024 
 Assets: Homebuilding Financial
Services Multifamily Lennar 
Other Total 
 Cash and cash equivalents $ 4,662,643 175,382 30,948 40,691 4,909,664 
 Restricted cash 11,799 68,747 — — 80,546 
 Receivables, net (1) 1,053,211 545,752 53,595 — 1,652,558 
 Inventory owned and consolidated inventory not owned 19,719,551 — 592,879 — 20,312,430 
 Deposits and pre-acquisition costs on real estate 3,625,372 — 32,643 — 3,658,015 
 Investments in unconsolidated entities 1,344,836 — 503,303 379,435 2,227,574 
 Loans held-for-sale (3) — 2,250,718 — — 2,250,718 
 
 Investments in equity securities (4) — — — 347,810 347,810 
 Investments available-for-sale (5) — — — 40,578 40,578 
 Loans held-for-investment, net (6) — 60,969 — — 60,969 
 Investments held-to-maturity — 135,646 — — 135,646 
 
 
 Goodwill 3,442,359 189,699 — — 3,632,058 
 Other assets 1,734,698 89,637 93,450 86,430 2,004,215 
 Total assets $ 35,594,469 3,516,550 1,306,818 894,944 41,312,781 
 Liabilities: 
 Senior notes and other debt payable, net $ 2,258,283 1,930,956 — — 4,189,239 
 Liabilities related to consolidated inventory not owned 3,563,934 — — — 3,563,934 
 Accounts payable and other liabilities 5,040,992 209,752 181,883 105,756 5,538,383 
 Total liabilities $ 10,863,209 2,140,708 181,883 105,756 13,291,556 

 (1) Financial Services, receivables, net, are primarily related to loans sold to investors for which the Company had not yet been paid as of August 31, 2025 and November 30, 2024, respectively. 
 (2) I nvestments in unconsolidated entities as of August 31, 2025 include the carrying value of 20 % of the total outstanding shares of Millrose common stock, which was $ 1.2 billion. 
 10 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 (3) Loans held-for-sale related to unsold residential and commercial loans carried at fair value, of which $ 50.3 million of residential loans are carried at lower of cost or fair value. 
 (4) Investments in equity securities include investments of $ 118.3 million and $ 143.0 million without readily available fair values as of August 31, 2025 and November 30, 2024, respectively. 
 (5) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) in the condensed consolidated balance sheets. 
 (6) As of August 31, 2025, the Financial Services segment transferred its loans held-for-investment of $ 61.0 million (fair value of $ 50.3 million) to held-for-sale, based on the Company’s intent to sell the loans in the near future. 
 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (In thousands) 2025 2024 2025 2024 
 Revenues: 
 Homebuilding $ 8,253,675 9,045,692 23,381,407 24,357,742 
 Financial Services 314,195 273,270 889,370 804,713 
 Multifamily 228,465 93,443 521,966 322,620 
 Lennar Other 13,943 3,637 26,582 9,489 
 
 $ 8,810,278 9,416,042 24,819,325 25,494,564 
 Earnings (loss) before income taxes: 
 Homebuilding $ 759,785 1,477,918 2,297,292 3,846,869 
 Financial Services 177,872 144,400 478,635 422,708 
 Multifamily ( 16,471 ) 78,908 ( 31,248 ) 42,795 
 Lennar Other 62,498 20,095 ( 79,680 ) ( 48,417 ) 
 Corporate and Unallocated (1) ( 192,981 ) ( 186,188 ) ( 534,177 ) ( 536,979 ) 
 $ 790,703 1,535,133 2,130,822 3,726,976 

 (1) Corporate and unallocated consists primarily of corporate general and administrative expenses and charitable foundation contributions. 
 Homebuilding Segments 
 Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under “Homebuilding Other,” which is not considered a reportable segment. 
 Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the Homebuilding segments consist of revenues generated from the sales of homes and land, other revenues from management fees and forfeited deposits, equity in earnings (losses) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment. Homebuilding Other also includes management of a fund that acquires single-family homes and holds them as rental properties. 
 The Company renamed its Texas reportable Homebuilding segment to South Central as a result of the Rausch acquisition (see Note 2 of the Notes to Condensed Consolidated Financial Statements) in order to streamline and synergize geographic homebuilding operations, assess performance, and allocate resources across the Company’s geographic homebuilding segments. The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in: 
 East: Florida, New Jersey and Pennsylvania 
 Central: Alabama, Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee, 
 and Virginia 
 South Central: Arkansas, Kansas, Missouri, Oklahoma and Texas 
 West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington 
 Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC (“FivePoint”), and Millrose investment. 
 11 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 The assets related to the Company’s Homebuilding segments were as follows: 
 
 (In thousands) At August 31, 2025 At November 30, 2024 
 
 
 East $ 5,724,354 6,967,571 
 Central 4,848,376 5,567,451 
 South Central 4,207,858 4,238,587 
 West 10,442,228 12,148,434 
 Other 2,813,064 1,729,407 
 Corporate and Unallocated 1,627,852 4,943,019 
 Total Homebuilding $ 29,663,732 35,594,469 

 Financial information relating to the Company’s Homebuilding segments was as follows: 
 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (In thousands) 2025 2024 2025 2024 
 Revenues 
 East $ 1,703,457 2,074,799 5,064,438 6,091,146 
 Central 2,075,062 2,206,293 5,406,615 5,418,886 
 South Central 1,508,269 1,286,625 4,198,495 3,554,836 
 West 2,960,730 3,471,591 8,688,960 9,267,120 
 Other 6,157 6,384 22,899 25,754 
 $ 8,253,675 9,045,692 23,381,407 24,357,742 
 
 Operating earnings (loss) 
 East $ 181,648 401,908 579,274 1,205,866 
 Central 189,458 343,490 488,749 741,549 
 South Central 130,129 197,767 388,901 550,924 
 West 270,323 514,448 814,528 1,302,172 
 Other ( 11,773 ) 20,305 25,840 46,358 
 $ 759,785 1,477,918 2,297,292 3,846,869 

 Financial Services 
 Operations of the Financial Services segment include mortgage financing, title and closing services primarily for buyers of the Company’s homes. They also include originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and sales of property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations. 
 12 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 At August 31, 2025, the Financial Services segment had warehouse facilities which were all 364 -day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: 
 
 Maximum Aggregate Commitment 
 (In thousands) Committed Amount Uncommitted Amount Total 
 Residential facilities maturing: 
 
 September 2025 (1) $ 1,000,000 — 1,000,000 
 October 2025 100,000 100,000 200,000 
 March 2026 250,000 250,000 500,000 
 May 2026 250,000 450,000 700,000 
 July 2026 100,000 100,000 200,000 
 December 2026 — 375,000 375,000 
 Total residential facilities $ 1,700,000 1,275,000 2,975,000 
 LMF commercial facilities maturing: 
 
 December 2025 200,000 — 200,000 
 January 2026 100,000 — 100,000 
 Total LMF commercial facilities $ 300,000 — 300,000 
 Total $ 3,275,000 

 (1) Subsequent to August 31, 2025, the maturity date was extended to September 2026 . 
 The Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to 80 % interests in the originated commercial loans financed. 
 Borrowings and collateral under the facilities were as follows: 
 
 (In thousands) At August 31, 2025 At November 30, 2024 
 Borrowings under residential facilities $ 1,682,918 1,776,045 
 Collateral under residential facilities 1,743,688 1,837,833 
 Borrowings under LMF Commercial facilities 57,313 28,747 

 If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities. 
 Substantially all of the residential loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements and seeking to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans, as well as previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the residential mortgage market and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving repurchase claims exceed the Company’s expectations, additional recourse expense may be incurred. The provision for loan losses was immaterial for both the three and nine months ended August 31, 2025 and 2024. Loan origination liabilities were $ 17.3 million and $ 16.7 million as of August 31, 2025 and November 30, 2024, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets. 
 13 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 LMF Commercial - loans held-for-sale 
 LMF Commercial originated commercial loans as follows: 
 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (Dollars in thousands) 2025 2024 2025 2024 
 Originations (1) $ 177,837 236,665 486,677 449,000 
 
 
 Sold 172,643 145,325 458,466 301,610 
 Securitizations 2 4 8 9 
 

 (1) During both the three and nine months ended August 31, 2025 and 2024, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. 
 Investments held-to-maturity 
 At August 31, 2025 and November 30, 2024, the Financial Services segment held commercial mortgage-backed securities (“CMBS”). These securities are classified as held-to-maturity based on the segment's intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during the three or nine months ended August 31, 2025 and August 31, 2024. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment. 
 Details related to Financial Services' CMBS were as follows: 
 
 (Dollars in thousands) August 31, 2025 November 30, 2024 
 Carrying value $ 133,558 135,646 
 Outstanding debt, net of debt issuance costs 123,615 126,164 
 Incurred interest rate 3.4 % 3.4 % 

 
 August 31, 2025 
 Range 
 Discount rates at purchase 6 % — 84 % 
 Coupon rates 2.0 % — 5.3 % 
 Distribution dates October 2027 — December 2028 
 Stated maturity dates October 2050 — December 2051 

 Multifamily 
 The Company is actively involved, primarily through unconsolidated funds and joint ventures, in the development and construction of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. 
 The Multifamily segment (i) manages and owns interests in, funds that are engaged in the development of multifamily residential communities with the intention of holding the newly constructed and occupied properties as income and fee generating assets, and (ii) manages and owns interests in, joint ventures that are engaged in the development of multifamily residential communities, in most instances with the intention of selling them when they are built and substantially occupied. The multifamily business is a vertically integrated platform with capabilities spanning development, construction, asset management, and capital markets. Revenues are generated from the sales of land, from construction activities, and from management and promote fees generated from funds and joint ventures less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses. Operations of the Multifamily segment also include equity in earnings (losses) from unconsolidated entities and other gains (losses), which includes proceeds of sales of investments. 
 Lennar Other 
 Lennar Other includes strategic investments in technology companies, primarily managed by the Company's LEN X subsidiary, and fund interests the Company retained when it sold the Rialto Capital Management ( “Rialto”) asset and investment management platform. Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments, along with equity in earnings (losses) from the Rialto fund investments and technology investments, realized and unrealized gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment. 
 14 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 The Company has/had investments in Blend Labs, Inc. (“Blend Labs”), Hippo Holdings, Inc. (“Hippo”), Opendoor Technologies, Inc. (“Opendoor”), SmartRent, Inc. (“SmartRent”), Sonder Holdings, Inc. (“Sonder”) and Sunnova Energy International, Inc. (“Sunnova”), which are held at market and the carrying value of which will therefore change depending on the value of the Company's shareholdings in those entities on the last day of each quarter. All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings. The following is a detail of Lennar Other realized and unrealized gains from sales of shares and mark-to-market adjustments on the Company's technology investments: 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (In thousands) 2025 2024 2025 2024 
 Blend Labs (BLND) $ — 2,270 ( 3,737 ) 5,921 
 Hippo (HIPO) 27,754 6,609 ( 598 ) 33,795 
 Opendoor (OPEN) 71,345 ( 564 ) 39,638 ( 16,156 ) 
 SmartRent (SMRT) — ( 5,634 ) ( 4,483 ) ( 12,206 ) 
 Sonder (SOND) — 71 ( 19 ) 82 
 Sunnova (NOVA) 124 36,371 ( 23,521 ) 1,036 
 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, the Company generated $ 44.7 million of cash and realized a loss of $ 25.9 million on the sale of its shares in Blend Labs, Hippo, SmartRent, Sonder and Sunnova . 
 
 (4) Investments in Unconsolidated Entities 
 Homebuilding Unconsolidated Entities 
 The investments in the Company's Homebuilding unconsolidated entities were as follows: 
 
 
 (In thousands) At August 31, 2025 At November 30, 2024 
 Investments in unconsolidated entities (1) (2) $ 2,648,329 1,344,836 
 Underlying equity in unconsolidated entities' net assets (1) (2) 2,895,562 1,636,307 

 (1) The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in FivePoint. 
 (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40 % ownership of FivePoint. As of August 31, 2025 and November 30, 2024, the carrying amount of the Company's investment was $ 559.3 million and $ 470.8 million, respectively. Additionally, included is the carrying value of approximately 20 % of the total outstanding shares of Millrose common stock, which was $ 1.2 billion as of August 31, 2025. The Company has determined that Millrose is a VIE, but the Company is not the primary beneficiary. The Company uses the equity method of accounting for its 20 % investment in Millrose. The Company expects to dispose of the remaining 20 % through a split-off, a stock sale or another transaction. 
 As of August 31, 2025 and November 30, 2024, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 499.8 million and $ 287.0 million, respectively. 
 The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments. While the Company sometimes guarantees debt of unconsolidated entities, in most instances the Company’s partners have also guaranteed that debt and are required to contribute their shares of any payments. In most instances, the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it. 
 As of both August 31, 2025 and November 30, 2024, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were immaterial. The Company believes that as of August 31, 2025, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture. In certain instances, the Company has placed performance letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 8 of the Notes to Condensed Consolidated Financial Statements). The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its 2024 Form 10-K. 
 The Upward America Venture LP (“Upward America”) is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to the people who will live in them. Upward America could raise equity commitments totaling $ 1.0 billion. The commitments are primarily from institutional investors, including $ 78.1 million committed by the Company. As of August 31, 2025 and November 30, 2024, the carrying amount of the Company's investment in Upward America was $ 14.6 million and $ 20.8 million, respectively. 
 15 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 Multifamily Unconsolidated Entities 
 The unconsolidated joint ventures in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the bank loans to the Multifamily unconsolidated joint ventures, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would increase the Company's investment in the entities and would increase its share of funds the entities distribute to the Company after the achievement of certain thresholds. The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its 2024 Form 10-K. As of both August 31, 2025 and November 30, 2024, the fair value of the completion guarantees was immaterial. As of August 31, 2025 and November 30, 2024, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 757.5 million and $ 907.8 million, respectively. The decrease in the non-recourse debt with completion guarantees was due to completion of projects and sale of joint ventures' rental operation projects and investments in various rental projects. 
 In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. Each Multifamily real estate investment trust, JV and fund has unilateral decision-making rights related to development and other sales activity through its executive committee or asset management committee. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. In some situations, the Multifamily segment sells land to various joint ventures and funds. The details of the activity were as follows: 
 
 Three Months Ended August 31, Nine Months Ended August 31, 
 
 (In thousands) 2025 2024 2025 2024 
 
 General contractor services, net of deferrals $ 42,150 67,190 100,864 253,260 
 General contractor costs 41,766 63,774 97,665 239,458 
 Land sales to joint ventures — — 162,447 14,454 
 Management fee income, net of deferrals 5,126 10,917 18,503 40,627 

 The Multifamily segment includes managing and investing in Multifamily Venture Fund I LP (“LMV I”), Multifamily Venture Fund II LP (“LMV II”), Canada Pension Plan Investments Fund (the “CPPIB Fund”) and a new joint venture with an institutional investor (the “Institutional JV”), which are long-term multifamily development investment vehicles involved in the development and construction of class-A multifamily assets. The Multifamily segment expects the CPPIB Fund to have almost $ 1.0 billion in equity and Lennar's ownership percentage in the CPPIB Fund is 4 %. As of August 31, 2025, the Company has a $ 28.0 million investment in the CPPIB Fund. During the nine months ended August 31, 2025, the Multifamily segment completed the closing of the Institutional JV. The Multifamily segment expects the Institutional JV to acquire certain portfolio assets and invest additional capital to support pipeline opportunities. The Company's ownership percentage in the Institutional JV is 10 %. As of August 31, 2025, the Company holds a $ 41.9 million investment in the Institutional JV. Additional dollars will be committed as opportunities are identified by the CPPIB Fund and the Institutional JV. 
 Details of LMV I and LMV II are included below: 
 
 August 31, 2025 
 (In thousands) LMV I LMV II 
 Lennar's carrying value of investments $ 107,907 215,927 
 Equity commitments 2,204,016 1,257,700 
 Equity commitments called 2,154,328 1,229,585 
 Lennar's equity commitments 504,016 381,000 
 Lennar's equity commitments called 500,381 371,492 
 Lennar's remaining commitments (1) 3,635 9,508 
 Distributions to Lennar during the nine months ended August 31, 2025 19,690 770 

 (1) While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls. 
 During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects as the fund has come to the end of its contractual life. During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers. During the nine months ended August 31, 2025, two additional LMV I rental operation projects were sold to third-party buyers. 
 16 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 Lennar Other Unconsolidated Entities 
 Lennar Other's unconsolidated entities include fund investments the Company retained when it sold the Rialto assets and investment management platform in 2018, as well as strategic investments in technology companies and investment funds. The Company's investment in the Rialto funds totaled $ 134.3 million and $ 140.1 million as of August 31, 2025 and November 30, 2024, respectively. In addition, the Company is entitled to a portion of the carried interest distributions by those funds. The Company also had strategic technology investments in unconsolidated entities and investment funds accounted for under the equity method of accounting with a carrying value of $ 238.0 million and $ 239.3 million, as of August 31, 2025 and November 30, 2024, respectively. 
 
 (5) Stockholders' Equity 
 The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three and nine months ended August 31, 2025 and 2024: 
 
 Three Months Ended August 31, 2025 
 (In thousands) Total
Equity Class A
Common Stock Class B
Common Stock Additional
Paid - in Capital Treasury
Stock Accumulated Other Comprehensive Income Retained
Earnings Noncontrolling
Interests 
 Balance at May 31, 2025 $ 22,731,882 26,136 3,660 5,842,732 ( 4,945,458 ) 6,019 21,645,991 152,802 
 Net earnings (including net earnings attributable to noncontrolling interests) 599,811 — — — — — 590,967 8,844 
 Employee stock and directors plans 
 15,563 17 — 16,291 ( 745 ) — — — 
 
 Purchases of treasury stock ( 511,673 ) — — — ( 511,673 ) — — — 
 
 
 
 
 Amortization of restricted stock 
 25,505 — — 25,505 — — — — 
 Cash dividends ( 129,122 ) — — — — — ( 129,122 ) — 
 
 Receipts related to noncontrolling interests 
 4,953 — — — — — — 4,953 
 Payments related to noncontrolling interests 
 ( 1,812 ) — — — — — — ( 1,812 ) 
 
 Non-cash purchase or activity of noncontrolling interests, net 16,448 — — — — — — 16,448 
 
 
 
 
 Balance at August 31, 2025 $ 22,751,555 26,153 3,660 5,884,528 ( 5,457,876 ) 6,019 22,107,836 181,235 

 
 Three Months Ended August 31, 2024 
 (In thousands) Total
Equity Class A
Common Stock Class B
Common Stock Additional
Paid - in Capital Treasury
Stock Accumulated Other Comprehensive Income Retained
Earnings Noncontrolling
Interests 
 Balance at May 31, 2024 $ 27,015,753 25,996 3,660 5,674,733 ( 2,597,806 ) 6,596 23,764,695 137,879 
 Net earnings (including net earnings attributable to noncontrolling interests) 1,187,274 — — — — — 1,162,674 24,600 
 Employee stock and directors plans 
 10 2 — 70 ( 62 ) — — — 
 
 Purchases of treasury stock ( 524,540 ) — — — ( 524,540 ) — — — 
 
 
 
 Amortization of restricted stock 
 31,908 — — 31,908 — — — — 
 Cash dividends ( 135,850 ) — — — — — ( 135,850 ) — 
 
 Receipts related to noncontrolling interests 
 2,322 — — — — — — 2,322 
 Payments related to noncontrolling interests 
 ( 19,173 ) — — — — — — ( 19,173 ) 
 
 Non-cash purchase or activity of noncontrolling interests, net ( 440 ) — — — — — — ( 440 ) 
 
 
 Total other comprehensive income, net of tax 444 — — — — 444 — — 
 Balance at August 31, 2024 $ 27,557,708 25,998 3,660 5,706,711 ( 3,122,408 ) 7,040 24,791,519 145,188 

 17 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 
 Nine Months Ended August 31, 2025 
 (In thousands) Total
Equity Class A
Common Stock Class B
Common Stock Additional
Paid - in Capital Treasury
Stock Accumulated Other Comprehensive Income (Loss) Retained
Earnings Noncontrolling
Interests 
 Balance at November 30, 2024 $ 28,021,225 25,998 3,660 5,729,434 ( 3,649,564 ) 7,529 25,753,078 151,090 
 Net earnings (including net earnings attributable to noncontrolling interests) 1,610,344 — — — — — 1,587,942 22,402 
 Employee stock and directors plans 
 ( 48,108 ) 155 — 17,680 ( 65,943 ) — — — 
 Retirement of treasury stock — — — — — — — — 
 Purchases of treasury stock ( 1,742,369 ) — — — ( 1,742,369 ) — — — 
 
 
 
 
 Amortization of restricted stock 
 138,363 — — 138,363 — — — — 
 Cash dividends ( 394,357 ) — — — — — ( 394,357 ) — 
 
 Receipts related to noncontrolling interests 
 25,982 — — — — — — 25,982 
 Payments related to noncontrolling interests 
 ( 7,777 ) — — — — — — ( 7,777 ) 
 Millrose Properties, Inc. spin-off ( 4,838,827 ) — — — — — ( 4,838,827 ) — 
 Non-cash purchase or activity of noncontrolling interests, net ( 11,411 ) — — ( 949 ) — — — ( 10,462 ) 
 
 
 
 Total other comprehensive loss, net of tax ( 1,510 ) — — — — ( 1,510 ) — — 
 Balance at August 31, 2025 $ 22,751,555 26,153 3,660 5,884,528 ( 5,457,876 ) 6,019 22,107,836 181,235 

 
 Nine Months Ended August 31, 2024 
 (In thousands) Total
Equity Class A
Common Stock Class B
Common Stock Additional
Paid - in Capital Treasury
Stock Accumulated Other Comprehensive Income Retained
Earnings Noncontrolling
Interests 
 Balance at November 30, 2023 $ 26,701,966 25,848 3,660 5,570,009 ( 1,393,100 ) 4,879 22,369,368 121,302 
 Net earnings (including net earnings attributable to noncontrolling interests) 2,867,781 — — — — — 2,836,319 31,462 
 Employee stock and directors plans 
 ( 84,509 ) 150 — 1,282 ( 85,941 ) — — — 
 
 Purchases of treasury stock ( 1,643,367 ) — — — ( 1,643,367 ) — — — 
 
 
 
 
 Amortization of restricted stock 
 154,094 — — 154,094 — — — — 
 Cash dividends ( 414,168 ) — — — — — ( 414,168 ) — 
 
 Receipts related to noncontrolling interests 
 17,044 — — — — — — 17,044 
 Payments related to noncontrolling interests 
 ( 45,819 ) — — — — — — ( 45,819 ) 
 
 Non-cash purchase or activity of noncontrolling interests, net 2,525 — — ( 18,674 ) — — — 21,199 
 
 
 Total other comprehensive income, net of tax 2,161 — — — — 2,161 — — 
 Balance at August 31, 2024 $ 27,557,708 25,998 3,660 5,706,711 ( 3,122,408 ) 7,040 24,791,519 145,188 

 On September 26, 2025, the Company's Board of Directors declared a quarterly cash dividend of $ 0.50 per share on both its 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, the Company paid a quarterly cash dividend of 0.50 per share for both of its Class A and Class B common stock to holders of record at the close of business day July 3, 2025. The Company approved and paid cash dividends of $ 0.50 per share for each of the four quarters of 2024 for both its Class A and Class B common stock. 
 18 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 In January 2024, the Company's Board of Directors authorized an increase to its stock repurchase program to enable it to repurchase up to an additional $ 5 billion in value of its outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. This authorization was in addition to what was remaining of the Company's March 2022 stock repurchase program. The repurchase authorization has no expiration date. At August 31, 2025, we have a remaining authorization to repurchase $ 1.7 billion in value of the Company's Class A or Class B common stock. The following table sets forth the repurchases of the Company's Class A and Class B common stock under the authorized repurchase programs: 
 
 Three Months Ended August 31, Nine Months Ended August 31, 
 
 2025 2024 2025 2024 
 (Dollars in thousands, except price per share amounts) Class A Class B Class A Class B Class A Class B Class A Class B 
 Shares repurchased 3,931,000 188,066 2,892,320 462,906 13,202,936 851,386 9,311,923 1,243,303 
 Total purchase price $ 484,372 $ 22,154 $ 447,845 $ 71,434 $ 1,624,220 $ 101,779 $ 1,445,909 $ 182,641 
 Average price per share $ 123.22 $ 117.80 $ 154.84 $ 154.32 $ 123.02 $ 119.55 $ 155.27 $ 146.90 

 
 (6) Income Taxes 
 The provision for income taxes and effective tax rate were as follows: 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (Dollars in thousands) 2025 2024 2025 2024 
 Provision for income taxes $ 190,892 347,859 520,478 859,195 
 Effective tax rate (1) 24.4 % 23.0 % 24.7 % 23.2 % 

 (1) For the three and nine months ended August 31, 2025 and 2024, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. The increase in the effective tax rate for the three months ended August 31, 2025 from the prior year was primarily due to a decrease in 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 excess tax benefits from shared-based compensation and 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. The Company does not expect the Act to have a material impact on its consolidated financial statements for the fiscal year ending November 30, 2025, and is currently evaluating the potential impact of the Act on future periods. 
 19 

 
 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 (7) Earnings Per Share 
 Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. 
 All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock (“nonvested shares”) is considered participating securities. 
 Basic and diluted earnings per share were calculated as follows: 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (In thousands, except per share amounts) 2025 2024 2025 2024 
 Numerator: 
 Net earnings attributable to Lennar $ 590,967 1,162,674 1,587,942 2,836,319 
 Less: distributed earnings allocated to nonvested shares 855 635 4,784 4,351 
 Less: undistributed earnings allocated to nonvested shares 4,393 10,257 11,572 24,177 
 Numerator for basic and diluted earnings per share 585,719 1,151,782 1,571,586 2,807,791 
 
 
 
 
 
 Denominator: 
 Denominator for basic and diluted earnings per share - weighted average common shares outstanding 255,601 270,164 259,540 273,604 
 
 
 
 
 Basic and diluted earnings per share $ 2.29 4.26 6.06 10.26 
 

 For both the three and nine months ended August 31, 2025 and 2024, there were no options to purchase shares of common stock that were outstanding and anti-dilutive. 
 
 (8) Homebuilding Senior Notes and Other Debt Payable 
 
 (Dollars in thousands) At August 31, 2025 At November 30, 2024 
 Unsecured revolving credit facility $ 1,140,000 — 
 
 
 
 5.25 % senior notes due 2026 
 400,912 401,824 
 5.00 % senior notes due 2027 
 350,686 350,974 
 4.75 % senior notes due 2027 
 698,700 698,266 
 5.20 % senior notes due 2030 
 693,853 — 
 4.75 % senior notes due 2025 
 — 499,779 
 
 
 Mortgage notes on land and other debt 239,615 307,440 
 $ 3,523,766 2,258,283 

 The carrying amounts of the senior notes in the table above are net of debt issuance costs of $ 7.5 million and $ 2.4 million as of August 31, 2025 and November 30, 2024, respectively. 
 In May 2025, the Company issued $ 700 million in aggregate principal amount of 5.20 % senior notes due 2030 (the "5.20% senior notes") at a price of 99.969 % of the principal amount. Proceeds from the offering, after payment of expenses, totaled $ 695.6 million. The 5.20 % Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. Interest on the 5.20 % Senior Notes is due semi-annually beginning January 30, 2026. 
 The Company utilized the net proceeds from the sale of the 5.20 % senior notes primarily to pay off $ 500 million aggregate principal amount of its 4.75 % senior notes due May 2025. The redemption price, which was paid in cash, was 100% of the principal amount outstanding. 
 In May 2025, the Company also 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. 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 
 20 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 agreement governing the Company’s new unsecured Delayed Draw Term Loan Facility permits the Company to draw up to six times in the first 180 days after the effective date of the credit agreement. Once drawn, the Company 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 or May 2028, and at the Company’s 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 equal 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 Delayed Draw Term Loan Facility. 
 In November 2024, the Company amended and restated the credit agreement governing its unsecured revolving credit facility (the "Credit Facility"). In the first quarter of 2025, the Company received an additional $ 150 million in commitments. In the third quarter of 2025, the Company secured an additional $ 100 million in commitments. The maximum available borrowings on the Credit Facility were as follows: 
 
 (In thousands) At August 31, 2025 
 Commitments - maturing in May 2027 $ 225,000 
 Commitments - maturing in November 2029 2,900,000 
 Total commitments $ 3,125,000 
 Accordion feature 375,000 
 Total maximum borrowings capacity $ 3,500,000 

 The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit agreement also provides that up to $ 477.5 million in commitments may be used for letters of credit. The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2024 Form 10-K for the year ended November 30, 2024. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions. 
 The Company's processes for posting performance and financial letters of credit and surety bonds are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2024 Form 10-K. The Company's outstanding letters of credit and surety bonds are disclosed below: 
 
 (In thousands) At August 31, 2025 At November 30, 2024 
 Performance letters of credit $ 1,889,234 1,668,061 
 Financial letters of credit 874,904 745,578 
 Surety bonds 5,495,538 5,140,432 
 Anticipated future costs primarily for site improvements related to performance surety bonds 3,075,021 2,766,088 

 All of the senior notes are guaranteed by certain of the Company's 100% owned subsidiaries, which are primarily homebuilding subsidiaries. The guarantees are full and unconditional. Other than as set forth in the Supplemental Financial Information, the terms of guarantees are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2024 Form 10-K. 
 21 

 
 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 (9) Financial Instruments and Fair Value Disclosures 
 The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at August 31, 2025 and November 30, 2024, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. 
 At August 31, 2025 At November 30, 2024 
 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value 
 ASSETS 
 Financial Services: 
 Loans held-for-investment, net (1) Level 3 $ — — 60,969 61,044 
 Loans held-for-sale (1) Level 3 50,284 50,284 — — 
 Investments held-to-maturity Level 3 133,558 133,413 135,646 138,160 
 
 
 
 LIABILITIES 
 Homebuilding senior notes and other debt payable, net Level 2 $ 3,523,766 3,562,272 2,258,283 2,264,375 
 Financial Services notes and other debt payable, net Level 2 1,863,845 1,864,336 1,930,956 1,931,515 
 
 
 

 (1) As of August 31, 2025, loans held-for-investment of $ 61.0 million (fair value of $ 50.3 million) were transferred to loans held-for-sale, based on the Company’s intent to sell the loans in the near future. 
 The following methods and assumptions are used by the Company in estimating fair values: 
 Financial Services - The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. The fair value of residential loans held-for-sale for which there is no active market for similar mortgage loans is determined using an independent third-party valuation that uses a discounted cash flow model to estimate fair value and is categorized as Level 3. The key assumptions used in the model, which are generally unobservable inputs, are mortgage prepayment rates, default rates, loss severity rates, and discount rates. Loans held-for-sale are carried at the lower of cost or fair value. For notes and other debt payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the majority of the borrowings. 
 Homebuilding - For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates. 
 Fair Value Measurements: 
 GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows: 
 Level 1: Fair value determined based on quoted prices in active markets for identical assets. 
 Level 2: Fair value determined using significant other observable inputs. 
 Level 3: Fair value determined using significant unobservable inputs. 
 The Company’s financial instruments measured at fair value on a recurring basis are summarized below: 
 Fair Value Hierarchy Fair Value at 
 (In thousands) August 31, 2025 November 30, 2024 
 Financial Services Assets: 
 Residential loans held-for-sale Level 2 $ 1,953,557 2,200,402 
 
 LMF Commercial loans held-for-sale Level 3 77,787 50,316 
 
 
 
 Mortgage servicing rights Level 3 3,290 3,463 
 Forward options Level 1 1,776 1,458 
 Lennar Other Assets: 
 Investments in equity securities Level 1 $ 167,325 204,777 
 Investments available-for-sale Level 3 39,069 40,578 

 22 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 Residential and LMF Commercial loans held-for-sale in the table above include: 
 
 At August 31, 2025 At November 30, 2024 
 
 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value 
 
 
 
 
 
 Residential loans held-for-sale $ 1,995,453 ( 41,896 ) 2,263,310 ( 62,907 ) 
 LMF Commercial loans held-for-sale 
 78,050 ( 263 ) 50,020 296 

 The estimated fair values of the Company's financial instruments have been determined by using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgement is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The following methods and assumptions are used by the Company in estimating fair values. 
 Financial Services residential loans held-for-sale - The fair value of residential loans held-for-sale that trade in active secondary markets is determined based upon quoted market prices for similar mortgage loans, adjusted for credit risk and other loan characteristics, and is categorized as Level 2. The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these are included in Financial Services’ loans held-for-sale as of August 31, 2025 and November 30, 2024. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics. 
 LMF Commercial loans held-for-sale - The fair value of commercial loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. The details and methods of the calculation are unchanged from the fair value disclosure in the Company's Notes to the Financial Statements section in its 2024 Form 10-K. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust. 
 Mortgage servicing rights - Financial Services records mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below: 
 
 
 August 31, 2025 November 30, 2024 
 Unobservable inputs: 
 Mortgage prepayment rate 9 % 8 % 
 Discount rate 13 % 13 % 
 Delinquency rate 12 % 12 % 

 Forward contracts, forward options and interest rate swaps - Fair value of forward contracts, forward options and interest rate swaps is based on independent quoted market prices for similar financial instruments. The fair value of these are included in Financial Services' other assets and other liabilities and the Company recognizes the changes in the fair value of the premium paid as Financial Services' revenues. 
 Lennar Other investments in equity securities - The fair value of investments in equity securities was calculated based on independent quoted market prices. The Company’s investments in equity securities were recorded at fair value with all changes in fair value recorded to Lennar Other unrealized gains (losses) from technology investments on the Company’s condensed consolidated statements of operations and comprehensive income (loss). 
 Lennar Other investments available-for-sale - The fair value of investments available-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads. 
 23 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: 
 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (In thousands) 2025 2024 2025 2024 
 Changes in fair value included in Financial Services revenues: 
 Loans held-for-sale $ 23,361 30,482 21,011 1,617 
 Mortgage loan commitments 34,590 22,400 45,511 ( 9,702 ) 
 Forward contracts ( 36,411 ) ( 30,043 ) ( 7,919 ) 42,874 
 Forward options 68 2,687 271 1,633 
 Interest rate swaps ( 6,652 ) ( 1,621 ) ( 6,490 ) ( 1,665 ) 
 Changes in fair value included in Lennar Other realized and unrealized gains from technology investments: 
 Investments in equity securities $ 99,223 39,123 7,280 12,472 
 Changes in fair value included in other comprehensive income (loss), net of tax: 
 Lennar Other investments available-for-sale $ — 444 ( 1,510 ) 2,161 
 

 Interest on Financial Services loans held-for-sale and LMF Commercial loans held-for-sale measured at fair value is calculated based on the interest rate of the loans and recorded as revenues in the Financial Services’ statement of operations. 
 The following table sets forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment: 
 
 Three Months Ended August 31, 
 
 2025 2024 
 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale 
 Beginning balance $ 3,467 72,203 3,652 66,715 
 Purchases/loan originations 45 177,837 174 236,665 
 
 Sales/loan originations sold, including those not settled — ( 172,643 ) — ( 145,325 ) 
 Disposals/settlements ( 104 ) — ( 122 ) ( 9,500 ) 
 Changes in fair value (1) ( 118 ) 483 ( 338 ) 2,312 
 Interest and principal paydowns — ( 93 ) — — 
 Ending balance $ 3,290 77,787 3,366 150,867 

 
 Nine Months Ended August 31, 
 
 2025 2024 
 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale 
 Beginning balance $ 3,463 50,316 3,440 13,459 
 Purchases/loan originations 322 486,677 406 449,000 
 Sales/loan originations sold, including those not settled — ( 458,466 ) — ( 301,610 ) 
 Disposals/settlements ( 257 ) — ( 193 ) ( 9,500 ) 
 Changes in fair value (1) ( 238 ) ( 264 ) ( 287 ) ( 673 ) 
 Interest and principal paydowns — ( 476 ) — 191 
 Ending balance $ 3,290 77,787 3,366 150,867 
 

 (1) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues. 
 The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs. The fair values included in the table below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below: 
 24 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 
 Three Months Ended August 31, 
 
 2025 2024 
 (In thousands) Fair Value
Hierarchy Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) 
 
 
 
 Homebuilding - non-financial assets: 
 Finished homes and construction in progress (2) Level 3 $ 479,233 430,986 ( 48,247 ) 120,811 111,776 ( 9,035 ) 
 
 Deposits and pre-acquisition costs on real estate (3) Level 3 8,919 — ( 8,919 ) 206 — ( 206 ) 
 
 Financial Services - financial assets: 
 Loans held-for-sale (4) Level 3 $ 61,001 50,284 ( 10,717 ) — — — 
 Multifamily - non-financial assets: 
 Investments in unconsolidated entities (5) Level 3 $ — — — 139,980 49,970 ( 90,010 ) 
 
 

 
 Nine Months Ended August 31, 
 
 2025 2024 
 (In thousands) Fair Value
Hierarchy Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) 
 
 
 
 
 Homebuilding - non-financial assets: 
 Finished homes and construction in progress (2) Level 3 $ 1,221,892 1,103,619 ( 118,273 ) 313,120 280,761 ( 32,359 ) 
 Land and land under development (2) Level 3 191 134 ( 57 ) — — — 
 Deposits and pre-acquisition costs on real estate (3) Level 3 17,847 — ( 17,847 ) 3,408 — ( 3,408 ) 
 
 Financial Services - financial assets: 
 Loans held-for-sale (4) Level 3 $ 61,001 50,284 ( 10,717 ) — — — 
 Multifamily - non-financial assets: 
 Investments in unconsolidated entities (5) Level 3 $ 10,716 — ( 10,716 ) 139,980 49,970 ( 90,010 ) 

 (1) Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods. 
 (2) Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses in the Company's condensed consolidated financial statements. 
 (3) Forfeited deposits and write-off of pre-acquisition costs on real estate were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss). 
 (4) Changes in fair value below amortized cost basis are recognized through a valuation allowance, with the adjustment included in Financial Services earnings in the Company's condensed consolidated financial statements. 
 (5) Valuation adjustments related to investments in unconsolidated entities were primarily included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss). 
 Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its 2024 Form 10-K. 
 The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts. 
 On a quarterly basis, the Company reviews its active communities for indicators of potential impairments. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: 
 25 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 
 Communities with valuation adjustments 
 At or for the Nine Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value 
 (in thousands) 
 Valuation Adjustments 
 (in thousands) 
 
 
 August 31, 2025 1,664 113 21 $ 49,884 $ 25,633 
 August 31, 2024 1,283 24 4 25,769 15,263 

 The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments: 
 
 Nine Months Ended August 31, 
 
 2025 2024 
 Unobservable inputs Range Range 
 Average selling price (1) $ 168,000 — 872,000 178,000 — 282,000 
 Absorption rate per quarter (homes) 2 — 11 10 — 15 
 Discount rate 20 % 20 % 

 (1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the nine months ended August 31, 2025 and 2024. 
 The Company disclosed its accounting policy related to investments in unconsolidated entities and its review for indicators of impairment for the long-lived assets of an unconsolidated entity and the decline in the fair value of an investment below the carrying value in the Summary of Significant Accounting Policies in its 2024 Form 10-K. 
 The Company evaluates if a decrease in the fair value of an investment below the carrying value is other-than-temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions, (3) the length of the time and the extent to which the market value has been less than cost and (4) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status, and liquidity needs of the unconsolidated entity. The Company generally estimates the fair value of an investment in an unconsolidated entity by using a cash flow analysis for estimated future net distributions from the unconsolidated entity, subject to the perceived risks associated with the unconsolidated entity’s cash flow streams. During the three months ended August 31, 2025, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had no other-than-temporary impairment. During the nine months ended August 31, 2025, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had an other-than-temporary impairment of $ 10.7 million, included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss). During the three and nine months ended August 31, 2024, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had an immaterial amount of other-than-temporary impairment. 
 The Company estimates the fair value of investments in unconsolidated entities evaluated for impairment based on market conditions and assumptions made by management at the time the investment is evaluated, which may differ materially from actual results if market conditions or assumptions change. 
 
 (10) Variable Interest Entities 
 During the nine months ended August 31, 2025, the Company evaluated the joint venture (“JV”) agreements of its JVs that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements. Based on the Company's evaluation, there were no VIEs that were consolidated during the nine months ended August 31, 2025. During the nine months ended August 31, 2025, there was a deconsolidation of a VIE that had total assets and liabilities of $ 315.8 million and $ 19.5 million, respectively. 
 The carrying amount of the Company's consolidated VIEs' assets and non-recourse liabilities are disclosed in the footnote to the condensed consolidated balance sheets. 
 A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes or other debt payable. The assets held by a VIE are usually collateral for that VIE’s debt. The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with VIE’s lenders. Other than debt guarantee agreements with VIE’s lenders, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to a VIE. While the Company has option contracts to purchase land from certain of its VIEs, the Company is not required to purchase the assets and could walk away from the contracts, but that would require forfeiture of deposits and pre-acquisition costs. 
 26 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 Unconsolidated VIEs 
 The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows: 
 At August 31, 2025 At November 30, 2024 
 (In thousands) Investments in
Unconsolidated VIEs Lennar’s Maximum
Exposure to Loss Investments in
Unconsolidated VIEs Lennar’s Maximum
Exposure to Loss 
 Homebuilding (1) $ 1,971,692 2,006,742 802,901 876,035 
 Multifamily (2) 161,005 162,070 136,158 140,120 
 Financial Services (3) 136,215 136,215 135,646 135,646 
 Lennar Other (4) 110,728 110,728 119,258 119,258 
 $ 2,379,640 2,415,755 1,193,963 1,271,059 

 (1) As of August 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs. In addition, as of August 31, 2025 and November 30, 2024, there was recourse debt of VIEs of $ 31.4 million and $ 44.2 million, respectively. As of August 31, 2025, the increase in Homebuilding’s investment in VIEs was primarily due to the Company’s temporary 20 % investment in the total outstanding shares of Millrose common stock, which was $ 1.2 billion. 
 (2) As of both August 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs. 
 (3) As of both August 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and primarily related to the Financial Services' CMBS investments held-to-maturity investments. 
 (4) As of both August 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs. 
 The Company and its JV partners generally fund JVs as needed and in accordance with business plans to allow the entities to finance their activities. Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of August 31, 2025 in accordance with ASC 810 due to insufficient equity at risk. While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents. While the Company generally manages the day-to-day operations of the VIEs, each of these VIEs has an executive committee made up of representatives from each partner. The members of the executive committee have equal votes and major decisions require unanimous consent and approval from all members. The Company does not have the unilateral ability to exercise participating voting rights without partner consent. 
 There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the VIEs. Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs. 
 Option Contracts 
 The Company has access to land through option contracts, which generally enable it to control portions of properties owned by third parties (including land banks) until the Company has determined whether to exercise the options. 
 The Company evaluates option contracts with third party land holding companies for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these option contracts. Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary and makes a significant deposit or pre-acquisition cost investment for optioned land, or is otherwise economically compelled to takedown the optioned land, it may need to consolidate the land under option at the purchase price of the optioned land. As of August 31, 2025, land under option with third parties that the Company was compelled to takedown was $ 1.5 billion, of which $ 497.4 million were land purchase contract obligations due to land banks upon maturity of the contracts. The Company's intention is to have other land banks close on the land purchase commitments and the Company will option the land from the land banks. Land under option with third parties is included in consolidated inventory not owned. Consolidated inventory not owned related to land financing transactions, which are land sale transactions that did not meet the criteria for revenue recognition and derecognition of land by the Company as a result of the Company maintaining an option to repurchase the land in the future, was $ 778.0 million as of August 31, 2025. 
 During the nine months ended August 31, 2025, consolidated inventory not owned decreased by $ 1.8 billion with a $ 1.6 billion decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of August 31, 2025. The decrease was primarily due to the reassessment of certain option contracts terms that were amended. This reassessment resulted in a decrease of $ 2.0 billion of consolidated inventory not owned with a corresponding 
 27 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 decrease of $ 1.9 billion of liabilities related to consolidated inventory not owned. The decrease was partially offset by the consolidation of homesites under option contracts that the Company is compelled to takedown, which resulted in an increase of $ 668.9 million of consolidated inventory not owned with a corresponding increase of $ 612.7 million of liabilities related to consolidated inventory not owned. To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying condensed consolidated balance sheet as of August 31, 2025. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits. 
 The Company's exposure to losses on its option contracts with third parties and unconsolidated entities was as follows: 
 
 (In thousands) At August 31, 2025 At November 30, 2024 
 Non-refundable option deposits and pre-acquisition costs on real estate $ 5,922,329 3,529,889 
 Non-refundable option deposits included in consolidated inventory not owned 271,305 520,731 
 Letters of credit in lieu of cash deposits under certain land and option contracts 436,489 341,834 

 For the nine months ended August 31, 2025, the Company purchased a significant portion of land from two land banks (the “Land Banks”). There were no amounts due to the Land Banks as of August 31, 2025, resulting from land purchases as the full purchase price of the land is typically paid to the Land Banks at closing when land is purchased by the Company. As of August 31, 2025, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 2.2 billion, which are included in the corresponding line item presented in the table above. As of August 31, 2025, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $ 345.0 million and $ 298.2 million, respectively. 
 The Company believes there are other land banks that could be substituted should the Land Banks become unavailable or non-competitive with respect to land banking of future land. Thus, the Company does not believe that the loss of the Company’s relationship with these Land Banks would have a material adverse effect on the Company’s business, financial condition or cash flows. 
 As discussed in Note 2, on February 7, 2025, the Company completed the spin-off of Millrose. The spin-off involved $ 5.6 billion of land assets, representing approximately 87,000 homesites. The Company entered into a Master Option Agreement ("Agreement") to option the land back from Millrose. As a result of entering into the Agreement with Millrose, the Company paid $ 584.0 million of option deposits to Millrose at the spin-off. Subsequently, on February 10, 2025, Millrose acquired Rausch’s land assets (except for any homesites with homes under construction which were acquired by the Company) and Lennar paid Millrose an additional $ 90.4 million in option deposits. As of August 31, 2025, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose were $ 969.3 million. 
 
 (11) Commitments and Contingent Liabilities 
 The Company is party to various claims, legal actions and complaints relating to homes sold by the Company arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s condensed consolidated financial statements. From time to time, the Company is also a party to various lawsuits involving purchases and sales of real property. These lawsuits often include claims regarding representations and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties. 
 The Company does not believe that the ultimate resolution of these claims or lawsuits will have a material adverse effect on its business or financial position. However, the financial effect of litigation concerning purchases and sales of property may depend upon the value of the subject property, which may have changed from the time the agreement for purchase or sale was entered into. 
 Product Warranty 
 Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows: 
 28 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) 

 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (In thousands) 2025 2024 2025 2024 
 Warranty reserve, beginning of the period $ 442,058 403,448 446,240 414,796 
 Warranties issued 62,241 76,653 185,873 211,001 
 Adjustments to pre-existing warranties from changes in estimates ( 11,260 ) 18,768 3,126 15,483 
 
 Payments ( 70,154 ) ( 76,589 ) ( 212,354 ) ( 219,000 ) 
 Warranty reserve, end of period $ 422,885 422,280 422,885 422,280 

 (1) The adjustments to pre-existing warranties from changes in estimates during the three and nine months ended August 31, 2025 and August 31, 2024 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. 
 Leases 
 The Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional information about the Company's leases: 
 (Dollars in thousands) At August 31, 2025 At November 30, 2024 
 Right-of-use assets $ 285,185 275,248 
 Lease liabilities 275,595 262,119 
 Weighted-average remaining lease term (in years) 5.4 4.7 
 Weighted-average discount rate 5.0 % 5.0 % 

 
 The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at August 31, 2025 were as follows: 
 
 (In thousands) Lease Payments 
 2025 $ 25,889 
 2026 86,327 
 2027 54,417 
 2028 39,013 
 2029 and thereafter 109,099 
 
 Total future minimum lease payments (1) $ 314,745 
 Less: Interest (2) 39,150 
 Present value of lease liabilities (2) $ 275,595 

 (1) Total future minimum lease payments exclude variable lease costs of $ 34.3 million and short-term lease costs of $ 2.0 million. 
 (2) The Company's leases do not include a readily determinable implicit rate. As such, the Company estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date. As of August 31, 2025, the Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments. 
 The Company's rental expense on lease liabilities were as follows: 
 
 
 Nine Months Ended August 31, 
 
 (In thousands) 2025 2024 
 Rental expense $ 148,271 82,512 
 

 In December 2023, the Company purchased its corporate headquarters building in which the Company had previously leased office space. This building contains approximately 213,200 square feet of office space, of which the Company leases approximately 53,000 square feet of unused office space to other tenants. On occasion, the Company may sublease other rented space which is no longer used for the Company's operations. For both the nine months ended August 31, 2025 and 2024, the Company had an immaterial amount of sublease income. 
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 Forward-Looking Statements 
 This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will,” “may” or other words of similar meaning. Some of them are opinions formed based upon general observations, anecdotal evidence and industry experience, but that are not supported by specific investigation or analysis. 
 These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements. The most important factors that could cause actual results to differ materially from those anticipated by our forward-looking statements include, but are not limited to: slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials, including lumber, and labor; changes in trade policy affecting our business, including new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties that may impact the cost of raw materials and other goods related to our homebuilding business; changes in U.S. and foreign governmental laws, regulations and policies, including retaliatory policies against the United States, that may impact our business and operations; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings on the willingness of the funds to invest in new projects; reductions in the market value of our investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land light strategy; any potential subsequent transactions we may enter into following our spin-off of Millrose Properties, Inc.("Millrose") involving the Millrose stock we still hold; a decline in the value of the land and home inventories we maintain and resulting possible future write downs of the carrying value of our real estate assets; the forfeiture of deposits and pre-acquisition costs on real estate related to land purchase options we decide not to exercise; the effects of public health issues such as a major epidemic or pandemic that could have a negative impact on the economy and on our businesses; labor shortages and/or a decrease in the number of potential homebuyers due to increased enforcement of restrictions on immigration; possible unfavorable outcomes and/or results in legal proceedings; conditions in the capital, credit and financial markets; and changes in laws, regulations or the regulatory environment affecting our business. 
 Please see our Annual Report on Form 10-K for the fiscal year ended November 30, 2024 ("2024 Form 10-K"), filed with the Securities and Exchange Commission (the “SEC”) on January 23, 2025 and our other filings with the SEC for a further discussion of these and other risks and uncertainties which could affect our future results. We undertake no obligation, other than those imposed by securities laws, to publicly revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events. 
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
LENNAR CORP /NEW/ 10-Q

Item 1. Financial Statements
