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Item 8. Financial Statements and Supplementary Data

2026-01-28 compared with 2025-01-23 · 443 added, 392 removed, 1106 unchanged (43% of the section changed)

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Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Lennar Corporation and subsidiaries (the "Company") as of November 30, 2024 and 2023, the related consolidated statements of operations and comprehensive income (loss), equity, and cash flows, for each of the three years in the period ended November 30, 2024, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "consolidated financial statements").

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of November 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended November 30, 2024 in conformity with accounting principles generally accepted in the United States of America.

We have audited the accompanying consolidated balance sheets of Lennar Corporation and subsidiaries (the "Company") as of November 30, 2025 and 2024, the related consolidated statements of operations and comprehensive income (loss), equity, and cash flows, for each of the three years in the period ended November 30, 2025, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of November 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended November 30, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of November 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated January 28, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting.

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Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Lennar Homebuilding and Lennar Multifamily Investments in Unconsolidated Entities - Consolidation of Variable Interest Entities - Refer to Note 1, Summary of Significant Accounting Policies (Variable Interest Entities) , and Note 8, Variable Interest Entities , to the Consolidated financial statements

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Spin-off of Millrose Properties Inc.

(Note 2 and 9)

Critical Audit Matter Description

Generally Accepted Accounting Principles (“GAAP’’) requires the assessment of whether an entity is a Variable interest entity (“VIE”) and, if so, if the Company is the primary beneficiary at the inception of the entity or at a reconsideration event.

Additionally, GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest.

A controlling financial interest will have both of the following characteristics:

(a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Certain of the Company’s investments in unconsolidated entities within their Homebuilding and Multifamily segments need to be evaluated for consolidation, including determining whether the joint venture is a VIE, and if so, whether the Company is the primary beneficiary.

This assessment is performed at the formation of the joint venture and upon the occurrence of reconsideration events.

This determination requires significant judgment by management.

We identified the consolidation and primary beneficiary assessment upon formation and the occurrence of reconsideration events of certain of the Company’s VIE’s as a critical audit matter given the significant judgment required by management.

This required a high degree of auditor judgment and an increased extent of audit effort due to the complexity of the entity structures and agreements.

As described in Note 2 and 9 to the financial statements, on February 7, 2025, the Company completed the spin-off of its Millrose Properties Inc.

(“Millrose”) business through a pro rata distribution of 80% of the outstanding shares of Millrose to Company stockholders.

The Company subsequently disposed of its remaining 20% interest in Millrose in November 2025.

As a result of this transaction, the Company performed a reassessment of control over Millrose and determined that Millrose met the definition of a variable interest entity (VIE) in which the Company held a variable interest.

The assessment further showed that the Company was not the primary beneficiary and should not consolidate Millrose because the Company does not have the power, either explicitly or implicitly through voting rights or otherwise, to direct the activities that most significantly impact the economic performance of Millrose.

Accordingly, the Company deconsolidated the Millrose net assets from the Company's financial statements on the date of the spin-off transaction.

We identified the determination of the primary beneficiary under the VIE model for the Company's post spin-off contractual arrangements in Millrose as a critical audit matter.

Evaluating whether the Company had the substantive power to direct the activities that most significantly impacted the economic performance of Millrose required a high degree of complex auditor judgment.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the accounting determination for the above mentioned joint ventures included the following, among others:

• We tested the design and operating effectiveness of the investment consolidation controls over the initial accounting assessment of joint ventures and the continuous reassessment for reconsideration events, as required by the accounting framework.

• We selected a sample of unconsolidated and consolidated joint ventures and evaluated the appropriateness of the Company’s accounting conclusions upon formation and reconsideration events by:

◦ Reading the joint venture agreements and other related documents and evaluating the structure and terms of the agreement as well as any reconsideration events which took place during the year to determine if the joint venture should be classified as a VIE.

◦ If an entity is determined to be a VIE, considering whether the Company appropriately determined the primary beneficiary by evaluating the contractual arrangements of the entity to determine if the Company has the power to direct activities that most significantly impact the VIE’s economic performance, and if the Company has the obligation to absorb losses of the entity or the right to receive benefits from the entity that could be significant to the VIE.

◦ For consolidated joint ventures, evaluating whether any reconsideration events occurred during the year that would result in deconsolidation, and if so, verify that deconsolidation occurred properly.

◦ Evaluating the evidence obtained in other areas of the audit to determine if there were additional reconsideration events that had not been identified by the Company, including, among others, reading joint venture board minutes and agreeing the terms of certain joint venture agreements and side agreements, if any.

Our audit procedures related to the accounting determination for the spin-off included the following, among others:

• Evaluated the design and tested the operating effectiveness of certain internal controls related to the Company's VIE model, including the Company's control related to its determination of the primary beneficiary.

• Inquired of management to obtain an understanding of and evaluate the business purpose of the transaction and the activities that most significantly impact the economic performance of the entity.

• Evaluated management's determination of how decisions about the most significant activities are made and the party or parties that make them, including whether the Company's economic interest in Millrose as a VIE provides actual or effective power beyond its stated power.

• With the assistance of professionals with specialized knowledge related to the accounting for VIE's, we evaluated the governing documents of Millrose, including the Master Program Agreement, Master Option Agreement, and other publicly disclosed information to determine whether the Company held any substantive participating rights or had substantive power to direct the activities that most significantly impact Millrose’s economic performance.

/s/ Deloitte & Touche LLP

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Total assets $ 34,430,437 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 consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company.

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.

(1) Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations, ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligation.

As of November 30, 2025, total assets include $ 1.5 billion related to consolidated VIEs of which $ 61.1 million is included in Homebuilding cash and cash equivalents, $ 2.0 million in Homebuilding receivables, net, $ 45.6 million in Homebuilding finished homes and construction in progress, $ 300.3 million in Homebuilding land and land under development, $ 984.4 million in Homebuilding consolidated inventory not owned, $ 88.3 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities, $ 8.9 million in Homebuilding other assets and $ 25.0 million in Multifamily assets.

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Total liabilities and equity $ 34,430,437 41,312,781

(2) As of November 30, 2025, total liabilities include $ 962.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $ 23.8 million is included in Homebuilding accounts payable, $ 930.1 million in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debts payable, net, $ 1.5 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.

As of November 30, 2023, total liabilities include $ 1.2 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 53.7 million is included in Homebuilding accounts payable, $ 1.1 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 38.1 million in Homebuilding other liabilities and $ 4.1 million in Multifamily liabilities.

See accompanying notes to consolidated financial statements.

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Years Ended November 30, 2025, 2024 and 2023

2024 2023 2022

(Dollars in thousands, except per share amounts)

2025 2024 2023

Homebuilding $ 32,266,680 33,906,426 32,660,987

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Equity in earnings (losses) from unconsolidated entities 78,225 164,099 ( 144,610 )

Other income (expense), net and other gains (losses) 225,866 30,517 ( 15,286 )

Lennar Other unrealized gains (losses) from technology investments 25,180 ( 50,162 ) ( 655,094 )

Other income (expense), net and other gains (losses), net ( 62,352 ) 225,866 30,517

Lennar Other gains (losses) from technology investments 130,166 25,180 ( 50,162 )

Earnings before income taxes 2,813,863 5,184,908 5,202,304

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Net earnings attributable to Lennar 2,078,179 3,932,533 3,938,511

Other comprehensive income, net of tax:

Net unrealized gains on securities available-for-sale $ 2,650 2,471 1,464

Reclassification adjustments for gains included in net

earnings — — 2,285

Total other comprehensive income, net of tax $ 2,650 2,471 3,749

Other comprehensive income (loss), net of tax:

Net unrealized gains (losses) on securities available-for-sale $ ( 1,518 ) 2,650 2,471

Total other comprehensive income (loss), net of tax $ ( 1,518 ) 2,650 2,471

Total comprehensive income attributable to Lennar $ 2,076,661 3,935,183 3,940,982

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interests $ 30,121 35,122 22,780

Basic earnings per share $ 14.31 13.73 15.74

Diluted earnings per share $ 14.31 13.73 15.72

Basic and diluted earnings per share $ 7.98 14.31 13.73

See accompanying notes to consolidated financial statements.

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Years Ended November 30, 2025, 2024 and 2023

2024 2023 2022

(Dollars in thousands, except per share amounts)

2025 2024 2023

Class A common stock:

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Employee stock and director plans 160 150 240

Retirement of treasury stock — — ( 4,667 )

Balance at November 30, 26,158 25,998 25,848

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Beginning balance 3,660 3,660 3,660

Retirement of treasury stock — — ( 284 )

Balance at November 30, 3,660 3,660 3,660

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Employee stock and director plans 17,747 1,353 1,089

Retirement of treasury stock — — ( 3,533,425 )

Amortization of restricted stock 163,494 176,676 160,720

Premium paid for purchase of noncontrolling interests — — ( 37,342 )

Equity adjustment related to noncontrolling interests ( 949 ) ( 18,604 ) ( 9,596 )

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( 63,025 ) ( 65,873 ) ( 52,480 )

Millrose Properties, Inc.

spin-off ( 4,838,827 ) — —

Balance at November 30, 22,471,471 25,753,078 22,369,368

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Purchases of treasury stock ( 1,742,369 ) ( 2,169,837 ) ( 1,110,149 )

Retirement of treasury stock — — 3,538,376

Non-cash purchases of treasury stock through Millrose Properties, Inc.

exchange offer ( 999,676 ) — —

Balance at November 30, ( 6,457,609 ) ( 3,649,564 ) ( 1,393,100 )

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Beginning balance 7,529 4,879 2,408

Total other comprehensive income, net of tax 2,650 2,471 3,749

Total other comprehensive income (loss), net of tax ( 1,518 ) 2,650 2,471

Balance at November 30, 6,011 7,529 4,879

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Payments related to noncontrolling interests ( 19,878 ) ( 46,650 ) ( 71,272 )

Non-cash consolidations/deconsolidations, net — — ( 55,240 )

Non-cash purchase or activity of noncontrolling interests, net ( 12,246 ) 21,199 8,778

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Years Ended November 30, 2025, 2024 and 2023

2024 2023 2022

(In thousands)

2025 2024 2023

Cash flows from operating activities:

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Share-based compensation expense 163,494 176,676 160,720

Deferred income tax (benefit) expense 60,426 ( 67,968 ) ( 246,653 )

Loans held-for-sale unrealized losses 52,482 26,658 33,287

Lennar Other unrealized (gains) losses from technology investments and other (gains) losses ( 67,226 ) 112,541 672,212

Gains on sale of operating properties and equipment and other assets ( 38,837 ) ( 7,015 ) ( 7,617 )

Deferred income tax expense (benefit) 77,295 60,426 ( 67,968 )

Loans held-for-sale unrealized (gains) losses ( 26,618 ) 52,482 26,658

Loss on Millrose Properties, Inc.

exchange offer 156,076 — —

Lennar Other (gains) losses from technology investments and other (gains) losses, net ( 100,159 ) ( 67,226 ) 112,541

Gains on sale of investments in unconsolidated entities and other ( 35,900 ) — —

Gains on sale of operating properties and equipment and other assets and loans receivables ( 77,737 ) ( 38,837 ) ( 7,015 )

Gain on redemption/repurchases of senior notes and other debts payable — ( 825 ) ( 9,611 )

Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, other receivables and other assets 143,265 125,338 110,693

Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets 246,220 143,265 125,338

Changes in assets and liabilities:

Increase in receivables ( 129,212 ) ( 329,191 ) ( 422,398 )

Decrease (increase) in receivables 66,764 ( 129,212 ) ( 329,191 )

(Increase) decrease in inventories, excluding valuation adjustments ( 150,921 ) ( 285,095 ) 2,274,083

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Increase in other assets ( 186,071 ) ( 113,276 ) ( 85,005 )

Increase in loans held-for-sale ( 218,393 ) ( 366,728 ) ( 202,920 )

Increase (decrease) in accounts payable and other liabilities 380,380 ( 625,862 ) 701,113

Decrease (increase) in loans held-for-sale 123,733 ( 218,393 ) ( 366,728 )

(Decrease) increase in accounts payable and other liabilities ( 690,751 ) 380,380 ( 625,862 )

Net cash provided by operating activities $ 216,812 2,403,379 5,179,738

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Net additions to operating properties and equipment $ ( 188,629 ) ( 171,503 ) ( 99,799 )

Proceeds from the sale of operating properties and equipment and other assets 61,441 13,215 24,686

Proceeds from sale of other assets 150,824 61,441 13,215

Proceeds from sale of investments in unconsolidated entities 258,672 — —

Proceeds from sale of investments 100,330 — —

Investments in and contributions to unconsolidated entities ( 253,713 ) ( 425,562 ) ( 201,042 )

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281,536 231,096 99,643

Proceeds from sale of commercial mortgage-backed securities bonds — — 9,191

(Increase) decrease in Financial Services loans held-for-investment ( 734 ) 14,329 19,491

Proceeds from sale of loan receivables 114,661 — —

Acquisitions, net of cash and restricted cash acquired ( 254,492 ) — —

Decrease (increase) in Financial Services loans held-for-investment 11,580 ( 734 ) 14,329

Purchases of investment securities ( 3,456 ) ( 4,519 ) ( 8,000 )

Proceeds from maturities/sales of investment securities 4,255 7,224 4,673

Other receipts, net — — 1,399

Net cash used in investing activities $ ( 302,557 ) ( 176,981 ) ( 128,302 )

Net cash provided by (used in) investing activities $ 221,568 ( 302,557 ) ( 176,981 )

LENNAR CORPORATION AND SUBSIDIARIES

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Years Ended November 30, 2025, 2024 and 2023

2024 2023 2022

(In thousands)

2025 2024 2023

Cash flows from financing activities:

Borrowings under term loan facility $ 1,710,000 — —

Net (repayments) borrowings under warehouse facilities ( 140,648 ) ( 232,848 ) 28,712

Proceeds from issuance of senior notes 700,000 — —

Redemption/repurchases of senior notes ( 500,000 ) ( 553,865 ) ( 1,121,133 )

Principal payments on notes payable and other borrowings ( 57,860 ) ( 43,524 ) ( 105,118 )

Net cash distributed in connection with Millrose Properties, Inc spin-off ( 416,006 ) — —

Proceeds from liabilities related to consolidated inventory not owned 2,118 195,524 461,312

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Payments related to noncontrolling interests ( 19,878 ) ( 46,650 ) ( 71,272 )

Debt issuance costs ( 6,502 ) — —

Common stock:

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Net non-cash contributions to unconsolidated entities 162,454 23,354 367

Consolidation/deconsolidation of unconsolidated/consolidated entities, net:

Millrose Properties, Inc.

Inventories $ ( 5,578,704 ) — —

Operating properties and equipment and other assets — — 33,200

Investments in unconsolidated entities 1,197,039 — —

Other assets ( 60,156 ) — —

Notes payable 19,000 — —

Retained earnings 4,422,821 — —

Millrose Properties, Inc.

exchange offer:

Investments in unconsolidated entities $ ( 1,135,622 ) — —

Other liabilities ( 10,232 ) — —

Noncontrolling interests — — 55,240

Treasury stock 989,778 — —

(1) Cash paid for income taxes includes amounts paid to federal and state taxing authorities as well as cash payments made to unrelated parties for the purchase of transferable business tax credits.

See accompanying notes to consolidated financial statements.

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Basis of Consolidation

The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 8) in which Lennar Corporation is deemed the primary beneficiary (the "Company").

The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method.

The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 9) in which Lennar Corporation (the "Company") is deemed the primary beneficiary.

All intercompany transactions and balances have been eliminated in consolidation.

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Advertising costs were $ 210.8 million, $ 190.9 million and $ 146.0 million for the years ended November 30, 2025, 2024 and 2023, respectively.

These costs were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2024, 2023 and 2022.

These costs were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss).

Share-Based Payments

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Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations.

Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash held in escrow by the Company’s loan service provider on behalf of customers and lenders which is disbursed in accordance with agreements between the transacting parties.

Homebuilding cash and cash equivalents as of November 30, 2024 and 2023 included $ 265.6 million and $ 594.8

Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash balances required by certain residential warehouse facilities and proceeds from loan sales not yet remitted to the warehouse facilities.

Homebuilding cash and cash equivalents as of November 30, 2025 and 2024 included $ 150.6 million and $ 265.6 million, respectively, of cash held in escrow for approximately two days .

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

million, respectively, of cash held in escrow for approximately two days .

At November 30, 2025 and 2024, Homebuilding accounts receivable primarily related to receivables from land banks for land development, rebates and joint ventures.

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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:

Years Ended November 30,

For the Years Ended November 30,

Unobservable inputs Range Range

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In the course of executing on the Company’s land-light strategy, the Company may sell land to third parties (including land banks) and unconsolidated entities while maintaining an option to repurchase the land in the future.

Although, such transactions include cash consideration from the buyer and the transfer of title from the Company to the buyer, such transactions do not meet the criteria for revenue recognition under GAAP due to the Company’s option to repurchase the land from the buyer in the future.

As such, land related to such transactions remains on the Company’s accompanying consolidated balance sheet and is reclassified from land and land under development to consolidated inventory not owned.

Although, such transactions include cash consideration from the buyer and the transfer of title from the Company to the buyer, not all transactions meet the criteria for revenue recognition under GAAP due to the Company’s option to repurchase the land from the buyer in the future.

As such, land related to same transactions remains on the Company’s accompanying consolidated balance sheet and is reclassified from land and land under development to consolidated inventory not owned.

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.

During the year ended November 30, 2024, consolidated inventory not owned increased by $ 1.1 billion with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2024.

The increase was primarily due to consolidation of land bank option contracts and reclassifications from land and land under development to consolidated inventory not owned during

During the year ended November 30, 2025, consolidated inventory not owned decreased by $ 2.4 billion with a $ 2.1 billion decrease to liabilities related to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2025.

The decrease was primarily due to the reassessment of certain option contracts terms that were amended.

This reassessment resulted in a decrease of $ 2.5 billion of consolidated inventory not owned with a corresponding decrease of $ 2.3 billion of liabilities related to consolidated inventory not owned.

The decrease was

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

the year ended November 30, 2024 as the Company continued to focus on increasing its controlled homesites as compared to owned homesites.

The increase was partially offset by takedowns during the year ended November 30, 2024.

partially offset by the consolidation of homesites under option contracts that the Company is compelled to takedown, which resulted in an increase of $ 663.3 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 consolidated balance sheet as of November 30, 2025.

Deposits and Pre-acquisition Costs on Real Estate

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Costs include deposits on land purchase contracts and capitalizable due diligence and development costs incurred prior to the acquisition of land.

Some option contracts contain a predetermined take-down schedule for the optioned land parcels.

Some option contracts contain a predetermined takedown schedule for the optioned land parcels.

However, in substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs and the incurrence of any applicable termination fee associated with the option contract.

Therefore, in all instances, the Company does not consider the take-down price to be a firm contractual obligation.

Therefore, in substantially all instances, the Company does not consider the takedown price to be a firm contractual obligation.

In determining whether to walk away from an option contract, the Company evaluates the option primarily based upon its expected cash flows from the property under option.

1 unchanged sentence

During the years ended November 30, 2025 and 2024, the Company wrote-off $ 23.1 million and $ 5.1 million, respectively, of deposit and pre-acquisition costs.

To reflect the purchase price of homesite take-downs related to option contracts that the Company decided to exercise, 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 consolidated balance sheet as of November 30, 2024.

Investments in Unconsolidated Entities

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The Company’s proportionate share of a valuation adjustment is reflected in the Company's Homebuilding, Multifamily or Lennar Other equity in earnings (losses) from unconsolidated entities with a corresponding decrease to its Homebuilding, Multifamily or Lennar Other investment in unconsolidated entities.

Additionally, the Company evaluates whether a decrease in the fair value of an investment below its carrying value is other-than- temporary.

This evaluation includes an assessment of:

(1) projected future distributions from the unconsolidated entities, (2) the length of the time and the extent to which the market value has been less than cost and (3) various other factors, which include, but are not limited to, relationships with the other partners and banks, general economic market conditions, unfavorable regulatory actions, land status and liquidity needs of the unconsolidated entity.

Additionally, the Company evaluates if a decrease in the fair value of an investment below its 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, but are not limited to, relationships with the other partners and banks, general economic market conditions, unfavorable regulatory actions, land status and liquidity needs of the unconsolidated entity.

Current assessments with regard to the Company's other-than-temporary impairment are subject to change based on future events.

If the Company determines from the evaluation of the indicators that the decline in the fair value of the investment is other-than-temporary, the Company will write-down the investment to fair value.

The impairment, if any, would be included in Homebuilding other income, net, Multifamily other gain (loss) or Lennar Other other gain (loss).

During the year ended November 30, 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 $ 23.2 million, included in Other income (expense), net and other gains (losses) , net in the Company's consolidated statements of operations and comprehensive income (loss).

During the year ended November 30, 2024, the Company evaluated its investments in unconsolidated entities and concluded that no material other-than-temporary impairments were required.

During the year ended November 30, 2023, the Company estimated the fair value of an investment in an unconsolidated entity using a cash flow analysis with a 15 % discount rate and concluded that the investment had an other-than-temporary impairment of $ 36.8 million included in other income (expense) , net in the Company's consolidated statements of operations and comprehensive income (loss).

The Company tracks its share of cumulative earnings and distributions of its joint ventures ("JVs").

3 unchanged sentences

GAAP requires the assessment of whether an entity is a variable interest entity ("VIE") and, if so, if the Company is the primary beneficiary at the inception of the entity or at a reconsideration event.

Additionally, GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest.

A controlling financial interest will have both

Additionally, GAAP requires the

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

of the following characteristics:

consolidation of VIEs in which an enterprise has a controlling financial interest.

A controlling financial interest will have both of the following characteristics:

11 unchanged sentences

In accordance with ASC 350, Intangibles-Goodwill and Other , the Company evaluates goodwill for potential impairment on at least an annual basis.

The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value.

Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting units and other entity and reporting unit specific events.

The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of an operating segment exceeds its carrying value.

Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the operating segments and other specific events.

If a quantitative assessment is performed, the fair value estimate is derived through various valuation methods, including the use of discounted expected future cash flows of each reporting unit.

The expected future cash flows for each reporting unit are significantly impacted by current market conditions.

If these market conditions and resulting expected future cash flows for each reporting unit decline significantly, the actual results for each segment could differ from the Company's estimate, which may cause goodwill to be impaired.

The expected future cash flows for each operating segment are significantly impacted by current market conditions.

If these market conditions and resulting expected future cash flows for each operating segment decline significantly, the actual results for each segment could differ from the Company's estimate, which may cause goodwill to be impaired.

The annual qualitative goodwill impairment analysis was performed as of September 30, 2025, and no impairment was recorded.

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Interest expense was included in costs of homes sold, costs of land sold and other interest expense as follows:

Years Ended November 30,

For the Years Ended November 30,

(In thousands) 2025 2024 2023

Interest expense in costs of homes sold $ 160,848 240,871 293,105

Interest expense in costs of land sold 373 1,588 498

Interest expense in costs of homes and land sold $ 160,944 161,221 242,459

Other interest expense (1) 13,874 18,771 15,434

Total interest expense $ 174,818 179,992 257,893

(1) Included in Homebuilding other income (expense), net.

(1) Included in Other income (expense), net and other gains (losses), net.

The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards.

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Based on the analysis of positive and negative evidence, the Company believed that there was enough positive evidence for the Company to conclude that it was more likely than not that the Company would realize the majority of its deferred tax assets.

As of November 30, 2024 and 2023, the Company's net deferred tax assets of $ 272.4 million and $ 326.5 million included a valuation allowance of $ 2.6 million and $ 2.3 million, respectively.

As of November 30, 2025 and 2024, the Company's net deferred tax assets of $ 134.9 million and $ 272.4 million included a valuation allowance of $ 2.5 million and $ 2.6 million, respectively, are included in Other assets in the Company's consolidated balance sheets as of November 30, 2025 and 2024, respectively.

See Note 6 for additional information.

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The activity in the Company’s warranty reserve was as follows:

Years Ended November 30,

For the Years Ended November 30,

(In thousands) 2025 2024

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Preferred Stock

The Company is authorized to issue 500,000 shares of preferred stock with a par value of $ 10 per share and 100 million shares of participating preferred stock with a par value of $ 0.10 per share.

No shares of preferred stock or participating

The Company is authorized to issue 500,000 shares of preferred stock with a par value of $ 10 per share and 100

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

preferred stock have been issued as of November 30, 2024 and 2023.

million shares of participating preferred stock with a par value of $ 0.10 per share.

No shares of preferred stock or participating preferred stock have been issued as of November 30, 2025 and 2024.

During the years ended November 30, 2025, 2024 and 2023 the Company’s Class A and Class B common stockholders received a per share annual dividend of $ 2.00 , $ 2.00 and $ 1.50 , respectively.

The only significant difference between the Class A common stock and Class B common stock is that Class A common stock entitles holders to one vote per share and the Class B common stock entitles holders to ten votes per share.

As of November 30, 2024, Stuart Miller, the Company’s Executive Chairman and Co-Chief Executive Officer, directly owned, or controlled through family-owned entities, shares of Class A and Class B common stock, which represented approximately 40 % voting power of the Company’s stock.

As of November 30, 2025, Stuart Miller, the Company’s Executive Chairman and Chief Executive Officer, directly owned, or controlled through family-owned entities, shares of Class A and Class B common stock, which represented approximately 42 % voting power of the Company’s stock.

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.

2 unchanged sentences

The repurchase authorization has no expiration date.

At November 30, 2024, we have a remaining authorization to repurchase $ 3.4 billion in value of the Company's Class A or B common stock.

Years Ended November 30,

At November 30, 2025, the Company has a remaining authorization to repurchase $ 1.7 billion in value of the Company's Class A or B common stock.

For the Years Ended November 30,

(Dollars in thousands, except price per share) Class A Class B Class A Class B

2 unchanged sentences

Average price per share $ 123.02 $ 119.55 $ 159.60 $ 151.23

(1) Shares repurchased do not include 8,049,594 shares of Lennar Class A common stock accepted through a non-cash exchange for shares of Millrose Properties, Inc.

("Millrose") Class A common stock, which was completed in November 2025 (see Note 2 for details).

Restrictions on Payment of Dividends

7 unchanged sentences

Compensation expense related to the Company’s share-based awards was as follows:

Years Ended November 30,

For the Years Ended November 30,

(In thousands) 2025 2024 2023

11 unchanged sentences

2,410,079 $ 127.37

At November 30, 2024, there was $ 134.2 million of unrecognized compensation expense related to unvested share-based awards granted under the Company’s share-based payment plan, all of which relates to nonvested shares with a weighted

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

average remaining contractual life of 1.8 years.

At November 30, 2025, there was $ 126.0 million of unrecognized compensation expense related to unvested share-based awards granted under the Company’s share-based payment plan, all of which relates to nonvested shares with a weighted average remaining contractual life of 1.8 years.

For the years ended November 30, 2025, 2024 and 2023, 1.5 million, 1.7 million and 2.0 million nonvested shares, respectively, vested each year.

9 unchanged sentences

Management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions.

In addition, the Financial Services segment 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 servicing rights is included in Financial Services' other assets as of November 30, 2024 and 2023.

Fair value of the servicing rights is determined based on values in the Company’s servicing sales contracts.

Provision for Losses

2 unchanged sentences

The activity in the Company’s loan origination liabilities was as follows:

Years Ended November 30,

For the Years Ended November 30,

(In thousands) 2025 2024

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Management Fees and General Contractor Revenue

The Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which the Company has investments or the funds the Company manages.

The Multifamily segment provides management services with respect to the development and construction and of rental projects in joint ventures in which the Company has investments or the funds the Company manages.

As a result, the Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections.

4 unchanged sentences

Recently Adopted Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“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 annual reporting periods in fiscal years beginning after December 15, 2026, with early adoption permitted.

The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its consolidated financial statements.

In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“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 5 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 annual reporting periods in fiscal years beginning after December 15, 2024.

The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on its consolidated financial statements.

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 annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024.

The Company is currently reviewing the impact that the adoption of ASU 2023-07 may have on its consolidated financial statements and disclosure.

ASU 2023-07 is applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024.

The Company adopted ASU 2023-07 for the fiscal year ended November 30, 2025 and retrospectively restated prior periods presented (See Note 3 for details regarding the impact of adoption).

In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“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 consolidated financial statements and disclosures.

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 consolidated financial statements and disclosures.

Reclassifications

Certain prior year segment information in the consolidated financial statements has been reclassified to conform with the 2024 presentation.

This reclassification was for operational purposes and between segments and had no impact on the Company's total assets, total equity, revenue, or net income in the consolidated financial statements.

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 Consolidated Financial Statements for more information), the Company reclassified certain prior year segment information in the 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 consolidated financial statements.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Business Transactions

Spin-off of Millrose Properties, Inc.

In February 2025, the Company completed the taxable spin-off of Millrose through a distribution of approximately 80 % of Millrose's total outstanding stock to the Company's stockholders (the "Millrose Spin-Off").

The Company temporarily retained the remaining 20 % of the total outstanding shares of Millrose common stock, which carried no voting rights, and subsequently disposed of them through a non-cash exchange offer completed in November 2025 ("Millrose Exchange Offer").

In connection with the Millrose 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 Millrose Spin-Off transaction accelerated Lennar's longstanding strategy of becoming a pure-play, asset-light, new home manufacturing company.

The Company performed a reassessment of control over Millrose and determined that Millrose met the definition of a variable interest entity in which the Company held a variable interest.

Accordingly, the Company deconsolidated the Millrose net assets from the Company's financial statements on the date of the spin-off transaction.

In connection with the Millrose Exchange Offer, the Company accepted 8,049,594 shares of Lennar Class A common stock in exchange for 33,298,754 shares of Millrose Class A common stock.

The Millrose Exchange Offer reduced investments in unconsolidated entities and stockholders' equity by $ 1.1 billion as of November 30, 2025 and resulted in a one-time loss of $ 156.1 million recorded in Other income (expense), net and other gains (losses), net, in the Company's consolidated statements of operations and comprehensive income (loss).

Acquisition of Rausch Coleman Homes

In February 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.

Operating and Reporting Segments

Each reportable segment follows the accounting policies described in Note 1 - "Summary of Significant Accounting Policies" to the consolidated financial statements.

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.

The Company defines the Chief Operating Decision Maker ("CODM") function as the Executive Chairman and Chief Executive Officer.

During fiscal year 2025, the CODM also included a Co-Chief Executive Officer and President, who retired in December 2025.

The CODM manages and assesses the Company's Homebuilding performance at a regional level.

The CODM evaluates the Homebuilding segment performance using each segment’s revenues generated from sales of homes and earnings (loss) before income taxes.

These operating results are reviewed against the annual business plan and quarterly forecast updates, as applicable, and used by the CODM when making the Company’s decisions about the allocation of operating and capital resources to each Homebuilding segment.

The CODM’s evaluation of the Financial Services, Multifamily and Lennar Other segments is based on the revenues and earnings (loss) before income taxes.

Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented.

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:

The following are the Company’s operating and reportable segments:

Homebuilding segments:

(1) East (2) Central (3) Texas (4) West

(1) East (2) Central (3) South Central (4) West

(5) Financial Services

1 unchanged sentence

(7) Lennar Other

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The assets and liabilities related to the Company’s segments were as follows:

11 unchanged sentences

Investments available-for-sale (4) — — — 39,060 39,060

Loans held-for-investment, net — 60,969 — — 60,969

Investments held-to-maturity — 132,868 — — 132,868

2 unchanged sentences

Total assets $ 29,253,256 3,377,413 902,136 897,632 34,430,437

Notes and other debts payable, net $ 2,258,283 1,930,956 — — 4,189,239

Senior notes and other debts payable, net $ 4,084,686 1,790,309 — — 5,874,995

Liabilities related to consolidated inventory not owned 1,476,376 — — — 1,476,376

2 unchanged sentences

$ 10,065,422 2,010,598 113,361 100,447 12,289,828

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(In thousands) At November 30, 2024

15 unchanged sentences

Total assets $ 35,594,469 3,516,550 1,306,818 894,944 41,312,781

Notes and other debts payable, net $ 2,816,482 2,163,805 3,741 — 4,984,028

Senior notes and other debts payable, net $ 2,258,283 1,930,956 — — 4,189,239

Liabilities related to consolidated inventory not owned 3,563,934 — — — 3,563,934

1 unchanged sentence

Total liabilities $ 10,863,209 2,140,708 181,883 105,756 13,291,556

(1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2024 and 2023, respectively.

(2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value.

(3) Investments in equity securities include investments of $ 143.0 million and $ 121.0 million without readily available fair values as of November 30, 2024 and 2023, respectively.

(4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheet.

Financial information relating to the Company’s segments was as follows:

Years Ended November 30,

(In thousands) 2024 2023 2022

Homebuilding $ 33,906,426 32,660,987 31,951,335

Financial Services 1,109,263 976,859 809,680

Multifamily (1) 411,537 573,485 865,603

Lennar Other 14,226 22,035 44,392

$ 35,441,452 34,233,366 33,671,010

Earnings (loss) before income taxes:

Homebuilding $ 5,342,252 5,527,707 6,777,317

Financial Services (2) 577,184 509,461 383,302

Multifamily 42,635 ( 50,651 ) 69,493

Lennar Other (3) ( 47,967 ) ( 209,788 ) ( 734,649 )

Corporate and Unallocated (4) ( 729,196 ) ( 574,425 ) ( 480,897 )

$ 5,184,908 5,202,304 6,014,566

(1) Revenues for Multifamily for the year ended November 30, 2022 included $ 237.5 million of land sales to unconsolidated entities.

(2) Financial Services operating earnings for the year ended November 30, 2022, included a $ 35.5 million one-time charge due to an increase in a litigation accrual related to a court judgement.

(3) Operating loss for Lennar Other for the year ended November 30, 2024 included $ 25.2 million of mark-to-market unrealized gains on the Company's publicly traded technology investments and a $ 46.5 million one-time gain on the sale of a technology investment.

Operating loss for Lennar Other for the year ended November 30, 2023 included $ 50.2 million of mark-to-market unrealized losses on the

(1) Financial Services receivables, net was primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2025 and 2024, respectively.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Company's publicly traded technology investments and a $ 65.0 million write-off of one of the Company's non-public technology investments.

Operating loss for Lennar Other for the year ended November 30, 2022 included $ 655.1 million of mark-to-market unrealized losses on the Company's publicly traded technology investments.

(4) Corporate and unallocated expenses primarily represent costs of operations at the Company's corporate headquarters in Miami.

These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources.

Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contributions to the Lennar Foundation.

(2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value, of which $ 15.5 million of residential loans are carried at lower of cost or fair value.

(3) Investments in equity securities include investments of $ 114.4 million and $ 143.0 million without readily available fair values as of November 30, 2025 and 2024, respectively.

(4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets.

(5) During the year ended November 30, 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.

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.

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 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:

Alabama, Florida, New Jersey and Pennsylvania

Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee and Virginia

Florida, New Jersey and Pennsylvania

Alabama, Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee

South Central:

Arkansas, Kansas, Missouri, Oklahoma and Texas

Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington

5 unchanged sentences

Central 4,695,588 5,567,451

Texas 4,238,587 3,337,280

South Central 4,195,858 4,238,587

West 9,519,804 12,148,434

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Financial information relating to the Company’s segments was as follows:

For the Year ended November 30, 2025

(In thousands) East Central South Central West Other (3) Total Homebuilding Financial Services Multifamily Lennar Other Total

Sales of homes $ 6,896,901 7,747,913 5,579,035 11,857,853 15,543 32,097,245 — — — 32,097,245

Sales of land 60,468 2,935 22,540 44,289 — 130,232 — — — 130,232

Other revenues 12,840 5,289 2,854 6,938 11,282 39,203 1,198,197 680,627 41,430 1,959,457

Total revenues 6,970,209 7,756,137 5,604,429 11,909,080 26,825 32,266,680 1,198,197 680,627 41,430 34,186,934

Cost and expenses:

Costs of home sold 5,532,524 6,375,231 4,611,244 9,884,102 20,504 26,423,605 — — — 26,423,605

Costs of land sold 63,777 14,982 31,901 72,020 — 182,680 — — — 182,680

Ancillary costs and expenses — — — — — — 585,731 750,011 179,445 1,515,187

Selling, general and administrative 651,404 703,944 461,890 830,999 30,100 2,678,337 — — — 2,678,337

Corporate general and administrative (1) — — — — — — — — — 636,718

Charitable foundation contribution (1) — — — — — — — — — 82,583

Total costs and expenses 6,247,705 7,094,157 5,105,035 10,787,121 50,604 29,284,622 585,731 750,011 179,445 31,519,110

Equity in earnings (losses) from unconsolidated entities 33,974 176 ( 17 ) 2,004 47,515 83,652 — ( 18,755 ) 13,328 78,225

Other income (expense), net and other gains (losses) (2) ( 52,647 ) 5,899 ( 6,263 ) ( 7,706 ) 10,259 ( 50,458 ) — 12,684 ( 24,578 ) ( 62,352 )

Lennar Other gains from technology investments and other assets — — — — — — — — 130,166 130,166

Earnings (loss) before income taxes $ 703,831 668,055 493,114 1,116,257 33,995 3,015,252 612,466 ( 75,455 ) ( 19,099 ) 2,813,863

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

For the Year ended November 30, 2024

(In thousands) East Central South Central West Other (3) Total Homebuilding Financial Services Multifamily Lennar Other Total

Sales of homes $ 8,199,004 7,855,610 4,763,622 12,938,103 21,810 33,778,149 — — — 33,778,149

Sales of land 44,334 16,110 21,148 11,792 — 93,384 — — — 93,384

Other revenues 11,264 3,636 2,355 5,958 11,680 34,893 1,109,263 411,537 14,226 1,569,919

Total revenues 8,254,602 7,875,356 4,787,125 12,955,853 33,490 33,906,426 1,109,263 411,537 14,226 35,441,452

Cost and expenses:

Costs of home sold 6,031,893 6,173,707 3,661,591 10,358,651 29,511 26,255,353 — — — 26,255,353

Costs of land sold 33,510 13,098 10,522 16,672 — 73,802 — — — 73,802

Ancillary costs and expenses — — — — — — 532,079 521,455 79,495 1,133,029

Selling, general and administrative 690,161 638,447 370,936 762,403 18,362 2,480,309 — — — 2,480,309

Corporate general and administrative (1) — — — — — — — — — 648,986

Charitable foundation contribution (1) — — — — — — — — — 80,210

Total costs and expenses 6,755,564 6,825,252 4,043,049 11,137,726 47,873 28,809,464 532,079 521,455 79,495 30,671,689

Equity in earnings (losses) from unconsolidated entities 31,039 1,727 ( 17 ) 5,362 28,337 66,448 — 150,753 ( 53,102 ) 164,099

Other income (expense), net and other gains (losses), net (2) 69,843 31,007 9,663 34,381 33,948 178,842 — 1,800 45,224 225,866

Lennar Other gains from technology investments — — — — — — — — 25,180 25,180

Earnings (loss) before income taxes $ 1,599,920 1,082,838 753,722 1,857,870 47,902 5,342,252 577,184 42,635 ( 47,967 ) 5,184,908

For the Year ended November 30, 2023

(In thousands) East Central South Central West Other (3) Total Homebuilding Financial Services Multifamily Lennar Other Total

Sales of homes $ 8,446,498 7,244,338 4,692,821 12,052,131 23,341 32,459,129 — — — 32,459,129

Sales of land 48,020 34,949 7,641 19,353 — 109,963 — — — 109,963

Other revenues 29,695 25,214 6,823 14,688 15,475 91,895 976,859 573,485 22,035 1,664,274

Total revenues 8,524,213 7,304,501 4,707,285 12,086,172 38,816 32,660,987 976,859 573,485 22,035 34,233,366

Cost and expenses:

Costs of home sold 5,896,145 5,651,209 3,593,675 9,722,912 36,529 24,900,470 — — — 24,900,470

Costs of land sold 37,249 18,084 7,167 29,642 — 92,142 — — — 92,142

Ancillary costs and expenses — — — — — — 467,398 573,658 27,681 1,068,737

Selling, general and administrative 657,220 565,831 328,330 658,265 21,387 2,231,033 — — — 2,231,033

Corporate general and administrative (1) — — — — — — — — — 501,338

Charitable foundation contribution (1) — — — — — — — — — 73,087

Total costs and expenses 6,590,614 6,235,124 3,929,172 10,410,819 57,916 27,223,645 467,398 573,658 27,681 28,866,807

Equity in earnings (losses) from unconsolidated entities 20,165 795 ( 4 ) 1,453 ( 26,295 ) ( 3,886 ) — ( 52,073 ) ( 88,651 ) ( 144,610 )

Other income (expense), net and other gains (losses), net (2) 45,383 27,561 10,518 36,160 ( 25,371 ) 94,251 — 1,595 ( 65,329 ) 30,517

Lennar Other losses from technology investments — — — — — — — — ( 50,162 ) ( 50,162 )

Earnings (loss) before income taxes $ 1,999,147 1,097,733 788,627 1,712,966 ( 70,766 ) 5,527,707 509,461 ( 50,651 ) ( 209,788 ) 5,202,304

(1) Primarily represent costs of operations at the Company's corporate headquarters in Miami.

These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources.

Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contributions to the Lennar Foundation.

These corporate expenses cannot be attributed to any specific segment, thus they are presented within the Total column in the table above.

(2) Homebuilding other income (expense), net and other gains (losses), net included a one-time loss of $ 156.1 million on the Millrose Exchange Offer for the year ended November 30, 2025.

Other income (expense), net and other gains (losses), net for Lennar Other included a $ 46.5 million one-time gain on the sale of a technology investment for the year ended November 30, 2024.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(expense), net and other gains (losses), net for Lennar Other included $ 65.0 million write-off of one of the Company's non-public technology investments for the year ended November 30, 2023.

(3) The Other segment includes operating results from the Company's Urban divisions, which are not considered reportable segments.

Financial information relating to the Company’s homebuilding segments was as follows:

Years Ended November 30,

(In thousands) 2024 2023 2022

East $ 8,492,955 8,727,154 8,389,182

Central 7,637,003 7,101,560 6,722,854

Texas 4,787,125 4,707,285 4,227,771

West 12,955,853 12,086,172 12,571,386

Other 33,490 38,816 40,142

$ 33,906,426 32,660,987 31,951,335

Operating earnings (loss):

East $ 1,599,024 1,991,950 2,062,654

Central 1,083,734 1,104,930 1,066,833

Texas 753,722 788,627 929,237

West 1,857,870 1,712,966 2,773,597

Other 47,902 ( 70,766 ) ( 55,004 )

$ 5,342,252 5,527,707 6,777,317

For the Year Ended November 30, 2025

(In thousands) East Central South Central West Other Total

Interest expense $ 35,411 34,557 21,729 72,248 10,873 174,818

East $ 40,041 55,216 70,809

Central 28,929 46,556 62,083

Texas 13,967 29,754 29,442

West 84,609 115,600 140,017

Other 12,446 10,467 10,380

$ 179,992 257,593 312,731

Depreciation and amortization 27,676 30,593 11,338 57,211 14,209 141,027

East $ 32,098 33,279 23,084

Central 27,761 27,087 17,023

Texas 10,623 10,227 9,354

West 58,368 62,374 54,055

Other 346 286 774

$ 129,196 133,253 104,290

Net addition to operating properties and equipment:

East $ 734 637 2,065

Central 3,613 1,531 949

Texas 2,049 679 136

West 3,798 1,176 1,414

Other 54,202 45,754 6,537

$ 64,396 49,777 11,101

Net additions to operating properties and equipment 297 2,854 1,742 9,883 69,252 84,028

For the Year Ended November 30, 2024

(In thousands) East Central South Central West Other Total

Interest expense $ 38,992 29,978 13,967 84,609 12,446 179,992

Depreciation and amortization 30,823 29,036 10,623 58,368 346 129,196

Net additions to operating properties and equipment 688 3,659 2,049 3,798 54,202 64,396

For the Year Ended November 30, 2023

(In thousands) East Central South Central West Other Total

Interest expense $ 54,099 47,673 29,754 115,600 10,467 257,593

Depreciation and amortization 32,773 27,593 10,227 62,374 286 133,253

Net additions to operating properties and equipment 569 1,599 679 1,176 45,754 49,777

Financial Services

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The Financial Services segment operates generally in the same states as the Company’s homebuilding operations.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

At November 30, 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:

2 unchanged sentences

Residential facilities maturing:

April 2025 $ 250,000 250,000 500,000

June 2025 1,400,000 — 1,400,000

August 2025 325,000 325,000 650,000

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

September 2026 500,000 500,000 1,000,000

November 2026 100,000 400,000 500,000

December 2026 — 375,000 375,000

6 unchanged sentences

(1) Subsequent to November 30, 2025, the maturity date was extended to December 2027.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The Financial Services segment uses the residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected.

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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.

Mortgage investors could seek to have the Company buy back

mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties.

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 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 industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred.

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 years ended November 30, 2025 and 2024.

Loan origination liabilities were $ 17.4 million and $ 16.7 million, as of November 30, 2025 and 2024, respectively, and included in Financial Services’ liabilities in the Company's consolidated balance sheets.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

LMF Commercial - loans held-for-sale

LMF Commercial originated commercial loans as follows:

Years Ended November 30,

For the Years Ended November 30,

(Dollars in thousands) 2025 2024

8 unchanged sentences

The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Details related to Financial Services' CMBS were as follows:

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Stated maturity dates October 2050 December 2051

The Company is actively involved, primarily through unconsolidated funds and joint ventures, in the development, construction and property management of multifamily rental properties.

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.

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, property management, asset management, and capital markets.

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, which includes proceeds of sales of buildings and investments.

Lennar Other primarily 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 Multifamily segment also include equity in earnings (losses) from unconsolidated entities and other income (expense), net and other gains (losses), net, which includes proceeds of sales of investments.

Lennar Other includes strategic investments in various types of technology and other 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.

The Company has 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

The Company has investments in several publicly traded technology companies, 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.

During the year ended November 30, 2025, the Company recorded mark-to-market gains of $ 130.2 million on its publicly traded technology companies and other assets, which were included in Lennar Other gains (losses) in the Company's consolidated statements of operations and comprehensive income (loss).

During the year ended November 30, 2024, there was a $ 46.5 million one-time realized gain on the sale of a technology investment that was included in other income (expense), net and other gains (losses) on the Company's consolidated statements of operations and comprehensive income.

During the year ended November 30, 2023, the Company wrote off $ 65.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses), net in the Company’s consolidated statements of operations and comprehensive income (loss).

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

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 unrealized gains (losses) from mark-to-market adjustments on the Company's technology investments:

Years Ended November 30,

(In thousands) 2024 2023

Blend Labs (BLND) $ 9,474 ( 130 )

Hippo (HIPO) 73,243 ( 19,210 )

Opendoor (OPEN) ( 12,587 ) 21,762

SmartRent (SMRT) ( 11,609 ) 5,914

Sonder (SOND) 15 ( 700 )

Sunnova (NOVA) ( 33,356 ) ( 57,798 )

Lennar Other unrealized gains (losses) from technology investments $ 25,180 ( 50,162 )

Doma Holdings, Inc.

("Doma"), which went public during the year ended November 30, 2021, is an investment that was accounted for under the equity method due to the Company's significant ownership interest of 25 % of Doma which allowed the Company to exercise significant influence.

During the year ended November 30, 2024, the Company sold its investment in Doma and recorded a gain of $ 20.9 million in other income (expense), net, in the consolidated statement of operations and comprehensive income (loss).

During the year ended November 30, 2024, there was a $ 46.5 million one-time realized gain in Lennar Other on the sale of a technology investment that was included in other income (expense), net and other gains (losses) on the Company’s consolidated statements of operations and comprehensive income.

During the year ended November 30, 2023, the Company wrote off $ 65.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).

Investments in Unconsolidated Entities

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The details of the activity was as follows:

Years Ended November 30,

For the Years Ended November 30,

(In thousands) 2025 2024 2023

4 unchanged sentences

This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The total debt of the Homebuilding unconsolidated entities in which the Company has investments was $ 1.4 billion and $ 1.3 billion as of November 30, 2025 and 2024, respectively, of which the Company's maximum recourse exposure was $ 30.1 million and $ 44.2 million as of November 30, 2025 and 2024, respectively.

9 unchanged sentences

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 value of the collateral securing it.

As of both November 30, 2024 and 2023, the fair values of the repayment guarantees, maintenance guarantees and completion guarantees were not material.

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 November 30, 2025 and 2024, the fair values of the repayment guarantees, maintenance guarantees and completion guarantees were immaterial.

The Company believes that as of November 30, 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 a 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 4 of the Notes to Consolidated Financial Statements).

The Upward America Ventures 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.

In certain instances, the Company has placed performance

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 5 of the Notes to Consolidated Financial Statements).

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 million committed by Lennar.

The commitments are primarily from institutional investors, including $ 78.1 million committed by The Company.

As of November 30, 2025 and 2024, the carrying amount of the Company's investment in Upward America was $ 13.8 million and $ 20.8 million, respectively.

4 unchanged sentences

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 after the achievement of certain thresholds.

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.

As of both November 30, 2025 and 2024, the fair value of the completion guarantees was immaterial.

As of November 30, 2024 and 2023, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 907.8 million and $ 1.4 billion, respectively.

The decrease in the non-recourse debt with completion guarantees was due to completion of projects and sale of rental operation projects in Multifamily Venture Fund I.

As of November 30, 2025 and 2024, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 798.1 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.

3 unchanged sentences

The details of the activity were as follows:

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Years Ended November 30,

For the Years Ended November 30,

(In thousands) 2025 2024 2023

3 unchanged sentences

Management fee income, net of deferrals 23,691 49,419 67,901

The Multifamily segment includes managing and investing in Multifamily Venture Fund I ("LMV I"), Multifamily Venture Fund II LP ("LMV II") and Canada Pension Plan Investments Fund (the "CPPIB Fund"), which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets.

The Multifamily segment completed the closing of the CPPIB Fund.

The Multifamily segment includes managing and investing in Multifamily Venture Fund I ("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 %.

1 unchanged sentence

Additional dollars will be committed as opportunities are identified by the CPPIB Fund.

Details of LMV I and LMV II as of and during the year ended November 30, 2024 are included below:

During the year ended November 30, 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 stated ownership percentage in the Institutional JV is 10 %.

As of November 30, 2025, the Company holds a $ 48.0 million investment in the Institutional JV.

In December 2025, the Company sold a majority interest in Quarterra Group, Inc ("Quarterra"), a subsidiary of the Multifamily segment, to TPG Real Estate (“TPG”), thus retaining a minority interest.

TPG’s acquisition of Quarterra and its $ 1.0 billion strategic commitment, combined with Lennar’s insights, will accelerate Quarterra’s development pipeline and strengthen its platform for delivering thoughtfully designed rental communities in high-growth markets.

The sale of Quarterra to TPG did not have a material impact on the Company's consolidated financial statements.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Details of LMV I and LMV II and the Institutional JV are included below:

At November 30, 2025

(In thousands) LMV I LMV II

5 unchanged sentences

Lennar's remaining commitments (1) 3,635 9,508

Distributions to Lennar 199,519 12,820

Distributions to Lennar during the year ended November 30, 2025 19,690 770

(1) While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls.

As of November 30, 2023, there were 38 rental operation projects in LMV I.

During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell 38 rental operation projects of LMV I as the fund has come to the end of its contractual life.

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.

The Company recognized a net gain of $ 211.5 million on the sale of these rental operations projects which was recorded as equity in earnings (losses) in the condensed consolidated statement of operations.

As a result, the Company received net cash distributions of $ 199.5 million.

During the year ended November 30, 2025, two additional LMV I rental operation projects were sold to third-party buyers.

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 $ 140.1 million and $ 148.7 million as of November 30, 2024 and November 30, 2023, respectively.

The Company's investment in the Rialto funds totaled $ 133.0 million and $ 140.1 million as of November 30, 2025 and 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 with a carrying value of $ 239.3 million and $ 127.5 million, as of November 30, 2024 and November 30, 2023, respectively.

During the year ended November 30, 2024, there was a $ 46.5 million one-time realized gain in Lennar Other on the sale of a technology investment that was included in other income (expense), net and other gains (losses) on the Company's consolidated statements of operations and comprehensive income (loss).

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The Company also had strategic technology investments in unconsolidated entities and investment funds with a carrying value of $ 235.0 million and $ 239.3 million, as of November 30, 2025 and 2024, respectively.

During the year ended November 30, 2024, there was a $ 46.5 million one-time realized gain on the sale of a technology investment that was included in other income (expense), net and other gains (losses), net on the Company's consolidated statements of operations and comprehensive income (loss).

Condensed Financial Information of Unconsolidated Entities

18 unchanged sentences

$ 6,967,116 5,615,674 2,162,391 14,745,181

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(In thousands) At November 30, 2024

23 unchanged sentences

(1) Other income (expense), net included realized and unrealized gains (losses) on investments.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Homebuilding Senior Notes and Other Debts Payable

1 unchanged sentence

(Dollars in thousands) 2025 2024

Unsecured delayed draw term loan facility due 2028 $ 1,710,000 —

5.25 % senior notes due 2026

5 unchanged sentences

5.20 % senior notes due 2030

698,266 797,347

4.75 % senior notes due 2025

Mortgage notes on land and other debt 230,478 307,440

$ 2,258,283 2,816,482

(1) During the year ended November 30, 2024, the Company repurchased $ 100 million aggregate principal amount of senior notes due November 2027, through open market repurchases.

Total $ 4,084,686 2,258,283

The carrying amounts of the senior notes in the table above are net of debt issuance costs of $ 7.0 million and $ 2.4 million, as of November 30, 2025 and 2024, respectively.

In April 2024, the Company redeemed $ 454 million aggregate principal amount of its 4.50 % senior notes due April 2024.

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 April 2024, $ 350 million of the Company's unsecured revolving credit facility matured.

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

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Facility was increased by $ 100 million, thereby increasing the borrowing available capacity to $ 1.7 billion.

The credit 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 November 30, 2025, the Company had outstanding borrowings of $ 1.7 billion under the credit agreement governing its new unsecured 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:

24 unchanged sentences

Anticipated future costs primarily for site improvements related to performance surety bonds 3,056,582 2,766,088

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The terms of each of the Company's senior notes outstanding at November 30, 2025 were as follows:

2 unchanged sentences

5.25 % senior notes due 2026

$ 500,000 495,528 100 % April 2015

5.25 % senior notes due 2026

400,000 (3) (3) (3)

3 unchanged sentences

900,000 894,650 100 % November 2017

5.20 % senior notes due 2030

700,000 695,583 99.969 % May 2025

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(1) Interest is payable semi-annually for each of the series of senior notes.

4 unchanged sentences

(4) As of November 30, 2025, the principal amount remaining to be paid upon maturity was $ 700 million.

All of the senior notes are guaranteed by certain of the Company's 100% owned subsidiaries, which are primarily the Company's homebuilding subsidiaries.

Although the guarantees are full, unconditional and joint and several while they are in effect, (i) a subsidiary will have its guarantee suspended at any time when it is not directly or indirectly guaranteeing at least $ 75 million of debt of Lennar Corporation (the parent company) other than senior notes, and (ii) a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed of.

The Company's outstanding senior notes are guaranteed by certain of its wholly-owned subsidiaries, which are primarily homebuilding subsidiaries.

These guarantees are full and unconditional.

The guarantors of the Company's senior notes are currently those subsidiaries that also guarantee Lennar Corporation's letter of credit facilities, its Credit Facility and Delayed Draw Term Loan Facility.

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

The terms of the Company's mortgage on land and other debt at November 30, 2025 were as follows:

3 unchanged sentences

Retired during the year 57,860 46,005

The minimum aggregate principal maturities of Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2024 and thereafter are as follows:

The minimum aggregate principal maturities of Delayed Draw Term Loan Facility, Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2025 and thereafter are as follows:

(In thousands) Debt Maturities

1 unchanged sentence

2027 1,191,758

2028 1,720,214

Thereafter 11,782

The Company expects to pay its near-term maturities as they come due through either cash generated from operations, the issuance of additional debt or equity offerings or borrowings under the Company's Credit Facility.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The provision for income taxes consisted of the following:

Years Ended November 30,

For the Years Ended November 30,

(In thousands) 2025 2024 2023

6 unchanged sentences

$ 705,563 1,217,253 1,241,013

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

A reconciliation of the statutory rate and the effective tax rate was as follows:

7 unchanged sentences

Other 0.10 ( 0.24 ) 0.36

Non-deductible loss on Millrose Properties, Inc.

exchange offer 1.18 — —

Effective rate 25.35 % 23.64 % 23.96 %

(1) During 2022, Congress enacted the Inflation Reduction Act which included a retroactive extension of the new energy efficient

home tax credit through 2032.

(2) Includes a $ 50.2 million benefit related to the resolution of an uncertain tax position during 2022.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

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

federal tax law.

The Act did not have a material impact on the Company's consolidated financial statements for the year ended November 30, 2025.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

9 unchanged sentences

Employee stock incentive plan 35,734 49,655

Unrealized losses on investments in equity securities — 53,684

Other assets 23,347 39,011

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Net deferred tax assets $ 134,925 272,377

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized.

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(1) As of November 30, 2025 and 2024, the deferred tax assets included valuation allowances primarily related to state net operating loss ("NOL") carryforwards that are not more likely than not to be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(2) As of November 30, 2025 and 2024, the Company had federal tax effected NOL carryforwards that may be carried forward to offset future taxable income and begin to expire in 2030.

(3) As of November 30, 2025 and 2024, the Company had state tax effected NOL carryforwards that may be carried forward from 10 to 20 years or indefinitely, depending on the tax jurisdiction, with certain losses expiring between 2025 and 2041.

The following table summarizes the changes in gross unrecognized tax benefits:

Years Ended November 30,

(In thousands) 2024 2023 2022

Gross unrecognized tax benefits, beginning of year $ — — 12,285

Decreases due to settlements with tax authorities — — ( 12,285 )

Gross unrecognized tax benefits, end of year $ — — —

The Company had no gross unrecognized tax benefits for the years ended November 30, 2025, 2024, and 2023, respectively.

The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits:

At November 30,

(In thousands) 2025 2024

Accrued interest and penalties, beginning of the year $ — —

Accrual of interest and penalties — 95

Interest income from audits and refund claims ( 43 ) ( 434 )

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Basic and diluted earnings per share were calculated as follows:

Years Ended November 30,

For the Years Ended November 30,

(In thousands, except per share amounts) 2025 2024 2023

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undistributed earnings allocated to nonvested shares 15,024 33,843 43,022

Numerator for basic earnings per share 3,893,710 3,889,975 4,562,145

net amount attributable to Rialto's Carried Interest Incentive Plan (1) — — 4,919

Numerator for diluted earnings per share $ 3,893,710 3,889,975 4,557,226

Denominator for basic earnings per share - weighted average common shares outstanding 272,019 283,319 289,824

Denominator for diluted earnings per share - weighted average common shares outstanding 272,019 283,319 289,824

Basic earnings per share $ 14.31 13.73 15.74

Diluted earnings per share $ 14.31 13.73 15.72

(1) The amounts presented relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own.

Numerator for basic and diluted earnings per share $ 2,058,083 3,893,710 3,889,975

Denominator for basic and diluted earnings per share - weighted average common shares outstanding 257,746 272,019 283,319

Basic and diluted earnings per share $ 7.98 14.31 13.73

For the years ended November 30, 2025, 2024 and 2023, there were no options to purchase shares of common stock that were outstanding and anti-dilutive.

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 November 30, 2024 and 2023, using available market information and what the Company believes to be

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

appropriate valuation methodologies.

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 November 30, 2025 and 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.

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Loans held-for-investment, net (1) Level 3 $ — — 60,969 61,044

Loan held-for-sale (1) Level 3 15,547 15,547 — —

Investments held-to-maturity Level 3 132,868 132,032 135,646 138,160

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Financial Services notes and other debt payable, net Level 2 1,790,309 1,790,789 1,930,956 1,931,515

Multifamily notes payable, net Level 2 — — 3,741 3,741

(1) During the year ended November 30, 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:

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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.

For notes and other debts 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.

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.

Multifamily - For notes payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the borrowings.

Fair Value Measurements

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Fair value determined using significant unobservable inputs.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The Company’s financial instruments measured at fair value on a recurring basis are summarized below:

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Mortgage servicing rights Level 3 3,266 3,463

Forward options Level 1 1,458 5,937

Lennar Other Assets:

1 unchanged sentence

Investments available-for-sale Level 3 39,060 40,578

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Residential and LMF Commercial loans held-for-sale in the table above include:

At November 30,

(In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value

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The following methods and assumptions are used by the Company in estimating fair values:

Financial Services residential loans held-for-sale - Fair value is based on independent quoted market prices, where available, or the prices for other mortgage whole loans with similar characteristics.

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.

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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.

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.

The Company estimates CMBS spreads by observing the pricing of recent CMBS offerings, secondary CMBS markets, changes in the CMBX index, and general capital and commercial real estate market conditions.

Considerations in estimating CMBS spreads include comparing the Company’s current loan portfolio with comparable CMBS offerings containing loans with similar duration, credit quality and collateral composition.

These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan.

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Delinquency rate 11 %

Forward options - Fair value of forward options is based on independent quoted market prices for similar financial instruments.

The fair value of these are included in Financial Services' other assets and the Company recognizes the changes in the fair value of the premium paid as Financial Services' Revenue.

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 consolidated statements of operations and comprehensive income (loss).

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

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.

1 unchanged sentence

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(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:

Years Ended November 30,

For the Years Ended November 30,

(In thousands) 2025 2024 2023

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Forward contracts 9,346 61,270 ( 28,431 )

Forward options ( 133 ) ( 522 ) ( 142 )

Changes in fair value included in Lennar Other unrealized gains (losses) from technology investments:

Investments in equity securities $ 25,180 ( 50,162 ) ( 655,094 )

Changes in fair value included in other comprehensive income, net of tax:

Changes in fair value included in Lennar Other gains (losses) from technology investments:

Investments in equity securities and other assets $ 130,166 25,180 ( 50,162 )

Changes in fair value included in other comprehensive income (loss), net of tax:

Lennar Other investments available-for-sale $ ( 1,518 ) 2,650 2,471

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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:

Years Ended November 30,

For the Years Ended November 30,

(In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale

2 unchanged sentences

Sales/loan originations sold, including those not settled — ( 730,564 ) — ( 522,647 )

— ( 522,647 ) — ( 430,707 )

Disposals/settlements (1) ( 332 ) — ( 261 ) ( 9,500 )

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The assets measured at fair value on a nonrecurring basis are summarized below:

Years Ended November 30,

For the Years Ended November 30,

2025 2024 2023

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Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1)

Non-financial assets

Homebuilding:

Homebuilding - non-financial assets:

Finished homes and construction in progress (2)

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Investments in unconsolidated entities (4) Level 3 — — — — — — 78,834 37,792 ( 41,042 )

Non-financial assets

Financial Services - financial assets:

Loan held-for-sale (5) Level 3 17,660 15,547 ( 2,113 ) — — — — — —

Multifamily - non-financial assets:

Land and land under development (6) Level 3 $ — — — 139,980 49,970 ( 90,010 ) — — —

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(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.

(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) Valuation adjustments related to Homebuilding investments in unconsolidated entities were primarily included in other income (expense), net in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2023 and 2022, respectively.

(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 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 consolidated statements of operations and comprehensive income (loss).

(4) Valuation adjustments related to Homebuilding investments in unconsolidated entities were primarily included in other income (expense), net and other gains (losses), net in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2023.

(5) 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 consolidated financial statements.

(6) Valuation adjustments for land and land under development were included in Multifamily costs and expenses.

(6) Valuation adjustments related to Multifamily investments in unconsolidated entities were included in other income (expense), net in the Company's consolidated statements of operations and comprehensive income (loss) for the year ended November 30, 2024.

During the year ended November 30, 2023, the Company wrote off $ 65.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).

(7) Valuation adjustments related to Multifamily investments in unconsolidated entities were included in other income (expense), net and other gains (losses), net in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2025 and 2024.

During the year ended November 30, 2025, the Company wrote off $ 33.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses), net in the Company’s consolidated statements of operations and comprehensive income (loss).

See Note 1 for a detailed description of the Company’s process for identifying and recording valuation adjustments related to Homebuilding inventory and investments in unconsolidated entities.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Variable Interest Entities

The Company evaluated the joint venture ("JV") agreements of its JV's that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements during the year ended November 30, 2024 and based on the Company's evaluation, it consolidated one entity that had a total assets and liabilities of $ 3.6 million and $ 3.2 million, respectively.

During the year ended November 30, 2024, there were no variable interest entities ("VIEs") that were deconsolidated.

During the year ended November 30, 2025, the Company evaluated the joint venture ("JV") agreements of its JV's 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 year ended November 30, 2025.

During the year ended November 30, 2025, the Company deconsolidated two VIEs that had total assets and liabilities of $ 412.4 million and $ 100.1 million, respectively.

The carrying amount of the Company's consolidated VIE's assets and non-recourse liabilities are disclosed in the footnotes to the consolidated balance sheets.

2 unchanged sentences

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, other than as a result of capital calls in accordance with business plans, unless the Company and/or the other partner(s) have entered into debt guarantees with the VIE’s lenders.

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.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Unconsolidated VIEs

8 unchanged sentences

Lennar Other (4) 105,151 105,151 119,258 119,258

$ 1,193,963 1,271,059 1,240,627 1,386,646

(1) As of November 30, 2024 and 2023, the Company's maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs, except with regard to the Company's remaining commitment to fund capital in Upward America of $ 20.4 million and $ 69.8 million, respectively.

Total $ 1,232,661 1,271,590 1,193,963 1,271,059

(1) As of November 30, 2025 and 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 November 30, 2025 and 2024, there was recourse debt of VIEs of $ 30.1 million and $ 44.2 million, respectively.

(2) As of November 30, 2025 and 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.

The maximum exposure for LMV II, in addition to the investment, also included the remaining combined equity commitment of $ 12.8 million as of November 30, 2023, for expenditures related to the construction and development of its projects.

The decrease in exposure as of November 30, 2024 is primarily due to the removal of LMV II as the fund does not expect to call for equity in the future.

As a result, LMV II is not a VIE as of November 30, 2024.

(3) As of both November 30, 2024 and 2023, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and related to the Financial Services' CMBS held-to-maturity investments.

(3) As of both November 30, 2025 and 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 held-to-maturity investments.

(4) At November 30, 2025 and 2024, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs.

The increase in exposure was due to the Company entering into a new JV which is a VIE and its continued contributions to 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.

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Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs.

While the Company has option contracts to purchase land from certain of its unconsolidated VIEs, the Company is not required to purchase the assets and could walk away from the contracts.

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 November 30, 2024, land under option with third parties that the Company was economically compelled to takedown was $ 2.8 billion, of which $ 1.5 billion 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 $ 1.2 billion as of November 30, 2024.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

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 November 30, 2025, land under option with third parties that the Company was compelled to takedown was $ 984.4 million, of which $ 275.4 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.

The decrease was primarily due to the reassessment of certain option contracts terms that were amended.

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 $ 663.3 million of consolidated inventory not owned with a corresponding increase of $ 612.7 million of liabilities related to consolidated inventory not owned.

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:

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(In thousands) 2025 2024

Non-refundable option deposits and pre-acquisition costs $ 3,529,889 1,949,219

Non-refundable option deposits and pre-acquisition costs on real estate $ 6,301,909 3,529,889

Non-refundable option deposits included in consolidated inventory not owned 220,025 520,731

2 unchanged sentences

There were no amounts due to the Land Banks as of November 30, 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 November 30, 2024, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 1.4 billion.

As of November 30, 2024, total consolidated inventory not owned and liabilities related to consolidated inventory not owned relating to contracts with the Land Banks were $ 726.5 million and $ 560.0 million, respectively.

As of November 30, 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 November 30, 2025, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $ 302.6 million and $ 257.9 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, in February 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, in February 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 November 30, 2025, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose were $ 1.0 billion.

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

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 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.

The Company is subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development and sale of real estate, which it does in the routine conduct of its business.

Option contracts generally enable the Company to control portions of properties owned by third parties (including land banks) and unconsolidated entities until the Company determines whether to exercise the option.

The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings.

At November 30, 2024, the Company had $ 3.5 billion of non-refundable option deposits and pre-acquisition costs related to certain of these homesites, which were recorded in deposits and pre-acquisition costs on real estate in the consolidated balance sheet.

The Company is involved in various claims, legal proceedings, and regulatory matters that arise in the ordinary course of business, including, but not limited to, matters related to construction defects, product liability, warranty claims, land use, zoning and permitting issues, environmental matters, contract disputes, employment matters, and other legal matters incidental to its business operations.

The Company follows established accounting standards to identify, evaluate, record, and disclose legal contingencies.

A liability is recorded when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated.

The Company does not record liabilities for contingencies when the likelihood of loss is remote or if reasonably possible, or when a probable loss cannot be reasonably estimated.

If a loss is probable or reasonably possible, the Company discloses the nature of the contingency and, if estimable, the possible range of loss.

In assessing contingencies, management considers, among other factors, the nature of the claim, the status of the matter, the advice of legal counsel, the Company's historical experience with similar matters, insurance coverage, and recoveries, if any, and other relevant facts and circumstances.

Estimates of loss contingencies are inherently subjective and involve significant judgment.

As a result, actual outcomes may differ materially from amounts recorded or disclosed.

Certain of the Company's legal matters are covered, in whole or in part, by insurance policies subject to applicable retentions, deductibles, and policy limits, as well as through contractual indemnities.

Recoveries, if any, are recognized only when realization is considered probable.

As of November 30, 2025, the Company has recorded accruals for loss contingencies that management believes are probable and reasonably estimable.

These accruals are included in Other liabilities in the consolidated balance sheets.

For these matters as well as for matters for which a loss is reasonably possible but not probable, management believes that any reasonably possible losses, either individually or in the aggregate, would not have a material adverse effect on the Company’s consolidated financial position.

However, the ultimate resolution of these matters could have a material effect on the Company’s results of operations or cash flows in a particular period.

The Company cannot predict with certainty the outcome or timing of resolution of its pending matters, and no assurance can be given that the results will not differ from management’s expectations.

The Company has entered into agreements to lease certain office facilities and equipment under operating leases.

15 unchanged sentences

2026 $ 86,899

2029 and thereafter 65,188

Thereafter 64,809

Total future minimum lease payments (1) $ 301,326

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(2) The Company's leases do not include a readily determinable implicit rate.

As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02.

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 November 30, 2025, the Company recognized the lease liabilities on its consolidated balance sheets within accounts payable and other liabilities of the respective segments.

The Company's rental expense on lease liabilities were as follows:

Years Ended November 30,

For the Years Ended November 30,

(In thousands) 2025 2024 2023

4 unchanged sentences

For both the years ended November 30, 2025 and 2024, the Company had an immaterial amount of sublease income.

Letters of Credits and Surety Bonds

The Company is committed, under various letters of credit, to perform certain development and construction activities and provide certain guarantees in the normal course of business.

Outstanding letters of credit under these arrangements totaled $ 2.4 billion at November 30, 2024.

Additionally, at November 30, 2024, the Company had outstanding surety bonds of $ 5.1 billion including performance surety bonds related to site improvements at various projects (including certain projects of the Company’s joint ventures) and financial surety bonds.

Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed.

As of November 30, 2024, there were approximately $ 2.8 billion, or 54 %, of anticipated future costs to complete related to these site improvements.

The Company does not presently anticipate any draws upon these bonds that would have a material effect on its consolidated financial statements.

Substantially all of the loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing-released, non-recourse basis.

Purchasers sometimes try to defray any losses incurred by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements.

Mortgage investors or others could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties.

The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors.

While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the mortgage industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred.

Loan origination liabilities are included in Financial Services’ liabilities in the Company's consolidated balance sheets.

The Company also had outstanding surety bonds, including performance bonds related to site improvements at various projects (including certain joint ventures) and financial surety bonds.

Although significant development and construction activities have been completed, these bonds are generally not released until all development and construction activities are completed (see Note 5 of the Notes to Consolidated Financial Statements for additional information).

The Company does not presently anticipate any draws upon these letters of credit or surety bonds that would have a material effect on its consolidated financial statements.

Option Agreements

The Company is subject to the usual obligations associated with contractual agreements entered into in routine conduct of its business (including option contracts) for the purchase, development and sale of real estate.

The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings (see Note 9 of the Notes to Consolidated Financial Statements for additional information).

Loan Servicing

Substantially all of the loans the Financial Services segment originates are sold within a short period on 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 breached certain limited industry-standard representations and warranties in the loan sale agreements.

Purchasers sometimes try to defray any losses incurred 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, which are included in Financial Services’ liabilities in the Company's consolidated balance sheets.

These accruals are 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

LENNAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

believes it has adequately reserved for known losses and projected repurchase requests, given the volatility in the mortgage market and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving purchase claims exceed the Company’s expectations, additional recourse expense may be incurred.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

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What changed 10-K

Item 8. Financial Statements and Supplementary Data