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Item 1. Financial Statements

2026-04-09 compared with 2025-10-03 · 305 added, 416 removed, 651 unchanged (53% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

(Dollars in thousands)

August 31, November 30,

(In thousands)

February 28, November 30,

2026 (1) 2025 (1)

18 unchanged sentences

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

As of August 31, 2025, total assets include $ 2.1 billion related to consolidated VIEs of which $ 77.6 million is included in Homebuilding cash and cash equivalents, $ 2.0 million in Homebuilding receivables, net, $ 51.7 million in Homebuilding finished homes and construction in progress, $ 336.1 million in Homebuilding land and land under development, $ 1.5 billion in Homebuilding consolidated inventory not owned, $ 83.6 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.1 million in Homebuilding investments in unconsolidated entities, $ 8.6 million in Homebuilding other assets and $ 25.3 million in Multifamily assets.

As of November 30, 2024, total assets include $ 3.7 billion related to consolidated VIEs of which $ 67.0 million is included in Homebuilding cash and cash equivalents, $ 6.0 million in Homebuilding receivables, net, $ 9.7 million in Homebuilding finished homes and construction in progress, $ 602.9 million in Homebuilding land and land under development, $ 2.8 billion in Homebuilding consolidated inventory not owned, $ 71.8 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities, $ 42.3 million in Homebuilding other assets and $ 33.9 million in Multifamily assets.

As of February 28, 2026, total assets include $ 1.5 billion related to consolidated VIEs of which $ 49.7 million is included in Homebuilding cash and cash equivalents, $ 0.2 million in Homebuilding receivables, net, $ 38.2 million in Homebuilding finished homes and construction in progress, $ 232.9 million in Homebuilding land and land under development, $ 1.0 billion in Homebuilding consolidated inventory not owned, $ 94.1 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities, $ 1.7 million in Homebuilding other assets and $ 24.7 million in Multifamily assets.

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.

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands, except share amounts)

August 31, November 30,

February 28, November 30,

2026 (2) 2025 (2)

14 unchanged sentences

Class A common stock of $ 0.10 par value;

August 31, 2025 and November 30, 2024 - 400,000,000 shares;

August 31, 2025 - 261,530,577 shares and November 30, 2024 - 259,979,453 shares

February 28, 2026 and November 30, 2025 - 400,000,000 shares;

February 28, 2026 - 263,189,720 shares and November 30, 2025 - 261,579,253 shares

26,319 26,158

Class B common stock of $ 0.10 par value;

August 31, 2025 and November 30, 2024 - 90,000,000 shares;

August 31, 2025 - 36,601,215 shares and November 30, 2024 - 36,601,215 shares

February 28, 2026 and November 30, 2025 - 90,000,000 shares;

February 28, 2026 - 36,601,215 shares and November 30, 2025 - 36,601,215 shares

Additional paid-in capital 5,993,733 5,909,726

1 unchanged sentence

Treasury stock, at cost;

August 31, 2025 - 37,727,047 shares of Class A common stock and 5,384,202 shares of Class B common stock;

February 28, 2026 - 47,945,322 shares of Class A common stock and 5,547,317 shares of Class B common stock;

November 30, 2025 - 45,804,348 shares of Class A common stock and 5,384,202 shares of Class B common stock

5 unchanged sentences

Total liabilities and equity $ 33,210,342 34,430,437

(2) As of August 31, 2025, total liabilities include $ 1.4 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 39.0 million is included in Homebuilding accounts payable, $ 1.4 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debt payable, $ 1.3 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities.

As of November 30, 2024, total liabilities include $ 2.7 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 67.3 million is included in Homebuilding accounts payable, $ 2.6 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debts payable, net, $ 45.8 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities.

(2) As of February 28, 2026, total liabilities include $ 1.0 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 15.5 million is included in Homebuilding accounts payable, $ 961.7 million in Homebuilding liabilities related to consolidated inventory not owned, $ 1.2 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities.

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.

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands, except per share amounts)

Three Months Ended Nine Months Ended

August 31, August 31,

2025 2024 2025 2024

Three Months Ended

Homebuilding $ 6,298,563 7,283,870

12 unchanged sentences

Equity in earnings from unconsolidated entities 63,268 33,234

Other income (expense), net and other gains (losses), net ( 18,956 ) 23,331 43,471 156,875

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

Other income, net and other gains, net 8,146 31,668

Lennar Other gains (losses) from technology investments 14,838 ( 62,503 )

Earnings before income taxes 302,453 698,238

3 unchanged sentences

Net earnings attributable to Lennar $ 229,383 519,526

Other comprehensive income (loss), net of tax:

Net unrealized gains (losses) on securities available-for-sale $ — 444 ( 1,510 ) 2,161

Total other comprehensive income (loss), net of tax $ — 444 ( 1,510 ) 2,161

Other comprehensive loss, net of tax:

Net unrealized losses on securities available-for-sale $ ( 405 ) ( 178 )

Total other comprehensive loss, net of tax $ ( 405 ) ( 178 )

Total comprehensive income attributable to Lennar $ 228,978 519,348

5 unchanged sentences

(In thousands)

Nine Months Ended

Three Months Ended

Cash flows from operating activities:

Net earnings (including net earnings attributable to noncontrolling interests) $ 233,361 528,713

Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:

Adjustments to reconcile net earnings to net cash used in operating activities:

Depreciation and amortization 33,388 31,332

4 unchanged sentences

Deferred income tax expense 44,205 23,472

Gains on redemption/repurchase of senior notes — ( 825 )

Loans held-for-sale unrealized gains ( 10,293 ) ( 1,617 )

Lennar Other realized and unrealized losses (gains) from technology investments and other losses (gains), net 14,218 ( 35,189 )

Gains on sale of other assets and loans receivables ( 34,086 ) ( 15,428 )

Gain on sale of investments in unconsolidated entities and other ( 35,678 ) —

Loans held-for-sale unrealized (gains) losses ( 32,402 ) ( 30,403 )

Lennar Other (gains) losses from technology investments and other (gains) losses, net ( 14,838 ) 71,427

Gains on sale of operating properties and equipment and other assets ( 9,296 ) ( 23,411 )

Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets 38,128 28,261

Changes in assets and liabilities:

Increase in receivables ( 10,286 ) ( 24,170 )

Decrease in receivables 296,232 117,753

Increase in inventories, excluding valuation adjustments ( 652,015 ) ( 513,257 )

3 unchanged sentences

Decrease in accounts payable and other liabilities ( 403,762 ) ( 215,035 )

Net cash (used in) provided by operating activities ( 1,542,675 ) 1,428,874

Net cash used in operating activities ( 433,502 ) ( 289,042 )

Cash flows from investing activities:

5 unchanged sentences

Distributions of capital from unconsolidated entities 104,999 35,455

Proceeds from sale of loan receivables 114,661 —

Acquisition, net of cash and restricted cash acquired — ( 231,426 )

Decrease (increase) in Financial Services loans held-for-investment 11,572 ( 2,479 )

Decrease in Financial Services loans held-for-investment — 8,467

Purchases of investment securities ( 6,218 ) ( 3,456 )

Proceeds from maturities/sales of investment securities 1,993 1,934

Net cash provided by (used in) investing activities $ 175,634 ( 176,824 )

Net cash provided by investing activities $ 93,362 21,490

See accompanying notes to condensed consolidated financial statements.

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows (Continued)

(In thousands)

Nine Months Ended

(Dollars in thousands)

Three Months Ended

Cash flows from financing activities:

Net borrowings under revolving credit facility $ 1,140,000 —

Net repayments under warehouse facilities $ ( 599,303 ) ( 533,831 )

Proceeds from issuance of senior notes 700,000 —

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

Principal payments on notes payable and other borrowings ( 12,092 ) ( 27,600 )

2 unchanged sentences

Proceeds from liabilities related to consolidated inventory not owned — 259

Proceeds from other borrowings — 6,231

Payments for liabilities related to consolidated inventory not owned ( 80,155 ) ( 255,862 )

2 unchanged sentences

Payments related to noncontrolling interests ( 10,709 ) ( 5,389 )

Debt issuance costs ( 6,502 ) —

Common stock:

17 unchanged sentences

Net non-cash contributions to unconsolidated entities 21,241 17,330

Non-cash sale of investments in unconsolidated entities 90,730 —

Non-cash impact of Millrose Properties, Inc.

15 unchanged sentences

The Company has historically experienced, and expects to continue to experience, variability in quarterly results.

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

The condensed consolidated statements of operations for the three months ended February 28, 2026 are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

2 unchanged sentences

Cash and Cash Equivalents

Homebuilding cash and cash equivalents as of August 31, 2025 and November 30, 2024 included $ 673.7 million and $ 265.6 million, respectively, of cash held in escrow for approximately two days .

Homebuilding cash and cash equivalents as of February 28, 2026 and November 30, 2025 included $ 530.6 million and $ 150.6 million, respectively, of cash held in escrow for approximately two days .

Share-based Payments

During both the three months ended August 31, 2025 and 2024, the Company granted employees an immaterial number of nonvested shares.

During the nine months ended August 31, 2025 and 2024, the Company granted employees 1.4 million and 1.3 million of nonvested shares of Class A common stock, respectively.

During the three months ended February 28, 2026 and 2025, the Company granted employees 1.5 million and 1.4 million of nonvested shares of Class A common stock, respectively.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, “ Improvements to Reportable Segment Disclosures ” (“ASU 2023-07”).

ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the segment measure of profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM.

ASU 2023-07 will be applied retrospectively and is effective for the Company's fiscal year ending November 30, 2025 and interim reporting periods starting in the first quarter of fiscal 2026.

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

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):Improvements to Income Tax Disclosure ("ASU 2023-09").

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 condensed consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure s (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis.

ASU 2023-09 is effective for the Company's fiscal year ending November 30, 2026 and may be applied either retrospectively or prospectively.

The Company does not expect ASU 2023-09 to have a material effect on its condensed consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation 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 Company's fiscal year ending November 30, 2028.

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

The Company is currently evaluating the impact

that the adoption of ASU 2024-03 will have on its condensed consolidated financial statements and disclosures.

Reclassifications

In the first quarter of fiscal 2026, the Company implemented a reorganization of certain geographic communities within its Homebuilding segments.

As a result of this reorganization, eleven communities previously allocated to the Central segment were moved to the East segment.

Accordingly, the Company reclassified certain prior year segment information in the condensed consolidated financial statements to conform with the 2026 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 condensed consolidated financial statements.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Reclassifications

As a result of the Company's change in Homebuilding reportable segments following the acquisition of Rausch Coleman Homes ("Rausch") (refer to Note 2 of the Notes to Condensed Consolidated Financial Statements for more information), the Company reclassified certain prior year segment information in the condensed consolidated financial statements to conform with the 2025 presentation.

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

In addition, certain amounts in the prior year's statement of cash flows were reclassified to conform with the 2025 presentation.

(2) Business Transactions

Spin-off of Millrose Properties, Inc.

On February 7, 2025, the Company completed the taxable spin-off of Millrose Properties, Inc.

("Millrose") through a distribution of approximately 80 % of Millrose's stock to its stockholders.

The Company temporarily retains, but does not vote, the remaining 20 % of the total outstanding shares of Millrose common stock, which it expects to dispose of through a split-off, a stock sale or another transaction.

In connection with the spin-off, the Company contributed to Millrose $ 5.6 billion in land assets, representing approximately 87,000 homesites, and cash of $ 1.0 billion, which included $ 584.0 million of cash deposits related to option contracts.

The spin-off transaction accelerates Lennar's longstanding strategy of becoming a pure-play, asset-light, new home manufacturing company.

Acquisition of Rausch Coleman Homes

On February 10, 2025, the Company acquired Rausch, a residential homebuilder based in Fayetteville, Arkansas.

The Company acquired Rausch’s homebuilding operations while Millrose acquired Rausch's land assets and the Company has options on the land.

With this acquisition, the Company expanded its footprint into new markets in Arkansas (Bentonville/Fayetteville, Little Rock and Jonesboro), Oklahoma (Tulsa and Stillwater), Alabama (Birmingham and Tuscaloosa), and Kansas/Missouri (Kansas City), while adding to its existing footprint in Texas (Houston and San Antonio), Oklahoma (Oklahoma City), Alabama (Huntsville) and Florida (Gulf Coast).

The Company acquired $ 312.6 million of assets, primarily consisting of homes under construction, finished homesites, cash and other assets, and assumed liabilities of $ 73.0 million, primarily consisting of accounts payable and other liabilities.

The cash consideration paid by the Company to Rausch was funded from working capital.

(2) Operating and Reporting Segments

The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name.

In addition, the Company's homebuilding operations purchase, develop and sell land to third parties.

The Company's chief operating decision makers manage and assess the Company’s performance at a regional level.

Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting , and determined that the following are its operating and reportable segments:

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, Chief Executive Officer and President.

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 following are the Company’s operating and reportable segments:

Homebuilding segments:

4 unchanged sentences

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

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(In thousands) At August 31, 2025

(In thousands) At February 28, 2026

Homebuilding Financial

17 unchanged sentences

Total liabilities $ 9,604,090 1,390,277 88,547 95,165 11,178,079

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(In thousands) At November 30, 2025

10 unchanged sentences

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

Loans held-for-investment, net (6) — 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

Senior notes and other debt 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

1 unchanged sentence

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

(1) Financial Services, receivables, net, are primarily related to loans sold to investors for which the Company had not yet been paid as of August 31, 2025 and November 30, 2024, respectively.

(2) I nvestments in unconsolidated entities as of August 31, 2025 include the carrying value of 20 % of the total outstanding shares of Millrose common stock, which was $ 1.2 billion.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(3) Loans held-for-sale related to unsold residential and commercial loans carried at fair value, of which $ 50.3 million of residential loans are carried at lower of cost or fair value.

(4) Investments in equity securities include investments of $ 118.3 million and $ 143.0 million without readily available fair values as of August 31, 2025 and November 30, 2024, respectively.

(1) Financial Services, receivables, net, are primarily related to loans sold to investors for which the Company had not yet been paid as of both February 28, 2026 and November 30, 2025.

(2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value, of which $ 15.3 million and $ 15.5 million of residential loans are carried at lower of cost or fair value as of February 28, 2026 and November 30, 2025, respectively.

(3) Investments in equity securities include investments of $ 114.4 million without readily available fair values as of both February 28, 2026 and November 30, 2025.

(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) in the condensed consolidated balance sheets.

(6) As of August 31, 2025, the Financial Services segment transferred its loans held-for-investment of $ 61.0 million (fair value of $ 50.3 million) to held-for-sale, based on the Company’s intent to sell the loans in the near future.

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

Homebuilding $ 8,253,675 9,045,692 23,381,407 24,357,742

Financial Services 314,195 273,270 889,370 804,713

Multifamily 228,465 93,443 521,966 322,620

Lennar Other 13,943 3,637 26,582 9,489

$ 8,810,278 9,416,042 24,819,325 25,494,564

Earnings (loss) before income taxes:

Homebuilding $ 759,785 1,477,918 2,297,292 3,846,869

Financial Services 177,872 144,400 478,635 422,708

Multifamily ( 16,471 ) 78,908 ( 31,248 ) 42,795

Lennar Other 62,498 20,095 ( 79,680 ) ( 48,417 )

Corporate and Unallocated (1) ( 192,981 ) ( 186,188 ) ( 534,177 ) ( 536,979 )

$ 790,703 1,535,133 2,130,822 3,726,976

(1) Corporate and unallocated consists primarily of corporate general and administrative expenses and charitable foundation contributions.

(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.

Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities.

Operating earnings (loss) for the Homebuilding segments consist of revenues generated from the sales of homes and land, other revenues from management fees and forfeited deposits, equity in earnings (losses) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment.

Homebuilding Other also includes management of a fund that acquires single-family homes and holds them as rental properties.

The Company renamed its Texas reportable Homebuilding segment to South Central as a result of the Rausch acquisition (see Note 2 of the Notes to Condensed Consolidated Financial Statements) in order to streamline and synergize geographic homebuilding operations, assess performance, and allocate resources across the Company’s geographic homebuilding segments.

The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in:

Florida, New Jersey and Pennsylvania

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

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

South Central:

Arkansas, Kansas, Missouri, Oklahoma and Texas

Arkansas, Kansas, Oklahoma and Texas

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

Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC (“FivePoint”), and Millrose investment.

Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC (“FivePoint”).

Lennar Corporation and Subsidiaries

1 unchanged sentence

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

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

(In thousands) At February 28, 2026 At November 30, 2025

East $ 5,510,902 5,413,918

5 unchanged sentences

Total Homebuilding $ 28,730,536 29,253,256

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

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

East $ 1,703,457 2,074,799 5,064,438 6,091,146

Central 2,075,062 2,206,293 5,406,615 5,418,886

South Central 1,508,269 1,286,625 4,198,495 3,554,836

West 2,960,730 3,471,591 8,688,960 9,267,120

Other 6,157 6,384 22,899 25,754

$ 8,253,675 9,045,692 23,381,407 24,357,742

Operating earnings (loss)

East $ 181,648 401,908 579,274 1,205,866

Central 189,458 343,490 488,749 741,549

South Central 130,129 197,767 388,901 550,924

West 270,323 514,448 814,528 1,302,172

Other ( 11,773 ) 20,305 25,840 46,358

$ 759,785 1,477,918 2,297,292 3,846,869

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

Three Months Ended February 28, 2026

(In thousands) East Central South Central West Other (2) Homebuilding Financial Services Multifamily Lennar Other Total

Sales of homes $ 1,512,078 1,345,033 1,160,180 2,251,747 3,884 6,272,922 — — — 6,272,922

Sales of land 8,074 873 4,023 2,188 — 15,158 — — — 15,158

Other revenues 4,869 1,153 660 1,202 2,599 10,483 215,555 82,499 22,859 331,396

Total revenues 1,525,021 1,347,059 1,164,863 2,255,137 6,483 6,298,563 215,555 82,499 22,859 6,619,476

Costs and expenses:

Costs of home sold 1,238,852 1,152,715 956,368 1,967,522 6,157 5,321,614 — — — 5,321,614

Costs of land sold 15,302 3,736 6,368 5,905 — 31,311 — — — 31,311

Other costs and expenses — — — — — — 124,242 90,428 43,684 258,354

Selling, general and administrative expenses 162,774 148,205 107,634 191,170 7,712 617,495 — — — 617,495

Corporate general and administrative expenses (1) — — — — — — — — — 157,638

Charitable foundation contribution (1) — — — — — — — — — 16,863

Total costs and expenses 1,416,928 1,304,656 1,070,370 2,164,597 13,869 5,970,420 124,242 90,428 43,684 6,403,275

Equity in earnings (losses) from unconsolidated entities 10,683 59 ( 15 ) 912 26,542 38,181 — 25,481 ( 394 ) 63,268

Other income (expense), net and other gains (losses), net ( 3,821 ) 1,883 ( 1,669 ) ( 2,032 ) 12,343 6,704 — 307 1,135 8,146

Lennar Other gains from technology investments — — — — — — — — 14,838 14,838

Earnings (loss) before income taxes $ 114,955 44,345 92,809 89,420 31,499 373,028 91,313 17,859 ( 5,246 ) 302,453

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Three Months Ended February 28, 2025

(In thousands) East Central South Central West Other (2) Homebuilding Financial Services Multifamily Lennar Other Total

Sales of homes $ 1,655,259 1,530,193 1,160,523 2,888,685 5,886 7,240,546 — — — 7,240,546

Sales of land 23,122 1,600 5,604 5,000 — 35,326 — — — 35,326

Other revenues 2,736 854 701 1,248 2,459 7,998 277,077 63,196 7,402 355,673

Total revenues 1,681,117 1,532,647 1,166,828 2,894,933 8,345 7,283,870 277,077 63,196 7,402 7,631,545

Costs and expenses:

Costs of home sold 1,303,019 1,245,610 946,529 2,386,679 6,307 5,888,144 — — — 5,888,144

Costs of land sold 23,511 3,040 2,940 6,586 — 36,077 — — — 36,077

Other costs and expenses — — — — — — 133,594 73,376 23,564 230,534

Selling, general and administrative expenses 162,186 152,324 94,822 202,381 4,026 615,739 — — — 615,739

Corporate general and administrative expenses (1) — — — — — — — — — 147,378

Charitable foundation contribution (1) — — — — — — — — — 17,834

Total costs and expenses 1,488,716 1,400,974 1,044,291 2,595,646 10,333 6,539,960 133,594 73,376 23,564 6,935,706

Equity in earnings (losses) from unconsolidated entities 6,638 ( 3 ) ( 2 ) ( 28 ) 28,399 35,004 — 727 ( 2,497 ) 33,234

Other income (expense), net and other gains (losses), net 25,315 2,050 ( 452 ) ( 478 ) 3,924 30,359 — 9,430 ( 8,121 ) 31,668

Lennar Other losses from technology investments — — — — — — — — ( 62,503 ) ( 62,503 )

Earnings (loss) before income taxes $ 224,354 133,720 122,083 298,781 30,335 809,273 143,483 ( 23 ) ( 89,283 ) 698,238

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

Financial Services

5 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

At August 31, 2025, the Financial Services segment had warehouse facilities which were all 364 -day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows:

At February 28, 2026, the Financial Services segment had warehouse facilities which were all 364 -day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows:

Maximum Aggregate Commitment

1 unchanged sentence

Residential facilities maturing:

September 2025 (1) $ 1,000,000 — 1,000,000

October 2025 100,000 100,000 200,000

March 2026 (1) $ 250,000 250,000 500,000

1 unchanged sentence

July 2026 100,000 100,000 200,000

September 2026 200,000 200,000 400,000

November 2026 100,000 100,000 200,000

December 2026 — 375,000 375,000

1 unchanged sentence

LMF commercial facilities maturing:

December 2025 200,000 — 200,000

January 2027 100,000 — 100,000

December 2027 200,000 — 200,000

Total LMF commercial facilities $ 300,000 — 300,000

Total $ 2,475,000

(1) Subsequent to August 31, 2025, the maturity date was extended to September 2026 .

(1) Subsequent to February 28, 2026, the maturity date was extended to March 2027.

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

2 unchanged sentences

Borrowings and collateral under the facilities were as follows:

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

(In thousands) At February 28, 2026 At November 30, 2025

Borrowings under residential facilities $ 1,008,627 1,653,484

3 unchanged sentences

Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.

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

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 it breached certain limited industry-standard representations and warranties in the loan sale agreements.

Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements and seeking to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold.

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

The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans, as well as previous settlements.

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

The provision for loan losses was immaterial for both the three and nine months ended August 31, 2025 and 2024.

Loan origination liabilities were $ 17.3 million and $ 16.7 million as of August 31, 2025 and November 30, 2024, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets.

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 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.

The provision for loan losses was immaterial for both the three months ended February 28, 2026 and 2025.

Loan origination liabilities were $ 17.4 million as of both February 28, 2026 and November 30, 2025 and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets.

Lennar Corporation and Subsidiaries

2 unchanged sentences

LMF Commercial originated commercial loans as follows:

Three Months Ended Nine Months Ended

August 31, August 31,

Three Months Ended

(Dollars in thousands) 2026 2025

2 unchanged sentences

Securitizations 1 4

(1) During both the three and nine months ended August 31, 2025 and 2024, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.

(1) During both the three months ended February 28, 2026 and 2025, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.

Investments held-to-maturity

At August 31, 2025 and November 30, 2024, the Financial Services segment held commercial mortgage-backed securities (“CMBS”).

At February 28, 2026 and November 30, 2025, the Financial Services segment held commercial mortgage-backed securities (“CMBS”).

These securities are classified as held-to-maturity based on the segment's intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred.

Based on the segment’s assessment, no impairment charges were recorded during the three or nine months ended August 31, 2025 and August 31, 2024.

Based on the segment’s assessment, no impairment charges were recorded during the three months ended February 28, 2026 and 2025.

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

Details related to Financial Services' CMBS were as follows:

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

(Dollars in thousands) At February 28, 2026 At November 30, 2025

Carrying value $ 130,997 132,868

1 unchanged sentence

Incurred interest rate 3.4 % 3.4 %

August 31, 2025

At February 28, 2026

Discount rates at purchase 6 % — 84 %

7 unchanged sentences

Revenues are generated from the sales of land, from construction activities, and from management and promote fees generated from funds and joint ventures less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses.

Operations of the Multifamily segment also include equity in earnings (losses) from unconsolidated entities and other gains (losses), which includes proceeds of sales of investments.

Lennar Other 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 gains (losses), which include 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 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

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The Company has/had investments in Blend Labs, Inc.

(“Blend Labs”), Hippo Holdings, Inc.

(“Hippo”), Opendoor Technologies, Inc.

(“Opendoor”), SmartRent, Inc.

(“SmartRent”), Sonder Holdings, Inc.

(“Sonder”) and Sunnova Energy International, Inc.

(“Sunnova”), which are held at market and the carrying value of which will therefore change depending on the value of the Company's shareholdings in those entities on the last day of each quarter.

All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings.

The following is a detail of Lennar Other realized and unrealized gains from sales of shares and mark-to-market adjustments on the Company's technology investments:

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

Blend Labs (BLND) $ — 2,270 ( 3,737 ) 5,921

Hippo (HIPO) 27,754 6,609 ( 598 ) 33,795

Opendoor (OPEN) 71,345 ( 564 ) 39,638 ( 16,156 )

SmartRent (SMRT) — ( 5,634 ) ( 4,483 ) ( 12,206 )

Sonder (SOND) — 71 ( 19 ) 82

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

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

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

last day of each quarter.

All the investments are accounted for as investments in equity securities and other assets which are held at fair value and the changes in fair values are recognized through earnings.

During the three months ended February 28, 2026 and February 28, 2025, the Company recorded mark-to-market gains of $ 14.8 million and losses of $ 62.5 million, respectively, on its publicly traded technology investments, which were included in Lennar Other gains (losses) in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(3) Investments in Unconsolidated Entities

1 unchanged sentence

The investments in the Company's Homebuilding unconsolidated entities were as follows:

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

(In thousands) At February 28, 2026 At November 30, 2025

Investments in unconsolidated entities (1) (2) $ 1,479,812 1,545,370

2 unchanged sentences

(2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40 % ownership of FivePoint.

As of August 31, 2025 and November 30, 2024, the carrying amount of the Company's investment was $ 559.3 million and $ 470.8 million, respectively.

Additionally, included is the carrying value of approximately 20 % of the total outstanding shares of Millrose common stock, which was $ 1.2 billion as of August 31, 2025.

The Company has determined that Millrose is a VIE, but the Company is not the primary beneficiary.

The Company uses the equity method of accounting for its 20 % investment in Millrose.

The Company expects to dispose of the remaining 20 % through a split-off, a stock sale or another transaction.

As of August 31, 2025 and November 30, 2024, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 499.8 million and $ 287.0 million, respectively.

As of February 28, 2026 and November 30, 2025, the carrying amount of the Company's investment was $ 605.6 million and $ 585.2 million, respectively.

As of February 28, 2026 and November 30, 2025, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 324.0 million and $ 511.9 million, respectively.

The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments.

1 unchanged sentence

In most instances, the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it.

As of both August 31, 2025 and November 30, 2024, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were immaterial.

The Company believes that as of August 31, 2025, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture.

As of both February 28, 2026 and November 30, 2025, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were immaterial.

The Company believes that as of February 28, 2026, 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 7 of the Notes to Condensed Consolidated Financial Statements).

3 unchanged sentences

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

As of August 31, 2025 and November 30, 2024, the carrying amount of the Company's investment in Upward America was $ 14.6 million and $ 20.8 million, respectively.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

As of February 28, 2026 and November 30, 2025, the carrying amount of the Company's investment in Upward America was $ 12.4 million and $ 13.8 million, respectively.

Multifamily Unconsolidated Entities

5 unchanged sentences

The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its 2025 Form 10-K.

As of both August 31, 2025 and November 30, 2024, the fair value of the completion guarantees was immaterial.

As of August 31, 2025 and November 30, 2024, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 757.5 million and $ 907.8 million, respectively.

As of both February 28, 2026 and November 30, 2025, the fair value of the completion guarantees was immaterial.

As of February 28, 2026 and November 30, 2025, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 727.6 million and $ 798.1 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.

1 unchanged sentence

Each Multifamily real estate investment trust, JV and fund has unilateral decision-making rights related to development and other sales activity through its executive committee or asset management committee.

The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments.

The Multifamily segment also provides general contractor services for construction

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

of some of the rental properties owned by unconsolidated entities in which the Company has investments.

In some situations, the Multifamily segment sells land to various joint ventures and funds.

The details of the activity were as follows:

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

Three Months Ended February 28,

(In thousands) 2026 2025

3 unchanged sentences

Management fee income, net of deferrals 2,843 6,941

The Multifamily segment includes managing and investing in Multifamily Venture Fund I LP (“LMV I”), Multifamily Venture Fund II LP (“LMV II”), Canada Pension Plan Investments Fund (the “CPPIB Fund”) and a new joint venture with an institutional investor (the “Institutional JV”), which are long-term multifamily development investment vehicles involved in the development and construction of class-A multifamily assets.

The Multifamily segment expects the CPPIB Fund to have almost $ 1.0 billion in equity and Lennar's ownership percentage in the CPPIB Fund is 4 %.

As of August 31, 2025, the Company has a $ 28.0 million investment in the CPPIB Fund.

During the nine months ended August 31, 2025, the Multifamily segment completed the closing of the Institutional JV.

The Multifamily segment expects the Institutional JV to acquire certain portfolio assets and invest additional capital to support pipeline opportunities.

The Company's ownership percentage in the Institutional JV is 10 %.

As of August 31, 2025, the Company holds a $ 41.9 million investment in the Institutional JV.

The Multifamily segment includes managing and investing in Multifamily Venture Fund I LP (“LMV I”), Multifamily Venture Fund II LP (“LMV II”), Canada Pension Plan Investments Fund (the “CPPIB Fund”) and a 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.

As of February 28, 2026, the Company has a $ 28.2 million investment in the CPPIB Fund.

The Company's stated ownership percentage in the Institutional JV is 10 %.

As of February 28, 2026, the Company holds a $ 41.1 million investment in the Institutional JV.

Additional dollars will be committed as opportunities are identified by the CPPIB Fund and 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 non-controlling interest.

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

Details of LMV I and LMV II are included below:

August 31, 2025

At February 28, 2026

(In thousands) LMV I LMV II

5 unchanged sentences

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

Distributions to Lennar during the nine months ended August 31, 2025 19,690 770

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

Distributions to Lennar during the three months ended February 28, 2026 37,083 24,425

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

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

During the year ended November 30, 2025, 35 LMV I rental operation projects were sold to various third-party buyers.

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

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

During the three months ended February 28, 2026, one additional LMV I rental operation project was 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 $ 134.3 million and $ 140.1 million as of August 31, 2025 and November 30, 2024, respectively.

The Company's investment in the Rialto funds totaled $ 128.6 million and $ 133.0 million as of February 28, 2026 and November 30, 2025, respectively.

In addition, the Company is entitled to a portion of the carried interest distributions by those funds.

The Company also had strategic technology investments in unconsolidated entities and investment funds accounted for under the equity method of accounting with a carrying value of $ 238.0 million and $ 239.3 million, as of August 31, 2025 and November 30, 2024, respectively.

(5) Stockholders' Equity

The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three and nine months ended August 31, 2025 and 2024:

Three Months Ended August 31, 2025

(In thousands) Total

Equity Class A

Common Stock Class B

Common Stock Additional

Paid - in Capital Treasury

Stock Accumulated Other Comprehensive Income Retained

Earnings Noncontrolling

Balance at May 31, 2025 $ 22,731,882 26,136 3,660 5,842,732 ( 4,945,458 ) 6,019 21,645,991 152,802

Net earnings (including net earnings attributable to noncontrolling interests) 599,811 — — — — — 590,967 8,844

Employee stock and directors plans

15,563 17 — 16,291 ( 745 ) — — —

Purchases of treasury stock ( 511,673 ) — — — ( 511,673 ) — — —

Amortization of restricted stock

25,505 — — 25,505 — — — —

Cash dividends ( 129,122 ) — — — — — ( 129,122 ) —

Receipts related to noncontrolling interests

4,953 — — — — — — 4,953

Payments related to noncontrolling interests

( 1,812 ) — — — — — — ( 1,812 )

Non-cash purchase or activity of noncontrolling interests, net 16,448 — — — — — — 16,448

Balance at August 31, 2025 $ 22,751,555 26,153 3,660 5,884,528 ( 5,457,876 ) 6,019 22,107,836 181,235

Three Months Ended August 31, 2024

(In thousands) Total

Equity Class A

Common Stock Class B

Common Stock Additional

Paid - in Capital Treasury

Stock Accumulated Other Comprehensive Income Retained

Earnings Noncontrolling

Balance at May 31, 2024 $ 27,015,753 25,996 3,660 5,674,733 ( 2,597,806 ) 6,596 23,764,695 137,879

Net earnings (including net earnings attributable to noncontrolling interests) 1,187,274 — — — — — 1,162,674 24,600

Employee stock and directors plans

10 2 — 70 ( 62 ) — — —

Purchases of treasury stock ( 524,540 ) — — — ( 524,540 ) — — —

Amortization of restricted stock

31,908 — — 31,908 — — — —

Cash dividends ( 135,850 ) — — — — — ( 135,850 ) —

Receipts related to noncontrolling interests

2,322 — — — — — — 2,322

Payments related to noncontrolling interests

( 19,173 ) — — — — — — ( 19,173 )

Non-cash purchase or activity of noncontrolling interests, net ( 440 ) — — — — — — ( 440 )

Total other comprehensive income, net of tax 444 — — — — 444 — —

Balance at August 31, 2024 $ 27,557,708 25,998 3,660 5,706,711 ( 3,122,408 ) 7,040 24,791,519 145,188

The Company also had strategic technology investments in unconsolidated entities and investment funds accounted for under the equity method of accounting with a carrying value of $ 232.5 million and $ 235.0 million, as of February 28, 2026 and November 30, 2025, respectively.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Nine Months Ended August 31, 2025

(4) Stockholders' Equity

Three Months Ended February 28, 2026

(In thousands) Total

9 unchanged sentences

( 8,419 ) 161 — 21,630 ( 30,210 ) — — —

Retirement of treasury stock — — — — — — — —

Purchases of treasury stock ( 239,497 ) — — — ( 239,497 ) — — —

6 unchanged sentences

( 10,709 ) — — — — — — ( 10,709 )

Millrose Properties, Inc.

spin-off ( 4,838,827 ) — — — — — ( 4,838,827 ) —

Non-cash purchase or activity of noncontrolling interests, net ( 22,657 ) — — — — — — ( 22,657 )

Total other comprehensive loss, net of tax ( 405 ) — — — — ( 405 ) — —

Balance at August 31, 2025 $ 22,751,555 26,153 3,660 5,884,528 ( 5,457,876 ) 6,019 22,107,836 181,235

Nine Months Ended August 31, 2024

Balance at February 28, 2026 $ 22,032,263 26,319 3,660 5,993,733 ( 6,727,316 ) 5,606 22,577,374 152,887

Three Months Ended February 28, 2025

(In thousands) Total

3 unchanged sentences

Paid - in Capital Treasury

Stock Accumulated Other Comprehensive Income Retained

Stock Accumulated Other Comprehensive Income (Loss) Retained

Earnings Noncontrolling

11 unchanged sentences

( 5,389 ) — — — — — — ( 5,389 )

Millrose Properties, Inc.

spin-off ( 4,838,827 ) — — — — — ( 4,838,827 ) —

Non-cash purchase or activity of noncontrolling interests, net ( 27,859 ) — — ( 949 ) — — — ( 26,910 )

Total other comprehensive income, net of tax 2,161 — — — — 2,161 — —

Balance at August 31, 2024 $ 27,557,708 25,998 3,660 5,706,711 ( 3,122,408 ) 7,040 24,791,519 145,188

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

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

Total other comprehensive loss, net of tax ( 178 ) — — — — ( 178 ) — —

Balance at February 28, 2025 $ 22,867,344 26,133 3,660 5,812,802 ( 4,424,039 ) 7,351 21,302,131 139,306

On April 8, 2026, the Company's Board of Directors declared a quarterly cash dividend of $ 0.50 per share on both its Class A and Class B common stock, payable on May 6, 2026 to holders of record at the close of business on April 22, 2026.

On February 19, 2026, the Company paid a quarterly cash dividend of $ 0.50 per share for both of its Class A and Class B common stock to holders of record at the close of business on February 4, 2026.

The Company approved and paid cash dividends of $ 0.50 per share for each of the four quarters of 2025 for both its Class A and Class B common stock.

5 unchanged sentences

The repurchase authorization has no expiration date.

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

At February 28, 2026, the Company has a remaining authorization to repurchase $ 1.5 billion in value of the Company's Class A or Class B common stock.

The following table sets forth the repurchases of the Company's Class A and Class B common stock under the authorized repurchase programs:

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

2025 2024 2025 2024

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

Three Months Ended February 28,

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

Shares repurchased 1,836,885 163,115 4,770,000 458,805

3 unchanged sentences

The provision for income taxes and effective tax rate were as follows:

Three Months Ended Nine Months Ended

August 31, August 31,

Three Months Ended

(Dollars in thousands) 2026 2025

1 unchanged sentence

Effective tax rate (1) 23.1 % 24.6 %

(1) For the three and nine months ended August 31, 2025 and 2024, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

The increase in the effective tax rate for the three months ended August 31, 2025 from the prior year was primarily due to a decrease in tax credits.

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

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

federal tax law.

The Company does not expect the Act to have a material impact on its consolidated financial statements for the fiscal year ending November 30, 2025, and is currently evaluating the potential impact of the Act on future periods.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(1) For the three months ended February 28, 2026 and 2025, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

The decrease in the effective tax rate for the three months ended February 28, 2026 compared to the prior period was primarily due to a charitable contribution of appreciated stock.

(6) Earnings Per Share

5 unchanged sentences

Basic and diluted earnings per share were calculated as follows:

Three Months Ended Nine Months Ended

August 31, August 31,

Three Months Ended

(In thousands, except per share amounts) 2026 2025

5 unchanged sentences

Basic and diluted earnings per share $ 0.93 1.96

For both the three and nine months ended August 31, 2025 and 2024, there were no options to purchase shares of common stock that were outstanding and anti-dilutive.

(8) Homebuilding Senior Notes and Other Debt Payable

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

Unsecured revolving credit facility $ 1,140,000 —

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(7) Homebuilding Senior Notes and Other Debts Payable

(Dollars in thousands) At February 28, 2026 At November 30, 2025

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

5.25 % senior notes due 2026

5 unchanged sentences

5.20 % senior notes due 2030

4.75 % senior notes due 2025

694,478 694,165

Mortgage notes on land and other debt 211,193 230,478

$ 4,065,459 4,084,686

The carrying amounts of the senior notes in the table above are net of debt issuance costs of $ 7.5 million and $ 2.4 million as of August 31, 2025 and November 30, 2024, respectively.

In May 2025, the Company issued $ 700 million in aggregate principal amount of 5.20 % senior notes due 2030 (the "5.20% senior notes") at a price of 99.969 % of the principal amount.

Proceeds from the offering, after payment of expenses, totaled $ 695.6 million.

The 5.20 % Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.

Interest on the 5.20 % Senior Notes is due semi-annually beginning January 30, 2026.

The Company utilized the net proceeds from the sale of the 5.20 % senior notes primarily to pay off $ 500 million aggregate principal amount of its 4.75 % senior notes due May 2025.

The redemption price, which was paid in cash, was 100% of the principal amount outstanding.

The carrying amounts of the senior notes in the table above are net of debt issuance costs of $ 6.5 million and $ 7.0 million as of February 28, 2026 and November 30, 2025, respectively.

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

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

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

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

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

1 unchanged sentence

Under the Delayed Draw Term Loan Facility, interest rates equal the adjusted term SOFR determined for the interest period plus the applicable margin.

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

In November 2024, the Company amended and restated the credit agreement governing its unsecured revolving credit facility (the "Credit Facility").

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

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

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

(In thousands) At August 31, 2025

As of February 28, 2026, the Company had outstanding borrowings of $ 1.7 billion under the credit agreement governing its new unsecured Delayed Draw Term Loan Facility.

The maximum available borrowings on the Company's unsecured revolving credit facility (the "Credit Facility") were as follows:

(In thousands) At February 28, 2026

Commitments - maturing in May 2027 $ 225,000

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

The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2024 Form 10-K for the year ended November 30, 2024.

The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2025 Form 10-K.

In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions.

1 unchanged sentence

The Company's outstanding letters of credit and surety bonds are disclosed below:

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

(In thousands) At February 28, 2026 At November 30, 2025

Performance letters of credit $ 2,039,975 1,963,643

2 unchanged sentences

Anticipated future costs primarily for site improvements related to performance surety bonds 3,114,409 3,056,582

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

The guarantees are full and unconditional.

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 the Company'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.

Other than as set forth in the Supplemental Financial Information, the terms of guarantees are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2025 Form 10-K.

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(8) Financial Instruments and Fair Value Disclosures

The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at August 31, 2025 and November 30, 2024, using available market information and what the Company believes to be appropriate valuation methodologies.

The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at February 28, 2026 and November 30, 2025, 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.

1 unchanged sentence

The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.

At August 31, 2025 At November 30, 2024

At February 28, 2026 At November 30, 2025

(In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value

Financial Services:

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

Loans held-for-sale Level 3 $ 15,278 15,278 15,547 15,547

Investments held-to-maturity Level 3 130,997 130,156 132,868 132,032

Homebuilding senior notes and other debt payable, net Level 2 $ 3,523,766 3,562,272 2,258,283 2,264,375

Financial Services notes and other debt payable, net Level 2 1,863,845 1,864,336 1,930,956 1,931,515

(1) As of August 31, 2025, loans held-for-investment of $ 61.0 million (fair value of $ 50.3 million) were transferred to loans held-for-sale, based on the Company’s intent to sell the loans in the near future.

Homebuilding senior notes and other debts payable, net Level 2 $ 4,065,459 4,106,171 4,084,686 4,122,169

Financial Services notes and other debts payable, net Level 2 1,191,006 1,191,448 1,790,309 1,790,789

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

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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.

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.

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.

6 unchanged sentences

Fair Value Hierarchy Fair Value at

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

(In thousands) February 28, 2026 November 30, 2025

Financial Services Assets:

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

At August 31, 2025 At November 30, 2024

At February 28, 2026 At November 30, 2025

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

3 unchanged sentences

The estimated fair values of the Company's financial instruments have been determined by using available market information and what the Company believes to be appropriate valuation methodologies.

Considerable judgement is required in interpreting market data to develop the estimates of fair value.

Considerable judgment is required in interpreting market data to develop the estimates of fair value.

The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts.

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The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower.

The fair value of these are included in Financial Services’ loans held-for-sale as of August 31, 2025 and November 30, 2024.

The fair value of these are included in Financial Services’ loans held-for-sale as of February 28, 2026 and November 30, 2025.

Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics.

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The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below:

August 31, 2025 November 30, 2024

February 28, 2026 November 30, 2025

Unobservable inputs:

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Lennar Other investments in equity securities - The fair value of investments in equity securities was calculated based on independent quoted market prices.

The Company’s investments in equity securities were recorded at fair value with all changes in fair value recorded to Lennar Other unrealized gains (losses) from technology investments on the Company’s condensed consolidated statements of operations and comprehensive income (loss).

The Company’s investments in equity securities were recorded at fair value with all changes in fair value recorded to Lennar Other gains (losses) from technology investments on the Company’s condensed consolidated statements of operations and comprehensive income (loss).

Lennar Other investments available-for-sale - The fair value of investments available-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality.

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The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item:

Three Months Ended Nine Months Ended

August 31, August 31,

Three Months Ended

(In thousands) 2026 2025

3 unchanged sentences

Forward contracts ( 12,983 ) ( 48,463 )

Forward options 68 2,687 271 1,633

Interest rate swaps ( 9,272 ) ( 3,296 )

Changes in fair value included in Lennar Other realized and unrealized gains from technology investments:

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

Investments in equity securities $ 14,838 ( 62,503 )

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

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

Lennar Other investments available-for-sale $ ( 405 ) ( 178 )

1 unchanged sentence

The following table sets forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment:

Three Months Ended August 31,

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

Beginning balance $ 3,467 72,203 3,652 66,715

Purchases/loan originations 45 177,837 174 236,665

Sales/loan originations sold, including those not settled — ( 172,643 ) — ( 145,325 )

Disposals/settlements ( 104 ) — ( 122 ) ( 9,500 )

Changes in fair value (1) ( 118 ) 483 ( 338 ) 2,312

Interest and principal paydowns — ( 93 ) — —

Ending balance $ 3,290 77,787 3,366 150,867

Nine Months Ended August 31,

Three Months Ended February 28,

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

10 unchanged sentences

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

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Three Months Ended August 31,

(In thousands) Fair Value

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

Homebuilding - non-financial assets:

Finished homes and construction in progress (2) Level 3 $ 479,233 430,986 ( 48,247 ) 120,811 111,776 ( 9,035 )

Deposits and pre-acquisition costs on real estate (3) Level 3 8,919 — ( 8,919 ) 206 — ( 206 )

Financial Services - financial assets:

Loans held-for-sale (4) Level 3 $ 61,001 50,284 ( 10,717 ) — — —

Multifamily - non-financial assets:

Investments in unconsolidated entities (5) Level 3 $ — — — 139,980 49,970 ( 90,010 )

Nine Months Ended August 31,

Three Months Ended February 28,

(In thousands) Fair Value

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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 in the Company's condensed consolidated financial statements.

(3) Forfeited deposits and write-off of pre-acquisition costs on real estate were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(4) Changes in fair value below amortized cost basis are recognized through a valuation allowance, with the adjustment included in Financial Services earnings in the Company's condensed consolidated financial statements.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(5) Valuation adjustments related to investments in unconsolidated entities were primarily included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss).

6 unchanged sentences

The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Communities with valuation adjustments

At or for the Nine Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value

At or for the Three Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value

(in thousands)

1 unchanged sentence

(in thousands)

August 31, 2025 1,664 113 21 $ 49,884 $ 25,633

August 31, 2024 1,283 24 4 25,769 15,263

February 28, 2026 1,678 170 4 $ 27,183 $ 5,659

February 28, 2025 1,584 46 2 14,934 3,834

The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments:

Nine Months Ended August 31,

Three Months Ended February 28,

Unobservable inputs Range Range

2 unchanged sentences

Discount rate 20 % 20 %

(1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the nine months ended August 31, 2025 and 2024.

(1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the three months ended February 28, 2026 and 2025.

The Company disclosed its accounting policy related to investments in unconsolidated entities and its review for indicators of impairment for the long-lived assets of an unconsolidated entity and the decline in the fair value of an investment below the carrying value in the Summary of Significant Accounting Policies in its 2025 Form 10-K.

3 unchanged sentences

The Company generally estimates the fair value of an investment in an unconsolidated entity by using a cash flow analysis for estimated future net distributions from the unconsolidated entity, subject to the perceived risks associated with the unconsolidated entity’s cash flow streams.

During the three months ended August 31, 2025, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had no other-than-temporary impairment.

During the nine months ended August 31, 2025, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had an other-than-temporary impairment of $ 10.7 million, included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss).

During the three and nine months ended August 31, 2024, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had an immaterial amount of other-than-temporary impairment.

During the three months ended February 28, 2026, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had no other-than-temporary impairment.

During the three months ended February 28, 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 $ 7.6 million included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss).

The Company estimates the fair value of investments in unconsolidated entities evaluated for impairment based on market conditions and assumptions made by management at the time the investment is evaluated, which may differ materially from actual results if market conditions or assumptions change.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(9) Variable Interest Entities

During the nine months ended August 31, 2025, the Company evaluated the joint venture (“JV”) agreements of its JVs that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements.

Based on the Company's evaluation, there were no VIEs that were consolidated during the nine months ended August 31, 2025.

During the nine months ended August 31, 2025, there was a deconsolidation of a VIE that had total assets and liabilities of $ 315.8 million and $ 19.5 million, respectively.

During the three months ended February 28, 2026, the Company evaluated the joint venture (“JV”) agreements of its JVs that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements.

Based on the Company's evaluation, there were no variable interest entities ("VIEs") that were consolidated or deconsolidated during the three months ended February 28, 2026.

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

A VIE’s assets can only be used to settle obligations of that VIE.

The VIEs are not guarantors of the Company’s senior notes or other debt payable.

The VIEs are not guarantors of the Company’s senior notes or other debts payable.

The assets held by a VIE are usually collateral for that VIE’s debt.

2 unchanged sentences

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 Condensed Consolidated Financial Statements (Unaudited) (Continued)

Unconsolidated VIEs

The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows:

At August 31, 2025 At November 30, 2024

At February 28, 2026 At November 30, 2025

(In thousands) Investments in

8 unchanged sentences

$ 1,411,215 1,427,277 1,232,661 1,271,590

(1) As of August 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs.

In addition, as of August 31, 2025 and November 30, 2024, there was recourse debt of VIEs of $ 31.4 million and $ 44.2 million, respectively.

As of August 31, 2025, the increase in Homebuilding’s investment in VIEs was primarily due to the Company’s temporary 20 % investment in the total outstanding shares of Millrose common stock, which was $ 1.2 billion.

(2) As of both August 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs.

(3) As of both August 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and primarily related to the Financial Services' CMBS investments held-to-maturity investments.

(4) As of both August 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs.

(1) As of February 28, 2026 and November 30, 2025, 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 February 28, 2026 and November 30, 2025, there was recourse debt of VIEs of $ 8.2 million and $ 30.1 million, respectively.

(2) As of both February 28, 2026 and November 30, 2025, 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 increase was primarily due to LMV II becoming a VIE in anticipation of future capital contributions.

(3) As of both February 28, 2026 and November 30, 2025, 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) As of both February 28, 2026 and November 30, 2025, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs.

The Company and its JV partners generally fund JVs as needed and in accordance with business plans to allow the entities to finance their activities.

Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of August 31, 2025 in accordance with ASC 810 due to insufficient equity at risk.

Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of February 28, 2026 in accordance with ASC 810 due to insufficient equity at risk.

While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents.

6 unchanged sentences

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.

All deposits and pre-acquisition costs on real estate, including option maintenance fees paid to land banks, are capitalized on the condensed consolidated balance sheet and are allocated to the land basis when the land is acquired.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The Company evaluates option contracts with third-party land holding companies for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these option contracts.

Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary and makes a significant deposit or pre-acquisition cost investment for optioned land, or is otherwise economically compelled to takedown the optioned land, it may need to consolidate the land under option at the purchase price of the optioned land.

As of August 31, 2025, land under option with third parties that the Company was compelled to takedown was $ 1.5 billion, of which $ 497.4 million were land purchase contract obligations due to land banks upon maturity of the contracts.

As of February 28, 2026, land under option with third parties that the Company was compelled to takedown was $ 1.0 billion, of which $ 267.8 million were land purchase contract obligations due to land banks upon maturity of the contracts.

The Company's intention is to have other land banks close on the land purchase commitments and the Company will option the land from the land banks.

Land under option with third parties is included in consolidated inventory not owned.

Consolidated inventory not owned related to land financing transactions, which are land sale transactions that did not meet the criteria for revenue recognition and derecognition of land by the Company as a result of the Company maintaining an option to repurchase the land in the future, was $ 778.0 million as of August 31, 2025.

During the nine months ended August 31, 2025, consolidated inventory not owned decreased by $ 1.8 billion with a $ 1.6 billion decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of August 31, 2025.

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

This reassessment resulted in a decrease of $ 2.0 billion of consolidated inventory not owned with a corresponding

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

decrease of $ 1.9 billion of liabilities related to consolidated inventory not owned.

The decrease was partially offset by the consolidation of homesites under option contracts that the Company is compelled to takedown, which resulted in an increase of $ 668.9 million of consolidated inventory not owned with a corresponding increase of $ 612.7 million of liabilities related to consolidated inventory not owned.

To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying condensed consolidated balance sheet as of August 31, 2025.

During the three months ended February 28, 2026, consolidated inventory not owned decreased by $ 50.1 million with a $ 28.7 million decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2026.

The decrease was primarily due to takedowns.

The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits.

The Company's exposure to losses on its option contracts with third parties and unconsolidated entities was as follows:

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

The Company's exposure to losses on its option contracts with third parties and unconsolidated entities were as follows:

(In thousands) At February 28, 2026 At November 30, 2025

Non-refundable option deposits and pre-acquisition costs on real estate $ 6,735,971 6,301,909

1 unchanged sentence

Letters of credit in lieu of cash deposits under certain land and option contracts 423,767 443,277

For the nine months ended August 31, 2025, the Company purchased a significant portion of land from two land banks (the “Land Banks”).

There were no amounts due to the Land Banks as of August 31, 2025, resulting from land purchases as the full purchase price of the land is typically paid to the Land Banks at closing when land is purchased by the Company.

As of August 31, 2025, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 2.2 billion, which are included in the corresponding line item presented in the table above.

As of August 31, 2025, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $ 345.0 million and $ 298.2 million, respectively.

For the three months ended February 28, 2026, the Company purchased a significant portion of land from three land banks (the “Land Banks”).

There were no amounts due to the Land Banks as of February 28, 2026, 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 February 28, 2026, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 2.8 billion, which are included in the corresponding line item presented in the table above.

As of February 28, 2026, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $ 449.6 million and $ 349.8 million.

As of February 28, 2026, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose were $ 1.1 billion.

The Company believes there are other land banks that could be substituted should the Land Banks become unavailable or non-competitive with respect to land banking of future land.

Thus, the Company does not believe that the loss of the Company’s relationship with these Land Banks would have a material adverse effect on the Company’s business, financial condition or cash flows.

As discussed in Note 2, on February 7, 2025, the Company completed the spin-off of Millrose.

The spin-off involved $ 5.6 billion of land assets, representing approximately 87,000 homesites.

The Company entered into a Master Option Agreement ("Agreement") to option the land back from Millrose.

As a result of entering into the Agreement with Millrose, the Company paid $ 584.0 million of option deposits to Millrose at the spin-off.

Subsequently, on February 10, 2025, Millrose acquired Rausch’s land assets (except for any homesites with homes under construction which were acquired by the Company) and Lennar paid Millrose an additional $ 90.4 million in option deposits.

As of August 31, 2025, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose were $ 969.3 million.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(10) Commitments and Contingent Liabilities

The Company is party to various claims, legal actions and complaints relating to homes sold by the Company arising in the ordinary course of business.

In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s condensed consolidated financial statements.

From time to time, the Company is also a party to various lawsuits involving purchases and sales of real property.

These lawsuits often include claims regarding representations and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties.

The Company does not believe that the ultimate resolution of these claims or lawsuits will have a material adverse effect on its business or financial position.

However, the financial effect of litigation concerning purchases and sales of property may depend upon the value of the subject property, which may have changed from the time the agreement for purchase or sale was entered into.

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 February 28, 2026, 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 condensed 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.

Product Warranty

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The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows:

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Three Months Ended Nine Months Ended

August 31, August 31,

Three Months Ended

(In thousands) 2026 2025

4 unchanged sentences

Warranty reserve, end of period $ 381,666 428,926

(1) The adjustments to pre-existing warranties from changes in estimates during the three and nine months ended August 31, 2025 and August 31, 2024 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.

(1) The adjustments to pre-existing warranties from changes in estimates during the three months ended February 28, 2026 and 2025 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.

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

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The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities.

The following table includes additional information about the Company's leases:

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

The following table includes additional

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

information about the Company's leases:

(Dollars in thousands) At February 28, 2026 At November 30, 2025

Right-of-use assets $ 252,317 269,011

2 unchanged sentences

Weighted-average discount rate 4.4 % 4.7 %

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

Future minimum payments under the noncancellable leases in effect at August 31, 2025 were as follows:

Future minimum payments under the noncancellable leases in effect at February 28, 2026 were as follows:

(In thousands) Lease Payments

2026 $ 65,382

2029 and thereafter 109,099

Thereafter 66,331

Total future minimum lease payments (1) $ 284,359

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As such, the Company estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date.

As of August 31, 2025, the Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments.

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

Nine Months Ended August 31,

As of February 28, 2026, the Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments.

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

Three Months Ended February 28,

(In thousands) 2026 2025

3 unchanged sentences

On occasion, the Company may sublease other rented space which is no longer used for the Company's operations.

For both the nine months ended August 31, 2025 and 2024, the Company had an immaterial amount of sublease income.

For both the three months ended February 28, 2026 and 2025, 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.

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 7 of the Notes to Condensed 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 Condensed 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’

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

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.

Forward-Looking Statements

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the potential impact of inflation;

the impact of increased cost of mortgage financing for homebuyers, increased interest rates or increased competition in the mortgage industry;

supply shortages and increased costs related to construction materials, including lumber, and labor;

the impact of increased cost of mortgage financing for homebuyers, increased or continued high interest rates or increased competition in the mortgage industry;

supply shortages and increased costs related to construction materials and labor;

changes in trade policy affecting our business, including new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties that may impact the cost of raw materials and other goods related to our homebuilding business;

changes in U.S.

and foreign governmental laws, regulations and policies, including retaliatory policies against the United States, that may impact our business and operations;

and foreign governmental laws, regulations and policies, including retaliatory policies against the United States, that may impact our business operations;

cost increases related to real estate taxes and insurance;

the effect of increased interest rates with regard to our funds' borrowings on the willingness of the funds to invest in new projects;

the effect of increased interest rates with regard to our funds' borrowings or the willingness of the funds to invest in new projects;

reductions in the market value of our investments in public companies;

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our inability to successfully execute our strategies, including our land-light strategy;

any potential subsequent transactions we may enter into following our spin-off of Millrose Properties, Inc.("Millrose") involving the Millrose stock we still hold;

problems exercising options to purchase homesites;

a decline in the value of the land and home inventories we maintain and resulting possible future write downs of the carrying value of our real estate assets;

the forfeiture of deposits and pre-acquisition costs on real estate related to land purchase options we decide not to exercise;

the effects of public health issues such as a major epidemic or pandemic that could have a negative impact on the economy and on our businesses;

the potential negative impact to our business from public health issues;

labor shortages and/or a decrease in the number of potential homebuyers due to increased enforcement of restrictions on immigration;

possible unfavorable outcomes and/or results in legal proceedings;

possible unfavorable outcomes in legal proceedings;

conditions in the capital, credit and financial markets;

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements