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Item 1. Financial Statements

Item 1. Financial Statements 
 
 
 
 Lennar Corporation and Subsidiaries 
 Condensed Consolidated Balance Sheets 
 (In thousands) 
 (Unaudited) 
 
 May 31, November 30, 
 2026 (1) 2025 (1) 
 
 ASSETS 
 Homebuilding: 
 Cash and cash equivalents $ 1,816,248 3,441,324 
 Restricted cash 29,204 25,930 
 Receivables, net 978,796 1,002,629 
 Inventories: 
 Finished homes and construction in progress 10,093,878 8,822,271 
 Land and land under development 801,156 1,098,961 
 Inventory owned 10,895,034 9,921,232 
 Consolidated inventory not owned 1,488,684 1,696,401 
 Inventory owned and consolidated inventory not owned 12,383,718 11,617,633 
 Deposits and pre-acquisition costs on real estate 7,061,935 6,383,633 
 Investments in unconsolidated entities 1,478,719 1,545,370 
 Goodwill 3,442,359 3,442,359 
 Other assets 1,785,201 1,794,378 
 28,976,180 29,253,256 
 Financial Services 3,123,509 3,377,413 
 Multifamily 801,356 902,136 
 Lennar Other 800,410 897,632 
 Total assets $ 33,701,455 34,430,437 

 (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 May 31, 2026, total assets include $ 1.4 billion related to consolidated VIEs of which $ 45.6 million is included in Homebuilding cash and cash equivalents, $ 31.5 million in Homebuilding finished homes and construction in progress, $ 223.3 million in Homebuilding land and land under development, $ 958.4 million in Homebuilding consolidated inventory not owned, $ 102.5 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities and $ 24.2 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. 
 3 

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

 
 May 31, November 30, 
 2026 (2) 2025 (2) 
 
 LIABILITIES AND EQUITY 
 Homebuilding: 
 Accounts payable $ 1,784,916 1,812,484 
 Liabilities related to consolidated inventory not owned 1,312,689 1,476,376 
 Senior notes and other debts payable, net 4,047,487 4,084,686 
 Other liabilities 2,470,608 2,691,876 
 9,615,700 10,065,422 
 Financial Services 2,151,670 2,010,598 
 Multifamily 76,768 113,361 
 Lennar Other 91,591 100,447 
 Total liabilities 11,935,729 12,289,828 
 Commitments and contingent liabilities (See Note 10) 
 Stockholders’ equity: 
 Preferred stock — — 
 Class A common stock of $ 0.10 par value; Authorized: May 31, 2026 and November 30, 2025 - 400,000,000 shares; Issued: May 31, 2026 - 263,086,837 shares and November 30, 2025 - 261,579,253 shares 
 26,309 26,158 
 Class B common stock of $ 0.10 par value; Authorized: May 31, 2026 and November 30, 2025 - 90,000,000 shares; Issued: May 31, 2026 - 36,601,215 shares and November 30, 2025 - 36,601,215 shares 
 3,660 3,660 
 Additional paid-in capital 6,020,306 5,909,726 
 Retained earnings 22,759,089 22,471,471 
 Treasury stock, at cost; May 31, 2026 - 52,580,834 shares of Class A common stock and 6,212,076 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 
 ( 7,194,402 ) ( 6,457,609 ) 
 Accumulated other comprehensive income 5,676 6,011 
 Total stockholders’ equity 21,620,638 21,959,417 
 Noncontrolling interests 145,088 181,192 
 Total equity 21,765,726 22,140,609 
 Total liabilities and equity $ 33,701,455 34,430,437 

 (2) As of May 31, 2026, total liabilities include $ 920.2 million related to consolidated VIEs as to which there was no recourse against the Company, of which $ 9.3 million is included in Homebuilding accounts payable, $ 907.7 million in Homebuilding liabilities related to consolidated inventory not owned, $ 2.5 million in Homebuilding other liabilities, and $ 0.7 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. 
 4 

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

 
 Three Months Ended Six Months Ended 
 May 31, May 31, 
 2026 2025 2026 2025 
 Revenues: 
 Homebuilding $ 7,616,314 7,843,862 13,914,877 15,127,732 
 Financial Services 236,939 298,098 452,494 575,175 
 Multifamily 63,564 230,305 146,063 293,501 
 Lennar Other 23,055 5,237 45,914 12,639 
 Total revenues 7,939,872 8,377,502 14,559,348 16,009,047 
 Costs and expenses: 
 Homebuilding 7,132,558 7,147,552 13,102,978 13,687,512 
 Financial Services 135,836 140,818 260,078 274,412 
 Multifamily 72,788 254,677 163,216 328,053 
 Lennar Other 43,726 30,025 87,410 53,589 
 Corporate general and administrative 136,149 155,853 293,787 303,231 
 Charitable foundation contribution 20,519 20,131 37,382 37,965 
 Total costs and expenses 7,541,576 7,749,056 13,944,851 14,684,762 
 Equity in earnings from unconsolidated entities 34,087 12,116 97,355 45,351 
 Other income, net and other gains, net 4,056 30,759 12,202 62,426 
 
 
 
 Lennar Other losses from technology investments ( 23,252 ) ( 29,440 ) ( 8,414 ) ( 91,943 ) 
 Earnings before income taxes 413,187 641,881 715,640 1,340,119 
 Provision for income taxes ( 105,058 ) ( 160,061 ) ( 174,150 ) ( 329,586 ) 
 Net earnings (including net earnings attributable to noncontrolling interests) 308,129 481,820 541,490 1,010,533 
 Less: Net earnings attributable to noncontrolling interests 3,357 4,371 7,335 13,558 
 Net earnings attributable to Lennar $ 304,772 477,449 534,155 996,975 
 Other comprehensive income (loss), net of tax: 
 Net unrealized gains (losses) on securities available-for-sale $ 70 ( 1,332 ) ( 335 ) ( 1,510 ) 
 
 Total other comprehensive income (loss), net of tax $ 70 ( 1,332 ) ( 335 ) ( 1,510 ) 
 Total comprehensive income attributable to Lennar $ 304,842 476,117 533,820 995,465 
 Total comprehensive income attributable to noncontrolling interests $ 3,357 4,371 7,335 13,558 
 Basic and diluted earnings per share $ 1.24 1.81 2.17 3.77 
 
 

 
 
 
 
 
 
 
 
 
 See accompanying notes to condensed consolidated financial statements. 
 5 

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

 
 Six Months Ended 
 May 31, 
 2026 2025 
 Cash flows from operating activities: 
 Net earnings (including net earnings attributable to noncontrolling interests) $ 541,490 1,010,533 
 Adjustments to reconcile net earnings to net cash used in operating activities: 
 Depreciation and amortization 68,708 65,157 
 Amortization of discount/premium and accretion on debt, net 922 ( 142 ) 
 Equity in earnings from unconsolidated entities ( 97,355 ) ( 45,351 ) 
 Distributions of earnings from unconsolidated entities 51,047 20,070 
 Share-based compensation expense 88,648 112,858 
 
 Deferred income tax expense 63,449 38,381 
 
 Loans held-for-sale unrealized losses 25,490 2,350 
 Lennar Other losses from technology investments and other losses, net 8,074 100,006 
 Gains on sale of operating properties and equipment and other assets ( 9,296 ) ( 34,597 ) 
 
 
 
 Gain on sale of investments in unconsolidated entities and other — ( 35,033 ) 
 
 
 
 
 Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets 108,319 89,727 
 
 Changes in assets and liabilities: 
 
 Decrease in receivables 128,525 69,599 
 Increase in inventories, excluding valuation adjustments ( 1,088,860 ) ( 1,624,586 ) 
 Increase in deposits and pre-acquisition costs on real estate ( 554,766 ) ( 781,716 ) 
 Increase in other assets ( 27,175 ) ( 132,671 ) 
 Decrease in loans held-for-sale 246,731 361,377 
 Decrease in accounts payable and other liabilities ( 271,836 ) ( 600,026 ) 
 Net cash used in operating activities ( 717,885 ) ( 1,384,064 ) 
 Cash flows from investing activities: 
 
 Net additions of operating properties and equipment ( 48,848 ) ( 71,259 ) 
 Proceeds from sale of other assets 26,238 50,696 
 Proceeds from sale of investments in unconsolidated joint venture — 233,007 
 
 Proceeds from sales of investments 28,258 72,003 
 Investments in and contributions to unconsolidated entities ( 59,410 ) ( 145,494 ) 
 Distributions of capital from unconsolidated entities 133,541 175,203 
 
 
 
 
 
 
 
 
 Proceeds from sale of loan receivables — 114,661 
 Acquisition, net of cash and restricted cash acquired — ( 254,492 ) 
 
 
 
 
 Decrease in Financial Services loans held-for-investment — 9,466 
 Purchases of investment securities ( 6,218 ) ( 3,456 ) 
 
 Proceeds from maturities/sales of investment securities 3,879 2,546 
 
 
 Net cash provided by investing activities $ 77,440 182,881 

 
 
 
 
 
 
 
 
 
 
 
 See accompanying notes to condensed consolidated financial statements. 
 6 

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

 
 Six Months Ended 
 May 31, 
 2026 2025 
 Cash flows from financing activities: 
 Net borrowings under revolving credit facility $ — 400,000 
 Net borrowings (repayments) under warehouse facilities 173,437 ( 514,818 ) 
 Proceeds from issuance of senior notes — 700,000 
 
 Redemption/repurchases of senior notes — ( 500,000 ) 
 
 Principal payments on notes payable and other borrowings ( 24,665 ) ( 40,329 ) 
 
 Net cash distributed in connection with Millrose Properties, Inc. spin-off — ( 416,006 ) 
 Proceeds from liabilities related to consolidated inventory not owned 11,574 259 
 
 
 Payments for liabilities related to consolidated inventory not owned ( 166,819 ) ( 385,794 ) 
 Payments related to other liabilities, net ( 2,842 ) ( 2,842 ) 
 
 
 Receipts related to noncontrolling interests 2,543 21,029 
 Payments related to noncontrolling interests ( 26,409 ) ( 5,965 ) 
 Debt issuance costs — ( 4,417 ) 
 
 Common stock: 
 
 Repurchases ( 736,793 ) ( 1,295,894 ) 
 Dividends ( 246,537 ) ( 265,235 ) 
 Net cash used in financing activities ( 1,016,511 ) ( 2,310,012 ) 
 Net decrease in cash and cash equivalents and restricted cash ( 1,656,956 ) ( 3,511,195 ) 
 Cash and cash equivalents and restricted cash at beginning of period 3,830,734 4,990,210 
 Cash and cash equivalents and restricted cash at end of period $ 2,173,778 1,479,015 
 Summary of cash and cash equivalents and restricted cash: 
 Homebuilding $ 1,816,248 1,168,143 
 Financial Services 242,588 202,647 
 Multifamily 10,657 14,211 
 Lennar Other 22,202 22,693 
 Homebuilding restricted cash 29,204 23,987 
 Financial Services restricted cash 52,879 47,334 
 $ 2,173,778 1,479,015 
 
 
 
 
 Supplemental disclosures of non-cash investing and financing activities: 
 Homebuilding: 
 Payments of inventories financed by sellers $ 1,235 320 
 
 Net non-cash contributions to unconsolidated entities 42,070 162,454 
 
 
 
 Non-cash sale of investments in unconsolidated entities 90,785 — 
 
 
 
 
 
 
 
 
 Non-cash impact of Millrose Properties, Inc. spin-off: 
 Inventories $ — ( 5,578,704 ) 
 Investments in unconsolidated entities — 1,197,039 
 Other assets — ( 60,156 ) 
 Notes payable — 19,000 
 Retained earnings — 4,422,821 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 See accompanying notes to condensed consolidated financial statements. 
 7 

 
 
 

 Lennar Corporation and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements (Unaudited) 
 
 (1) Basis of Presentation 
 Basis of Consolidation 
 The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2025 ("2025 Form 10-K"). The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its 2025 Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. 
 Seasonality 
 The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements of operations for the three and six months ended May 31, 2026 are not necessarily indicative of the results to be expected for the full year. 
 Use of Estimates 
 The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. 
 Cash and Cash Equivalents 
 Homebuilding cash and cash equivalents as of May 31, 2026 and November 30, 2025 included $ 559.8 million and $ 150.6 million, respectively, of cash held in escrow for approximately two days . 
 Share-based Payments 
 During both the three months ended May 31, 2026 and 2025, the Company granted employees an immaterial number of nonvested shares. During the six months ended May 31, 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 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 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. 
 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. 
 8 

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

 (2) Operating and Reporting 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: (1) East (2) Central (3) South Central (4) West 
 (5) Financial Services 
 (6) Multifamily 
 (7) Lennar Other 
 The assets and liabilities related to the Company’s segments were as follows: 
 
 (In thousands) At May 31, 2026 
 Assets: Homebuilding Financial
Services Multifamily Lennar 
Other Total 
 Cash and cash equivalents $ 1,816,248 242,588 10,657 22,202 2,091,695 
 Restricted cash 29,204 52,879 — — 82,083 
 Receivables, net (1) 978,796 462,311 32,697 — 1,473,804 
 Inventory owned and consolidated inventory not owned 12,383,718 — 200,544 — 12,584,262 
 Deposits and pre-acquisition costs on real estate 7,061,935 — 4,395 — 7,066,330 
 Investments in unconsolidated entities 1,478,719 679 491,325 364,484 2,335,207 
 Loans held-for-sale (2) — 1,939,919 — — 1,939,919 
 
 Investments in equity securities (3) — — — 202,758 202,758 
 Investments available-for-sale (4) — — — 38,725 38,725 
 
 Investments held-to-maturity — 129,320 — — 129,320 
 
 
 Goodwill 3,442,359 189,699 — — 3,632,058 
 Other assets 1,785,201 106,114 61,738 172,241 2,125,294 
 Total assets $ 28,976,180 3,123,509 801,356 800,410 33,701,455 
 Liabilities: 
 Senior notes and other debts payable, net $ 4,047,487 1,963,746 — — 6,011,233 
 Liabilities related to consolidated inventory not owned 1,312,689 — — — 1,312,689 
 Accounts payable and other liabilities 4,255,524 187,924 76,768 91,591 4,611,807 
 Total liabilities $ 9,615,700 2,151,670 76,768 91,591 11,935,729 

 9 

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

 
 (In thousands) At November 30, 2025 
 Assets: Homebuilding Financial
Services Multifamily Lennar 
Other Total 
 Cash and cash equivalents $ 3,441,324 258,873 34,172 21,936 3,756,305 
 Restricted cash 25,930 48,499 — — 74,429 
 Receivables, net (1) 1,002,629 429,560 38,673 — 1,470,862 
 Inventory owned and consolidated inventory not owned 11,617,633 — 223,622 — 11,841,255 
 Deposits and pre-acquisition costs on real estate 6,383,633 — 15,096 — 6,398,729 
 Investments in unconsolidated entities 1,545,370 2,528 506,573 367,965 2,422,436 
 Loans held-for-sale (2) (5) — 2,212,624 — — 2,212,624 
 
 Investments in equity securities (3) — — — 346,820 346,820 
 Investments available-for-sale (4) — — — 39,060 39,060 
 
 Investments held-to-maturity — 132,868 — — 132,868 
 
 
 Goodwill 3,442,359 189,699 — — 3,632,058 
 Other assets 1,794,378 102,762 84,000 121,851 2,102,991 
 Total assets $ 29,253,256 3,377,413 902,136 897,632 34,430,437 
 Liabilities: 
 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 
 Accounts payable and other liabilities 4,504,360 220,289 113,361 100,447 4,938,457 
 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 both May 31, 2026 and November 30, 2025. 
 (2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value, of which $ 13.8 million and $ 15.5 million of residential loans are carried at lower of cost or fair value as of May 31, 2026 and November 30, 2025, respectively. 
 (3) Investments in equity securities include investments of $ 113.2 million and $ 114.4 million without readily available fair values as of May 31, 2026 and November 30, 2025, respectively. 
 (4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) in the condensed consolidated balance sheets. 
 (5) During the year ended November 30, 2025, the Financial Services segment transferred its loans held-for-investment of $ 61.0 million (fair value of $ 50.3 million) to held-for-sale, based on the Company’s intent to sell the loans in the near future. 
 Homebuilding Segments 
 Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under “Homebuilding Other,” which is not considered a reportable segment. 
 East: Florida, New Jersey and Pennsylvania 
 Central: Alabama, Georgia, Illinois, Indiana, Maryland/Virginia, Minnesota, North Carolina, South Carolina and Tennessee 
 South Central: Arkansas, Kansas, Oklahoma and Texas 
 West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington 
 Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC (“FivePoint”). 
 10 

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

 The assets related to the Company’s Homebuilding segments were as follows: 
 
 (In thousands) At May 31, 2026 At November 30, 2025 
 
 
 East $ 5,738,233 5,413,918 
 Central 4,926,333 4,565,781 
 South Central 4,523,414 4,195,858 
 West 9,847,315 9,519,804 
 Other 1,793,234 1,692,453 
 Corporate and Unallocated 2,147,651 3,865,442 
 Total Homebuilding $ 28,976,180 29,253,256 

 Financial information relating to the Company’s segments was as follows: 
 
 Three Months Ended May 31, 2026 
 (In thousands) East Central South Central West Other (2) Homebuilding Financial Services Multifamily Lennar Other Total 
 Revenues: 
 Sales of homes $ 1,709,254 1,662,594 1,463,140 2,758,154 1,897 7,595,039 — — — 7,595,039 
 Sales of land 1,517 — 2,877 8,007 — 12,401 — — — 12,401 
 Other revenues 3,705 1,076 560 1,160 2,373 8,874 236,939 63,564 23,055 332,432 
 Total revenues 1,714,476 1,663,670 1,466,577 2,767,321 4,270 7,616,314 236,939 63,564 23,055 7,939,872 
 Costs and expenses: 
 Costs of homes sold 1,382,260 1,407,144 1,210,579 2,409,274 3,362 6,412,619 — — — 6,412,619 
 Costs of land sold 5,695 2,130 3,850 9,869 — 21,544 — — — 21,544 
 Other costs and expenses — — — — — — 135,836 72,788 43,726 252,350 
 Selling, general and administrative expenses 169,055 178,482 135,089 210,422 5,347 698,395 — — — 698,395 
 Corporate general and administrative expenses (1) — — — — — — — — — 136,149 
 Charitable foundation contribution (1) — — — — — — — — — 20,519 
 Total costs and expenses 1,557,010 1,587,756 1,349,518 2,629,565 8,709 7,132,558 135,836 72,788 43,726 7,541,576 
 Equity in earnings (losses) from unconsolidated entities 4,978 ( 18 ) ( 10 ) 676 ( 2,956 ) 2,670 — 27,233 4,184 34,087 
 Other income (expense), net and other gains (losses), net 1,942 2,276 ( 2,712 ) 1,603 ( 164 ) 2,945 — 316 795 4,056 
 Lennar Other losses from technology investments — — — — — — — — ( 23,252 ) ( 23,252 ) 
 Earnings (loss) before income taxes $ 164,386 78,172 114,337 140,035 ( 7,559 ) 489,371 101,103 18,325 ( 38,944 ) 413,187 

 11 

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

 
 Three Months Ended May 31, 2025 
 (In thousands) East Central South Central West Other (2) Homebuilding Financial Services Multifamily Lennar Other Total 
 Revenues: 
 Sales of homes $ 1,715,407 1,743,304 1,505,750 2,818,980 4,834 7,788,275 — — — 7,788,275 
 Sales of land 14,384 — 16,589 12,222 — 43,195 — — — 43,195 
 Other revenues 3,714 1,963 1,058 2,095 3,562 12,392 298,098 230,305 5,237 546,032 
 Total revenues 1,733,505 1,745,267 1,523,397 2,833,297 8,396 7,843,862 298,098 230,305 5,237 8,377,502 
 Costs and expenses: 
 Costs of homes sold 1,390,760 1,417,197 1,241,884 2,346,962 5,729 6,402,532 — — — 6,402,532 
 Costs of land sold 14,237 1,143 18,004 22,789 — 56,173 — — — 56,173 
 Other costs and expenses — — — — — — 140,818 254,677 30,025 425,520 
 Selling, general and administrative expenses 167,318 165,828 125,911 217,155 12,635 688,847 — — — 688,847 
 Corporate general and administrative expenses (1) — — — — — — — — — 155,853 
 Charitable foundation contribution (1) — — — — — — — — — 20,131 
 Total costs and expenses 1,572,315 1,584,168 1,385,799 2,586,906 18,364 7,147,552 140,818 254,677 30,025 7,749,056 
 Equity in earnings (losses) from unconsolidated entities 8,295 ( 1 ) ( 6 ) 1,038 8,390 17,716 — ( 5,269 ) ( 331 ) 12,116 
 Other income (expense), net and other gains (losses), net 7,161 1,099 ( 903 ) ( 2,005 ) 8,856 14,208 — 14,887 1,664 30,759 
 Lennar Other losses from technology investments — — — — — — — — ( 29,440 ) ( 29,440 ) 
 Earnings (loss) before income taxes $ 176,646 162,197 136,689 245,424 7,278 728,234 157,280 ( 14,754 ) ( 52,895 ) 641,881 

 
 Six Months Ended May 31, 2026 
 (In thousands) East Central South Central West Other (2) Homebuilding Financial Services Multifamily Lennar Other Total 
 Revenues: 
 Sales of homes $ 3,221,332 3,007,627 2,623,320 5,009,901 5,781 13,867,961 — — — 13,867,961 
 Sales of land 9,591 873 6,900 10,195 — 27,559 — — — 27,559 
 Other revenues 8,574 2,229 1,220 2,362 4,972 19,357 452,494 146,063 45,914 663,828 
 Total revenues 3,239,497 3,010,729 2,631,440 5,022,458 10,753 13,914,877 452,494 146,063 45,914 14,559,348 
 Costs and expenses: 
 Costs of homes sold 2,621,112 2,559,859 2,166,947 4,376,796 9,519 11,734,233 — — — 11,734,233 
 Costs of land sold 20,997 5,866 10,218 15,774 — 52,855 — — — 52,855 
 Other costs and expenses — — — — — — 260,078 163,216 87,410 510,704 
 Selling, general and administrative expenses 331,829 326,687 242,723 401,592 13,059 1,315,890 — — — 1,315,890 
 Corporate general and administrative expenses (1) — — — — — — — — — 293,787 
 Charitable foundation contribution (1) — — — — — — — — — 37,382 
 Total costs and expenses 2,973,938 2,892,412 2,419,888 4,794,162 22,578 13,102,978 260,078 163,216 87,410 13,944,851 
 Equity in earnings (losses) from unconsolidated entities 15,661 41 ( 25 ) 1,588 23,586 40,851 — 52,714 3,790 97,355 
 Other income (expense), net and other gains (losses), net ( 1,879 ) 4,159 ( 4,381 ) ( 429 ) 12,179 9,649 — 623 1,930 12,202 
 Lennar Other losses from technology investments — — — — — — — — ( 8,414 ) ( 8,414 ) 
 Earnings (loss) before income taxes $ 279,341 122,517 207,146 229,455 23,940 862,399 192,416 36,184 ( 44,190 ) 715,640 

 12 

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

 
 Six Months Ended May 31, 2025 
 (In thousands) East Central South Central West Other (2) Homebuilding Financial Services Multifamily Lennar Other Total 
 Revenues: 
 Sales of homes $ 3,370,667 3,273,496 2,666,273 5,707,665 10,720 15,028,821 — — — 15,028,821 
 Sales of land 37,506 1,600 22,193 17,222 — 78,521 — — — 78,521 
 Other revenues 6,449 2,817 1,759 3,343 6,022 20,390 575,175 293,501 12,639 901,705 
 Total revenues 3,414,622 3,277,913 2,690,225 5,728,230 16,742 15,127,732 575,175 293,501 12,639 16,009,047 
 Costs and expenses: 
 Costs of homes sold 2,693,780 2,662,807 2,188,413 4,733,641 12,035 12,290,676 — — — 12,290,676 
 Costs of land sold 37,748 4,183 20,944 29,375 — 92,250 — — — 92,250 
 Other costs and expenses — — — — — — 274,412 328,053 53,589 656,054 
 Selling, general and administrative expenses 329,504 318,152 220,733 419,536 16,661 1,304,586 — — — 1,304,586 
 Corporate general and administrative expenses (1) — — — — — — — — — 303,231 
 Charitable foundation contribution (1) — — — — — — — — — 37,965 
 Total costs and expenses 3,061,032 2,985,142 2,430,090 5,182,552 28,696 13,687,512 274,412 328,053 53,589 14,684,762 
 Equity in earnings (losses) from unconsolidated entities 14,933 ( 4 ) ( 8 ) 1,010 36,789 52,720 — ( 4,542 ) ( 2,827 ) 45,351 
 Other income (expense), net and other gains (losses), net 32,477 3,150 ( 1,355 ) ( 2,483 ) 12,778 44,567 — 24,317 ( 6,458 ) 62,426 
 Lennar Other losses from technology investments — — — — — — — — ( 91,943 ) ( 91,943 ) 
 Earnings (loss) before income taxes $ 401,000 295,917 258,772 544,205 37,613 1,537,507 300,763 ( 14,777 ) ( 142,178 ) 1,340,119 

 (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 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 
 Operations of the Financial Services segment include mortgage financing, title and closing services primarily for buyers of the Company’s homes. They also include originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and sales of property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations. 
 13 

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

 At May 31, 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 
 (In thousands) Committed Amount Uncommitted Amount Total 
 Residential facilities maturing: 
 
 July 2026 $ 350,000 350,000 700,000 
 
 September 2026 200,000 200,000 400,000 
 November 2026 100,000 100,000 200,000 
 December 2026 — 375,000 375,000 
 March 2027 200,000 300,000 500,000 
 May 2027 30,000 270,000 300,000 
 Total residential facilities $ 880,000 1,595,000 2,475,000 
 LMF commercial facilities maturing: 
 
 January 2027 100,000 — 100,000 
 December 2027 200,000 — 200,000 
 Total LMF commercial facilities $ 300,000 — 300,000 
 Total $ 2,775,000 

 The Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to 80 % interests in the originated commercial loans financed. 
 Borrowings and collateral under the facilities were as follows: 
 
 (In thousands) At May 31, 2026 At November 30, 2025 
 Borrowings under residential facilities $ 1,791,758 1,653,484 
 Collateral under residential facilities 2,058,429 1,718,338 
 Borrowings under LMF Commercial facilities 52,240 13,719 

 If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities. 
 Substantially all of the 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 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 condensed 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 and six months ended May 31, 2026 and 2025. Loan origination liabilities were $ 17.3 million and $ 17.4 million as of May 31, 2026 and November 30, 2025, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets. 
 14 

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

 LMF Commercial - loans held-for-sale 
 LMF Commercial originated commercial loans as follows: 
 
 Three Months Ended Six Months Ended 
 May 31, May 31, 
 (Dollars in thousands) 2026 2025 2026 2025 
 Originations (1) $ 73,300 180,875 156,350 308,840 
 
 
 Sold 76,250 190,936 109,575 285,823 
 Securitizations 2 2 3 6 
 

 (1) During both the three and six months ended May 31, 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 May 31, 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 six months ended May 31, 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) At May 31, 2026 At November 30, 2025 
 Carrying value $ 129,320 132,868 
 Outstanding debt, net of debt issuance costs 119,748 123,106 
 Incurred interest rate 3.4 % 3.4 % 

 
 At May 31, 2026 
 Range 
 Discount rates at purchase 6 % — 84 % 
 Coupon rates 2.0 % — 5.3 % 
 Distribution dates October 2027 — December 2028 
 Stated maturity dates October 2050 — December 2051 

 Multifamily 
 The Company is actively involved, primarily through unconsolidated funds and joint ventures, in the development and construction of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. 
 The Multifamily segment (i) owns interests in funds that are engaged in the development of multifamily residential communities with the intention of holding the newly constructed and occupied properties as income and fee generating assets, and (ii) owns interests in joint ventures that are engaged in the development of multifamily residential communities, in most instances with the intention of selling them when they are built and substantially occupied. The multifamily business is a vertically integrated platform with capabilities spanning development, construction, asset management, and capital markets. Revenues are generated from the sales of land, from construction activities, and from management and promote fees generated from funds and joint ventures less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses. Operations of the Multifamily segment also include equity in earnings (losses) from unconsolidated entities and other gains (losses), which include proceeds of sales of investments. 
 Lennar Other 
 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 publicly traded technology companies, which are held at market and the carrying value of which will therefore change depending on the value of the Company's shareholdings in those entities on the last day of each 
 15 

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

 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 May 31, 2026 and 2025, the Company recorded mark-to-market losses of $ 23.3 million and $ 29.4 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). During the six months ended May 31, 2026 and 2025, the Company recorded mark-to-market losses of $ 8.4 million and $ 91.9 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 
 Homebuilding Unconsolidated Entities 
 The investments in the Company's Homebuilding unconsolidated entities were as follows: 
 
 
 (In thousands) At May 31, 2026 At November 30, 2025 
 Investments in unconsolidated entities (1) (2) $ 1,478,719 1,545,370 
 Underlying equity in unconsolidated entities' net assets (1) (2) 1,768,675 1,790,697 

 (1) The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in FivePoint. 
 (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40 % ownership of FivePoint. As of May 31, 2026 and November 30, 2025, the carrying amount of the Company's investment was $ 602.8 million and $ 585.2 million, respectively. 
 As of May 31, 2026 and November 30, 2025, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 317.0 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. While the Company sometimes guarantees debt of unconsolidated entities, in most instances the Company’s partners have also guaranteed that debt and are required to contribute their shares of any payments. In most instances, the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it. 
 As of both May 31, 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 May 31, 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). 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. 
 The Upward America Venture LP (“Upward America”) is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to the people who will live in them. Upward America could raise equity commitments totaling $ 1.0 billion. The commitments are primarily from institutional investors, including $ 78.1 million committed by the Company. As of May 31, 2026 and November 30, 2025, the carrying amount of the Company's investment in Upward America was $ 12.8 million and $ 13.8 million, respectively. 
 Multifamily Unconsolidated Entities 
 The unconsolidated joint ventures in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the bank loans to the Multifamily unconsolidated joint ventures, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would increase the Company's investment in the entities and would increase its share of funds the entities distribute to the Company after the achievement of certain thresholds. The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its 2025 Form 10-K. As of both May 31, 2026 and November 30, 2025, the fair value of the completion guarantees was immaterial. As of May 31, 2026 and November 30, 2025, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 776.3 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. 
 In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. Each Multifamily real estate investment 
 16 

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

 trust, JV and fund has unilateral decision-making rights related to development and other sales activity through its executive committee or asset management committee. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. In some situations, the Multifamily segment sells land to various joint ventures and funds. The details of the activity were as follows: 
 
 Three Months Ended May 31, Six Months Ended May 31, 
 
 (In thousands) 2026 2025 2026 2025 
 
 General contractor services, net of deferrals $ 40,896 28,264 94,139 58,714 
 General contractor costs 41,191 27,586 93,071 55,900 
 Land sales to joint ventures 20,185 145,118 46,585 162,447 
 Management fee income, net of deferrals 2,468 6,436 5,311 13,377 

 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 May 31, 2026, the Company has a $ 28.1 million investment in the CPPIB Fund. The Company's stated ownership percentage in the Institutional JV is 3.5 %. As of May 31, 2026, the Company holds a $ 44.4 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 noncontrolling 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: 
 
 At May 31, 2026 
 (In thousands) LMV I LMV II 
 Lennar's carrying value of investments $ 69,706 184,619 
 Equity commitments 2,204,016 1,257,700 
 Equity commitments called 2,154,328 1,229,585 
 Lennar's equity commitments 504,016 381,000 
 Lennar's equity commitments called 500,381 371,492 
 Lennar's remaining commitments (1) 3,635 9,508 
 Distributions to Lennar during the six months ended May 31, 2026 37,083 57,537 

 (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 six months ended May 31, 2026, one additional LMV I rental operation project was sold to a third-party buyer. 
 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 $ 130.3 million and $ 133.0 million as of May 31, 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 $ 234.1 million and $ 235.0 million , as of May 31, 2026 and November 30, 2025, respectively. 
 17 

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

 (4) 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 six months ended May 31, 2026 and 2025: 
 
 Three Months Ended May 31, 2026 
 (In thousands) Total
Equity Class A
Common Stock Class B
Common Stock Additional
Paid-in Capital Treasury
Stock Accumulated Other Comprehensive Income Retained
Earnings Noncontrolling
Interests 
 Balance at February 28, 2026 $ 22,032,263 26,319 3,660 5,993,733 ( 6,727,316 ) 5,606 22,577,374 152,887 
 Net earnings (including net earnings attributable to noncontrolling interests) 308,129 — — — — — 304,772 3,357 
 Employee stock and directors plans 
 ( 15,489 ) ( 10 ) — 302 ( 15,781 ) — — — 
 
 Purchases of treasury stock ( 451,305 ) — — — ( 451,305 ) — — — 
 
 
 
 
 Amortization of restricted stock 
 26,271 — — 26,271 — — — — 
 Cash dividends ( 123,057 ) — — — — — ( 123,057 ) — 
 
 Receipts related to noncontrolling interests 
 1,460 — — — — — — 1,460 
 Payments related to noncontrolling interests 
 ( 15,700 ) — — — — — — ( 15,700 ) 
 
 Non-cash purchase or activity of noncontrolling interests, net 3,084 — — — — — — 3,084 
 
 
 
 Total other comprehensive income, net of tax 70 — — — — 70 — — 
 Balance at May 31, 2026 $ 21,765,726 26,309 3,660 6,020,306 ( 7,194,402 ) 5,676 22,759,089 145,088 

 
 Three Months Ended May 31, 2025 
 (In thousands) Total
Equity Class A
Common Stock Class B
Common Stock Additional
Paid-in Capital Treasury
Stock Accumulated Other Comprehensive Income (Loss) Retained
Earnings Noncontrolling
Interests 
 Balance at February 28, 2025 $ 22,867,344 26,133 3,660 5,812,802 ( 4,424,039 ) 7,351 21,302,131 139,306 
 Net earnings (including net earnings attributable to noncontrolling interests) 481,820 — — — — — 477,449 4,371 
 Employee stock and directors plans 
 722 3 — 1,157 ( 438 ) — — — 
 
 Purchases of treasury stock ( 520,981 ) — — — ( 520,981 ) — — — 
 
 
 
 Amortization of restricted stock 
 28,773 — — 28,773 — — — — 
 Cash dividends ( 133,589 ) — — — — — ( 133,589 ) — 
 
 Receipts related to noncontrolling interests 
 9,701 — — — — — — 9,701 
 Payments related to noncontrolling interests 
 ( 576 ) — — — — — — ( 576 ) 
 
 
 
 
 Total other comprehensive loss, net of tax ( 1,332 ) — — — — ( 1,332 ) — — 
 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 

 18 

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

 
 Six Months Ended May 31, 2026 
 (In thousands) Total
Equity Class A
Common Stock Class B
Common Stock Additional
Paid-in Capital Treasury
Stock Accumulated Other Comprehensive Income (Loss) Retained
Earnings Noncontrolling
Interests 
 Balance at November 30, 2025 $ 22,140,609 26,158 3,660 5,909,726 ( 6,457,609 ) 6,011 22,471,471 181,192 
 Net earnings (including net earnings attributable to noncontrolling interests) 541,490 — — — — — 534,155 7,335 
 Employee stock and directors plans 
 ( 23,908 ) 151 — 21,932 ( 45,991 ) — — — 
 
 Purchases of treasury stock ( 690,802 ) — — — ( 690,802 ) — — — 
 
 
 
 
 Amortization of restricted stock 
 88,648 — — 88,648 — — — — 
 Cash dividends ( 246,537 ) — — — — — ( 246,537 ) — 
 
 Receipts related to noncontrolling interests 
 2,543 — — — — — — 2,543 
 Payments related to noncontrolling interests 
 ( 26,409 ) — — — — — — ( 26,409 ) 
 Non-cash purchase or activity of noncontrolling interests, net ( 19,573 ) — — — — — — ( 19,573 ) 
 
 
 
 Total other comprehensive loss, net of tax ( 335 ) — — — — ( 335 ) — — 
 Balance at May 31, 2026 $ 21,765,726 26,309 3,660 6,020,306 ( 7,194,402 ) 5,676 22,759,089 145,088 

 
 Six Months Ended May 31, 2025 
 (In thousands) Total
Equity Class A
Common Stock Class B
Common Stock Additional
Paid-in Capital Treasury
Stock Accumulated Other Comprehensive Income (Loss) Retained
Earnings Noncontrolling
Interests 
 Balance at November 30, 2024 $ 28,021,225 25,998 3,660 5,729,434 ( 3,649,564 ) 7,529 25,753,078 151,090 
 Net earnings (including net earnings attributable to noncontrolling interests) 1,010,533 — — — — — 996,975 13,558 
 Employee stock and directors plans 
 ( 63,671 ) 138 — 1,389 ( 65,198 ) — — — 
 
 Purchases of treasury stock ( 1,230,696 ) — — — ( 1,230,696 ) — — — 
 
 
 
 
 Amortization of restricted stock 
 112,858 — — 112,858 — — — — 
 Cash dividends ( 265,235 ) — — — — — ( 265,235 ) — 
 
 Receipts related to noncontrolling interests 
 21,029 — — — — — — 21,029 
 Payments related to noncontrolling interests 
 ( 5,965 ) — — — — — — ( 5,965 ) 
 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 loss, net of tax ( 1,510 ) — — — — ( 1,510 ) — — 
 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 

 On June 25, 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 July 24, 2026 to holders of record at the close of business on July 10, 2026. On May 6, 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 April 22, 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. 
 19 

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

 In January 2024, the Company's Board of Directors authorized an increase to its stock repurchase program to enable it to repurchase up to an additional $ 5 billion in value of its outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. This authorization was in addition to what was remaining of the Company's March 2022 stock repurchase program. The repurchase authorization has no expiration date. At May 31, 2026, the Company has a remaining authorization to repurchase $ 1.0 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 May 31, Six Months Ended May 31, 
 
 2026 2025 2026 2025 
 (Dollars in thousands, except price per share amounts) Class A Class B Class A Class B Class A Class B Class A Class B 
 Shares repurchased 4,335,241 664,759 4,501,936 204,515 6,172,126 827,874 9,271,936 663,320 
 Total purchase price $ 388,784 $ 57,954 $ 495,230 $ 21,504 $ 608,055 $ 75,770 $ 1,139,849 $ 79,625 
 Average price per share $ 89.68 $ 87.18 $ 110.00 $ 105.15 $ 98.52 $ 91.52 $ 122.94 $ 120.04 

 
 (5) Income Taxes 
 The provision for income taxes and effective tax rate were as follows: 
 Three Months Ended Six Months Ended 
 May 31, May 31, 
 (Dollars in thousands) 2026 2025 2026 2025 
 Provision for income taxes $ 105,058 160,061 174,150 329,586 
 Effective tax rate (1) 25.6 % 25.1 % 24.6 % 24.8 % 

 (1) For the three and six months ended May 31, 2026 and 2025, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. 
 
 (6) Earnings Per Share 
 Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. 
 All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock (“nonvested shares”) is considered participating securities. 
 Basic and diluted earnings per share were calculated as follows: 
 Three Months Ended Six Months Ended 
 May 31, May 31, 
 (In thousands, except per share amounts) 2026 2025 2026 2025 
 Numerator: 
 Net earnings attributable to Lennar $ 304,772 477,449 534,155 996,975 
 Less: distributed earnings allocated to nonvested shares 3,051 2,973 4,221 3,929 
 Less: undistributed earnings allocated to nonvested shares 2,025 3,304 3,183 7,160 
 Numerator for basic and diluted earnings per share 299,696 471,172 526,751 985,886 
 
 
 
 
 
 Denominator: 
 Denominator for basic and diluted earnings per share - weighted average common shares outstanding 240,776 260,286 242,607 261,510 
 
 
 
 
 Basic and diluted earnings per share $ 1.24 1.81 2.17 3.77 
 

 20 

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

 (7) Homebuilding Senior Notes and Other Debts Payable 
 
 (Dollars in thousands) At May 31, 2026 At November 30, 2025 
 
 Unsecured delayed draw term loan facility due 2028 $ 1,704,487 1,710,000 
 
 
 5.25 % senior notes due 2026 (1) 
 400,000 400,608 
 5.00 % senior notes due 2027 
 350,399 350,590 
 4.75 % senior notes due 2027 
 699,134 698,845 
 5.20 % senior notes due 2030 
 694,791 694,165 
 
 
 
 Mortgage notes on land and other debt 198,676 230,478 
 $ 4,047,487 4,084,686 

 (1) Subsequent to May 31, 2026, the Company redeemed all of its 5.25 % senior notes due June 2026. 
 The carrying amounts of the senior notes and unsecured delayed draw term loan facility in the table above are net of debt issuance costs of $ 11.2 million and $ 7.0 million as of May 31, 2026 and November 30, 2025, respectively. 
 The Company has an unsecured delayed draw term loan facility with committed borrowing availability of approximately $ 1.7 billion (the “Delayed Draw Term Loan Facility”), which can be increased by an additional $ 500 million via an accordion feature. As of May 31, 2026, the Company had outstanding borrowings of $ 1.7 billion under the credit agreement governing its unsecured Delayed Draw Term Loan Facility. The Company may at any time prepay the loan, in whole or in part, without premium or penalty. The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement or May 2028, and at the Company’s discretion, it can be extended for an additional year until May 2029, subject to the satisfaction of certain conditions. Under the Delayed Draw Term Loan Facility, interest rates equal the adjusted term SOFR determined for the interest period plus the applicable margin. 
 The maximum available borrowings on the Company's unsecured revolving credit facility (the "Credit Facility") were as follows: 
 
 (In thousands) At May 31, 2026 
 Commitments - maturing in May 2027 $ 225,000 
 Commitments - maturing in November 2029 2,900,000 
 Total commitments $ 3,125,000 
 Accordion feature 375,000 
 Total maximum borrowings capacity $ 3,500,000 

 The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit agreement also provides that up to $ 477.5 million in commitments may be used for letters of credit. The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2025 Form 10-K. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions. 
 The Company's processes for posting performance and financial letters of credit and surety bonds are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2025 Form 10-K. The Company's outstanding letters of credit and surety bonds are disclosed below: 
 
 (In thousands) At May 31, 2026 At November 30, 2025 
 Performance letters of credit $ 2,069,635 1,963,643 
 Financial letters of credit 802,809 926,304 
 Surety bonds 5,712,218 5,614,807 
 Anticipated future costs primarily for site improvements related to performance surety bonds 3,276,374 3,056,582 

 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. 
 21 

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

 (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 May 31, 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. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. 
 At May 31, 2026 At November 30, 2025 
 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value 
 ASSETS 
 Financial Services: 
 
 Loans held-for-sale Level 3 $ 13,830 13,959 15,547 15,547 
 Investments held-to-maturity Level 3 129,320 127,778 132,868 132,032 
 
 
 
 LIABILITIES 
 Homebuilding senior notes and other debts payable, net Level 2 $ 4,047,487 4,072,154 4,084,686 4,122,169 
 Financial Services notes and other debts payable, net Level 2 1,963,746 1,964,163 1,790,309 1,790,789 
 
 
 

 The following methods and assumptions are used by the Company in estimating fair values: 
 Financial Services - The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. The fair value of residential loans held-for-sale for which there is no active market for similar mortgage loans is determined using an independent third-party valuation that uses a discounted cash flow model to estimate fair value and is categorized as Level 3. The key assumptions used in the model, which are generally unobservable inputs, are mortgage prepayment rates, default rates, loss severity rates, and discount rates. Loans held-for-sale are carried at the lower of cost or fair value. For notes and other 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. 
 Fair Value Measurements: 
 GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows: 
 Level 1: Fair value determined based on quoted prices in active markets for identical assets. 
 Level 2: Fair value determined using significant other observable inputs. 
 Level 3: Fair value determined using significant unobservable inputs. 
 The Company’s financial instruments measured at fair value on a recurring basis are summarized below: 
 Fair Value Hierarchy Fair Value at 
 (In thousands) May 31, 2026 November 30, 2025 
 Financial Services Assets: 
 Residential loans held-for-sale Level 2 $ 1,855,423 2,170,677 
 
 LMF Commercial loans held-for-sale Level 3 70,296 26,401 
 
 
 
 Mortgage servicing rights Level 3 2,983 3,266 
 Forward options Level 1 124 986 
 Lennar Other Assets: 
 Investments in equity securities Level 1 $ 89,551 232,372 
 Investments available-for-sale Level 3 38,725 39,060 

 22 

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

 Residential and LMF Commercial loans held-for-sale in the table above include: 
 
 At May 31, 2026 At November 30, 2025 
 
 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value 
 
 
 
 
 
 Residential loans held-for-sale $ 1,917,191 ( 61,768 ) 2,206,966 ( 36,289 ) 
 LMF Commercial loans held-for-sale 
 73,300 ( 3,004 ) 26,525 ( 124 ) 

 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 judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The following methods and assumptions are used by the Company in estimating fair values. 
 Financial Services residential loans held-for-sale - The fair value of residential loans held-for-sale that trade in active secondary markets is determined based upon quoted market prices for similar mortgage loans, adjusted for credit risk and other loan characteristics, and is categorized as Level 2. The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these are included in Financial Services’ loans held-for-sale as of May 31, 2026 and November 30, 2025. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics. 
 LMF Commercial loans held-for-sale - The fair value of commercial loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. The details and methods of the calculation are unchanged from the fair value disclosure in the Company's Notes to the Financial Statements section in its 2025 Form 10-K. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust. 
 Mortgage servicing rights - Financial Services records mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below: 
 
 
 May 31, 2026 November 30, 2025 
 Unobservable inputs: 
 Mortgage prepayment rate 9 % 9 % 
 Discount rate 13 % 13 % 
 Delinquency rate 11 % 11 % 

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

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

 The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: 
 
 Three Months Ended Six Months Ended 
 May 31, May 31, 
 (In thousands) 2026 2025 2026 2025 
 Changes in fair value included in Financial Services revenues: 
 Loans held-for-sale $ ( 57,891 ) ( 32,753 ) ( 25,489 ) ( 2,350 ) 
 Mortgage loan commitments ( 16,520 ) ( 22,583 ) ( 9,310 ) 10,921 
 Forward contracts 21,558 76,955 8,575 28,492 
 
 Interest rate swaps 17,550 3,458 8,278 162 
 Changes in fair value included in Lennar Other losses from technology investments: 
 Investments in equity securities $ ( 23,252 ) ( 29,440 ) ( 8,414 ) ( 91,943 ) 
 
 Changes in fair value included in other comprehensive income (loss), net of tax: 
 Lennar Other investments available-for-sale $ 70 ( 1,332 ) ( 335 ) ( 1,510 ) 
 

 Interest on Financial Services loans held-for-sale and LMF Commercial loans held-for-sale measured at fair value is calculated based on the interest rate of the loans and recorded as revenues in the Financial Services’ statement of operations. 
 The following table sets forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment: 
 
 Three Months Ended May 31, 
 
 2026 2025 
 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale 
 Beginning balance $ 2,783 74,793 3,297 82,794 
 Purchases/loan originations 191 73,300 251 180,875 
 
 Sales/loan originations sold, including those not settled — ( 76,250 ) — ( 190,936 ) 
 Disposals/settlements ( 72 ) — ( 56 ) — 
 Changes in fair value (1) 81 ( 1,547 ) ( 25 ) ( 466 ) 
 Interest and principal paydowns — — — ( 64 ) 
 Ending balance $ 2,983 70,296 3,467 72,203 

 
 Six Months Ended May 31, 
 
 2026 2025 
 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale 
 Beginning balance $ 3,266 26,401 3,463 50,316 
 Purchases/loan originations 263 156,350 277 308,840 
 Sales/loan originations sold, including those not settled — ( 109,575 ) — ( 285,823 ) 
 Disposals/settlements ( 123 ) — ( 153 ) — 
 Changes in fair value (1) ( 423 ) ( 3,004 ) ( 120 ) ( 747 ) 
 Interest and principal paydowns — 124 — ( 383 ) 
 Ending balance $ 2,983 $ 70,296 $ 3,467 $ 72,203 

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

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

 
 Three Months Ended May 31, 
 
 2026 2025 
 (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 $ 310,460 242,214 ( 68,246 ) 470,734 421,051 ( 49,683 ) 
 Land and land under development (2) Level 3 549 — ( 549 ) — — — 
 Deposits and pre-acquisition costs on real estate (3) Level 3 1,397 — ( 1,397 ) 8,661 — ( 8,661 ) 
 
 Financial Services - financial assets: 
 Loans held-for-sale (4) Level 3 $ 13,830 14,168 ( 338 ) — — — 
 Multifamily - non-financial assets: 
 Investments in unconsolidated entities (5) Level 3 $ — — — 3,122 — ( 3,122 ) 
 
 

 
 Six Months Ended May 31, 
 
 2026 2025 
 (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 $ 714,753 613,721 ( 101,032 ) 742,658 672,632 ( 70,026 ) 
 Land and land under development (2) Level 3 549 — ( 549 ) 191 134 ( 57 ) 
 Deposits and pre-acquisition costs on real estate (3) Level 3 6,738 — ( 6,738 ) 8,928 — ( 8,928 ) 
 
 Financial Services - financial assets: 
 Loans held-for-sale (4) Level 3 $ 14,316 13,830 ( 486 ) — — — 
 Multifamily - non-financial assets: 
 Investments in unconsolidated entities (5) Level 3 $ — — — 10,716 — ( 10,716 ) 
 
 

 (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 statements of operations and comprehensive income (loss). 
 (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 statements of operations and comprehensive income (loss). 
 (5) Valuation adjustments related to investments in unconsolidated entities were primarily included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss). 
 Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its 2025 Form 10-K. 
 The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts. 
 On a quarterly basis, the Company reviews its active communities for indicators of potential impairments. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: 
 25 

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

 
 Communities with valuation adjustments 
 At or for the Six Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value 
 (in thousands) 
 Valuation Adjustments 
 (in thousands) 
 
 
 May 31, 2026 1,683 151 18 $ 143,785 $ 36,240 
 May 31, 2025 1,617 102 14 35,482 17,918 

 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: 
 
 Six Months Ended May 31, 
 
 2026 2025 
 Unobservable inputs Range Range 
 Average selling price (1) $ 129,000 — 1,015,000 168,000 — 872,000 
 Absorption rate per quarter (homes) 5 — 19 2 — 7 
 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 six months ended May 31, 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. 
 The Company evaluates if a decrease in the fair value of an investment below the carrying value is other-than-temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions, (3) the length of the time and the extent to which the market value has been less than cost and (4) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status, and liquidity needs of the unconsolidated entity. The Company generally estimates the fair value of an investment in an unconsolidated entity by using a cash flow analysis for estimated future net distributions from the unconsolidated entity, subject to the perceived risks associated with the unconsolidated entity’s cash flow streams. During the three and six months ended May 31, 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 and six months ended May 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 $ 3.1 million and $ 10.7 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. 
 
 (9) Variable Interest Entities 
 During the six months ended May 31, 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 six months ended May 31, 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 debts payable. The assets held by a VIE are usually collateral for that VIE’s debt. The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with VIE’s lenders. Other than debt guarantee agreements with VIE’s lenders, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to a VIE. While the Company has option contracts to purchase land from certain of its VIEs, the Company is not required to purchase the assets and could walk away from the contracts, but that would require forfeiture of deposits and pre-acquisition costs. 
 26 

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

 Unconsolidated VIEs 
 The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows: 
 At May 31, 2026 At November 30, 2025 
 (In thousands) Investments in
Unconsolidated VIEs Lennar’s Maximum
Exposure to Loss Investments in
Unconsolidated VIEs Lennar’s Maximum
Exposure to Loss 
 Homebuilding (1) $ 689,540 701,550 824,241 861,679 
 Multifamily (2) 208,578 209,258 167,873 169,364 
 Financial Services (3) 129,999 129,999 135,396 135,396 
 Lennar Other (4) 103,226 103,226 105,151 105,151 
 $ 1,131,343 1,144,033 1,232,661 1,271,590 

 (1) As of May 31, 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 May 31, 2026 and November 30, 2025, there was recourse debt of VIEs of $ 8.2 million and $ 30.1 million, respectively. 
 (2) As of both May 31, 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 May 31, 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 May 31, 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 May 31, 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. While the Company generally manages the day-to-day operations of the VIEs, each of these VIEs has an executive committee made up of representatives from each partner. The members of the executive committee have equal votes and major decisions require unanimous consent and approval from all members. The Company does not have the unilateral ability to exercise participating voting rights without partner consent. 
 There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the VIEs. Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs. 
 Option Contracts 
 The Company has access to land through option contracts, which generally enable it to control portions of properties owned by third parties (including land banks) until the Company has determined whether to exercise the options. All deposits and pre-acquisition costs on real estate, including option maintenance fees paid to land banks, are capitalized on the condensed consolidated balance sheets and are allocated to the land basis when the land is acquired. 
 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 May 31, 2026, land under option with third parties that the Company was compelled to takedown was $ 958.4 million, of which $ 255.4 million were land purchase contract obligations due to land banks upon maturity of the contracts. The Company's intention is to have other land banks close on the land purchase commitments and the Company will option the land from the land banks. Land under option with third parties is included in consolidated inventory not owned. Consolidated inventory not owned related to land financing transactions, which are land sale transactions that did not meet the criteria for revenue recognition and derecognition of land by the Company as a result of the Company maintaining an option to repurchase the land in the future, was $ 530.3 million as of May 31, 2026. 
 During the six months ended May 31, 2026, consolidated inventory not owned decreased by $ 207.7 million with a $ 163.7 million decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of May 31, 2026. The decrease was primarily due to takedowns. 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 
 27 

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

 and construction in progress in the accompanying condensed consolidated balance sheet as of May 31, 2026. 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 were as follows: 
 
 (In thousands) At May 31, 2026 At November 30, 2025 
 Non-refundable option deposits and pre-acquisition costs on real estate $ 6,982,603 6,301,909 
 Non-refundable option deposits included in consolidated inventory not owned 175,995 220,025 
 Letters of credit in lieu of cash deposits under certain land and option contracts 411,051 443,277 

 For the six months ended May 31, 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 May 31, 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 May 31, 2026, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 2.6 billion, which are included in the corresponding line item presented in the table above. As of May 31, 2026, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $ 379.2 million and $ 295.4 million. As of May 31, 2026, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose Properties, Inc. (one of the three Land Banks) were $ 1.2 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. 
 
 (10) Commitments and Contingent Liabilities 
 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 May 31, 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 
 Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows: 
 28 

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

 
 Three Months Ended Six Months Ended 
 May 31, May 31, 
 (In thousands) 2026 2025 2026 2025 
 Warranty reserve, beginning of the period $ 381,666 428,926 400,591 446,240 
 Warranties issued 47,479 63,164 89,999 123,632 
 Adjustments to pre-existing warranties from changes in estimates (1) 6,899 11,824 19,905 14,386 
 
 Payments ( 52,892 ) ( 61,856 ) ( 127,343 ) ( 142,200 ) 
 Warranty reserve, end of period $ 383,152 442,058 383,152 442,058 

 (1) The adjustments to pre-existing warranties from changes in estimates during the three and six months ended May 31, 2026 and 2025 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. 
 Leases 
 The Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional information about the Company's leases: 
 (Dollars in thousands) At May 31, 2026 At November 30, 2025 
 Right-of-use assets $ 232,599 269,011 
 Lease liabilities 233,775 264,157 
 Weighted-average remaining lease term (in years) 5.4 5.4 
 Weighted-average discount rate 4.6 % 4.7 % 

 
 Future minimum payments under the noncancellable leases in effect at May 31, 2026 were as follows: 
 
 (In thousands) Lease Payments 
 2026 $ 42,105 
 2027 59,360 
 2028 41,836 
 2029 29,776 
 2030 26,212 
 Thereafter 66,805 
 Total future minimum lease payments (1) $ 266,094 
 Less: Interest (2) 32,319 
 Present value of lease liabilities (2) $ 233,775 

 (1) Total future minimum lease payments exclude variable lease costs of $ 30.8 million and an immaterial amount of short-term lease costs. 
 (2) The Company's leases do not include a readily determinable implicit rate. As such, the Company estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date. As of May 31, 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: 
 
 
 Six Months Ended May 31, 
 
 (In thousands) 2026 2025 
 Rental expense $ 82,485 102,628 
 

 In December 2023, the Company purchased its corporate headquarters building in which the Company had previously leased office space. This building contains approximately 213,200 square feet of office space, of which the Company leases approximately 53,000 square feet of unused office space to other tenants. On occasion, the Company may sublease other rented 
 29 

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

 space which is no longer used for the Company's operations. For both the six months ended May 31, 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 condensed 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’ 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 condensed 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. 
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 Forward-Looking Statements 
 This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will,” “may” or other words of similar meaning. Some of them are opinions formed based upon general observations, anecdotal evidence and industry experience, but that are not supported by specific investigation or analysis. 
 These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements. The most important factors that could cause actual results to differ materially from those anticipated by our forward-looking statements include, but are not limited to: slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased 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 operations; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings or the willingness of the funds to invest in new projects; increased energy prices; reductions in the market value of our investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land-light strategy; 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 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 in legal proceedings; conditions in the capital, credit and financial markets; and changes in laws, regulations or the regulatory environment affecting our business. 
 Please see our Annual Report on Form 10-K for the fiscal year ended November 30, 2025 ("2025 Form 10-K"), filed with the Securities and Exchange Commission (the “SEC”) on January 28, 2026 and our other filings with the SEC for a further discussion of these and other risks and uncertainties which could affect our future results. We undertake no obligation, other than those imposed by securities laws, to publicly revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events. 
 
 
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
LENNAR CORP /NEW/ 10-Q

Item 1. Financial Statements
