What changed in this filing

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Item 1. Financial Statements

2026-10-02 compared with 2026-06-29 · 167 added, 171 removed, 905 unchanged (27% of the section changed)

3 unchanged sentences

(In thousands)

May 31, November 30,

August 31, November 30,

2026 (1) 2025 (1)

18 unchanged sentences

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

As of 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 August 31, 2026, total assets include $ 1.4 billion related to consolidated VIEs of which $ 29.6 million is included in Homebuilding cash and cash equivalents, $ 16.4 million in Homebuilding finished homes and construction in progress, $ 258.9 million in Homebuilding land and land under development, $ 951.6 million in Homebuilding consolidated inventory not owned, $ 108.5 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities and $ 23.9 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.

3 unchanged sentences

(In thousands, except share amounts)

May 31, November 30,

August 31, November 30,

2026 (2) 2025 (2)

14 unchanged sentences

Class A common stock of $ 0.10 par value;

May 31, 2026 and November 30, 2025 - 400,000,000 shares;

May 31, 2026 - 263,086,837 shares and November 30, 2025 - 261,579,253 shares

August 31, 2026 and November 30, 2025 - 400,000,000 shares;

August 31, 2026 - 263,124,142 shares and November 30, 2025 - 261,579,253 shares

26,312 26,158

Class B common stock of $ 0.10 par value;

May 31, 2026 and November 30, 2025 - 90,000,000 shares;

May 31, 2026 - 36,601,215 shares and November 30, 2025 - 36,601,215 shares

August 31, 2026 and November 30, 2025 - 90,000,000 shares;

August 31, 2026 - 36,601,215 shares and November 30, 2025 - 36,601,215 shares

Additional paid-in capital 6,049,974 5,909,726

1 unchanged sentence

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;

August 31, 2026 - 55,247,920 shares of Class A common stock and 6,577,198 shares of Class B common stock;

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

5 unchanged sentences

Total liabilities and equity $ 33,378,225 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.

(2) As of August 31, 2026, total liabilities include $ 920.8 million related to consolidated VIEs as to which there was no recourse against the Company, of which $ 8.2 million is included in Homebuilding accounts payable, $ 901.9 million in Homebuilding liabilities related to consolidated inventory not owned, $ 6.9 million in Homebuilding senior notes and other debts payable, net, $ 2.8 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities.

As of November 30, 2025, total liabilities include $ 962.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $ 23.8 million is included in Homebuilding accounts payable, $ 930.1 million in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debts payable, net, $ 1.5 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities.

3 unchanged sentences

(In thousands, except per share amounts)

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

2026 2025 2026 2025

13 unchanged sentences

Equity in earnings from unconsolidated entities 3,165 10,822 100,520 56,172

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 )

Other income (expense), net and other gains (losses), net ( 22,565 ) ( 18,956 ) ( 10,363 ) 43,471

Lennar Other gains (losses) from technology investments ( 53,335 ) 99,223 ( 61,749 ) 7,280

Earnings before income taxes 387,079 790,703 1,102,719 2,130,822

13 unchanged sentences

(In thousands)

Six Months Ended

Nine Months Ended

Cash flows from operating activities:

7 unchanged sentences

Deferred income tax expense 127,589 77,332

Loans held-for-sale unrealized losses 25,490 2,350

Loans held-for-sale unrealized (gains) losses 43,709 ( 10,293 )

Lennar Other losses from technology investments and other losses, net 65,807 14,218

Gains on sale of operating properties and equipment and other assets ( 9,296 ) ( 34,597 )

Gains on sale of other assets and loans receivable ( 4,185 ) ( 34,086 )

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

1 unchanged sentence

Changes in assets and liabilities:

Decrease in receivables 128,525 69,599

Decrease (increase) in receivables 333,172 ( 10,286 )

Increase in inventories, excluding valuation adjustments ( 1,738,751 ) ( 1,314,933 )

7 unchanged sentences

Proceeds from sale of other assets 29,453 54,803

Proceeds from sale of investments in unconsolidated joint venture — 233,007

Proceeds from sales of investments 28,258 72,003

Proceeds from sale of investment in unconsolidated entity — 233,007

Investments in and contributions to unconsolidated entities ( 87,871 ) ( 203,010 )

Distributions of capital from unconsolidated entities 182,632 235,593

Proceeds from sales of investments 28,258 86,862

Proceeds from sale of loan receivables — 114,661

8 unchanged sentences

(In thousands)

Six Months Ended

Nine Months Ended

Cash flows from financing activities:

Net borrowings under revolving credit facility $ 650,000 1,140,000

Net borrowings (repayments) under warehouse facilities 173,437 ( 514,818 )

Net repayments under warehouse facilities ( 205,861 ) ( 67,111 )

Proceeds from issuance of senior notes — 700,000

46 unchanged sentences

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

The condensed consolidated statements of operations for the three and six months ended May 31, 2026 are not necessarily indicative of the results to be expected for the full year.

The condensed consolidated statements of operations for the three and nine months ended August 31, 2026 are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

2 unchanged sentences

Cash and Cash Equivalents

Homebuilding cash and cash equivalents as of 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 .

Homebuilding cash and cash equivalents as of August 31, 2026 and November 30, 2025 included $ 575.4 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.

During both the three months ended August 31, 2026 and 2025, the Company granted employees an immaterial number of nonvested shares.

During the nine months ended August 31, 2026 and 2025, the Company granted employees 1.6 million and 1.4 million of nonvested shares of Class A common stock, respectively.

Recently Adopted Accounting Pronouncements

30 unchanged sentences

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

(In thousands) At May 31, 2026

(In thousands) At August 31, 2026

Homebuilding Financial

39 unchanged sentences

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.

(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 August 31, 2026 and November 30, 2025.

(2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value, of which $ 13.7 million and $ 15.5 million of residential loans are carried at lower of cost or fair value as of August 31, 2026 and November 30, 2025, respectively.

(3) Investments in equity securities include investments of $ 72.7 million and $ 114.4 million without readily available fair values as of August 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

6 unchanged sentences

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

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

(In thousands) At August 31, 2026 At November 30, 2025

East $ 5,748,435 5,413,918

6 unchanged sentences

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

Three Months Ended May 31, 2026

Lennar Corporation and Subsidiaries

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

Three Months Ended August 31, 2026

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

15 unchanged sentences

Earnings (loss) before income taxes $ 199,931 111,183 99,617 85,712 5,519 501,962 130,316 ( 2,869 ) ( 83,607 ) 387,079

Lennar Corporation and Subsidiaries

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

Three Months Ended May 31, 2025

Three Months Ended August 31, 2025

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

13 unchanged sentences

Other income (expense), net and other gains (losses), net ( 1,208 ) 1,479 ( 2,864 ) ( 3,277 ) ( 1,091 ) ( 6,961 ) — 645 ( 12,640 ) ( 18,956 )

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

Lennar Other gains from technology investments — — — — — — — — 99,223 99,223

Earnings (loss) before income taxes $ 186,384 184,722 130,129 270,323 ( 11,773 ) 759,785 177,872 ( 16,471 ) 62,498 790,703

Six Months Ended May 31, 2026

Lennar Corporation and Subsidiaries

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

Nine Months Ended August 31, 2026

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

15 unchanged sentences

Earnings (loss) before income taxes $ 479,272 233,700 306,763 315,167 29,459 1,364,361 322,732 33,315 ( 127,797 ) 1,102,719

Lennar Corporation and Subsidiaries

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

Six Months Ended May 31, 2025

Nine Months Ended August 31, 2025

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

13 unchanged sentences

Other income (expense), net and other gains (losses), net 31,269 4,629 ( 4,219 ) ( 5,760 ) 11,687 37,606 — 24,962 ( 19,097 ) 43,471

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

Lennar Other gains from technology investments — — — — — — — — 7,280 7,280

Earnings (loss) before income taxes $ 587,384 480,639 388,901 814,528 25,840 2,297,292 478,635 ( 31,248 ) ( 79,680 ) 2,130,822

4 unchanged sentences

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

Lennar Corporation and Subsidiaries

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

Financial Services

3 unchanged sentences

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

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:

At August 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

1 unchanged sentence

Residential facilities maturing:

July 2026 $ 350,000 350,000 700,000

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

3 unchanged sentences

May 2027 30,000 270,000 300,000

July 2027 80,000 170,000 250,000

Total residential facilities $ 860,000 2,265,000 3,125,000

4 unchanged sentences

Total $ 3,425,000

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

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

2 unchanged sentences

Borrowings and collateral under the facilities were as follows:

(In thousands) At May 31, 2026 At November 30, 2025

(In thousands) At August 31, 2026 At November 30, 2025

Borrowings under residential facilities $ 1,448,949 1,653,484

8 unchanged sentences

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.

Lennar Corporation and Subsidiaries

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

may be incurred.

The provision for loan losses was immaterial for both the three and nine months ended August 31, 2026 and 2025.

Loan origination liabilities were $ 17.3 million and $ 17.4 million as of August 31, 2026 and November 30, 2025, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets.

LMF Commercial - loans held-for-sale

LMF Commercial originated commercial loans as follows:

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(Dollars in thousands) 2026 2025 2026 2025

2 unchanged sentences

Securitizations 1 2 4 8

(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.

(1) During both the three and nine months ended August 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”).

At August 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.

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

(Dollars in thousands) At August 31, 2026 At November 30, 2025

Carrying value $ 124,407 132,868

1 unchanged sentence

Incurred interest rate 3.4 % 3.4 %

At May 31, 2026

At August 31, 2026

Discount rates at purchase 6 % — 84 %

8 unchanged sentences

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

Lennar Other includes strategic investments in various types of technology and other companies, primarily managed by the Company's LEN X subsidiary, and fund interests the Company retained when it sold the Rialto Capital Management ("Rialto") asset and investment management platform.

Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments, along with equity in earnings (losses) from the Rialto fund investments and technology investments, realized and unrealized gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment.

The Company has investments in 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

Lennar Corporation and Subsidiaries

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

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).

During the three and nine months ended August 31, 2026, the Company recorded mark-to-market losses of $ 53.3 million and $ 61.7 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 three and nine months ended August 31, 2025, the Company recorded mark-to-market gains of $ 99.2 million and $ 7.3 million, respectively, on its publicly traded technology investments, which were included in Lennar Other gains (losses) in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(3) Investments in Unconsolidated Entities

1 unchanged sentence

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

(In thousands) At May 31, 2026 At November 30, 2025

(In thousands) At August 31, 2026 At November 30, 2025

Investments in unconsolidated entities (1) (2) $ 1,470,473 1,545,370

2 unchanged sentences

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

As of 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.

As of August 31, 2026 and November 30, 2025, the carrying amount of the Company's investment was $ 617.3 million and $ 585.2 million, respectively.

As of August 31, 2026 and November 30, 2025, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 299.0 million and $ 511.9 million, respectively.

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

1 unchanged sentence

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

As of both 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.

As of both August 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 August 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).

3 unchanged sentences

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.

As of August 31, 2026 and November 30, 2025, the carrying amount of the Company's investment in Upward America was $ 12.6 million and $ 13.8 million, respectively.

Lennar Corporation and Subsidiaries

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

Multifamily Unconsolidated Entities

5 unchanged sentences

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

As of both 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.

As of both August 31, 2026 and November 30, 2025, the fair value of the completion guarantees was immaterial.

As of August 31, 2026 and November 30, 2025, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 410.9 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

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.

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

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

1 unchanged sentence

The details of the activity were as follows:

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

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

(In thousands) 2026 2025 2026 2025

4 unchanged sentences

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.

As of August 31, 2026, the Company has a $ 27.9 million investment in the CPPIB Fund.

The Company's stated ownership percentage in the Institutional JV is 4 %.

As of May 31, 2026, the Company holds a $ 44.4 million investment in the Institutional JV.

As of August 31, 2026, the Company holds a $ 46.1 million investment in the Institutional JV.

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

3 unchanged sentences

Details of LMV I and LMV II are included below:

At May 31, 2026

At August 31, 2026

(In thousands) LMV I LMV II

5 unchanged sentences

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.

Distributions to Lennar during the nine months ended August 31, 2026 38,075 57,537

(1) While there are remaining commitments, 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.

As of November 30, 2025, 35 LMV I rental operation projects were sold to various third-party buyers.

During the nine months ended August 31, 2026, one additional LMV I rental operation project was sold to a third-party buyer.

Lennar Corporation and Subsidiaries

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

Lennar Other Unconsolidated Entities

Lennar Other's unconsolidated entities include fund investments the Company retained when it sold the Rialto assets and investment management platform in 2018, as well as strategic investments in technology companies and investment funds.

The Company's investment in the Rialto funds totaled $ 130.3 million and $ 133.0 million as of May 31, 2026 and November 30, 2025, respectively.

The Company's investment in the Rialto funds totaled $ 131.3 million and $ 133.0 million as of August 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.

Lennar Corporation and Subsidiaries

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

The Company also had strategic technology investments in unconsolidated entities and investment funds accounted for under the equity method of accounting with a carrying value of $ 232.1 million and $ 235.0 million, as of August 31, 2026 and November 30, 2025, respectively.

(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

Three Months Ended August 31, 2026

(In thousands) Total

5 unchanged sentences

Earnings Noncontrolling

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

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

Net earnings (including net earnings attributable to noncontrolling interests) 285,487 — — — — — 283,876 1,611

9 unchanged sentences

( 10,900 ) — — — — — — ( 10,900 )

Non-cash purchase or activity of noncontrolling interests, net 3,084 — — — — — — 3,084

Total other comprehensive income, net of tax 79 — — — — 79 — —

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

Balance at August 31, 2026 $ 21,696,420 26,312 3,660 6,049,974 ( 7,450,306 ) 5,755 22,923,564 137,461

Three Months Ended August 31, 2025

(In thousands) Total

3 unchanged sentences

Paid-in Capital Treasury

Stock Accumulated Other Comprehensive Income (Loss) Retained

Stock Accumulated Other Comprehensive Income Retained

Earnings Noncontrolling

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

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

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

9 unchanged sentences

( 1,812 ) — — — — — — ( 1,812 )

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

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

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

Lennar Corporation and Subsidiaries

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

Six Months Ended May 31, 2026

Nine Months Ended August 31, 2026

(In thousands) Total

19 unchanged sentences

Total other comprehensive loss, net of tax ( 256 ) — — — — ( 256 ) — —

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

Balance at August 31, 2026 $ 21,696,420 26,312 3,660 6,049,974 ( 7,450,306 ) 5,755 22,923,564 137,461

Nine Months Ended August 31, 2025

(In thousands) Total

21 unchanged sentences

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.

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

On September 23, 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 October 22, 2026 to holders of record at the close of business on October 7, 2026.

On July 24, 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 July 10, 2026.

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

5 unchanged sentences

The repurchase authorization has no expiration date.

At 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.

At August 31, 2026, the Company has a remaining authorization to repurchase $ 751 million 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,

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

2026 2025 2026 2025

5 unchanged sentences

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

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(Dollars in thousands) 2026 2025 2026 2025

1 unchanged sentence

Effective tax rate (1) 26.4 % 24.4 % 25.2 % 24.7 %

(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.

(1) For the three and nine months ended August 31, 2026 and 2025, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

The increase in the effective tax rate for the three and nine months ended August 31, 2026 from the prior year was primarily due to the Company's spin-off of Millrose Properties, Inc.

(6) Earnings Per Share

5 unchanged sentences

Basic and diluted earnings per share were calculated as follows:

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands, except per share amounts) 2026 2025 2026 2025

8 unchanged sentences

(7) Homebuilding Senior Notes and Other Debts Payable

(Dollars in thousands) At May 31, 2026 At November 30, 2025

(Dollars in thousands) At August 31, 2026 At November 30, 2025

Unsecured revolving credit facility $ 650,000 —

Unsecured delayed draw term loan facility due 2028 1,705,202 1,710,000

6 unchanged sentences

5.25 % senior notes due 2026 (1)

694,791 694,165

Mortgage notes on land and other debt 197,364 230,478

$ 4,297,251 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.

(1) 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 $ 10.1 million and $ 7.0 million as of August 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 $ 400 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.

As of August 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.

2 unchanged sentences

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

(In thousands) At May 31, 2026

(In thousands) At August 31, 2026

Commitments - maturing in May 2027 $ 225,000

9 unchanged sentences

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

(In thousands) At May 31, 2026 At November 30, 2025

(In thousands) At August 31, 2026 At November 30, 2025

Performance letters of credit $ 2,049,932 1,963,643

10 unchanged sentences

(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.

The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at August 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.

1 unchanged sentence

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

At May 31, 2026 At November 30, 2025

At August 31, 2026 At November 30, 2025

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

19 unchanged sentences

Fair Value Hierarchy Fair Value at

(In thousands) May 31, 2026 November 30, 2025

(In thousands) August 31, 2026 November 30, 2025

Financial Services Assets:

9 unchanged sentences

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

At May 31, 2026 At November 30, 2025

At August 31, 2026 At November 30, 2025

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

8 unchanged sentences

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.

The fair value of these are included in Financial Services’ loans held-for-sale as of August 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.

7 unchanged sentences

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

August 31, 2026 November 30, 2025

Unobservable inputs:

12 unchanged sentences

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,

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2026 2025 2026 2025

4 unchanged sentences

Interest rate swaps ( 37 ) ( 6,652 ) 8,241 ( 6,490 )

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

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

Investments in equity securities $ ( 53,335 ) 99,223 ( 61,749 ) 7,280

3 unchanged sentences

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,

Three Months Ended August 31,

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

6 unchanged sentences

Ending balance $ 3,094 35,896 3,290 77,787

Six Months Ended May 31,

Nine Months Ended August 31,

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

12 unchanged sentences

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

Three Months Ended May 31,

Three Months Ended August 31,

(In thousands) Fair Value

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

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

Homebuilding - non-financial assets:

Finished homes and construction in progress (2) Level 3 $ 508,650 398,201 ( 110,449 ) 479,233 430,986 ( 48,247 )

Land and land under development (2) Level 3 549 — ( 549 ) — — —

Deposits and pre-acquisition costs on real estate (3) Level 3 947 — ( 947 ) 8,919 — ( 8,919 )

1 unchanged sentence

Loans held-for-sale (4) Level 3 $ 13,550 13,693 143 61,001 50,284 ( 10,717 )

Multifamily - non-financial assets:

Investments in unconsolidated entities (5) Level 3 $ — — — 3,122 — ( 3,122 )

Six Months Ended May 31,

Nine Months Ended August 31,

(In thousands) Fair Value

8 unchanged sentences

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.

(1) Represents gains (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).

12 unchanged sentences

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

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

(in thousands)

1 unchanged sentence

(in thousands)

May 31, 2026 1,683 151 18 $ 143,785 $ 36,240

May 31, 2025 1,617 102 14 35,482 17,918

August 31, 2026 1,713 184 38 $ 313,150 $ 99,985

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

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,

Nine Months Ended August 31,

Unobservable inputs Range Range

2 unchanged sentences

Discount rate 20 % 20 %

(1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the six months ended May 31, 2026 and 2025.

(1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the nine months ended August 31, 2026 and 2025.

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

3 unchanged sentences

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

During the three 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).

During the three and nine months ended August 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 months ended August 31, 2025, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had no other-than-temporary impairment, except that there was an other-than-temporary impairment of $ 10.7 million during the nine months ended August 31, 2025, 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.

During the nine months ended August 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, during the nine months ended August 31, 2026, the Company consolidated one entity that had a total combined assets and liabilities of $ 30.0 million and $ 7.0 million, respectively.

There were no variable interest entities ("VIEs") that were deconsolidated during the nine months ended August 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.

9 unchanged sentences

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

At August 31, 2026 At November 30, 2025

(In thousands) Investments in

8 unchanged sentences

$ 1,198,745 1,213,845 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.

(1) As of August 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 August 31, 2026 and November 30, 2025, there was recourse debt of VIEs of $ 9.1 million and $ 30.1 million, respectively.

(2) As of both August 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.

(3) As of both August 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 August 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.

Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of August 31, 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.

9 unchanged sentences

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.

As of August 31, 2026, land under option with third parties that the Company was compelled to takedown was $ 951.6 million, of which $ 250.7 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.

During the nine months ended August 31, 2026, consolidated inventory not owned decreased by $ 288.4 million with a $ 225.9 million decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of August 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

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

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.

finished homes and construction in progress in the accompanying condensed consolidated balance sheet as of August 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

(In thousands) At August 31, 2026 At November 30, 2025

Non-refundable option deposits and pre-acquisition costs on real estate $ 7,236,290 6,301,909

1 unchanged sentence

Letters of credit in lieu of cash deposits under certain land and option contracts 423,418 443,277

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.

For the nine months ended August 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 August 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 August 31, 2026, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 2.7 billion , which are included in the corresponding line item presented in the table above.

As of August 31, 2026, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $ 330.3 million and $ 256.3 million.

As of August 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 $ 1.3 billion.

12 unchanged sentences

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.

As of August 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.

8 unchanged sentences

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

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2026 2025 2026 2025

4 unchanged sentences

Warranty reserve, end of period $ 345,525 422,885 345,525 422,885

(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.

(1) The adjustments to pre-existing warranties from changes in estimates during the three and nine months ended August 31, 2026 and 2025 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.

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

4 unchanged sentences

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

(Dollars in thousands) At May 31, 2026 At November 30, 2025

(Dollars in thousands) At August 31, 2026 At November 30, 2025

Right-of-use assets $ 237,998 269,011

2 unchanged sentences

Weighted-average discount rate 4.6 % 4.7 %

Future minimum payments under the noncancellable leases in effect at May 31, 2026 were as follows:

Future minimum payments under the noncancellable leases in effect at August 31, 2026 were as follows:

(In thousands) Lease Payments

7 unchanged sentences

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.

As of August 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,

Nine Months Ended August 31,

(In thousands) 2026 2025

6 unchanged sentences

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.

For both the nine months ended August 31, 2026 and 2025, the Company had an immaterial amount of sublease income.

Letters of Credits and Surety Bonds

46 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements