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Item 1. Financial Statements

Item 1. Financial Statements 
 
 
 
 Lennar Corporation and Subsidiaries 
 Condensed Consolidated Balance Sheets 
 (In thousands) 
 (Unaudited) 
 
 August 31, November 30, 
 2026 (1) 2025 (1) 
 
 ASSETS 
 Homebuilding: 
 Cash and cash equivalents $ 1,150,115 3,441,324 
 Restricted cash 34,093 25,930 
 Receivables, net 924,858 1,002,629 
 Inventories: 
 Finished homes and construction in progress 10,670,269 8,822,271 
 Land and land under development 865,134 1,098,961 
 Inventory owned 11,535,403 9,921,232 
 Consolidated inventory not owned 1,408,036 1,696,401 
 Inventory owned and consolidated inventory not owned 12,943,439 11,617,633 
 Deposits and pre-acquisition costs on real estate 7,327,193 6,383,633 
 Investments in unconsolidated entities 1,470,473 1,545,370 
 Goodwill 3,442,359 3,442,359 
 Other assets 1,803,804 1,794,378 
 29,096,334 29,253,256 
 Financial Services 2,770,652 3,377,413 
 Multifamily 815,039 902,136 
 Lennar Other 696,200 897,632 
 Total assets $ 33,378,225 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 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. 
 See accompanying notes to condensed consolidated financial statements. 
 3 

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

 
 August 31, November 30, 
 2026 (2) 2025 (2) 
 
 LIABILITIES AND EQUITY 
 Homebuilding: 
 Accounts payable $ 1,795,955 1,812,484 
 Liabilities related to consolidated inventory not owned 1,250,439 1,476,376 
 Senior notes and other debts payable, net 4,297,251 4,084,686 
 Other liabilities 2,448,954 2,691,876 
 9,792,599 10,065,422 
 Financial Services 1,720,568 2,010,598 
 Multifamily 76,247 113,361 
 Lennar Other 92,391 100,447 
 Total liabilities 11,681,805 12,289,828 
 Commitments and contingent liabilities (See Note 10) 
 Stockholders’ equity: 
 Preferred stock — — 
 Class A common stock of $ 0.10 par value; Authorized: August 31, 2026 and November 30, 2025 - 400,000,000 shares; Issued: 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; Authorized: August 31, 2026 and November 30, 2025 - 90,000,000 shares; Issued: August 31, 2026 - 36,601,215 shares and November 30, 2025 - 36,601,215 shares 
 3,660 3,660 
 Additional paid-in capital 6,049,974 5,909,726 
 Retained earnings 22,923,564 22,471,471 
 Treasury stock, at cost; 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 
 ( 7,450,306 ) ( 6,457,609 ) 
 Accumulated other comprehensive income 5,755 6,011 
 Total stockholders’ equity 21,558,959 21,959,417 
 Noncontrolling interests 137,461 181,192 
 Total equity 21,696,420 22,140,609 
 Total liabilities and equity $ 33,378,225 34,430,437 

 (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. 
 See accompanying notes to condensed consolidated financial statements. 
 4 

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

 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 2026 2025 2026 2025 
 Revenues: 
 Homebuilding $ 7,759,497 8,253,675 21,674,374 23,381,407 
 Financial Services 226,121 314,195 678,615 889,370 
 Multifamily 38,475 228,465 184,538 521,966 
 Lennar Other 22,026 13,943 67,940 26,582 
 Total revenues 8,046,119 8,810,278 22,605,467 24,819,325 
 Costs and expenses: 
 Homebuilding 7,242,516 7,497,119 20,345,494 21,184,631 
 Financial Services 95,805 136,323 355,883 410,735 
 Multifamily 40,868 238,791 204,084 566,844 
 Lennar Other 48,393 45,450 135,803 99,039 
 Corporate general and administrative 137,883 171,397 431,670 474,628 
 Charitable foundation contribution 20,840 21,584 58,222 59,549 
 Total costs and expenses 7,586,305 8,110,664 21,531,156 22,795,426 
 Equity in earnings from unconsolidated entities 3,165 10,822 100,520 56,172 
 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 
 Provision for income taxes ( 101,592 ) ( 190,892 ) ( 275,742 ) ( 520,478 ) 
 Net earnings (including net earnings attributable to noncontrolling interests) 285,487 599,811 826,977 1,610,344 
 Less: Net earnings attributable to noncontrolling interests 1,611 8,844 8,946 22,402 
 Net earnings attributable to Lennar $ 283,876 590,967 818,031 1,587,942 
 Other comprehensive income (loss), net of tax: 
 Net unrealized gains (losses) on securities available-for-sale $ 79 — ( 256 ) ( 1,510 ) 
 
 Total other comprehensive income (loss), net of tax $ 79 — ( 256 ) ( 1,510 ) 
 Total comprehensive income attributable to Lennar $ 283,955 590,967 817,775 1,586,432 
 Total comprehensive income attributable to noncontrolling interests $ 1,611 8,844 8,946 22,402 
 Basic and diluted earnings per share $ 1.19 2.29 3.36 6.06 
 
 

 
 
 
 
 
 
 
 
 
 
 See accompanying notes to condensed consolidated financial statements. 
 5 

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

 
 Nine Months Ended 
 August 31, 
 2026 2025 
 Cash flows from operating activities: 
 Net earnings (including net earnings attributable to noncontrolling interests) $ 826,977 1,610,344 
 Adjustments to reconcile net earnings to net cash used in operating activities: 
 Depreciation and amortization 104,610 99,326 
 Amortization of discount/premium and accretion on debt, net 2,099 ( 33 ) 
 Equity in earnings from unconsolidated entities ( 100,520 ) ( 56,172 ) 
 Distributions of earnings from unconsolidated entities 52,857 28,266 
 Share-based compensation expense 117,907 138,363 
 
 Deferred income tax expense 127,589 77,332 
 
 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 other assets and loans receivable ( 4,185 ) ( 34,086 ) 
 
 
 
 Gain on sale of investments in unconsolidated entities and other — ( 35,678 ) 
 
 
 
 
 Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets 223,922 146,893 
 
 Changes in assets and liabilities: 
 
 Decrease (increase) in receivables 333,172 ( 10,286 ) 
 Increase in inventories, excluding valuation adjustments ( 1,738,751 ) ( 1,314,933 ) 
 Increase in deposits and pre-acquisition costs on real estate ( 794,939 ) ( 1,248,390 ) 
 Increase in other assets ( 103,469 ) ( 209,892 ) 
 Decrease in loans held-for-sale 392,267 240,394 
 Decrease in accounts payable and other liabilities ( 371,236 ) ( 978,048 ) 
 Net cash used in operating activities ( 822,184 ) ( 1,542,675 ) 
 Cash flows from investing activities: 
 
 Net additions of operating properties and equipment ( 40,829 ) ( 103,424 ) 
 Proceeds from sale of other assets 29,453 54,803 
 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 
 Acquisition, net of cash and restricted cash acquired — ( 254,492 ) 
 
 
 
 
 Decrease in Financial Services loans held-for-investment — 11,572 
 Purchases of investment securities ( 6,218 ) ( 3,456 ) 
 
 Proceeds from maturities/sales of investment securities 8,966 3,518 
 
 
 Net cash provided by investing activities $ 114,391 175,634 

 
 
 
 
 
 
 
 
 
 
 
 See accompanying notes to condensed consolidated financial statements. 
 6 

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

 
 Nine Months Ended 
 August 31, 
 2026 2025 
 Cash flows from financing activities: 
 Net borrowings under revolving credit facility $ 650,000 1,140,000 
 Net repayments under warehouse facilities ( 205,861 ) ( 67,111 ) 
 Proceeds from issuance of senior notes — 700,000 
 
 Redemption/repurchases of senior notes ( 400,000 ) ( 500,000 ) 
 
 Principal payments on notes payable and other borrowings ( 33,853 ) ( 48,659 ) 
 
 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 ( 249,909 ) ( 479,426 ) 
 Payments related to other liabilities, net ( 4,263 ) ( 4,263 ) 
 
 
 Receipts related to noncontrolling interests 4,205 25,982 
 Payments related to noncontrolling interests ( 37,309 ) ( 7,777 ) 
 Debt issuance costs — ( 6,502 ) 
 
 Common stock: 
 
 Repurchases ( 992,697 ) ( 1,808,312 ) 
 Dividends ( 365,938 ) ( 394,357 ) 
 Net cash used in financing activities ( 1,624,051 ) ( 1,866,172 ) 
 Net decrease in cash and cash equivalents and restricted cash ( 2,331,844 ) ( 3,233,213 ) 
 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 $ 1,498,890 1,756,997 
 Summary of cash and cash equivalents and restricted cash: 
 Homebuilding $ 1,150,115 1,406,215 
 Financial Services 225,506 216,129 
 Multifamily 23,527 17,337 
 Lennar Other 27,303 22,532 
 Homebuilding restricted cash 34,093 29,928 
 Financial Services restricted cash 38,346 64,856 
 $ 1,498,890 1,756,997 
 
 
 
 
 Supplemental disclosures of non-cash investing and financing activities: 
 Homebuilding: 
 Payments of inventories financed by sellers $ 335 320 
 
 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 nine months ended August 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 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 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 
 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 August 31, 2026 
 Assets: Homebuilding Financial
Services Multifamily Lennar 
Other Total 
 Cash and cash equivalents $ 1,150,115 225,506 23,527 27,303 1,426,451 
 Restricted cash 34,093 38,346 — — 72,439 
 Receivables, net (1) 924,858 309,237 35,043 — 1,269,138 
 Inventory owned and consolidated inventory not owned 12,943,439 — 206,139 — 13,149,578 
 Deposits and pre-acquisition costs on real estate 7,327,193 — 4,399 — 7,331,592 
 Investments in unconsolidated entities 1,470,473 644 488,775 363,379 2,323,271 
 Loans held-for-sale (2) — 1,776,305 — — 1,776,305 
 
 Investments in equity securities (3) — — — 131,350 131,350 
 Investments available-for-sale (4) — — — 38,804 38,804 
 
 Investments held-to-maturity — 124,407 — — 124,407 
 
 
 Goodwill 3,442,359 189,699 — — 3,632,058 
 Other assets 1,803,804 106,508 57,156 135,364 2,102,832 
 Total assets $ 29,096,334 2,770,652 815,039 696,200 33,378,225 
 Liabilities: 
 Senior notes and other debts payable, net $ 4,297,251 1,584,448 — — 5,881,699 
 Liabilities related to consolidated inventory not owned 1,250,439 — — — 1,250,439 
 Accounts payable and other liabilities 4,244,909 136,120 76,247 92,391 4,549,667 
 Total liabilities $ 9,792,599 1,720,568 76,247 92,391 11,681,805 

 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) — 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 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. 
 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”). 
 The assets related to the Company’s Homebuilding segments were as follows: 
 
 (In thousands) At August 31, 2026 At November 30, 2025 
 
 
 East $ 5,748,435 5,413,918 
 Central 5,155,489 4,565,781 
 South Central 4,714,090 4,195,858 
 West 10,160,607 9,519,804 
 Other 1,820,959 1,692,453 
 Corporate and Unallocated 1,496,754 3,865,442 
 Total Homebuilding $ 29,096,334 29,253,256 

 Financial information relating to the Company’s segments was as follows: 
 10 

 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 
 Revenues: 
 Sales of homes $ 1,828,048 1,943,777 1,372,191 2,588,288 1,284 7,733,588 — — — 7,733,588 
 Sales of land 1,759 3,163 11,622 1,898 — 18,442 — — — 18,442 
 Other revenues 3,444 416 758 670 2,179 7,467 226,121 38,475 22,026 294,089 
 Total revenues 1,833,251 1,947,356 1,384,571 2,590,856 3,463 7,759,497 226,121 38,475 22,026 8,046,119 
 Costs and expenses: 
 Costs of homes sold 1,446,037 1,646,381 1,140,782 2,275,863 3,197 6,512,260 — — — 6,512,260 
 Costs of land sold 2,485 3,787 6,425 3,519 — 16,216 — — — 16,216 
 Other costs and expenses — — — — — — 95,805 40,868 48,393 185,066 
 Selling, general and administrative expenses 176,793 187,535 135,681 208,129 5,902 714,040 — — — 714,040 
 Corporate general and administrative expenses (1) — — — — — — — — — 137,883 
 Charitable foundation contribution (1) — — — — — — — — — 20,840 
 Total costs and expenses 1,625,315 1,837,703 1,282,888 2,487,511 9,099 7,242,516 95,805 40,868 48,393 7,586,305 
 Equity in earnings (losses) from unconsolidated entities ( 5,736 ) 5 ( 12 ) ( 48 ) 10,599 4,808 — ( 1,342 ) ( 301 ) 3,165 
 Other income (expense), net and other gains (losses), net ( 2,269 ) 1,525 ( 2,054 ) ( 17,585 ) 556 ( 19,827 ) — 866 ( 3,604 ) ( 22,565 ) 
 Lennar Other losses from technology investments — — — — — — — — ( 53,335 ) ( 53,335 ) 
 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 

 
 Three Months Ended August 31, 2025 
 (In thousands) East Central South Central West Other (2) Homebuilding Financial Services Multifamily Lennar Other Total 
 Revenues: 
 Sales of homes $ 1,732,008 2,020,519 1,507,314 2,950,118 3,621 8,213,580 — — — 8,213,580 
 Sales of land 20,140 1,300 346 8,735 — 30,521 — — — 30,521 
 Other revenues 3,521 1,030 610 1,877 2,536 9,574 314,195 228,465 13,943 566,177 
 Total revenues 1,755,669 2,022,849 1,508,270 2,960,730 6,157 8,253,675 314,195 228,465 13,943 8,810,278 
 Costs and expenses: 
 Costs of homes sold 1,409,575 1,647,159 1,247,502 2,470,021 5,306 6,779,563 — — — 6,779,563 
 Costs of land sold 18,121 3,825 2,651 16,468 — 41,065 — — — 41,065 
 Other costs and expenses — — — — — — 136,323 238,791 45,450 420,564 
 Selling, general and administrative expenses 154,719 188,662 125,119 201,204 6,787 676,491 — — — 676,491 
 Corporate general and administrative expenses (1) — — — — — — — — — 171,397 
 Charitable foundation contribution (1) — — — — — — — — — 21,584 
 Total costs and expenses 1,582,415 1,839,646 1,375,272 2,687,693 12,093 7,497,119 136,323 238,791 45,450 8,110,664 
 Equity in earnings (losses) from unconsolidated entities 14,338 40 ( 5 ) 563 ( 4,746 ) 10,190 — ( 6,790 ) 7,422 10,822 
 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 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 

 11 

 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 
 Revenues: 
 Sales of homes $ 5,049,380 4,951,404 3,995,511 7,598,189 7,065 21,601,549 — — — 21,601,549 
 Sales of land 11,350 4,036 18,522 12,093 — 46,001 — — — 46,001 
 Other revenues 12,018 2,645 1,978 3,032 7,151 26,824 678,615 184,538 67,940 957,917 
 Total revenues 5,072,748 4,958,085 4,016,011 7,613,314 14,216 21,674,374 678,615 184,538 67,940 22,605,467 
 Costs and expenses: 
 Costs of homes sold 4,067,149 4,206,240 3,307,729 6,652,659 12,716 18,246,493 — — — 18,246,493 
 Costs of land sold 23,482 9,653 16,643 19,293 — 69,071 — — — 69,071 
 Other costs and expenses — — — — — — 355,883 204,084 135,803 695,770 
 Selling, general and administrative expenses 508,622 514,222 378,404 609,721 18,961 2,029,930 — — — 2,029,930 
 Corporate general and administrative expenses (1) — — — — — — — — — 431,670 
 Charitable foundation contribution (1) — — — — — — — — — 58,222 
 Total costs and expenses 4,599,253 4,730,115 3,702,776 7,281,673 31,677 20,345,494 355,883 204,084 135,803 21,531,156 
 Equity in earnings (losses) from unconsolidated entities 9,925 46 ( 37 ) 1,540 34,185 45,659 — 51,372 3,489 100,520 
 Other income (expense), net and other gains (losses), net ( 4,148 ) 5,684 ( 6,435 ) ( 18,014 ) 12,735 ( 10,178 ) — 1,489 ( 1,674 ) ( 10,363 ) 
 Lennar Other losses from technology investments — — — — — — — — ( 61,749 ) ( 61,749 ) 
 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 

 
 Nine Months Ended August 31, 2025 
 (In thousands) East Central South Central West Other (2) Homebuilding Financial Services Multifamily Lennar Other Total 
 Revenues: 
 Sales of homes $ 5,102,675 5,294,015 4,173,587 8,657,783 14,341 23,242,401 — — — 23,242,401 
 Sales of land 57,646 2,900 22,539 25,957 — 109,042 — — — 109,042 
 Other revenues 9,970 3,847 2,369 5,220 8,558 29,964 889,370 521,966 26,582 1,467,882 
 Total revenues 5,170,291 5,300,762 4,198,495 8,688,960 22,899 23,381,407 889,370 521,966 26,582 24,819,325 
 Costs and expenses: 
 Costs of homes sold 4,103,355 4,309,966 3,435,915 7,203,662 17,341 19,070,239 — — — 19,070,239 
 Costs of land sold 55,869 8,008 23,595 45,843 — 133,315 — — — 133,315 
 Other costs and expenses — — — — — — 410,735 566,844 99,039 1,076,618 
 Selling, general and administrative expenses 484,223 506,814 345,852 620,740 23,448 1,981,077 — — — 1,981,077 
 Corporate general and administrative expenses (1) — — — — — — — — — 474,628 
 Charitable foundation contribution (1) — — — — — — — — — 59,549 
 Total costs and expenses 4,643,447 4,824,788 3,805,362 7,870,245 40,789 21,184,631 410,735 566,844 99,039 22,795,426 
 Equity in earnings (losses) from unconsolidated entities 29,271 36 ( 13 ) 1,573 32,043 62,910 — ( 11,332 ) 4,594 56,172 
 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 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 

 (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. 
 12 

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

 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. 
 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 
 (In thousands) Committed Amount Uncommitted Amount Total 
 Residential facilities maturing: 
 September 2026 (1) $ 250,000 250,000 500,000 
 November 2026 300,000 900,000 1,200,000 
 December 2026 — 375,000 375,000 
 March 2027 200,000 300,000 500,000 
 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 
 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 $ 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. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to 80 % interests in the originated commercial loans financed. 
 Borrowings and collateral under the facilities were as follows: 
 
 (In thousands) At August 31, 2026 At November 30, 2025 
 Borrowings under residential facilities $ 1,448,949 1,653,484 
 Collateral under residential facilities 1,886,721 1,718,338 
 Borrowings under LMF Commercial facilities 20,600 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 
 13 

 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 Nine Months Ended 
 August 31, August 31, 
 (Dollars in thousands) 2026 2025 2026 2025 
 Originations (1) $ 28,950 177,837 185,300 486,677 
 
 
 Sold 65,300 172,643 174,875 458,466 
 Securitizations 1 2 4 8 
 

 (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 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 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 August 31, 2026 At November 30, 2025 
 Carrying value $ 124,407 132,868 
 Outstanding debt, net of debt issuance costs 114,899 123,106 
 Incurred interest rate 3.4 % 3.4 % 

 
 At August 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. 
 14 

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

 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 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 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 
 Homebuilding Unconsolidated Entities 
 The investments in the Company's Homebuilding unconsolidated entities were as follows: 
 
 
 (In thousands) At August 31, 2026 At November 30, 2025 
 Investments in unconsolidated entities (1) (2) $ 1,470,473 1,545,370 
 Underlying equity in unconsolidated entities' net assets (1) (2) 1,755,272 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 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. While the Company sometimes guarantees debt of unconsolidated entities, in most instances the Company’s partners have also guaranteed that debt and are required to contribute their shares of any payments. In most instances, the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it. 
 As of both August 31, 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). 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 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. 
 15 

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

 Multifamily Unconsolidated Entities 
 The unconsolidated joint ventures in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the bank loans to the Multifamily unconsolidated joint ventures, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would increase the Company's investment in the entities and would increase its share of funds the entities distribute to the Company after the achievement of certain thresholds. The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its 2025 Form 10-K. 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 trust, JV and fund has unilateral decision-making rights related to development and other sales activity through its executive committee or asset management committee. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. In some situations, the Multifamily segment sells land to various joint ventures and funds. The details of the activity were as follows: 
 
 Three Months Ended August 31, Nine Months Ended August 31, 
 
 (In thousands) 2026 2025 2026 2025 
 
 General contractor services, net of deferrals $ 36,112 42,150 130,251 100,864 
 General contractor costs 34,060 41,766 127,131 97,665 
 Land sales to joint ventures — — 46,585 162,447 
 Management fee income, net of deferrals 2,312 5,126 7,622 18,503 

 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 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 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. 
 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 August 31, 2026 
 (In thousands) LMV I LMV II 
 Lennar's carrying value of investments $ 68,672 184,365 
 Equity commitments 2,204,016 1,257,700 
 Equity commitments called 2,154,328 1,229,585 
 Lennar's equity commitments 504,016 381,000 
 Lennar's equity commitments called 500,381 371,492 
 Lennar's remaining commitments (1) 3,635 9,508 
 Distributions to Lennar during the nine months ended August 31, 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. 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. 
 16 

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

 Lennar Other Unconsolidated Entities 
 Lennar Other's unconsolidated entities include fund investments the Company retained when it sold the Rialto assets and investment management platform in 2018, as well as strategic investments in technology companies and investment funds. The Company's investment in the Rialto funds totaled $ 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 $ 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 nine months ended August 31, 2026 and 2025: 
 
 Three Months Ended August 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 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 
 Employee stock and directors plans 
 3,611 3 — 409 3,199 — — — 
 
 Purchases of treasury stock ( 259,103 ) — — — ( 259,103 ) — — — 
 
 
 
 
 Amortization of restricted stock 
 29,259 — — 29,259 — — — — 
 Cash dividends ( 119,401 ) — — — — — ( 119,401 ) — 
 
 Receipts related to noncontrolling interests 
 1,662 — — — — — — 1,662 
 Payments related to noncontrolling interests 
 ( 10,900 ) — — — — — — ( 10,900 ) 
 
 
 
 
 
 Total other comprehensive income, net of tax 79 — — — — 79 — — 
 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
Equity Class A
Common Stock Class B
Common Stock Additional
Paid-in Capital Treasury
Stock Accumulated Other Comprehensive Income Retained
Earnings Noncontrolling
Interests 
 Balance at May 31, 2025 $ 22,731,882 26,136 3,660 5,842,732 ( 4,945,458 ) 6,019 21,645,991 152,802 
 Net earnings (including net earnings attributable to noncontrolling interests) 599,811 — — — — — 590,967 8,844 
 Employee stock and directors plans 
 15,563 17 — 16,291 ( 745 ) — — — 
 
 Purchases of treasury stock ( 511,673 ) — — — ( 511,673 ) — — — 
 
 
 
 Amortization of restricted stock 
 25,505 — — 25,505 — — — — 
 Cash dividends ( 129,122 ) — — — — — ( 129,122 ) — 
 
 Receipts related to noncontrolling interests 
 4,953 — — — — — — 4,953 
 Payments related to noncontrolling interests 
 ( 1,812 ) — — — — — — ( 1,812 ) 
 
 Non-cash purchase or activity of noncontrolling interests, net 16,448 — — — — — — 16,448 
 
 
 Balance at August 31, 2025 $ 22,751,555 26,153 3,660 5,884,528 ( 5,457,876 ) 6,019 22,107,836 181,235 

 17 

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

 
 Nine Months Ended August 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) 826,977 — — — — — 818,031 8,946 
 Employee stock and directors plans 
 ( 20,297 ) 154 — 22,341 ( 42,792 ) — — — 
 
 Purchases of treasury stock ( 949,905 ) — — — ( 949,905 ) — — — 
 
 
 
 
 Amortization of restricted stock 
 117,907 — — 117,907 — — — — 
 Cash dividends ( 365,938 ) — — — — — ( 365,938 ) — 
 
 Receipts related to noncontrolling interests 
 4,205 — — — — — — 4,205 
 Payments related to noncontrolling interests 
 ( 37,309 ) — — — — — — ( 37,309 ) 
 Non-cash purchase or activity of noncontrolling interests, net ( 19,573 ) — — — — — — ( 19,573 ) 
 
 
 
 Total other comprehensive loss, net of tax ( 256 ) — — — — ( 256 ) — — 
 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
Equity Class A
Common Stock Class B
Common Stock Additional
Paid-in Capital Treasury
Stock Accumulated Other Comprehensive Income (Loss) Retained
Earnings Noncontrolling
Interests 
 Balance at November 30, 2024 $ 28,021,225 25,998 3,660 5,729,434 ( 3,649,564 ) 7,529 25,753,078 151,090 
 Net earnings (including net earnings attributable to noncontrolling interests) 1,610,344 — — — — — 1,587,942 22,402 
 Employee stock and directors plans 
 ( 48,108 ) 155 — 17,680 ( 65,943 ) — — — 
 
 Purchases of treasury stock ( 1,742,369 ) — — — ( 1,742,369 ) — — — 
 
 
 
 
 Amortization of restricted stock 
 138,363 — — 138,363 — — — — 
 Cash dividends ( 394,357 ) — — — — — ( 394,357 ) — 
 
 Receipts related to noncontrolling interests 
 25,982 — — — — — — 25,982 
 Payments related to noncontrolling interests 
 ( 7,777 ) — — — — — — ( 7,777 ) 
 Millrose Properties, Inc. spin-off ( 4,838,827 ) — — — — — ( 4,838,827 ) — 
 Non-cash purchase or activity of noncontrolling interests, net ( 11,411 ) — — ( 949 ) — — — ( 10,462 ) 
 
 
 Total other comprehensive loss, net of tax ( 1,510 ) — — — — ( 1,510 ) — — 
 Balance at August 31, 2025 $ 22,751,555 26,153 3,660 5,884,528 ( 5,457,876 ) 6,019 22,107,836 181,235 

 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. 
 18 

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

 In January 2024, the Company's Board of Directors authorized an increase to its stock repurchase program to enable it to repurchase up to an additional $ 5 billion in value of its outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. This authorization was in addition to what was remaining of the Company's March 2022 stock repurchase program. The repurchase authorization has no expiration date. At August 31, 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 August 31, Nine Months Ended August 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 2,634,878 365,122 3,931,000 188,066 8,807,004 1,192,996 13,202,936 851,386 
 Total purchase price $ 225,693 $ 30,785 $ 484,372 $ 22,154 $ 833,747 $ 106,555 $ 1,624,220 $ 101,779 
 Average price per share $ 85.66 $ 84.31 $ 123.22 $ 117.80 $ 94.67 $ 89.32 $ 123.02 $ 119.55 

 
 (5) Income Taxes 
 The provision for income taxes and effective tax rate were as follows: 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (Dollars in thousands) 2026 2025 2026 2025 
 Provision for income taxes $ 101,592 190,892 275,742 520,478 
 Effective tax rate (1) 26.4 % 24.4 % 25.2 % 24.7 % 

 (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 
 Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. 
 All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock (“nonvested shares”) is considered participating securities. 
 Basic and diluted earnings per share were calculated as follows: 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (In thousands, except per share amounts) 2026 2025 2026 2025 
 Numerator: 
 Net earnings attributable to Lennar $ 283,876 590,967 818,031 1,587,942 
 Less: distributed earnings allocated to nonvested shares 245 855 4,467 4,784 
 Less: undistributed earnings allocated to nonvested shares 1,648 4,393 4,848 11,572 
 Numerator for basic and diluted earnings per share 281,983 585,719 808,716 1,571,586 
 
 
 
 
 
 Denominator: 
 Denominator for basic and diluted earnings per share - weighted average common shares outstanding 237,756 255,601 240,990 259,540 
 
 
 
 
 Basic and diluted earnings per share $ 1.19 2.29 3.36 6.06 
 

 19 

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

 (7) Homebuilding Senior Notes and Other Debts Payable 
 
 (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 
 
 
 5.00 % senior notes due 2027 
 350,302 350,590 
 4.75 % senior notes due 2027 
 699,279 698,845 
 5.20 % senior notes due 2030 
 695,104 694,165 
 5.25 % senior notes due 2026 (1) 
 — 400,608 
 Mortgage notes on land and other debt 197,364 230,478 
 $ 4,297,251 4,084,686 

 (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 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. 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 August 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 August 31, 2026 At November 30, 2025 
 Performance letters of credit $ 2,049,932 1,963,643 
 Financial letters of credit 872,300 926,304 
 Surety bonds 5,712,988 5,614,807 
 Anticipated future costs primarily for site improvements related to performance surety bonds 3,452,971 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. 
 20 

 
 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 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. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. 
 At August 31, 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 $ 13,693 13,693 15,547 15,547 
 Investments held-to-maturity Level 3 124,407 121,818 132,868 132,032 
 
 
 
 LIABILITIES 
 Homebuilding senior notes and other debts payable, net Level 2 $ 4,297,251 4,310,479 4,084,686 4,122,169 
 Financial Services notes and other debts payable, net Level 2 1,584,448 1,584,841 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) August 31, 2026 November 30, 2025 
 Financial Services Assets: 
 Residential loans held-for-sale Level 2 $ 1,725,686 2,170,677 
 
 LMF Commercial loans held-for-sale Level 3 35,896 26,401 
 
 
 
 Mortgage servicing rights Level 3 3,094 3,266 
 Forward options Level 1 91 986 
 Lennar Other Assets: 
 Investments in equity securities Level 1 $ 58,693 232,372 
 Investments available-for-sale Level 3 38,804 39,060 

 21 

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

 Residential and LMF Commercial loans held-for-sale in the table above include: 
 
 At August 31, 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 $ 1,805,595 ( 79,909 ) 2,206,966 ( 36,289 ) 
 LMF Commercial loans held-for-sale 
 36,950 ( 1,054 ) 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 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. 
 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: 
 
 
 August 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. 
 22 

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

 The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: 
 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (In thousands) 2026 2025 2026 2025 
 Changes in fair value included in Financial Services revenues: 
 Loans held-for-sale $ ( 18,219 ) 23,361 ( 43,708 ) 21,011 
 Mortgage loan commitments ( 9,296 ) 34,590 ( 18,606 ) 45,511 
 Forward contracts 19,067 ( 36,411 ) 27,642 ( 7,919 ) 
 
 Interest rate swaps ( 37 ) ( 6,652 ) 8,241 ( 6,490 ) 
 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 
 
 Changes in fair value included in other comprehensive income (loss), net of tax: 
 Lennar Other investments available-for-sale $ 79 — ( 256 ) ( 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 August 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 $ 2,983 70,296 3,467 72,203 
 Purchases/loan originations 141 28,950 45 177,837 
 
 Sales/loan originations sold, including those not settled — ( 65,300 ) — ( 172,643 ) 
 Disposals/settlements ( 59 ) — ( 104 ) — 
 Changes in fair value (1) 29 1,950 ( 118 ) 483 
 Interest and principal paydowns — — — ( 93 ) 
 Ending balance $ 3,094 35,896 3,290 77,787 

 
 Nine Months Ended August 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 405 185,300 322 486,677 
 Sales/loan originations sold, including those not settled — ( 174,875 ) — ( 458,466 ) 
 Disposals/settlements ( 183 ) — ( 257 ) — 
 Changes in fair value (1) ( 394 ) ( 1,054 ) ( 238 ) ( 264 ) 
 Interest and principal paydowns — 124 — ( 476 ) 
 Ending balance $ 3,094 $ 35,896 $ 3,290 $ 77,787 

 (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: 
 23 

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

 
 Three Months Ended August 31, 
 
 2026 2025 
 (In thousands) Fair Value
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 ) 
 
 Deposits and pre-acquisition costs on real estate (3) Level 3 947 — ( 947 ) 8,919 — ( 8,919 ) 
 
 Financial Services - financial assets: 
 Loans held-for-sale (4) Level 3 $ 13,550 13,693 143 61,001 50,284 ( 10,717 ) 
 
 
 
 

 
 Nine Months Ended August 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 $ 1,223,403 1,011,922 ( 211,481 ) 1,221,892 1,103,619 ( 118,273 ) 
 Land and land under development (2) Level 3 549 — ( 549 ) 191 134 ( 57 ) 
 Deposits and pre-acquisition costs on real estate (3) Level 3 7,686 — ( 7,686 ) 17,847 — ( 17,847 ) 
 
 Financial Services - financial assets: 
 Loans held-for-sale (4) Level 3 $ 14,036 13,693 ( 343 ) 61,001 50,284 ( 10,717 ) 
 Multifamily - non-financial assets: 
 Investments in unconsolidated entities (5) Level 3 $ — — — 10,716 — ( 10,716 ) 
 
 

 (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). 
 (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: 
 24 

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

 
 Communities with valuation adjustments 
 At or for the Nine Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value 
 (in thousands) 
 Valuation Adjustments 
 (in thousands) 
 
 
 August 31, 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: 
 
 Nine Months Ended August 31, 
 
 2026 2025 
 Unobservable inputs Range Range 
 Average selling price (1) $ 129,000 — 1,706,000 168,000 — 872,000 
 Absorption rate per quarter (homes) 1 — 19 2 — 11 
 Discount rate 20 % 20 % 

 (1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the nine months ended August 31, 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 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 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. 
 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. 
 25 

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

 Unconsolidated VIEs 
 The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows: 
 At August 31, 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) $ 766,073 780,572 824,241 861,679 
 Multifamily (2) 206,446 207,047 167,873 169,364 
 Financial Services (3) 125,051 125,051 135,396 135,396 
 Lennar Other (4) 101,175 101,175 105,151 105,151 
 $ 1,198,745 1,213,845 1,232,661 1,271,590 

 (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 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 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. 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 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 $ 456.5 million as of August 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 
 26 

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

 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 August 31, 2026 At November 30, 2025 
 Non-refundable option deposits and pre-acquisition costs on real estate $ 7,236,290 6,301,909 
 Non-refundable option deposits included in consolidated inventory not owned 157,597 220,025 
 Letters of credit in lieu of cash deposits under certain land and option contracts 423,418 443,277 

 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. 
 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 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. 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: 
 27 

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

 
 Three Months Ended Nine Months Ended 
 August 31, August 31, 
 (In thousands) 2026 2025 2026 2025 
 Warranty reserve, beginning of the period $ 383,152 442,058 400,591 446,240 
 Warranties issued 45,753 62,241 135,752 185,873 
 Adjustments to pre-existing warranties from changes in estimates (1) ( 24,719 ) ( 11,260 ) ( 4,814 ) 3,126 
 
 Payments ( 58,661 ) ( 70,154 ) ( 186,004 ) ( 212,354 ) 
 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 nine months ended August 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 August 31, 2026 At November 30, 2025 
 Right-of-use assets $ 237,998 269,011 
 Lease liabilities 236,991 264,157 
 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 August 31, 2026 were as follows: 
 
 (In thousands) Lease Payments 
 2026 $ 23,006 
 2027 71,836 
 2028 47,857 
 2029 31,764 
 2030 26,889 
 Thereafter 66,805 
 Total future minimum lease payments (1) $ 268,157 
 Less: Interest (2) 31,166 
 Present value of lease liabilities (2) $ 236,991 

 (1) Total future minimum lease payments exclude variable lease costs of $ 30.1 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 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: 
 
 
 Nine Months Ended August 31, 
 
 (In thousands) 2026 2025 
 Rental expense $ 132,186 148,271 
 

 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 
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 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 nine months ended August 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
