What changed in this filing

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Item 1. Financial Statements

2025-08-05 compared with 2025-04-30 · 107 added, 76 removed, 382 unchanged (32% of the section changed)

3 unchanged sentences

(In thousands, except share data)

March 31, December 31,

June 30, December 31,

Cash and cash equivalents $ 59,560 $ 53,197

13 unchanged sentences

COMMITMENTS AND CONTINGENCIES

Common stock, par value $ 0.01 , 250,000,000 shares authorized, 27,693,526 shares issued and 23,404,502 shares outstanding as of March 31, 2025 and 27,644,413 shares issued and 23,397,074 shares outstanding as of December 31, 2024

Common stock, par value $ 0.01 , 250,000,000 shares authorized, 27,713,227 shares issued and 23,056,635 shares outstanding as of June 30, 2025 and 27,644,413 shares issued and 23,397,074 shares outstanding as of December 31, 2024

Additional paid-in capital 345,189 337,161

Retained earnings 2,121,314 2,085,787

Treasury stock, at cost, 4,289,024 shares as of March 31, 2025 and 4,247,339 shares as of December 31, 2024

Treasury stock, at cost, 4,656,592 shares as of June 30, 2025 and 4,247,339 shares as of December 31, 2024

( 409,635 ) ( 385,996 )

5 unchanged sentences

(In thousands, except share and per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Home sales revenues $ 483,485 $ 602,497 $ 834,905 $ 993,348

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BALANCE— March 31, 2025 27,693,526 $ 277 $ 341,515 $ 2,089,781 $ ( 389,047 ) $ 2,042,526

Net income — — — 31,533 — 31,533

Stock repurchases including excise tax — — — — ( 20,588 ) ( 20,588 )

Compensation expense for equity awards — — 2,826 — — 2,826

Stock issued under employee incentive plans 19,701 — 848 — — 848

BALANCE— June 30, 2025 27,713,227 $ 277 $ 345,189 $ 2,121,314 $ ( 409,635 ) $ 2,057,145

Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Total Equity

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Restricted stock units granted for accrued annual bonuses — — 786 — — 786

Stock repurchase — — — — ( 10,002 ) ( 10,002 )

Stock repurchases including excise tax — — — — ( 10,002 ) ( 10,002 )

Compensation expense for equity awards — — 3,829 — — 3,829

1 unchanged sentence

BALANCE— March 31, 2024 27,596,140 $ 276 $ 327,182 $ 1,906,769 $ ( 365,024 ) $ 1,869,203

Net income — — — 58,573 — 58,573

Stock repurchases including excise tax — — — — ( 7,998 ) ( 7,998 )

Compensation expense for equity awards — — 2,841 — — 2,841

Stock issued under employee incentive plans 16,602 — 1,223 — — 1,223

BALANCE— June 30, 2024 27,612,742 $ 276 $ 331,246 $ 1,965,342 $ ( 373,022 ) $ 1,923,842

See accompanying notes to the consolidated financial statements.

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

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Purchases of property and equipment ( 885 ) ( 1,281 )

Proceeds from sale of assets held for sale — 3,019

Investment in unconsolidated entities ( 3,431 ) ( 1,647 )

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Results for interim periods are not necessarily indicative of results to be expected for the full year.

The accompanying unaudited financial statements as of March 31, 2025, and for the three months ended March 31, 2025 and 2024, include the accounts of the Company and its subsidiaries.

The accompanying unaudited financial statements as of June 30, 2025, and for the three and six months ended June 30, 2025 and 2024, include the accounts of the Company and its subsidiaries.

All intercompany balances and transactions have been eliminated in consolidation.

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Our real estate inventory consists of the following (in thousands):

March 31, December 31,

June 30, December 31,

Land, land under development and finished lots $ 2,524,651 $ 2,287,352

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We build and lease a number of single-family homes in select, existing communities.

During the three months ended March 31, 2025 and 2024, we transferred $ 13.4 million and $ 3.9 million, respectively, of home assets from real estate inventory to rental properties within property and equipment, net.

During the six months ended June 30, 2025 and 2024, we transferred $ 41.4 million and $ 11.0 million, respectively, of home assets from real estate inventory to rental properties within property and equipment, net.

We are lessors of the homes representing these home assets.

1 unchanged sentence

Accrued and other liabilities consist of the following (in thousands):

March 31, December 31,

June 30, December 31,

Real estate inventory development and construction payable $ 59,834 $ 48,019

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Changes to our warranty accrual are as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Warranty reserves, beginning of period $ 16,500 $ 14,000 $ 16,100 $ 13,600

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Revolving Credit Agreement

On October 9, 2024, we entered into an amendment to the Fifth Amended and Restated Credit Agreement, dated as of April 28, 2021, with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent (as amended through October 9, 2024, the “2024 Credit Agreement”).

The 2024 Credit Agreement provides for a $ 1.205 billion revolving credit facility, which can be increased at the request of the Company by up to $ 95.0 million, subject to the terms and conditions of the 2024 Credit Agreement.

The 2024 Credit Agreement matures on April 28, 2028 with respect to $ 1.085 billion, or 90.0 %, of the $ 1.205 billion of commitments thereunder and on April 28, 2025 with respect to 10.0 % of the commitments thereunder.

Before each anniversary of the 2024 Credit Agreement, we may request a one-year extension of its maturity date.

The 2024 Credit Agreement is guaranteed by, among others, each of our subsidiaries that have gross assets of at least $ 0.5 million, other than subsidiaries whose sole purpose is to own and operate single-family rental homes.

The borrowings and letters of credit outstanding under the 2024 Credit Agreement, together with the outstanding principal balance of our 8.750 % Senior Notes due 2028 (the “2028 Senior Notes”), our 4.000 % Senior Notes due 2029 (the “2029 Senior Notes”) and our 7.000 % Senior Notes due 2032 (the “2032 Senior Notes”), may not exceed the borrowing base under the 2024 Credit Agreement.

The borrowing base primarily consists of a percentage of commercial land, land held for development, lots under development and finished lots held by the Company and its subsidiaries that guarantee the obligations under the 2024 Credit Agreement.

As of March 31, 2025, the borrowing base under the 2024 Credit Agreement was $ 2.0 billion, of which the maximum available to borrow was $ 2.0 billion.

As of March 31, 2025, borrowings under the 2024 Credit Agreement and the outstanding principal amount of the 2028 Senior Notes, the 2029 Senior Notes and the 2032 Senior Notes totaled approximately $ 1.6 billion, $ 24.5 million of letters of credit were outstanding and $ 302.4 million was available to borrow under the 2024 Credit Agreement.

Borrowings under the 2024 Credit Agreement bear interest, payable monthly in arrears, at the Company’s option, at either (1) the Adjusted Term SOFR (defined as a term SOFR that is based on a fixed 1, 3 or 6 month interest period, as selected by the Company, plus a 10 , 15 or 25 basis point adjustment, respectively), which rate is subject to a 50 basis point floor, plus an applicable margin ranging from 145 basis points to 210 basis points (the “Applicable Margin”) based on the Company’s leverage ratio as determined in accordance with a pricing grid, or (2) the Base Rate (defined as a term SOFR that is based on a daily variable 1 month interest period plus a 10 basis point adjustment), subject to a 50 basis point floor, plus the Applicable Margin.

At March 31, 2025, the Applicable Margin was 1.85 %, and SOFR was 4.32 %, subject to the 0.50 % SOFR floor as included in the 2024 Credit Agreement.

The 2024 Credit Agreement contains various financial covenants, including a minimum tangible net worth, a leverage ratio, a minimum liquidity amount and an EBITDA to interest expense ratio.

The 2024 Credit Agreement contains various covenants that, among other restrictions, limit the amount of our additional debt and our ability to make certain investments.

At March 31, 2025, we were in compliance with all of the covenants contained in the 2024 Credit Agreement.

On April 28, 2025, we entered into a Sixth Amendment to Fifth Amended and Restated Credit Agreement with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent (the “Sixth Amendment”), which amended the 2024 Credit Agreement (as so amended by the Sixth Amendment, the “Credit Agreement”).

The Sixth Amendment, among other things, (a) extended the maturity of the commitments of certain lenders under the Credit Agreement to April 28, 2029, (b) added certain financial institutions as issuers of letters of credit and (c) reset the tangible net worth financial covenant for the period from and after the date of the Sixth Amendment.

The Credit Agreement matures on April 28, 2029 with respect to $ 972.5 million, or 82.2 %, of the $ 1.1825 billion of commitments thereunder and on April 28, 2028 with respect to 17.8 % of the commitments thereunder.

The Credit Agreement otherwise has substantially similar terms and provisions to the 2024 Credit Agreement.

On April 28, 2025, we entered into a Sixth Amendment to Fifth Amended and Restated Credit Agreement with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent, and on June 2, 2025, we entered into a Letter Agreement with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent, in each case which amended the Fifth Amended and Restated Credit Agreement, dated as of April 28, 2021, with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent (as amended through June 2, 2025, the “June 2025 Credit Agreement”).

The June 2025 Credit Agreement provides for a $ 1.1825 billion revolving credit facility, which can be increased at the request of the Company by up to $ 95.0 million, subject to the terms and conditions of the June 2025 Credit Agreement.

The June 2025 Credit Agreement matures on April 28, 2029 with respect to $ 972.5 million, or 82.2 %, of the $ 1.1825 billion of commitments thereunder and on April 28, 2028 with respect to 17.8 % of the commitments thereunder.

Before each anniversary of the June 2025 Credit Agreement, we may request a one-year extension of its maturity date.

The June 2025 Credit Agreement is guaranteed by, among others, each of our subsidiaries that have gross assets of at least $ 0.5 million, other than subsidiaries whose sole purpose is to own and operate single-family rental homes.

The borrowings and letters of credit outstanding under the June 2025 Credit Agreement, together with the outstanding principal balance of our 8.750 % Senior Notes due 2028 (the “2028 Senior Notes”), our 4.000 % Senior Notes due 2029 (the “2029 Senior Notes”) and our 7.000 % Senior Notes due 2032 (the “2032 Senior Notes”), may not exceed the borrowing base under the June 2025 Credit Agreement.

As of June 30, 2025, the borrowing base under the June 2025 Credit Agreement was $ 2.1 billion, of which the maximum available to borrow was $ 2.0 billion.

As of June 30, 2025, borrowings under the June 2025 Credit Agreement and the outstanding principal amount of the 2028 Senior Notes, the 2029 Senior Notes and the 2032 Senior Notes totaled approximately $ 1.8 billion, $ 27.4 million of letters of credit were outstanding and $ 263.0 million was available to borrow under the June 2025 Credit Agreement.

Borrowings under the June 2025 Credit Agreement bear interest, payable monthly in arrears, at the Company’s option, at either (1) the Adjusted Term SOFR (defined as a term SOFR that is based on a fixed 1, 3 or 6 month interest period, as selected by the Company, plus a 10 , 15 or 25 basis point adjustment, respectively), which rate is subject to a 50 basis point floor, plus an applicable margin ranging from 145 basis points to 210 basis points (the “Applicable Margin”) based on the Company’s leverage ratio as determined in accordance with a pricing grid, or (2) the Base Rate (defined as a term SOFR that is based on a daily variable 1 month interest period plus a 10 basis point adjustment), subject to a 50 basis point floor, plus the Applicable Margin.

At June 30, 2025, the Applicable Margin was 1.85 %, and SOFR was 4.33 %, subject to the 0.50 % SOFR floor as included in the June 2025 Credit Agreement.

The June 2025 Credit Agreement contains various financial covenants, including a minimum tangible net worth, a maximum leverage ratio, a minimum liquidity amount and a minimum EBITDA to interest expense ratio.

The June 2025 Credit Agreement contains various covenants that, among other restrictions, limit the amount of our additional debt and our ability to make certain investments.

At June 30, 2025, we were in compliance with all of the covenants contained in the June 2025 Credit Agreement.

On August 1, 2025, we entered into a Letter Agreement with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent (the “Letter Agreement Amendment”), which amended the June 2025 Credit Agreement (as so amended by the Letter Agreement Amendment, the “Credit Agreement”).

The Letter Agreement Amendment, among other things, amended (i) the borrowing base by removing model housing units from the borrowing base sublimit, (ii) the financial covenants to (a) decrease the minimum EBITDA to interest expense ratio through December 31, 2026, (b) increase the minimum liquidity amount, (c) decrease the maximum leverage ratio through December 31, 2026 and (d) delete the covenant related to limitations on wholesale sales contracts, (iii) the permitted secured debt basket by increasing the available capacity thereunder and (iv) the restricted payment covenant to restrict the repurchase of shares and payment of dividends

through December 31, 2026, subject to the terms and conditions set forth therein.

The Credit Agreement otherwise has substantially similar terms and provisions to the June 2025 Credit Agreement.

Senior Notes Offering

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Notes payable consist of the following (in thousands):

March 31, 2025 December 31, 2024

Notes payable under the 2024 Credit Agreement ($ 1.205 billion revolving credit facility at March 31, 2025) maturing in part on April 28, 2025 and in part on April 28, 2028;

interest paid monthly at SOFR plus 1.85 %

June 30, 2025 December 31, 2024

Notes payable under the Credit Agreement ($ 1.1825 billion revolving credit facility at June 30, 2025, maturing in part on April 28, 2028 and in part on April 28, 2029, with interest paid monthly at SOFR plus 1.85 %;

$ 1.205 billion revolving credit facility at December 31, 2024, maturing in part on April 28, 2025 and in part on April 28, 2028, with interest paid monthly at SOFR plus 1.85 %)

$ 662,590 $ 401,946

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Interest activity, including other financing costs, for notes payable and financing arrangements for the periods presented is as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Interest incurred $ 32,601 $ 29,223 $ 62,524 $ 58,586

2 unchanged sentences

Cash paid for interest $ 42,907 $ 35,482 $ 58,425 $ 56,768

Included in interest incurred was amortization of deferred financing costs and applicable discounts for notes payable and financing arrangements of $ 2.7 million and $ 4.9 million for the three months ended March 31, 2025 and 2024, respectively.

Included in interest incurred was amortization of deferred financing costs and applicable discounts for notes payable and financing arrangements of $ 2.7 million and $ 4.4 million for the three months ended June 30, 2025 and 2024, respectively, and $ 5.4 million and $ 10.0 million for the six months ended June 30, 2025 and 2024, respectively.

and state income tax returns in jurisdictions with varying statutes of limitations.

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however, audit outcomes and the timing of audit adjustments are subject to significant uncertainty.

For the three months ended March 31, 2025, our effective tax rate of 30.2 % is higher than the Federal statutory rate primarily as a result of an increase in the rate for state income taxes, net of the federal benefit, and the compensation cost in excess of deductions for share-based payments.

Income taxes paid were $ 38.6 million and $ 12.1 million for the three months ended March 31, 2025 and 2024, respectively.

For the three months ended June 30, 2025, our effective tax rate of 25.0 % is higher than the Federal statutory rate primarily as a result of an increase in the rate for state income taxes, net of the federal benefit, and the compensation limitation under Section 162(m) of the Internal Revenue Code, as amended.

For the six months ended June 30, 2025, our effective tax rate of 25.6 % is higher than the Federal statutory rate primarily as a result of an increase in the rate for state income taxes, net of the federal benefit, the compensation cost in excess of deductions for share-based payments, and the compensation limitation under Section 162(m) of the Internal Revenue Code, as amended.

Income taxes paid were $ 21.3 million and $ 16.2 million for the three months ended June 30, 2025 and 2024, respectively.

Income taxes paid were $ 59.9 million and $ 28.3 million for the six months ended June 30, 2025 and 2024, respectively.

On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform provisions affecting corporations.

The OBBBA, among other changes, terminates the energy efficient homes tax credit for homes closing after June 30, 2026.

However, none of these tax law changes are expected to have an impact on the consolidated financial statements beginning in the period in which the OBBBA was signed into law.

Stock Repurchase Program

In February 2022, our Board of Directors (the “Board”) approved a $ 200.0 million increase to our previously authorized stock repurchase program, pursuant to which we may purchase up to $ 550.0 million of shares of our common stock through open market transactions, privately negotiated transactions or otherwise in accordance with applicable laws.

During the three months ended March 31, 2025 and 2024, we repurchased 41,685 shares of our common stock for $ 3.1 million to be held as treasury stock and 89,227 shares of our common stock for $ 10.0 million to be held as treasury stock, respectively.

A total of 3,289,024 shares of our common stock has been repurchased since our stock repurchase program commenced.

As of March 31, 2025, we may purchase up to $ 177.7 million of shares of our common stock under our stock repurchase program.

During the three and six months ended June 30, 2025, we repurchased 367,568 shares of our common stock at a total cost, including commissions and excise taxes, of $ 20.6 million and 409,253 shares of our common stock at a total cost, including commissions and excise taxes, of $ 23.6 million, respectively, to be held as treasury stock.

During the three and six months ended June 30, 2024, we repurchased 83,763 shares of our common stock at a total cost, including commissions and excise taxes, of $ 8.0 million and 172,990 shares of our common stock at a total cost, including commissions and excise taxes, of $ 18.0 million, respectively, to be held as treasury stock.

A total of 3,656,592 shares of our common stock has been repurchased since our stock repurchase program commenced in 2022.

As of June 30, 2025, we may purchase up to $ 157.3 million of shares of our common stock under our stock repurchase program.

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Numerator (in thousands):

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Non-performance Based Restricted Stock Units

The following table summarizes the activity of our time-vested restricted stock units (“RSUs”):

Three Months Ended March 31,

The following table summarizes the activity of our time-vested restricted stock units (“RSUs”) for the six months ended June 30, 2025:

Six Months Ended June 30,

Shares Weighted Average Grant Date Fair Value

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Ending balance 247,577 $ 92.53

We recognized $ 1.7 million and $ 1.4 million of stock-based compensation expense related to outstanding RSUs for the three months ended March 31, 2025 and 2024, respectively.

We recognized $ 1.8 million and $ 1.4 million of stock-based compensation expense related to outstanding RSUs for the three months ended June 30, 2025 and 2024, respectively.

We recognized $ 3.5 million and $ 2.8 million of stock-based compensation expense related to outstanding RSUs for the six months ended June 30, 2025 and 2024, respectively.

Generally, the RSUs cliff vest on the third anniversary of the grant date and can only be settled in shares of our common stock.

At March 31, 2025, we had unrecognized compensation cost of $ 13.6 million related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.3 years.

At June 30, 2025, we had unrecognized compensation cost of $ 12.3 million related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.1 years.

Performance-Based Restricted Stock Units

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The PSUs provide for shares of our common stock to be issued based on the attainment of certain performance metrics over the applicable three-year periods.

The number of shares of our common stock that may be issued to the recipients for the PSUs range from 0 % to 200 % of the target amount depending on actual results as compared to the target performance metrics.

The number of shares of our common stock that may be issued to the recipients for the PSUs range from 0 % to 200 % of the target amount depending on actual results as compared to the target

performance metrics.

The terms of the PSUs provide that the payouts will be capped at 100 % of the target number of PSUs granted if absolute total stockholder return is negative during the performance period, regardless of EPS performance;

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The PSUs can only be settled in shares of our common stock.

The following table summarizes the activity of our PSUs for the three months ended March 31, 2025:

Three Months Ended March 31,

The following table summarizes the activity of our PSUs for the six months ended June 30, 2025:

Six Months Ended June 30,

Target Shares

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Ending balance 252,725 $ 92.92

At March 31, 2025, management estimates that the recipients will receive approximately 86.3 % of the weighted average target number of PSUs outstanding at the end of the applicable three-year performance cycle based on projected performance compared to the target performance metrics.

At June 30, 2025, management estimates that the recipients will receive approximately 77.9 % of the weighted average target number of PSUs outstanding at the end of the applicable three-year performance cycle based on projected performance compared to the target performance metrics.

PSUs granted in 2022 were forfeited based on actual results as compared to the target performance metrics.

We recognized $ 0.6 million and $ 2.0 million of total stock-based compensation expense related to outstanding PSUs for the three months ended March 31, 2025 and 2024, respectively.

At March 31, 2025, we had unrecognized compensation cost of $ 14.0 million, based on the probable amount, related to unvested PSUs, which is expected

to be recognized over a weighted average period of 2.5 years.

We recognized $ 0.9 million and $ 1.2 million of total stock-based compensation expense related to outstanding PSUs for the three months ended June 30, 2025 and 2024, respectively.

We recognized $ 1.5 million and $ 3.2 million of total stock-based compensation expense related to outstanding PSUs for the six months ended June 30, 2025 and 2024, respectively.

At June 30, 2025, we had unrecognized compensation cost of $ 11.4 million, based on the probable amount, related to unvested PSUs, which is expected to be recognized over a weighted average period of 2.3 years.

PSUs granted in 2023, 2024 and 2025 are excluded from the calculation of diluted EPS as they are subject to unsatisfied performance conditions.

Employee Stock Purchase Plan

On April 24, 2025, our stockholders approved and authorized 500,000 additional shares of our common stock that may be sold under the LGI Homes, Inc.

2016 Employee Stock Purchase Plan (“the ESPP”).

The maximum number of shares of our common stock that may be sold under the ESPP is 1,000,000 shares.

FAIR VALUE DISCLOSURES

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Fair value measurements may also be utilized on a nonrecurring basis, such as for the impairment of long-lived assets.

The fair value of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities, approximate their carrying amounts due to the short-term nature of these instruments.

As of March 31, 2025, the 2024 Credit Agreement’s carrying value approximates market value since it has a floating interest rate, which increases or decreases with market interest rates and our leverage ratio.

The fair value of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and

certain accrued liabilities, approximate their carrying amounts due to the short-term nature of these instruments.

As of June 30, 2025, the June 2025 Credit Agreement’s carrying value approximates market value since it has a floating interest rate, which increases or decreases with market interest rates and our leverage ratio.

In order to determine the fair value of each of the 2028 Senior Notes, the 2029 Senior Notes and the 2032 Senior Notes, the future contractual cash flows are discounted at our estimate of current market rates of interest, which were determined based upon the average interest rates of similar senior notes within the homebuilding industry (Level 2 measurement).

The following table below shows the level and measurement of liabilities at March 31, 2025 and December 31, 2024 (in thousands):

March 31, 2025 December 31, 2024

The following table below shows the level and measurement of liabilities at June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025 December 31, 2024

Fair Value Hierarchy Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value

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The following is a summary of our land purchase deposits included in pre-acquisition costs and deposits (in thousands, except for lot count):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Land deposits and option payments (1)

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(1) Includes land banking financing arrangements, see Note 2 and Note 3 for more details regarding real estate not owned.

As of March 31, 2025 and December 31, 2024, approximately $ 8.0 million and $ 10.4 million, respectively, of the land deposits are related to purchase contracts to deliver finished lots that are refundable under certain circumstances, such as feasibility or specific performance, and secured by mortgages or letters of credit or guaranteed by the seller or its affiliates.

As of June 30, 2025 and December 31, 2024, approximately $ 7.3 million and $ 10.4 million, respectively, of the land deposits are related to purchase contracts to deliver finished lots that are refundable under certain circumstances, such as feasibility or specific performance, and secured by mortgages or letters of credit or guaranteed by the seller or its affiliates.

Lease Obligations

2 unchanged sentences

We have non-cancelable operating leases primarily associated with our corporate and regional office facilities.

Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms.

Operating lease expense is

recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms.

Variable lease costs such as common area costs and property taxes are expensed as incurred.

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As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

ROU assets, as included in other assets on the consolidated balance sheets, were $ 5.6 million as of both March 31, 2025 and December 31, 2024.

Lease obligations, as included in accrued expenses and other liabilities on the consolidated balance sheets, were $ 6.1 million as of both March 31, 2025 and December 31, 2024.

Operating lease cost, as included in general and administrative expense in our consolidated statements of operations, was $ 0.5 million and $ 0.4 million for the three months ended March 31, 2025 and 2024, respectively.

Cash paid for amounts included in the measurement of lease liabilities for operating leases was $ 0.6 million and $ 0.6 million for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, the weighted-average discount rate was 5.9 % and our weighted-average remaining life was 2.1 years.

We do not have any significant lease contracts that have not yet commenced at March 31, 2025.

The table below shows the future minimum payments under non-cancelable operating leases at March 31, 2025 (in thousands):

ROU assets, as included in other assets on the consolidated balance sheets, were $ 5.2 million and $ 5.6 million as of June 30, 2025 and December 31, 2024, respectively.

Lease obligations, as included in accrued expenses and other liabilities on the consolidated balance sheets, were $ 5.7 million and $ 6.1 million as of June 30, 2025 and December 31, 2024, respectively.

Operating lease cost, as included in general and administrative expense in our consolidated statements of operations, was $ 0.5 million and $ 0.6 million for the three months ended June 30, 2025 and 2024, respectively.

Operating lease cost, as included in general and administrative expense in our consolidated statements of operations, was $ 1.0 million and $ 1.2 million for the six months ended June 30, 2025 and 2024, respectively.

Cash paid for amounts included in the measurement of lease liabilities for operating leases was $ 0.6 million and $ 0.9 million for the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, the weighted-average discount rate was 6.0 % and our weighted-average remaining life was 2.0 years.

We do not have any significant lease contracts that have not yet commenced at June 30, 2025.

The table below shows the future minimum payments under non-cancelable operating leases at June 30, 2025 (in thousands):

Year Ending December 31, Operating leases

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Bonding and Letters of Credit

We have outstanding letters of credit and performance and surety bonds totaling $ 427.2 million (including $ 24.5 million of letters of credit issued under the 2024 Credit Agreement) and $ 377.5 million (including $ 24.5 million of letters of credit issued under the 2024 Credit Agreement) at March 31, 2025 and December 31, 2024, respectively, related to our obligations for

site improvements at various projects.

We have outstanding letters of credit and performance and surety bonds totaling $ 431.4 million (including $ 27.4 million of letters of credit issued under the June 2025 Credit Agreement) and $ 377.5 million (including $ 24.5 million of letters of credit issued under the credit agreement then in effect) at June 30, 2025 and December 31, 2024, respectively, related to our obligations for site improvements at various projects.

Management does not believe that draws upon the letters of credit, surety bonds or financial guarantees if any, will have a material effect on our consolidated financial position, results of operations or cash flows.

Investment in Unconsolidated Entities

As of March 31, 2025, we had two equity-method real estate joint ventures and four additional joint ventures engaged primarily to provide services, such as mortgage and insurance, to our homebuyers.

As of March 31, 2025 and December 31, 2024, we have a total of $ 24.6 million and $ 28.3 million, respectively, within other assets on the balance sheet relating to our investment in joint ventures associated with our operations.

As of June 30, 2025, we had two equity-method real estate joint ventures and four additional joint ventures engaged primarily to provide services, such as mortgage and insurance, to our homebuyers.

As of June 30, 2025 and December 31, 2024, we have a total of $ 23.5 million and $ 28.3 million, respectively, within other assets on the balance sheet relating to our investment in joint ventures associated with our operations.

Contributions into the unconsolidated entities are for the use of investing in certain real estate transactions and residential mortgage services, respectively.

Income associated with our investment in unconsolidated entities during the three months ended March 31, 2025 and 2024 was $ 0.9 million and $ 2.0 million, respectively.

Income associated with our investment in unconsolidated entities during the three and six months ended June 30, 2025 was $ 1.0 million and $ 1.9 million, respectively.

Income associated with our investment in unconsolidated entities during the three and six months ended June 30, 2024 was $ 3.0 million and $ 5.0 million, respectively.

Home Sales Revenues

1 unchanged sentence

The following table presents our home sales revenues disaggregated by revenue stream (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Retail home sales revenues $ 412,056 $ 566,772 $ 708,995 $ 929,061

5 unchanged sentences

We operate one principal homebuilding business that is organized and reports by division.

We have seven operating segments (our Central, Midwest, Southeast, Mid-Atlantic, Northwest, West and Florida divisions) that we aggregate into five qualifying reportable segments at March 31, 2025:

We have seven operating segments (our Central, Midwest, Southeast, Mid-Atlantic, Northwest, West and Florida divisions) that we aggregate into five qualifying reportable segments at June 30, 2025:

our Central, Southeast, Northwest, West, and Florida divisions.

15 unchanged sentences

Financial information relating to our reportable segments was as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Central $ 112,986 $ 173,434 $ 214,132 $ 277,170

18 unchanged sentences

Corporate (2)

$ 57 $ 764 $ 586 $ 1,100

Total other segment items $ 68,568 $ 74,001 $ 136,557 $ 142,308

9 unchanged sentences

(2) The Corporate balance consists of general and administrative unallocated costs for various shared service functions and non-strategic other income.

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Central $ 1,197,008 $ 1,096,500

8 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements