What changed in this filing

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Item 1. Business

2026-02-20 compared with 2025-02-26 · 53 added, 59 removed, 230 unchanged (33% of the section changed)

2 unchanged sentences

Since commencing home building operations in 2003, we have constructed and closed over 80,000 homes.

During the year ended December 31, 2024, we had 6,131 home closings, including the bulk sale of 103 leased, single-family homes, compared to 6,729 home closings in 2023.

LGI Homes, Inc.

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Since December 2013, we have grown substantially, expanding our operations from eight markets in four states to 36 markets in 21 states.

As of December 31, 2024, we were active in 151 communities throughout the United States.

We focus on demographic and economic trends forecasted for these markets and expect to continue increasing our community count in the future.

As of December 31, 2025, we were active in 144 communities throughout the United States and expect to continue increasing our community count in the future.

Driven by commitment to our customers and our desire to make their dreams of homeownership a reality, we offer multiple product lines, including attached and detached entry-level homes and active adult offerings that are marketed and sold under our LGI Homes brand and luxury homes that are marketed and sold under our Terrata Homes brand.

During 2024, our average home completion time was approximately 105 to 135 calendar days, our home size ranged between 900 to approximately 4,100 square feet and our overall sales prices ranged from approximately $191,000 to more than $1,000,000.

During 2025, our average home completion time was approximately 105 to 135 days, our home size ranged between 900 to approximately 4,000 square feet and our overall sales prices ranged from approximately $192,000 to more than $1,230,000.

For the year ended December 31, 2025, we closed 4,788 homes, including 103 currently or previously leased single-family homes.

Excluding the 103 currently or previously leased single-family homes, our average sales price per home closed was $364,035.

During 2024, our average home completion time was approximately 105 to 135 days, our home size ranged between 900 to approximately 4,100 square feet and our overall sales prices ranged from approximately $191,000 to more than $1,000,000.

For the year ended December 31, 2024, we closed 6,131 homes, including the bulk sale of 103 leased single-family homes.

Excluding the bulk sale of 103 leased single-family homes, our average sales price per home closed was $365,394.

During 2023, our average home completion time was approximately 108 to 150 days, our home size ranged between 950 to approximately 4,100 square feet and our overall sales prices ranged from approximately $189,000 to more than $1,000,000.

For the year ended December 31, 2023, we closed 6,729 homes at an average sales price per home closed of $350,510.

We pursue a flexible land acquisition strategy of purchasing or optioning finished lots at attractive prices, or purchasing raw land for residential development.

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Additionally, we engage in other business activities that leverage or complement our core homebuilding operations.

Our wholesale business builds and sells homes primarily to large institutions interested in acquiring single-family rental properties through bulk sales agreements.

Our wholesale business sells homes primarily to large institutions interested in acquiring single-family rental properties through bulk sales agreements.

Beginning in 2021, we began building and leasing a number of single-family homes in select, existing communities.

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We use extensive digital and print advertising to attract potential homebuyers.

We employ various marketing methods, such as digital marketing strategies, interactive online media, social media, direct mail, directional signage, and billboards.

These methods have proven highly successful in reaching our target market, placing potential homebuyers in front of our trained sales professionals and communicating our core messages of value and dream fulfillment.

We employ various marketing methods, such as digital marketing strategies, interactive online media, social media, directional signage, and billboards.

methods have proven highly successful in reaching our target market, placing potential homebuyers in front of our trained sales professionals and communicating our core messages of value and dream fulfillment.

While a proportion of our business comes from realtors, our marketing efforts are principally designed to connect directly with potential customers currently renting their residences and encourage them to schedule an in-person appointment at one of our information centers.

Our information centers are typically open eight to ten hours per day, 359 days per year, and generally staffed by two to four sales professionals who are supported by a dedicated loan officer.

Our information centers are typically open 8 to 10 hours per day, 359 days per year, and are generally staffed by two to four sales professionals.

Our commission-based sales professionals are trained to learn about the current housing situation of the customer, educate them on the value proposition of owning an LGI home, and provide them with a comprehensive understanding of the steps required to achieve homeownership.

We also inform customers of our history, vision, and values.

Our sales professionals review credit and income qualifications if applicable, provide floor plans and pricing information, and conduct tours of our homes based on the customer’s needs and budget.

Our sales professionals provide floor plans, pricing information, and conduct tours of our homes based on the customer’s needs and budget.

We provide each customer with a comprehensive introduction to the community and the surrounding area, furnishing them with detailed information regarding utilities, schools, homeowners association dues and restrictions, local entertainment, and nearby dining and shopping options.

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The Midwest division is included in our Central reportable segment and the Mid-Atlantic division is included in our Southeast reportable segment.

We operate in the following markets within these seven operating segments:

West Northwest Central Midwest Florida Southeast Mid-Atlantic

Phoenix, AZ Seattle, WA Houston, TX Minneapolis, MN Tampa, FL Atlanta, GA Washington, D.C.

Tucson, AZ Portland, OR Dallas Ft.

Worth, TX Orlando, FL Charlotte, NC Norfolk, VA

Albuquerque, NM Denver, CO San Antonio, TX Fort Myers, FL Raleigh, NC Richmond, VA

Las Vegas, NV Austin, TX Jacksonville, FL Wilmington, NC Baltimore, MD

Northern CA Oklahoma City, OK Fort Pierce, FL Winston-Salem, NC

Southern CA Daytona Beach, FL Columbia, SC

Salt Lake City, UT Sarasota, FL Greenville, SC

Birmingham, AL

Nashville, TN

Arizona Washington Central Texas Minnesota Central FL Georgia Maryland

New Mexico Oregon Dallas/Ft Worth East FL North Carolina Pennsylvania

Nevada Colorado Houston West FL South Carolina Virginia

Northern CA Oklahoma Alabama West Virginia

Southern CA Tennessee

These operating segments reflect the way we evaluate our business performance and manage our operations.

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We believe in building long lasting relationships with our trade partners in order to provide consistent, quality, and timely deliveries across our markets.

We also work closely with our construction managers and subcontractors and train them using a comprehensive construction manual that outlines the most efficient way to build an LGI home.

We also work closely with our construction managers and subcontractors and provide them a comprehensive construction manual that outlines the most efficient way to build an LGI home.

Our homebuilding operations utilize a paperless purchase order system to conduct business with our subcontractors and suppliers.

Our master build schedule allows our trade partners to receive their specific tasks from our electronic system and plan several weeks in advance before starting their work.

This means of communication allows our subcontractors to schedule their crews efficiently, thereby allowing for better pricing and better quality of work.

This means of communication allows our subcontractors to schedule their

crews efficiently, thereby allowing for better pricing and better quality of work.

Typically, our contractors are paid every week, which contributes to the strength of our business relationships with them.

Our homes are designed to meet the preferences of our target market of potential homebuyers and enable cost efficient and effective construction processes.

In 2019, we introduced our CompleteHome TM and CompleteHome Plus TM packages to continue our legacy of offering buyers well-appointed, move-in ready homes, a streamlined buying experience, and superior quality with even more standard features than offered before.

Each of these packages includes preselected, upgraded features, including stainless steel appliances, cabinets with crown molding, granite or quartz countertops, undermount sinks, as well as convenient outlets with USB charging capability and a Wi-Fi-enabled garage door opener.

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Our CompleteHome Plus package includes everything in the CompleteHome package plus 42” upper cabinets, nine-foot ceilings, designer paint selections, additional landscaping, and window blinds in every room of the house.

We offer an attached townhome product in certain markets that enables us to keep our entry-level price point within reach of more new homebuyers.

We offer an attached town home product in certain markets that enables us to keep our entry-level price point within reach of more new homebuyers.

We believe that this product helps to counter rising land and home costs.

Our active adult community offers affordable homes in both open and age-restricted lifestyles in amenity-rich communities.

This community leverages existing floor plans with minor modifications designed to meet the needs of active adult homebuyers at prices that present a compelling value-proposition.

Our active adult communities offer affordable homes in both open and age-restricted lifestyles in an amenity-rich community.

These communities leverage existing floor plans with minor modifications designed to meet the needs of active adult homebuyers at prices that present a compelling value-proposition.

Our Terrata Homes brand allows us to leverage our systems and processes, including our customer centric sales system, to deliver move-in ready homes with preselected luxury features.

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Our two equity-method real estate joint ventures and four additional joint ventures provide a streamlined, customer-focused experience for our homebuyers.

LGI Mortgage Solutions provides mortgage services to our customers through an unconsolidated joint venture.

LGI Insurance Solutions provides homeowners and other insurance products to our customers through an unconsolidated joint venture.

Our wholesale business provides opportunities for us to leverage our even-flow construction methodology to build and sell homes primarily to large institutions interested in acquiring homes to be used as rental properties through bulk sales agreements.

LGI Mortgage Solutions provides mortgage brokerage services to our customers through an unconsolidated joint venture.

LGI Insurance Solutions provides homeowners insurance and other insurance products to our customers through an unconsolidated joint venture.

Our wholesale business provides opportunities for us to sell homes primarily to large institutions interested in acquiring homes to be used as rental properties through bulk sales agreements.

In addition, as part of our overall homebuilding operations, we periodically sell previously leased homes that were part of our rental activities.

Sales of previously leased homes are generally made to individual homebuyers or investors.

During 2025 and 2024, we had 737 and 552 wholesale home closings, respectively, which represented 15.7% and 9.2% of our total home closings in 2025 and 2024, respectively.

We expect our wholesale business to represent approximately 10% of our annual home closings during 2025.

Home closings related to previously leased homes totaled 103 in both 2025 and 2024.

Land Acquisition Policies and Development

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We also maintain a pipeline of desirable land positions for replacement communities and new communities.

Our lot inventory decreased to 70,899 owned or controlled lots as of December 31, 2024 from 71,081 owned or controlled lots as of December 31, 2023 primarily related to our discipline in the evaluation of and selective approval of new land deals.

Our lot inventory decreased to 60,842 owned or controlled lots as of December 31, 2025 from 70,899 owned or controlled lots as of December 31, 2024, primarily related to our disciplined evaluation of and selective approval of new land opportunities.

We had 144 and 151 active communities as of December 31, 2025 and December 31, 2024, respectively.

Generally, it takes us two to five years to turn raw or undeveloped land into an active community.

Generally, it takes us two to four years to turn raw or undeveloped land into an active community.

We utilize land banking financing arrangements on a limited and strategic basis.

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We believe that our land development expertise will allow us to meet our growth and profit objectives with respect to opportunities in which we are the developer.

Similar to our home building operations, our personnel oversee the contractors who perform the development work.

Similar to our homebuilding operations, our personnel oversee the contractors who perform the development work.

Our land development projects may include the sale of home sites or commercial property as a part of the project.

16 unchanged sentences

Homes in Inventory

When entering a new community, we intend to build a sufficient number of move-in ready homes to meet our budgets.

We intend to build a sufficient number of move-in ready homes to meet our budgets.

We base future home starts on home closings.

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Typically, the raw materials and most of the components used in our business are readily available in the United States.

We purchase some components and materials centrally to leverage our purchasing power to achieve volume discounts, a practice that often reduces costs and ensures timely deliveries.

We purchase some components and materials centrally to achieve volume discounts, a practice that often reduces costs and ensures timely deliveries.

We typically do not store significant inventories of construction materials, except for work in progress materials for homes under construction.

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The particular environmental laws which apply to any given homebuilding site vary according to multiple factors, including the site’s location, whether the site contains wetlands or other features that may create burdensome permitting requirements, its environmental conditions, the present and former uses of the site, the presence or absence of endangered plants or species or sensitive habitats, and environmental conditions at adjoining or nearby properties.

Environmental laws and conditions may result in delays, may cause us to incur substantial compliance and other costs, and can

prohibit or severely restrict homebuilding activity in environmentally sensitive regions or areas.

Environmental laws and conditions may result in delays, may cause us to incur substantial compliance and other costs, and can prohibit or severely restrict homebuilding activity in environmentally sensitive regions or areas.

In addition, in those cases where an endangered or threatened species is involved, environmental rules and regulations can result in the restriction or elimination of development in identified environmentally sensitive areas.

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Under various environmental laws, current or former owners of real estate, as well as certain other categories of parties, may be required to investigate and clean up hazardous or toxic substances or petroleum product releases, and may be held strictly and/or jointly and severally liable to a governmental entity or to third parties for related damages, including property damage or bodily injury, and for investigation and cleanup costs incurred by such parties in connection with the contamination.

A mitigation plan may be implemented during the construction of a home if a cleanup does not remove all contaminants of concern or to address a naturally occurring condition, such as methane or radon.

A mitigation plan may be implemented during the construction of a home if a cleanup does not remove all contaminants of

concern or to address a naturally occurring condition, such as methane or radon.

Some homebuyers may not want to purchase a home that is, or may have been, subject to a mitigation plan.

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We believe we have good relations with our employees.

Our human capital resources objectives include, as applicable, identifying, recruiting, training, retaining, incentivizing and integrating our existing and additional employees.

Our human capital resources objectives include, as applicable, identifying, recruiting, training, retaining, and incentivizing our employees.

We offer our employees a wide array of company-paid benefits, which we believe are competitive relative to others in our industry.

We utilize subcontractors and tradespeople to perform the construction of our homes.

We believe we have good relations with our subcontractors and tradespeople.

We utilize subcontractors and trades people to perform the construction of our homes.

We believe we have good relations with our subcontractors and trades people.

We focus on identifying and attracting the best talent and providing our employees with world-class training and continuous development.

Typically, all new vice presidents, sales professionals and purchasing managers come to our corporate headquarters for a week of training in their first 100 days.

We directly invest in our sales professionals by conducting an intensive 100-day introductory training program consisting of 30 days of initial in-depth, in-house education about our time-proven selling strategies and secondary training at the local division.

We invest directly in our sales professionals through a structured 100-day training program consisting of 30 days of intensive, in-house instruction on our proven selling strategies, followed by field training at the local division.

Our continued commitment to our sales personnel is reflected in the ongoing weekly training sessions held in each of our information centers and quarterly regional training events.

We also work closely with our subcontractors and tradespeople, training them on the most efficient way to build an LGI home.

A number of our subcontractors and tradespeople have worked on our homes since we commenced homebuilding operations in 2003 and, therefore, are familiar with our business model.

We also work closely with our subcontractors and trades people, collaborating with them on the most efficient way to build an LGI home.

A number of our subcontractors and trades people have worked on our homes since we commenced homebuilding operations in 2003 and, therefore, are familiar with our business model.

We are committed to providing competitive benefits to attract and retain employees, including benefits that facilitate healthy lifestyles, mental well-being, and preparedness for retirement.

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Our workplaces are required to comply with all applicable laws and regulations, including those established by the Occupational Safety and Health Administration, as they pertain to health and safety in the workplace.

As part of this commitment, we have implemented a systems-based program of regularly scheduled safety reviews, meetings

and continuing education that are held in our communities and include our employees and the employees of our subcontractors and tradespeople.

As part of this commitment, we have implemented a systems-based program of regularly scheduled safety reviews, meetings, and continuing education that are held in our communities and include our employees and the employees of our subcontractors and trades people.

We are committed to improving and giving back to the communities we serve.

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Every LGI employee spends the day contributing to the local community.

From constructing fences and cleaning up parks, organizing food, and volunteering at children's centers, we are committed to being a positive presence in the communities we build.

Since 2016, we have contributed over $3.5 million in corporate, non-profit sponsorships, donated over 40,000 employee service hours and collaborated with over 100 non-profit organizations in an effort to make a meaningful impact in our local communities.

From constructing fences, cleaning up parks, organizing food, and volunteering at children's centers, we are committed to being a positive presence in the communities where we build.

Since 2016, we have contributed over $4.0 million in corporate, non-profit sponsorships and donated over 50,000 employee service hours in an effort to make a meaningful impact in our local communities.

Available Information

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Lipar has been in the residential land development business since the mid-1990s and is one of our founders.

He has overseen land acquisitions, development and the sale of over 75,000 homes since our inception.

Lipar currently serves on the Residential Neighborhood Development Council for the Urban Land Institute and is a member of the Policy Advisory Board for the Harvard Joint Center for Housing Studies.

He has overseen land acquisitions, development and the closing of over 80,000 homes since our inception.

Lipar is a member of the Policy Advisory Board for the Harvard Joint Center for Housing Studies.

Michael Snider.

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Merdian is a Certified Public Accountant and is a member of the Texas Society of Certified Public Accountants.

Merdian also serves on the Montgomery County Habitat for Humanity Board of Directors.

Merdian also serves on the Montgomery County Habitat for Humanity Advisory Council and is a past President of the Board of Directors.

Scott Garber.

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Garber previously worked at Howrey Simon Arnold & White, a major international law firm, where he specialized in all aspects of intellectual property law.

Garber is a member of the State Bar of Texas and is also admitted to practice before the U.S.

Garber is a member of the State Bar of Texas and is admitted to practice before the U.S.

Patent & Trademark Office.

Garber is also a member of the Board of Directors and of the Executive Committee of Archway Insurance, Ltd, a captive insurance company.

Garber is also President of the Board of Directors of Archway Insurance, Ltd., a captive insurance company.

Board of Directors of LGI Homes, Inc.

1 unchanged sentence

and serves as Chairman of our Board of Directors.

Ryan Edone - Chief Financial Officer of Petroleum Wholesale L.P., a distributor of branded and wholesale motor fuel products and operator of retail convenience stores/travel centers.

Shailee Parikh - Chief Operating Officer of Revantage, a Blackstone portfolio company that provides support to Blackstone’s real estate portfolio, and Managing Partner of ARK Real Estate, LLC, a real estate investment and management company.

Ryan Edone - Chief Financial Officer of Petroleum Wholesale L.P., a distributor of branded and wholesale motor fuel products and operator of retail convenience stores/travel centers across the southwestern United States.

Shailee Parikh - Chief Operating Officer and Managing Director, Head of North America, of Revantage, a Blackstone portfolio company, and Managing Partner of ARK Real Estate, LLC, a real estate investment and management company.

Bryan Sansbury - Chief Executive Officer, Chairman of the Board of Directors, and a founding partner of AEGIS Hedging Solutions, LLC, formerly known as AEGIS Energy Risk, LLC.

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He is a former shareholder of the law firm Baker Donelson.

Robert Vahradian - Partner of GTIS Partners, LP, a global real estate investment firm.

Robert Vahradian - Partner of GTIS Partners, LP, a global real estate investment firm managing residential, industrial, office, hotel and mixed-use properties in the U.S.

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-K

Item 1. Business