What changed in this filing

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Item 1. Financial Statements

2026-07-31 compared with 2026-04-24 · 168 added, 95 removed, 677 unchanged (28% of the section changed)

3 unchanged sentences

(in thousands, except share and par value amounts)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 807,267 $ 775,157

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Authorized 10,000,000 shares;

none issued and outstanding at March 31, 2026 and December 31, 2025

none issued and outstanding at June 30, 2026 and December 31, 2025

Common stock, par value $ 0.01 .

Authorized 125,000,000 shares;

66,702,433 and 68,168,923 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

65,174,093 and 68,168,923 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital — —

6 unchanged sentences

(in thousands, except per share amounts)

Three Months Ended March 31,

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

2026 2025 2026 2025

Homebuilding:

6 unchanged sentences

Home closing gross profit 253,613 341,328 447,411 636,978

Land closing gross (loss)/profit ( 269 ) 3,165

Land closing gross profit/(loss) 524 ( 719 ) 255 2,446

Total closing gross profit 254,137 340,609 447,666 639,424

21 unchanged sentences

(in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

11 unchanged sentences

Decrease/(increase) in deposits on real estate under option or contract 2,625 ( 30,415 )

Decrease/(increase) in other receivables, prepaids and other assets 29,018 ( 37,636 )

Increase in other receivables, prepaids and other assets ( 3,101 ) ( 43,264 )

Decrease in accounts payable and accrued and other liabilities ( 24,723 ) ( 21,013 )

5 unchanged sentences

Proceeds from sales of property and equipment 190 126

Maturities/sales of investments and securities — 750

Payments to purchase investments and securities — ( 750 )

Net cash used in investing activities ( 25,269 ) ( 21,610 )

7 unchanged sentences

Net cash (used in)/provided by financing activities ( 233,402 ) 329,393

Net (decrease)/increase in cash and cash equivalents ( 8,525 ) 360,097

Net increase in cash and cash equivalents 32,110 278,908

Cash and cash equivalents, beginning of period 775,157 651,555

17 unchanged sentences

(“Meritage Insurance ” ), our wholly-owned insurance broker, works in collaboration with insurance companies nationwide to offer homeowners insurance and other insurance products to our homebuyers.

Our financial services operations also provide mortgage services to our homebuyers through an unconsolidated joint venture.

Our financial services operations also provide mortgage services to our homebuyers through unconsolidated joint ventures.

We commenced our homebuilding operations in 1985 through our predecessor company, Monterey Homes.

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Its homebuilding activities are conducted under the name of Meritage Homes in each of our homebuilding markets.

At March 31, 2026, we were actively selling homes in 345 communities, with base prices ranging from approximately $ 162,000 to $ 1,000,000 .

At June 30, 2026, we were actively selling homes in 340 communities, with base prices ranging from approximately $ 225,000 to $ 1,020,000 .

Basis of Presentation.

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Liquid investments with an initial maturity of three months or less are classified as cash equivalents.

Amounts in transit from title companies or closing agents for home closings of approximately $ 55.3 million and $ 20.1 million are included in Cash and cash equivalents at March 31, 2026 and December 31, 2025, respectively.

Amounts in transit from title companies or closing agents for home closings of approximately $ 48.3 million and $ 20.1 million are included in Cash and cash equivalents at June 30, 2026 and December 31, 2025, respectively.

Real estate inventory is stated at cost unless the community or land is determined to be impaired, at which point the inventory is written down to fair value as required by ASC 360-10, Property, Plant and Equipment (“ASC 360-10”) .

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Included within our Real estate inventory is land held for development, land held for sale, and mothball communities.

Land held for development primarily represents land and development costs related to land where development activity is not currently underway but is expected to begin in the future.

Land held for development primarily represents land and development costs where development activity is not currently underway but is expected to begin in the future.

For these parcels, we have chosen not to currently develop certain land holdings as they typically represent a portion or phases of a larger land parcel that we plan to build out over several years.

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If we decide to mothball a community, we will impair it to its fair value, if applicable, as discussed above and then cease future development activity until such a time when management believes that market conditions have improved and economic performance will be maximized.

No costs are capitalized to communities that are designated as mothballed.

No ongoing costs of land ownership or interest are capitalized to communities that are designated as mothballed.

When a community is initially placed into mothball status, it is management’s belief that the community is affected by local market conditions that are expected to improve within the next 1-5 years.

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Since our acquisition contracts typically do not require specific performance, we do not consider such contracts to be contractual obligations to purchase the land and our total exposure under such contracts is limited to the loss of any non-refundable deposits and any related capitalized costs.

Our Deposits on real estate under option or contract were $ 166.2 million and $ 174.2 million as of March 31, 2026 and December 31, 2025, respectively.

Our Deposits on real estate under option or contract were $ 169.0 million and $ 174.2 million as of June 30, 2026 and December 31, 2025, respectively.

See Note 3 for additional information related to Deposits on real estate under option or contract.

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The table below outlines our ROU assets and lease liabilities (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

ROU assets $ 55,880 $ 56,985

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The table below outlines our surety bond and letter of credit obligations (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Outstanding Estimated work

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Accrued and Other Liabilities .

Accrued and other liabilities at March 31, 2026 and December 31, 2025 consisted of the following (in thousands):

March 31, 2026 December 31, 2025

Accrued and other liabilities at June 30, 2026 and December 31, 2025 consisted of the following (in thousands):

June 30, 2026 December 31, 2025

Accruals related to real estate development and construction activities $ 137,358 $ 144,122

13 unchanged sentences

We regularly review our warranty reserves and adjust them, as necessary, to reflect changes in trends as information becomes available.

Based on such reviews of warranty costs incurred, we did not record any adjustments in the three months ended March 31, 2026 or 2025.

Included in the warranty reserve balances at March 31, 2026 and December 31, 2025 are case-specific warranty reserves, as discussed in Note 15.

Based on such reviews of warranty costs incurred, we did not record any adjustments in the three or six months ended June 30, 2026 or 2025.

Included in the warranty reserve balances at June 30, 2026 and December 31, 2025 are case-specific warranty reserves, as discussed in Note 15.

A summary of changes in our warranty reserves follows (in thousands):

Three Months Ended March 31,

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

2026 2025 2026 2025

Balance, beginning of period $ 26,042 $ 35,352 $ 26,677 $ 32,693

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Revenue from financial services includes estimated future insurance policy renewal commissions as our performance obligations are satisfied upon issuance of the initial policy with a third party broker.

The related contract assets for these estimated future renewal commissions are no t material at March 31, 2026 and December 31, 2025.

The related contract assets for these estimated future renewal commissions are no t material at June 30, 2026 and December 31, 2025.

Recent Accounting Pronouncements.

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ASU 2024-03 is effective for our annual report covering the fiscal year beginning January 1, 2027, and for our interim reports beginning January 1, 2028.

We are currently evaluating the impact adopting this guidance will have on our financial statement disclosures.

Upon adoption, the impact of ASU 2024-03 will be limited to additional disclosures in certain notes to the consolidated financial statements.

NOTE 2 — REAL ESTATE AND CAPITALIZED INTEREST

Real estate consists of the following (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Homes completed and under construction (1)

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(2) Includes raw land, land held for development, land held for sale and communities in mothball status, less impairments, if any.

Land held for development, land held for sale and communities in mothball status totaled $ 190.9 million and $ 164.4 million as of March 31, 2026 and December 31, 2025, respectively.

Land held for development, land held for sale and communities in mothball status totaled $ 192.4 million and $ 164.4 million as of June 30, 2026 and December 31, 2025, respectively.

We do not capitalize interest for these inactive assets, and all ongoing costs of land ownership (i.e.

property taxes, homeowner association dues, etc.) are expensed as incurred.

(3) Represents purchase contracts where we have a specific performance obligation.

See Note 3 for additional information on consolidated real estate not owned.

2 unchanged sentences

A summary of our capitalized interest is as follows (in thousands):

Three Months Ended March 31,

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

2026 2025 2026 2025

Capitalized interest, beginning of period $ 84,464 $ 57,107 $ 77,064 $ 53,678

4 unchanged sentences

As discussed in Note 1, and in accordance with ASC 360-10, all of our land inventory and related real estate assets are periodically reviewed for recoverability when certain criteria are met, but at least annually, as our inventory is considered “long-lived” in accordance with GAAP.

Based on these reviews, we recorded the following impairment charges during the three months ended March 31, 2026 and 2025 (in thousands).

Three Months Ended March 31, Three Months Ended March 31,

Based on these reviews, we recorded the following impairment charges during the three and six months ended June 30, 2026 and 2025 (in thousands).

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

2026 2025 2026 2025

Real estate inventory impairments:

West $ — $ — $ — $ —

Central 2,191 — 3,464 —

2 unchanged sentences

Impairments of land held for sale:

West $ — $ — $ — $ —

Central — — — —

East $ — — $ — —

Total $ — $ — $ — $ —

Total impairments:

West $ — — $ — —

Central 2,191 — 3,464 —

3 unchanged sentences

The following tables summarizes the write-offs of non-refundable deposits and associated pre-acquisition costs for terminated land contracts during the periods presented (in thousands):

Three Months Ended March 31,

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

2026 2025 2026 2025

Terminated option/purchase contracts and related pre-acquisition costs:

1 unchanged sentence

Central 150 222 492 558

East — 3,422 $ 931 3,957

Total $ 276 $ 4,205 $ 1,649 $ 5,638

6 unchanged sentences

See Notes 2 and 1 for a detail of these asset and liability balances, respectively, if any.

The table below presents a summary of our lots under option at March 31, 2026 (dollars in thousands):

The table below presents a summary of our lots under option at June 30, 2026 (dollars in thousands):

Projected Number

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(1) We have not completed our acquisition evaluation process and we have not internally committed to purchase these lots.

(2) N one of our purchase or option contracts require us to purchase lots, except for our specific performance contracts.

The purchase price for specific performance contracts are recorded on the accompanying unaudited consolidated balance sheets as Real estate .

(2) None of our purchase or option contracts require us to purchase lots, except for our specific performance contracts.

The purchase price for specific performance contracts are recorded as consolidated real estate not owned on the accompanying unaudited consolidated balance sheets in Real estate.

See Note 2 for details of the Real estate balance.

(3) Amount is reflected on the accompanying unaudited consolidated balance sheets in Deposits on real estate under option or contract as of March 31, 2026.

(4) Deposits for specific performance contracts are recorded on the accompanying unaudited consolidated balance sheets as Real estate.

(3) Amount is reflected on the accompanying unaudited consolidated balance sheets in Deposits on real estate under option or contract as of June 30, 2026.

(4) Deposits for specific performance contracts are recorded on the accompanying unaudited consolidated balance sheets as consolidated real estate not owned in Real estate.

Generally, our options to purchase lots remain effective so long as we purchase a pre-established minimum number of lots on a pre-determined schedule in accordance with each respective agreement.

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Our joint venture partners generally are other homebuilders, land sellers or other real estate investors.

We also participate in mortgage business joint ventures.

We generally do not have a controlling interest in these ventures, which means our joint venture partners could cause the venture to take actions we disagree with or fail to take actions we believe should be undertaken, including the sale of the underlying property to repay debt or recoup all or part of the partners' investments.

1 unchanged sentence

The primary activity of our land joint ventures is the development and sale of lots to joint venture partners and/or unrelated builders.

Our mortgage joint venture is engaged in mortgage activities and primarily provides mortgage services to our homebuyers.

As of March 31, 2026, we had three active equity-method land joint ventures and one mortgage joint venture.

Our mortgage joint ventures are engaged in mortgage activities and primarily provides mortgage services to our homebuyers.

As of June 30, 2026, we had four active equity-method land joint ventures and two active equity-method mortgage joint ventures.

Summarized condensed combined financial information related to unconsolidated joint ventures that are accounted for using the equity method was as follows (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

$ 3,347 $ 3,516

6 unchanged sentences

Total liabilities and equity $ 223,827 $ 191,430

Three Months Ended March 31,

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

2026 2025 2026 2025

Revenue $ 24,147 $ 13,813 $ 36,940 $ 24,553

2 unchanged sentences

Meritage’s share of pre-tax earnings (1) (2)

$ 1,429 $ 1,538 $ 2,085 $ 2,164

(1) Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures.

1 unchanged sentence

(i) timing differences for revenue and distributions recognition, (ii) step-up basis and corresponding amortization, (iii) capitalization of interest on qualified assets, (iv) income deferrals as discussed in Note (2) below and (v) the cessation of allocation of losses from joint ventures in which we have previously written down our investment balance to zero and where we have no commitment to fund additional losses.

(2) Our share of pre-tax earnings from our mortgage joint venture is recorded in Earnings from financial services unconsolidated entities and other, net on the accompanying unaudited consolidated income statements.

(2) Our share of pre-tax earnings from our mortgage joint ventures is recorded in Earnings from financial services unconsolidated entities and other, net on the accompanying unaudited consolidated income statements.

Our share of pre-tax earnings from all other joint ventures is recorded in Other income, net on the accompanying unaudited consolidated income statements and excludes joint venture profit related to lots we purchased from the joint ventures, if any.

2 unchanged sentences

Loans payable and other borrowings consist of the following (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Other borrowings, secured real estate notes payable (1)

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The Company entered into an amended and restated unsecured revolving credit facility agreement ("Credit Facility") in 2014 that has been amended from time to time.

On July 9, 2025, we entered into the Eleventh Amendment to Amended and Restated Credit Agreement, which extends the maturity date from June 12, 2029 to July 9, 2030.

The Credit Facility's aggregate commitment is $ 910.0 million with an accordion feature permitting the size of the facility to increase to a maximum of $ 1.4

billion, subject to certain conditions, including the availability of additional bank commitments.

Borrowings under the Credit Facility bear interest at the Company's option, at either (1) term Secured Overnight Financing Rate ("SOFR") (based on 1, 3, or 6 month interest periods, as selected by the Company) plus a 10 basis point adjustment plus an applicable margin (ranging from 110 basis points to 175 basis points (the "applicable margin")) based on the Company's leverage ratio as determined in accordance with a pricing grid, (2) the higher of (i) the prime lending rate ("Prime"), (ii) an overnight bank rate plus 50 basis points and (iii) term SOFR (based on a 1 month interest period) plus a 10 basis point adjustment plus 1 %, in each case plus a margin ranging from 10 basis points to 75 basis points based on the Company's leverage in accordance with a pricing grid, or (3) daily simple SOFR plus a 10 basis point adjustment plus the applicable margin.

At March 31, 2026, the interest rate on outstanding borrowings under the Credit Facility would have been 4.865 % per annum, calculated in accordance with option (1) noted above and using the 1-month term SOFR.

On June 24, 2026, we entered into the Twelfth Amendment to Amended and Restated Credit Agreement, which increases the facility size, amends the accordion feature to permit the facility size to be increased, subject to certain conditions, extends the maturity date from July 9, 2030 to June 24, 2031, and revises the adjusted

The Credit Facility's aggregate commitment is $ 980.0 million with an accordion feature permitting the size of the facility to increase to a maximum of $ 1.5 billion, subject to certain conditions, including the availability of additional bank commitments.

Borrowings under the Credit Facility bear interest at the Company's option, at either (1) term Secured Overnight Financing Rate ("SOFR") (based on 1, 3, or 6 month interest periods, as selected by the Company) plus an applicable margin (ranging from 110 basis points to 175 basis points (the "applicable margin")) based on the Company's leverage ratio as determined in accordance with a pricing grid, (2) the higher of (i) the prime lending rate ("Prime"), (ii) an overnight bank rate plus 50 basis points and (iii) term SOFR (based on a 1 month interest period) plus 1 %, in each case plus a margin ranging from 10 basis points to 75 basis points based on the Company's leverage in accordance with a pricing grid, or (3) daily simple SOFR plus the applicable margin.

At June 30, 2026, the interest rate on outstanding borrowings under the Credit Facility would have been 4.752 % per annum, calculated in accordance with option (1) noted above and using the 1-month term SOFR.

We are obligated to pay a fee on the undrawn portion of the Credit Facility at a rate determined by a tiered fee matrix based on our leverage ratio.

The Credit Facility also contains certain financial covenants, including (a) a minimum tangible net worth requirement of $ 3.5 billion (which amount is subject to increase over time based on subsequent earnings and proceeds from equity offerings), and (b) a maximum leverage covenant that prohibits the leverage ratio (as defined therein) from exceeding 60 %.

We were in compliance with all Credit Facility covenants as of March 31, 2026.

We had no outstanding borrowings under the Credit Facility as of March 31, 2026 and December 31, 2025.

There were no borrowings or repayments under the Credit Facility during the three months ended March 31, 2026, and $ 5.0 million of borrowings and repayments under the Credit Facility during the three months ended March 31, 2025.

As of March 31, 2026, we had outstanding letters of credit issued under the Credit Facility totaling $ 81.0 million, leaving $ 829.0 million available under the Credit Facility to be drawn.

We were in compliance with all Credit Facility covenants as of June 30, 2026.

We had no outstanding borrowings under the Credit Facility as of June 30, 2026 and December 31, 2025.

There were no borrowings or repayments under the Credit Facility during the three and six months ended June 30, 2026.

There were no borrowings or repayments under the Credit Facility during the three months ended June 30, 2025 and $ 5.0 million of borrowings and repayments under the Credit Facility during the six months ended June 30, 2025.

As of June 30, 2026, we had outstanding letters of credit issued under the Credit Facility totaling $ 83.1 million, leaving $ 896.9 million available under the Credit Facility to be drawn.

NOTE 6 — SENIOR AND CONVERTIBLE SENIOR NOTES, NET

Senior and convertible senior notes, net consist of the following (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

5.125 % senior notes due 2027 ("2027 Notes")

5 unchanged sentences

5.650 % senior notes due 2035 ("2035 Notes").

At March 31, 2026, there was $ 2,501 in net unamortized discount.

At June 30, 2026, there was $ 2,431 in net unamortized discount.

497,569 497,429

2 unchanged sentences

There have been no material changes to the terms of the 2028 Convertible Notes and the related capped call transactions since those described in Note 7 - Senior and Convertible Senior Notes, Net in the consolidated financial statements included in our Annual Report.

During the three months ended March 31, 2026, the circumstances allowing holders of the 2028 Convertible Notes to convert were not met.

During the three and six months ended June 30, 2026, the circumstances allowing holders of the 2028 Convertible Notes to convert were not met.

The indentures for our 2027 Notes, 2029 Notes and 2035 Notes contain covenants that place limits on secured debt and sale and leaseback transactions.

We were in compliance with all such covenants as of March 31, 2026.

We were in compliance with all such covenants as of June 30, 2026.

Obligations to pay principal and interest on the senior and convertible senior notes are guaranteed by substantially all of our wholly-owned subsidiaries (each a “Guarantor” and, collectively, the “Guarantor Subsidiaries”), each of which is directly or indirectly 100 % owned by Meritage Homes.

1 unchanged sentence

In the event of a sale or other disposition of all of the assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all of the equity interests of any Guarantor then held by Meritage and its subsidiaries, then that Guarantor may be released and relieved of any obligations under its note guarantee.

There are no significant restrictions on our ability or the ability of Meritage Homes or any Guarantor to obtain funds from their respective subsidiaries, as applicable, by dividend or loan.

There are no significant restrictions on the ability of Meritage Homes or any Guarantor to obtain funds from their respective subsidiaries, as applicable, by dividend or loan.

We do not provide separate financial statements of the Guarantor Subsidiaries because Meritage Homes (the parent company) has no independent assets or operations and the guarantees are full and unconditional and joint and several.

Subsidiaries of Meritage Homes Corporation that are non-guarantor subsidiaries are, individually and in the aggregate, minor, and accordingly, the assets, liabilities and results of operations of Meritage Homes Corporation and the Guarantor Subsidiaries

are not materially different than the corresponding amounts presented in the unaudited consolidated financial statements of Meritage Homes.

Subsidiaries of Meritage Homes Corporation that are non-guarantor subsidiaries are, individually and in the aggregate, minor, and accordingly, the

assets, liabilities and results of operations of Meritage Homes Corporation and the Guarantor Subsidiaries are not materially different than the corresponding amounts presented in the unaudited consolidated financial statements of Meritage Homes.

NOTE 7 — FAIR VALUE DISCLOSURES

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The fair value of our fixed-rate debt is derived from quoted market prices by independent dealers (Level 2 inputs as per the discussion above) and is as follows (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Principal Estimated Fair

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Our Real estate assets are Level 3 instruments that are required to be recorded at fair value only if events and circumstances indicate that the carrying value may not be recoverable.

The fair value of real estate inventories that were measured as of March 31, 2026 was $ 259.8 million.

The fair value of real estate inventories whose carrying values were adjusted to fair value as of June 30, 2026 was $ 142.6 million.

See Note 1 for information on the significant observable and unobservable inputs we utilized in our fair value measurements with respect to the Real estate assets measured at fair value, and Note 2 for a summary of the impairment charges on Real estate to bring the assets to their estimated fair value.

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Basic and diluted earnings per common share were calculated as follows (in thousands, except per share amounts):

Three Months Ended March 31,

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

2026 2025 2026 2025

Basic weighted average number of shares outstanding 65,787 71,456 66,573 71,684

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Additions — — — — — —

Balance at March 31, 2026 $ — $ 10,247 $ 22,715 $ — $ — $ 32,962

Balance at June 30, 2026 $ — $ 10,247 $ 22,715 $ — $ — $ 32,962

NOTE 10 — STOCKHOLDERS’ EQUITY

A summary of changes in stockholders’ equity is presented below (in thousands):

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

(In thousands)

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Balance at March 31, 2026 66,702 $ 667 $ — $ 5,093,102 $ 5,093,769

Three Months Ended March 31, 2025

Net earnings — — — 90,630 90,630

Stock-based compensation expense — — 5,822 — 5,822

Dividends declared — — — ( 31,284 ) ( 31,284 )

Share repurchases ( 1,528 ) ( 15 ) ( 5,822 ) ( 95,163 ) ( 101,000 )

Balance at June 30, 2026 65,174 $ 652 $ — $ 5,057,285 $ 5,057,937

Six Months Ended June 30, 2025

(In thousands)

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Balance at March 31, 2025 71,831 $ 718 $ 103,930 $ 5,090,096 $ 5,194,744

During the three months ended March 31, 2026 and 2025, our Board of Directors approved, and we paid, a quarterly cash dividend on common stock of $ 0.48 and $ 0.43 per share, respectively.

During the three months ended March 31, 2026 and 2025, we reflected the applicable excise tax on share repurchases in Additional paid-in capital as part of the cost basis of the stock repurchased and recorded a corresponding liability in Accrued and other liabilities on the accompanying unaudited consolidated balance sheets.

Net earnings — — — 146,879 146,879

Stock-based compensation expense — — 3,597 — 3,597

Dividends declared — — — ( 30,597 ) ( 30,597 )

Share repurchases ( 674 ) ( 6 ) ( 45,443 ) — ( 45,449 )

Balance at June 30, 2025 71,157 $ 712 $ 62,084 $ 5,206,378 $ 5,269,174

During the three months ended June 30, 2026 and 2025, our Board of Directors approved, and we paid, a quarterly cash dividend on common stock of $ 0.48 and $ 0.43 per share, respectively.

Quarterly dividends declared and paid during the six months ended June 30, 2026 and 2025, totaled $ 0.96 and $ 0.86 per share, respectively.

During the three and six months ended June 30, 2026 and 2025, we reflected the applicable excise tax on share repurchases in Additional paid-in capital as part of the cost basis of the stock repurchased and recorded a corresponding liability in Accrued and other liabilities on the accompanying unaudited consolidated balance sheets.

NOTE 11 — STOCK BASED AND DEFERRED COMPENSATION

We have a stock compensation plan, the Meritage Homes Corporation 2018 Stock Incentive Plan (the “2018 Plan"), that was approved by our Board of Directors and our stockholders and adopted in May 2018.

In May 2023, the Board of Directors and stockholders approved an amendment to the 2018 Plan to increase the number of shares available for issuance by 1,600,000 .

In May 2023, the Board of Directors

and stockholders approved an amendment to the 2018 Plan to increase the number of shares available for issuance by 1,600,000 .

The 2018 Plan is administered by our Board of Directors and allows for the grant of stock appreciation rights, restricted stock awards, restricted stock units, performance share awards and performance-based awards in addition to non-qualified and incentive stock options.

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The 2018 Plan authorizes awards to officers, key employees, non-employee directors and consultants.

The 2018 Plan authorizes 14,800,000 shares of stock to be awarded, of which 1,650,007 shares remain available for grant at March 31, 2026.

The 2018 Plan authorizes 14,800,000 shares of stock to be awarded, of which 1,658,560 shares remain available for grant at June 30, 2026.

We believe that such awards provide a means of long-term compensation to attract and retain qualified employees and better align the interests of our employees with those of our stockholders.

1 unchanged sentence

Compensation cost related to time-based restricted stock awards is measured as of the closing price on the date of grant and is expensed, less forfeitures, on a straight-line basis over the vesting period of the award.

Compensation cost related to

performance-based restricted stock unit awards is also measured as of the closing price on the date of grant but is expensed in accordance with ASC 718-10-25-20, Compensation – Stock Compensation ("ASC 718"), which requires an assessment of probability of attainment of the performance target(s).

Compensation cost related to performance-based restricted stock unit awards is also measured as of the closing price on the date of grant but is expensed in accordance with ASC 718-10-25-20, Compensation – Stock Compensation ("ASC 718"), which requires an assessment of probability of attainment of the performance target(s).

As our performance targets are dependent on performance over a specified measurement period, once we determine that a performance target outcome is probable, the cumulative expense is recorded immediately with the remaining expense recorded on a straight-line basis through the end of the award vesting period.

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Below is a summary of stock-based compensation expense and stock award activity (dollars in thousands):

Three Months Ended March 31,

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

2026 2025 2026 2025

Stock-based compensation expense $ 5,822 $ 3,597 $ 11,682 $ 9,922

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Restricted stock awards vested (includes performance-based awards) — — 327,438 493,050

(1) Performance-based shares that vested and were issued as a result of performance achievement exceeding the originally established targeted number of shares related to respective performance metrics related to the prior fiscal year performance period.

The following table includes additional information regarding our stock compensation plan (dollars in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Unrecognized stock-based compensation cost $ 41,674 $ 30,419

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We do not currently offer a contribution match on the Deferred Compensation Plan.

All contributions to the plan to date have been funded by the employees and, therefore, we have no associated expense related to the Deferred Compensation Plan for the three months ended March 31, 2026 or 2025, other than minor administrative costs.

All contributions to the plan to date have been funded by the employees and, therefore, we have no associated expense related to the Deferred Compensation Plan for the three and six months ended June 30, 2026 or 2025, other than minor administrative costs.

NOTE 12 — INCOME TAXES

Components of the provision for income taxes are as follows (in thousands):

Three Months Ended March 31,

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

2026 2025 2026 2025

Federal $ 24,419 $ 38,498 $ 38,245 $ 69,129

1 unchanged sentence

Total $ 29,934 $ 46,181 $ 47,149 $ 83,534

The effective tax rate for the three months ended March 31, 2026 and 2025 was 23.7 % and 23.3 %, respectively.

At March 31, 2026 and December 31, 2025, we have no unrecognized tax benefits.

The effective tax rate for the three and six months ended June 30, 2026 was 24.8 % and 24.4 %, respectively, and for the three and six months ended June 30, 2025 was 23.9 % and 23.6 %, respectively.

The increase in the effective tax rate for both the three and six months ended June 30, 2026 was due to an increase in state income taxes.

At June 30, 2026 and December 31, 2025, we have no unrecognized tax benefits.

We believe our current income tax filing positions and deductions will be sustained on audit and we do not anticipate any adjustments that will result in a material change.

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This evaluation considers, among other matters, the nature, frequency and severity of cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, experiences with operating losses and experiences of utilizing tax credit carry forwards and tax planning alternatives.

We have no federal NOLs or credit carryovers, and determined that no valuation allowance on our deferred tax assets is necessary at March 31, 2026.

At March 31, 2026, we had $ 2.2 million taxes payable and no income taxes receivable.

The taxes payable at March 31, 2026 primarily consists of income tax liability accrued in excess of federal and state estimated tax payments and energy tax credits.

We have accrued taxes of $ 13.2 million recorded in Accrued and other liabilities on the accompanying unaudited consolidated balance sheets at March 31, 2026 that consists primarily of state franchise tax and federal excise tax.

We have no federal NOLs or credit carryovers at June 30, 2026, and determined that no valuation allowance on our deferred tax assets was necessary at June 30, 2026.

At June 30, 2026, we had no taxes payable and $ 9.1 million income taxes receivable.

The income taxes receivable at June 30, 2026 primarily consists of federal and state estimated tax payments and energy tax credits in excess of income tax liability.

We have accrued taxes of $ 11.7 million recorded in Accrued and other liabilities on the accompanying unaudited consolidated balance sheets at June 30, 2026 that consists primarily of state franchise tax and federal excise tax.

We conduct business and are subject to tax in the U.S.

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The following table presents certain supplemental cash flow information (in thousands):

Three Months Ended March 31,

Six Months Ended June 30,

Cash paid during the year for:

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Non-cash operating activities:

Real estate not owned increase $ 12,948 $ —

Real estate acquired through notes payable $ 15,255 $ 7,990

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The CODM’s evaluation of the homebuilding segment performance is based on segment home closing revenue, home closing gross profit and gross margin, total closing gross profit, commissions and other sales costs, general and administrative expenses incurred by or allocated to each segment, including impairments, and operating income.

The CODM uses these performance metrics predominantly in the annual budget and forecasting process

and considers budget-to-actual variances on a quarterly basis for these measures when making decisions about the allocation of operating and capital resources to each segment.

The CODM uses these performance metrics predominantly in the annual budget and forecasting process and considers budget-to-actual variances on a quarterly basis for these measures when making decisions about the allocation of operating and capital resources to each segment.

The CODM also uses these data points to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.

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The following tables provide financial information about our reportable segments and Corporate and other categories (in thousands):

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

West Central East Total

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Home closing gross profit 78,360 85,345 89,908 253,613

Land closing gross (loss)/profit — 56 ( 325 ) ( 269 )

Land closing gross profit 342 33 149 524

Total closing gross profit 78,702 85,378 90,057 254,137

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(1) Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

West Central East Total

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Home closing gross profit 114,462 106,587 120,279 341,328

Land closing gross profit 549 595 2,021 3,165

Land closing gross profit/(loss) — ( 724 ) 5 ( 719 )

Total closing gross profit 114,462 105,863 120,284 340,609

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(1) Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.

At March 31, 2026

Six Months Ended June 30, 2026

West Central East Total

Home closing revenue $ 736,938 $ 823,026 $ 935,769 $ 2,495,733

Land closing revenue 4,598 8,238 9,245 22,081

Total closing revenue 741,536 831,264 945,014 2,517,814

Cost of home closings 597,098 669,076 782,148 2,048,322

Cost of land closings 4,256 8,149 9,421 21,826

Total cost of closings 601,354 677,225 791,569 2,070,148

Home closing gross profit 139,840 153,950 153,621 447,411

Land closing gross profit/(loss) 342 89 ( 176 ) 255

Total closing gross profit 140,182 154,039 153,445 447,666

Home closing gross margin 19.0 % 18.7 % 16.4 % 17.9 %

Commissions and other sales costs 45,225 60,507 65,545 171,277

General and administrative expenses 21,968 23,003 32,569 77,540

Homebuilding segment operating income 72,989 70,529 55,331 198,849

Financial services segment profit 8,820

Corporate and unallocated costs (1) ( 26,242 )

Interest expense ( 2,774 )

Other income, net 14,435

Earnings before income taxes $ 193,088

(1) Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.

Six Months Ended June 30, 2025

West Central East Total

Home closing revenue $ 1,028,841 $ 892,962 $ 1,036,010 $ 2,957,813

Land closing revenue 691 7,899 15,108 23,698

Total closing revenue 1,029,532 900,861 1,051,118 2,981,511

Cost of home closings 809,408 695,646 815,781 2,320,835

Cost of land closings 142 8,028 13,082 21,252

Total cost of closings 809,550 703,674 828,863 2,342,087

Home closing gross profit 219,433 197,316 220,229 636,978

Land closing gross profit/(loss) 549 ( 129 ) 2,026 2,446

Total closing gross profit 219,982 197,187 222,255 639,424

Home closing gross margin 21.3 % 22.1 % 21.3 % 21.5 %

Commissions and other sales costs 59,586 68,311 75,653 203,550

General and administrative expenses 26,637 25,382 37,281 89,300

Homebuilding segment operating income 133,759 103,494 109,321 346,574

Financial services segment profit 9,174

Corporate and unallocated costs (1) ( 22,880 )

Interest expense —

Other income, net 20,351

Earnings before income taxes $ 353,219

(1) Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.

At June 30, 2026

West Central East Financial Services Corporate and

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Total assets $ 1,831,089 $ 2,010,368 $ 2,728,056 $ 2,444 $ 982,976 $ 7,554,933

(1) Balance consists primarily of prepaid expenses and other assets and property and equipment, net.

(1) Balance consists primarily of cash and cash equivalents, prepaid expenses and other assets, and development receivables.

(2) Balance consists primarily of development reimbursements from local municipalities, prepaid expenses and other assets, and cash and cash equivalents.

(3) Balance consists primarily of cash and cash equivalents, goodwill (see Note 9), and prepaid expenses and other assets.

(3) Balance consists primarily of goodwill (see Note 9), prepaid expenses and other assets, and cash and cash equivalents.

(4) Balance consists primarily of cash and cash equivalents, prepaids and other assets, and deferred tax assets.

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Historically, most disputes regarding warranty claims are resolved prior to litigation.

We believe there are no pending legal or warranty matters as of March 31, 2026 that could have a material adverse impact upon our consolidated financial condition, results of operations or cash flows that have not been sufficiently reserved.

We believe there are no pending legal or warranty matters as of June 30, 2026 that could have a material adverse impact upon our consolidated financial condition, results of operations or cash flows that have not been sufficiently reserved.

We have case specific reserves within our $ 25.6 million of total Warranty reserves related to alleged stucco defects in certain homes we constructed predominantly between 2015 and 2019.

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Due to the degree of judgment and the potential for variability in our underlying assumptions and data, as we obtain additional information, we may revise our estimate and thus our related reserves.

As of March 31, 2026, after considering potential recoveries from the consultants and contractors involved and their insurers and the potential recovery under our general liability insurance policies, we believe our reserves are sufficient to cover the above mentioned matters.

As of June 30, 2026, after considering potential recoveries from the consultants and contractors involved and their insurers and the potential recovery under our general liability insurance policies, we believe our reserves are sufficient to cover the above-mentioned matters.

See Note 1 for information related to our warranty obligations.

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Forward-looking statements in this Quarterly Report may include statements concerning our belief that we have sufficient liquidity;

our goals, strategies and strategic initiatives including our use of interest rate buy-downs and other financing incentives, our spec and move-in ready strategy, our partnership with external realtors, and the anticipated benefits relating thereto;

our goals, strategies and strategic initiatives including our use of interest rate buy-downs and other financing incentives, our all spec and move-in ready strategy, our partnership with external realtors, and the anticipated benefits relating thereto;

our intentions and the expected benefits and advantages of our product and land positioning strategies, including with respect to our focus on the first-time and first move-up home buyer and housing demand for affordable homes;

the benefits of and our intentions to use options to acquire land;

our positions and our expected outcome relating to litigation and regulatory proceedings in general;

our intentions to pay quarterly dividends;

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our non-use of derivative financial instruments;

expectations regarding our industry and our business for the remainder of 2026;

expectations regarding our industry and our business for the remainder of 2026 and beyond;

the demand for and the pricing of our homes;

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the sufficiency of our insurance coverage and legal and warranty reserves;

the outcome of pending litigation;

the outcome of pending litigation and regulatory proceedings;

the sources and sufficiency of our capital resources to support our business strategy;

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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