What changed in this filing

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Item 1. Financial Statements

2025-10-21 compared with 2025-07-22 · 103 added, 85 removed, 567 unchanged (25% of the section changed)

3 unchanged sentences

($000’s omitted)

September 30,

2025 December 31,

24 unchanged sentences

(000’s omitted, except per share data)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

11 unchanged sentences

Equity income from unconsolidated entities, net 2,422 2,508 3,333 42,577

Other income (expense), net ( 1,006 ) 13,324 5,355 30,008

Other income, net 1,755 9,702 7,110 39,709

Income before income taxes 767,788 906,196 2,256,082 2,823,151

14 unchanged sentences

Earnings Total

Shareholder's equity, March 31, 2025 200,565 $ 2,005 $ 3,452,228 $ 8,846,739 $ 12,300,972

Shareholders' equity, June 30, 2025 197,599 $ 1,976 $ 3,465,074 $ 9,107,892 $ 12,574,942

Share issuances 6 1 — — 1

5 unchanged sentences

Net income — — — 585,834 585,834

Shareholders' equity, June 30, 2025 197,599 $ 1,976 $ 3,465,074 $ 9,107,892 $ 12,574,942

Shareholders' equity, September 30, 2025 195,170 $ 1,953 $ 3,477,322 $ 9,346,762 $ 12,826,037

Shareholders' equity, December 31, 2024 202,913 $ 2,029 $ 3,425,384 $ 8,694,551 $ 12,121,964

6 unchanged sentences

Net income — — — 1,717,115 1,717,115

Shareholders' equity, June 30, 2025 197,599 $ 1,976 $ 3,465,074 $ 9,107,892 $ 12,574,942

Shareholders' equity, September 30, 2025 195,170 $ 1,953 $ 3,477,322 $ 9,346,762 $ 12,826,037

Capital Retained

Earnings Total

Shareholder's equity, March 31, 2024 210,658 $ 2,107 $ 3,392,199 $ 7,367,647 $ 10,761,953

Shareholders' equity, June 30, 2024 207,905 $ 2,079 $ 3,403,327 $ 7,817,417 $ 11,222,823

Share issuances 9 — — — —

5 unchanged sentences

Net income — — — 697,914 697,914

Shareholders' equity, June 30, 2024 207,905 $ 2,079 $ 3,403,327 $ 7,817,417 $ 11,222,823

Shareholders' equity, September 30, 2024 205,375 $ 2,054 $ 3,412,383 $ 8,149,776 $ 11,564,213

Shareholders' equity, December 31, 2023 212,558 $ 2,126 $ 3,368,407 $ 7,012,724 $ 10,383,257

6 unchanged sentences

Net income — — — 2,170,023 2,170,023

Shareholders' equity, June 30, 2024 207,905 $ 2,079 $ 3,403,327 $ 7,817,417 $ 11,222,823

Shareholders' equity, September 30, 2024 205,375 $ 2,054 $ 3,412,383 $ 8,149,776 $ 11,564,213

See accompanying Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

($000’s omitted)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

23 unchanged sentences

Financial Services borrowings (repayments), net ( 122,683 ) 24,465

Debt issuance costs ( 1,446 ) —

Proceeds from liabilities related to consolidated inventory not owned 25,643 46,256

33 unchanged sentences

We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission (the "SEC").

Other income (expense), net

Other income (expense), net consists of the following ($000’s omitted):

Three Months Ended Six Months Ended

June 30, June 30,

Other income, net

Other income, net consists of the following ($000’s omitted):

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

4 unchanged sentences

Miscellaneous, net 3,258 3,304 9,385 11,735

Other income (expense), net $ ( 1,006 ) $ 13,324 $ 5,355 $ 30,008

Other income, net $ 1,755 $ 9,702 $ 7,110 $ 39,709

PULTEGROUP, INC.

3 unchanged sentences

Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit and classified as cash.

Contract liabilities include customer deposits related to sold but undelivered homes, which totaled $ 520.5 million and $ 512.6 million at June 30, 2025 and December 31, 2024, respectively.

Contract liabilities include customer deposits related to sold but undelivered homes, which totaled $ 470.7 million and $ 512.6 million at September 30, 2025 and December 31, 2024, respectively.

Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit.

12 unchanged sentences

Our performance obligations for policy renewal commissions are considered satisfied upon issuance of the initial policy.

The related contract assets for estimated future renewal commissions are included in other assets and totaled $ 90.9 million and $ 91.1 million at June 30, 2025 and December 31, 2024, respectively.

The related contract assets for estimated future renewal commissions are included in other assets and totaled $ 90.6 million and $ 91.1 million at September 30, 2025 and December 31, 2024, respectively.

Residential mortgage loans available-for-sale

Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days.

At June 30, 2025 and December 31, 2024, residential mortgage loans available-for-sale had an aggregate fair value of $ 581.6 million and $ 629.6 million, respectively, and an aggregate outstanding principal balance of $ 587.1 million and $ 645.7 million, respectively.

At September 30, 2025 and December 31, 2024, residential mortgage loans available-for-sale had an aggregate fair value of $ 486.1 million and $ 629.6 million, respectively, and an aggregate outstanding principal balance of $ 488.5 million and $ 645.7 million, respectively.

These changes in fair value were substantially offset by changes in fair value of the corresponding derivative instruments.

Net gains from the sale of mortgages were $ 59.7 million and $ 60.7 million for the three months ended June 30, 2025 and 2024, respectively, and $ 109.5 million and $ 111.3 million for the six months ended June 30, 2025 and 2024, respectively, and have been included in Financial Services revenues.

Net gains from the sale of mortgages were $ 59.6 million and $ 62.0 million for the three months ended September 30, 2025 and 2024, respectively, and $ 169.1 million and $ 173.2 million for the nine months ended September 30, 2025 and 2024, respectively, and have been included in Financial Services revenues.

Derivative instruments and hedging activities

We are party to IRLCs with customers resulting from our mortgage origination operations.

At June 30, 2025 and December 31, 2024, we had aggregate IRLCs of $ 739.0 million and $ 469.4 million, respectively.

At September 30, 2025 and December 31, 2024, we had aggregate IRLCs of $ 758.3 million and $ 469.4 million, respectively.

Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements.

1 unchanged sentence

Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor.

At June 30, 2025 and December 31, 2024, we had unexpired forward contracts of $ 1.1 billion and $ 977.0 million, respectively, and whole loan investor commitments of

At September 30, 2025 and December 31, 2024, we had unexpired forward contracts of $ 1.2 billion and $ 977.0 million, respectively, and whole loan investor

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

$ 271.0 million and $ 237.1 million, respectively.

commitments of $ 192.6 million and $ 237.1 million, respectively.

Changes in the fair value of IRLCs and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable.

3 unchanged sentences

The fair values of derivative instruments and their locations in the Condensed Consolidated Balance Sheets are summarized below ($000’s omitted):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Other Assets Accrued and Other Liabilities Other Assets Accrued and Other Liabilities

11 unchanged sentences

Counterparties associated with these assets are generally highly rated.

Allowances on the aforementioned assets were not material as of June 30, 2025.

Allowances on the aforementioned assets were not material as of September 30, 2025.

New accounting pronouncements

11 unchanged sentences

Major components of inventory were as follows ($000’s omitted):

September 30,

2025 December 31,

10 unchanged sentences

Information related to interest capitalized into inventory is as follows ($000’s omitted):

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

15 unchanged sentences

If an entity holding the land under option is a variable interest entity ("VIE"), our deposit represents a variable interest in that entity.

No VIEs required consolidation at either June 30, 2025 or December 31, 2024 because we determined that we were not any VIE's primary beneficiary.

No VIEs required consolidation at either September 30, 2025 or December 31, 2024 because we determined that we were not any VIE's primary beneficiary.

Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the land option agreements.

The following provides a summary of our interests in land option agreements as of June 30, 2025 and December 31, 2024 ($000’s omitted):

June 30, 2025 December 31, 2024

The following provides a summary of our interests in land option agreements as of September 30, 2025 and December 31, 2024 ($000’s omitted):

September 30, 2025 December 31, 2024

Pre-acquisition

7 unchanged sentences

Land-related charges

Our evaluations for land-related charges are based on our best estimates of the future cash flows for our communities.

We recorded the following land-related charges ($000's omitted):

Three Months Ended Nine Months Ended

September 30, September 30,

Statement of Operations Classification 2025 2024 2025 2024

Land impairments Home sale cost of revenues $ 16,752 $ 3,081 $ 42,181 $ 3,204

Net realizable value ("NRV") adjustments - land held for sale Land sale and other cost of revenues 39 4,318 1,115 4,319

Write-offs of deposits and pre-acquisition costs Other expense, net 10,836 4,732 26,515 12,406

$ 27,627 $ 12,131 $ 69,811 $ 19,929

Our evaluations for land impairments, NRV adjustments, and write-offs of deposits and pre-acquisition costs are based on our best estimates of the future cash flows of our communities.

Due to uncertainties in the estimation process, the significant volatility in demand for new housing, the long life cycles of certain of our communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates.

4 unchanged sentences

For reporting purposes, our Homebuilding operations are aggregated into six reportable segments:

Maryland, Massachusetts, New Jersey, Pennsylvania, Virginia

Maryland, Massachusetts, New Jersey, Pennsylvania, Rhode Island, Virginia

Georgia, North Carolina, South Carolina, Tennessee

2 unchanged sentences

We also have a reportable segment for our Financial Services operations, which consist principally of mortgage banking, title, and insurance agency operations.

The Financial Services segment operates generally in the same markets as the Homebuilding segments.

The Financial Services segment operates generally in the same markets as the Homebuilding

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Evaluation of segment performance is generally based on income before income taxes.

3 unchanged sentences

Information for previous periods in the below tables conforms with the current year presentation.

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Operating Data by Segment

($000’s omitted)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

34 unchanged sentences

($000’s omitted)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

24 unchanged sentences

(b) Other homebuilding includes cost of revenues related to land sales, construction services, and amortization of capitalized interest.

(c) Other homebuilding includes insurance reserve reversals of $ 51.9 million and $ 78.7 million for the three and six months ended June 30, 2024, respectively (see Note 8 ).

(c) Other homebuilding includes insurance reserve reversals of $ 78.7 million for the nine months ended September 30, 2024, (see Note 8 ).

Other homebuilding also includes eliminations of corporate overhead allocated to the operating segments.

1 unchanged sentence

(e) Other homebuilding includes income from unconsolidated entities, interest, the amortization of intangible assets, and other items not allocated to the operating segments.

Other homebuilding also includes a gain of $ 37.7 million for the six months ended June 30, 2024 related to the sale of our minority interest in a joint venture.

Other homebuilding also includes a gain of $ 37.7 million for the nine months ended September 30, 2024 related to the sale of our minority interest in a joint venture.

(f) Includes certain land-related charges (see the following table and Note 2 ).

3 unchanged sentences

($000’s omitted)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

12 unchanged sentences

($000’s omitted)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

14 unchanged sentences

($000's omitted)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Inventory Total

12 unchanged sentences

(a) Other homebuilding primarily includes cash and equivalents, capitalized interest, intangibles, deferred tax assets, other corporate items that are not allocated to the operating segments, and eliminations of certain inventory not owned allocated to the operating segments.

Other homebuilding also includes goodwill of $ 68.9 million, net of cumulative impairment charges of $ 20.2 million, at both June 30, 2025 and December 31, 2024.

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Other homebuilding also includes goodwill of $ 68.9 million, net of cumulative impairment charges of $ 20.2 million, at both September 30, 2025 and December 31, 2024.

Notes payable

Our notes payable are summarized as follows ($000’s omitted):

September 30,

2025 December 31,

19 unchanged sentences

Other notes payable

Other notes payable include non-recourse and limited recourse notes with third parties that totaled $ 39.7 million and $ 35.8 million at June 30, 2025 and December 31, 2024, respectively.

These notes have maturities ranging up to five years , are secured by the applicable land positions to which they relate, and generally have no recourse to other assets.

Other notes payable include non-recourse and limited recourse notes with third parties that totaled $ 39.7 million and $ 35.8 million at September 30, 2025 and December 31, 2024, respectively.

These notes have maturities ranging up to five years , are

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

secured by the applicable land positions to which they relate, and generally have no recourse to other assets.

The stated interest rates on these notes range up to 9 %.

We recorded $ 13.1 million and $ 5.4 million of inventory through seller financing in the six months ended June 30, 2025 and 2024, respectively.

We recorded $ 13.1 million and $ 10.8 million of inventory through seller financing in the nine months ended September 30, 2025 and 2024, respectively.

Revolving credit facility

3 unchanged sentences

The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility).

We were in compliance with all covenants and requirements as of June 30, 2025.

We were in compliance with all covenants and requirements as of September 30, 2025.

Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries.

At June 30, 2025, we had no borrowings outstanding, $ 341.2 million of letters of credit issued, and $ 908.8 million of remaining capacity under the Revolving Credit Facility.

At September 30, 2025, we had no borrowings outstanding, $ 348.0 million of letters of credit issued, and $ 902.0 million of remaining capacity under the Revolving Credit Facility.

At December 31, 2024, we had no borrowings outstanding, $ 321.1 million of letters of credit issued, and $ 928.9 million of remaining capacity under the Revolving Credit Facility.

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Joint venture debt

At June 30, 2025, aggregate outstanding debt of unconsolidated joint ventures was $ 36.5 million.

At September 30, 2025, aggregate outstanding debt of unconsolidated joint ventures was $ 37.2 million.

Financial Services debt

Pulte Mortgage maintains a master repurchase agreement with third-party lenders (as amended, the "Repurchase Agreement") that matures on August 12, 2026.

The maximum aggregate commitment under the Repurchase Agreement was $ 650.0 million at June 30, 2025, which continues until maturity.

The maximum aggregate commitment under the Repurchase Agreement was $ 625.0 million at September 30, 2025, which continues until maturity.

The Repurchase Agreement also contains an accordion feature that could increase the commitment by $ 50.0 million above its active commitment level.

1 unchanged sentence

The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity.

At June 30, 2025, Pulte Mortgage had $ 498.4 million outstanding at a weighted-average interest rate of 6.12 % and $ 151.6 million of remaining capacity under the Repurchase Agreement.

At September 30, 2025, Pulte Mortgage had $ 404.2 million outstanding at a weighted-average interest rate of 5.93 % and $ 220.8 million of remaining capacity under the Repurchase Agreement.

At December 31, 2024, Pulte Mortgage had $ 526.9 million outstanding at a weighted-average interest rate of 6.13 % and $ 148.1 million of remaining capacity under the Repurchase Agreement.

1 unchanged sentence

Shareholders’ equity

In the six months ended June 30, 2025, we declared cash dividends totaling $ 88.7 million and repurchased 5.8 million shares under our share repurchase authorization for $ 600.0 million.

In the six months ended June 30, 2024, we declared cash dividends totaling $ 84.7 million and repurchased 5.1 million shares under our share repurchase authorization for $ 560.0 million.

In the nine months ended September 30, 2025, we declared cash dividends totaling $ 132.2 million and repurchased 8.2 million shares under our share repurchase authorization for $ 900.0 million.

In the nine months ended September 30, 2024, we declared cash dividends totaling $ 126.2 million and repurchased 7.6 million shares under our share repurchase authorization for $ 880.0 million.

On January 29, 2025, the Board of Directors increased our share repurchase authorization by $ 1.5 billion.

At June 30, 2025, we had remaining authorization to repurchase $ 1.6 billion of common shares.

At September 30, 2025, we had remaining authorization to repurchase $ 1.3 billion of common shares.

Under our share-based compensation plans, we accept shares as payment under certain conditions related to the vesting of shares, generally related to the payment of minimum tax obligations.

In the six months ended June 30, 2025 and 2024, participants surrendered shares valued at $ 23.8 million and $ 17.6 million, respectively, under these plans.

In the nine months ended September 30, 2025 and 2024, participants surrendered shares valued a t $ 24.3 million and $ 18.5 million, respectively, under these plans.

Such share transactions are excluded from the above noted share repurchase authorization.

Our effective tax rate was 24.6 % and 24.0 % for the three and six months ended June 30, 2025, respectively, compared with 22.8 % and 23.2 % for the comparable prior year periods in 2024.

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Our effective tax rate was 23.7 % and 23.9 % for the three and nine months ended September 30, 2025, respectively, compared with 23.0 % and 23.1 % for the comparable prior year periods in 2024.

Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax expense and federal tax credits.

Our income tax expense for the three and six months ended June 30, 2024 also reflected a reduction in income tax liabilities totaling $ 13.2 million related to the favorable resolution of uncertain state tax positions.

At June 30, 2025 and December 31, 2024, we had net deferred tax liabilities of $ 408.3 million and $ 388.5 million, respectively.

Our income tax expense for the nine months ended September 30, 2024 reflected a reduction in income tax liabilities totaling $ 13.2 million related to the favorable resolution of uncertain state tax positions.

At September 30, 2025 and December 31, 2024, we had net deferred tax liabilities of $ 440.5 million and $ 388.5 million, respectively.

The accounting for deferred taxes is based upon estimates of future results.

2 unchanged sentences

Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes.

We had $ 35.1 million and $ 38.7 million of gross unrecognized tax benefits at June 30, 2025 and December 31, 2024, respectively.

Additionally, we had accrued interest and penalties of $ 2.1 million and $ 1.9 million at June 30, 2025 and December 31, 2024, respectively.

We had $ 32.9 million and $ 38.7 million of gross unrecognized tax benefits at September 30, 2025 and December 31, 2024, respectively.

Additionally, we had accrued interest and penalties of $ 2.2 million and $ 1.9 million at September 30, 2025 and December 31, 2024, respectively.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted, introducing various changes to U.S.

federal tax law.

The Company does not expect the Act to have a material impact on its consolidated financial statements.

PULTEGROUP, INC.

9 unchanged sentences

Hierarchy Fair Value

September 30,

2025 December 31,

18 unchanged sentences

If quoted market prices are not available, fair values are based on quoted market prices of similar issues.

The carrying value of senior notes was $ 1.6 billion at both June 30, 2025 and December 31, 2024.

The carrying value of senior notes was $ 1.6 billion at both September 30, 2025 and December 31, 2024.

PULTEGROUP, INC.

4 unchanged sentences

The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure.

We had outstanding letters of credit and surety bonds totaling $ 341.2 million and $ 3.1 billion, respectively, at June 30, 2025, and $ 321.1 million and $ 2.9 billion, respectively, at December 31, 2024.

We had outstanding letters of credit and surety bonds totaling $ 348.0 million and $ 3.1 billion, respectively, at September 30, 2025, and $ 321.1 million and $ 2.9 billion, respectively, at December 31, 2024.

In the event any such letter of credit or surety bond is drawn, we would be obligated to reimburse the issuer of the letter of credit or surety bond.

20 unchanged sentences

Changes to warranty liabilities were as follows ($000’s omitted):

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

25 unchanged sentences

IBNR represents losses related to claims incurred but not yet reported plus development on reported claims.

Our recorded reserves for all such claims totaled $ 273.4 million and $ 267.5 million at June 30, 2025 and December 31, 2024, respectively.

Our recorded reserves for all such claims totaled $ 282.0 million and $ 267.5 million at September 30, 2025 and December 31, 2024, respectively.

The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses.

Liabilities related to IBNR and related claim expenses represented approximately 68 % of the total general liability reserves at both June 30, 2025 and December 31, 2024.

Liabilities related to IBNR and related claim expenses represented approximately 69 % and 68 % of the total general liability reserves at September 30, 2025 and December 31, 2024, respectively.

The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data.

8 unchanged sentences

Adjustments to reserves are recorded in the period in which the change in estimate occurs.

Our lower ending reserve balance at June 30, 2025 compared with June 30, 2024 results primarily from adjustments made during 2024 as a result of changes in estimates resulting from actual claim experience being less than anticipated in previous actuarial projections.

Our lower ending reserve balance at September 30, 2025 compared with September 30, 2024 results primarily from adjustments made during 2024 as a result of changes in estimates resulting from actual claim experience being less than anticipated in previous actuarial projections.

The changes in actuarial estimates were driven by changes in actual claims experience that, in turn, impacted actuarial estimates for potential future claims.

3 unchanged sentences

Changes in these liabilities were as follows ($000's omitted):

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

14 unchanged sentences

Leases with an initial term of 12 months or less are not recorded on the balance sheet.

ROU assets and lease liabilities were $ 115.5 million and $ 131.6 million at June 30, 2025, respectively, and $ 93.9 million and $ 109.0 million at December 31, 2024, respectively.

In the three and six months ended June 30, 2025 we recorded an additional $ 14.5 million and $ 34.1 million, respectively, of lease liabilities under operating leases, and $ 1.9 million and $ 5.5 million, respectively, in the comparable prior year periods.

Payments on lease liabilities in the three and six months ended June 30, 2025 totaled $ 5.7 million and $ 11.5 million, respectively, and $ 5.8 million and $ 11.7 million in the comparable prior year periods.

ROU assets and lease liabilities were $ 113.2 million and $ 129.6 million at September 30, 2025, respectively, and $ 93.9 million and $ 109.0 million at December 31, 2024, respectively.

In the three and nine months ended September 30, 2025 we recorded an additional $ 2.7 million and $ 36.7 million , respectively, of lease liabilities under operating leases, and $ 3.6 million and $ 9.1 million, respectively, in the comparable prior year periods.

Payments on lease liabilities in the three and nine months ended September 30, 2025 totaled $ 5.7 million and $ 17.2 million, respectively, and $ 5.9 million and $ 17.6 million in the comparable prior year periods.

Lease expense includes costs for leases with terms in excess of one year as well as short-term leases with terms of less than one year.

In the three and six months ended June 30, 2025 our total lease expense was $ 15.2 million and $ 30.9 million, respectively, and $ 15.2 million and $ 30.2 million in the comparable prior year periods.

Our total lease expense is inclusive of variable lease costs of $ 2.3 million and $ 5.3 million in the three and six months ended June 30, 2025, respectively, and $ 2.5 million and $ 6.1 million in the comparable prior year periods, as well as short-term lease costs of $ 5.4 million and $ 11.5 million in the three and six months ended June 30, 2025, respectively, and $ 6.0 million and $ 10.8 million in the comparable prior year periods.

In the three and nine months ended September 30, 2025 our total lease expense was $ 14.6 million and $ 45.6 million, respectively, and $ 15.3 million and $ 45.5 million in the comparable prior year periods.

Our total lease expense is inclusive of variable lease costs of $ 2.0 million and $ 7.3 million in the three and nine months ended September 30, 2025, respectively, and $ 2.3 million and $ 8.4 million in the comparable prior year periods, as well as short-term lease costs of $ 6.0 million and $ 17.4 million in the three and nine months ended September 30, 2025, respectively, and $ 6.2 million and $ 17.0 million in the comparable prior year periods.

Sublease income was de minimis.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The future minimum lease payments required under our leases as of June 30, 2025 were as follows ($000's omitted):

The future minimum lease payments required under our leases as of September 30, 2025 were as follows ($000's omitted):

Years Ending December 31,

2 unchanged sentences

Present value of lease liabilities (d)

(a) Remaining payments are for the six months ending December 31, 2025.

(b) Lease payments include options to extend lease terms that are reasonably certain of being exercised and exclude $ 11.3 million of legally binding minimum lease payments for leases signed but not yet commenced at June 30, 2025.

(a) Remaining payments are for the three months ending December 31, 2025.

(b) Lease payments include options to extend lease terms that are reasonably certain of being exercised and exclude $ 8.2 million of legally binding minimum lease payments for leases signed but not yet commenced at September 30, 2025.

As a result, we must estimate our discount rate for such leases to determine the present value of lease payments at the lease commencement date.

(d) The weighted-average remaining lease term and weighted-average discount rate used in calculating our lease liabilities were 6.0 years and 4.6 %, respectively, at June 30, 2025.

(d) The weighted-average remaining lease term and weighted-average discount rate used in calculating our lease liabilities were 6.0 years and 4.6 %, respectively, at September 30, 2025.

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