What changed in this filing

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Item 1. Financial Statements

2026-10-22 compared with 2026-07-22 · 92 added, 83 removed, 578 unchanged (23% of the section changed)

3 unchanged sentences

($000’s omitted)

September 30,

2026 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,

2026 2025 2026 2025

10 unchanged sentences

Selling, general, and administrative expenses ( 397,198 ) ( 400,681 ) ( 1,160,497 ) ( 1,184,472 )

Equity income from unconsolidated entities, net 3,962 409 4,841 911

Other income (expense), net 3,921 ( 1,006 ) 10,666 5,355

Equity income (loss) from unconsolidated entities, net ( 2,772 ) 2,422 2,069 3,333

Other income, net 19,700 1,755 30,366 7,110

Income before income taxes 625,206 767,788 1,697,041 2,256,082

14 unchanged sentences

Earnings Total

Shareholders' equity, March 31, 2026 190,771 $ 1,908 $ 3,508,270 $ 9,443,974 $ 12,954,152

Shareholders' equity, June 30, 2026 187,673 $ 1,877 $ 3,523,123 $ 9,488,731 $ 13,013,731

Share issuances 18 — — — —

5 unchanged sentences

Net income — — — 475,727 475,727

Shareholders' equity, June 30, 2026 187,673 $ 1,877 $ 3,523,123 $ 9,488,731 $ 13,013,731

Shareholders' equity, September 30, 2026 184,881 $ 1,849 $ 3,533,634 $ 9,560,478 $ 13,095,961

Shareholders' equity, December 31, 2025 192,725 $ 1,927 $ 3,488,924 $ 9,494,591 $ 12,985,442

6 unchanged sentences

Net income — — — 1,294,726 1,294,726

Shareholders' equity, June 30, 2026 187,673 $ 1,877 $ 3,523,123 $ 9,488,731 $ 13,013,731

Shareholders' equity, September 30, 2026 184,881 $ 1,849 $ 3,533,634 $ 9,560,478 $ 13,095,961

Capital Retained

Earnings Total

Shareholders' 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

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:

19 unchanged sentences

Distributions of capital from unconsolidated entities 21,564 45,669

Proceeds from asset dispositions 90,587 2,799

Other investing activities, net 3,000 ( 12,000 )

3 unchanged sentences

Repayments of notes payable ( 612,691 ) ( 9,163 )

Financial Services borrowings (repayments), net ( 54,434 ) ( 28,549 )

Financial Services repayments, net ( 149,093 ) ( 122,683 )

Debt issuance costs ( 23,411 ) ( 1,446 )

10 unchanged sentences

Supplemental Cash Flow Information:

Interest paid (capitalized), net $ 5,879 $ 8,088

Income taxes paid (refunded), net $ 270,253 $ 392,286

Interest paid, net $ 10,760 $ 12,904

Income taxes paid, net $ 410,565 $ 533,574

See accompanying Notes to Condensed Consolidated Financial Statements.

20 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,

2026 2025 2026 2025

4 unchanged sentences

Interest expense ( 140 ) ( 170 ) ( 410 ) ( 438 )

Miscellaneous, net 1,517 3,199 4,231 6,126

Other income (expense), net $ 3,921 $ ( 1,006 ) $ 10,666 $ 5,355

Miscellaneous, net (a)

24,709 3,258 28,940 9,385

Other income, net $ 19,700 $ 1,755 $ 30,366 $ 7,110

(a) Includes a gain of $ 21.4 million in the three and nine months ended September 30, 2026 related to the divestiture of certain manufacturing assets.

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 $ 512.3 million and $ 387.8 million at June 30, 2026 and December 31, 2025, respectively.

Contract liabilities include customer deposits related to sold but undelivered homes, which totaled $ 515.9 million and $ 387.8 million at September 30, 2026 and December 31, 2025, 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 $ 87.6 million and $ 82.6 million at June 30, 2026 and December 31, 2025, respectively.

The related contract assets for estimated future renewal commissions are included in other assets and totaled $ 90.0 million and $ 82.6 million at September 30, 2026 and December 31, 2025, 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, 2026 and December 31, 2025, residential mortgage loans available-for-sale had an aggregate fair value of $ 549.7 million and $ 613.7 million, respectively, and an aggregate outstanding principal balance of $ 562.4 million and $ 621.6 million, respectively.

At September 30, 2026 and December 31, 2025, residential mortgage loans available-for-sale had an aggregate fair value of $ 433.9 million and $ 613.7 million, respectively, and an aggregate outstanding principal balance of $ 463.5 million and $ 621.6 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 $ 52.6 million and $ 59.7 million for the three months ended June 30, 2026 and 2025, respectively, and $ 87.9 million and $ 109.5 million for the six months ended June 30, 2026 and 2025, respectively, and have been included in Financial Services revenues.

Net gains from the sale of mortgages were $ 54.1 million and $ 59.6 million for the three months ended September 30, 2026 and 2025, respectively, and $ 142.0 million and $ 169.1 million for the nine months ended September 30, 2026 and 2025, 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, 2026 and December 31, 2025, we had aggregate IRLCs of $ 1.7 billion and $ 820.2 million, respectively.

At September 30, 2026 and December 31, 2025, we had aggregate IRLCs of $ 1.5 billion and $ 820.2 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, 2026 and December 31, 2025, we had unexpired forward contracts of $ 1.9 billion and $ 1.3 billion, respectively, and whole loan investor commitments of $ 219.4

At September 30, 2026 and December 31, 2025, we had unexpired forward contracts of $ 1.8 billion and $ 1.3 billion, respectively, and whole loan investor commitments

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

million and $ 270.6 million, respectively.

of $ 161.9 million and $ 270.6 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, 2026 December 31, 2025

September 30, 2026 December 31, 2025

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

6 unchanged sentences

Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of unvested restricted share units and other potentially dilutive instruments.

Anti-dilutive shares were immaterial in the three and six months ended June 30, 2026 and 2025.

Anti-dilutive shares were immaterial in the three and nine months ended September 30, 2026 and 2025.

Credit losses

3 unchanged sentences

Counterparties associated with these assets are generally highly rated.

Allowances on the aforementioned assets were not material as of June 30, 2026 and December 31, 2025.

Allowances on the aforementioned assets were not material as of September 30, 2026 and December 31, 2025.

New accounting pronouncements

11 unchanged sentences

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

September 30,

2026 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,

2026 2025 2026 2025

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, 2026 or December 31, 2025 because we determined that we were not any VIE's primary beneficiary.

No VIEs required consolidation at either September 30, 2026 or December 31, 2025 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, 2026 and December 31, 2025 ($000’s omitted):

June 30, 2026 December 31, 2025

The following provides a summary of our interests in land option agreements as of September 30, 2026 and December 31, 2025 ($000’s omitted):

September 30, 2026 December 31, 2025

Pre-acquisition

8 unchanged sentences

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

Statement of Operations Classification 2026 2025 2026 2025

22 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,

2026 2025 2026 2025

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,

2026 2025 2026 2025

27 unchanged sentences

(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 $ 21.4 million in the three and nine months ended September 30, 2026 related to the divestiture of certain manufacturing assets.

(f) Income before income taxes 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,

2026 2025 2026 2025

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,

2026 2025 2026 2025

14 unchanged sentences

($000's omitted)

June 30, 2026 December 31, 2025

September 30, 2026 December 31, 2025

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 $ 40.4 million, net of cumulative impairment charges of $ 48.7 million, at both June 30, 2026 and December 31, 2025.

Other homebuilding also includes goodwill of $ 40.4 million at both September 30, 2026 and December 31, 2025 .

Notes payable

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

September 30,

2026 December 31,

24 unchanged sentences

Other notes payable

Other notes payable include non-recourse and limited recourse notes with third parties that totaled $ 37.4 million and $ 47.2 million at June 30, 2026 and December 31, 2025, respectively.

Other notes payable include non-recourse and limited recourse notes with third parties that totaled $ 25.4 million and $ 47.2 million at September 30, 2026 and December 31, 2025, respectively.

These notes have maturities ranging up to four years , are 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 $ 3.8 million and $ 13.1 million of inventory through seller financing in the six months ended June 30, 2026 and June 30, 2025, respectively.

We recorded $ 34.2 million and $ 13.1 million of inventory through seller financing in the nine months ended September 30, 2026 and September 30, 2025, respectively.

Revolving credit facility

4 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).

As of June 30, 2026, we were in compliance with all covenants and requirements of the Revolving Credit Facility.

As of September 30, 2026, we were in compliance with all covenants and requirements of the Revolving Credit Facility.

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

At June 30, 2026, we had no borrowings outstanding, $ 343.2 million of letters of credit issued, and $ 1.4 billion of remaining capacity under the Revolving Credit Facility.

At September 30, 2026, we had no borrowings outstanding, $ 368.3 million of letters of credit issued, and $ 1.4 billion of remaining capacity under the Revolving Credit Facility.

At December 31, 2025, we had no borrowings outstanding, $ 357.1 million of letters of credit issued, and $ 892.9 million of remaining capacity under the Original Revolving Credit Facility.

Joint venture debt

At June 30, 2026, aggregate outstanding debt of unconsolidated joint ventures was $ 45.1 million.

At September 30, 2026, aggregate outstanding debt of unconsolidated joint ventures was $ 64.6 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 $ 625.0 million at June 30, 2026, 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.

Pulte Mortgage entered into a master repurchase agreement (the "Repurchase Agreement") in August 2026 with third-party lenders that matures on August 10, 2027.

The Repurchase Agreement replaced a substantially similar agreement that previously existed with different lenders (the "Original Repurchase Agreement").

The maximum aggregate commitment under the Repurchase Agreement was $ 625.0 million at September 30, 2026, which continues until maturity.

Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale.

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, 2026, Pulte Mortgage had $ 477.9 million outstanding at a weighted-average interest rate of 5.42 % and $ 147.1 million of remaining capacity under the Repurchase Agreement.

At December 31, 2025, Pulte Mortgage had $ 532.3 million outstanding at a weighted-average interest rate of 5.51 % and $ 92.7 million of remaining capacity under the Repurchase Agreement.

At September 30, 2026, Pulte Mortgage had $ 383.2 million outstanding at a weighted-average interest rate of 5.61 % and $ 241.8 million of remaining capacity under the Repurchase Agreement.

At December 31, 2025, Pulte Mortgage had $ 532.3 million outstanding at a weighted-average interest rate of 5.51 % and $ 92.7 million of remaining capacity under the Original Repurchase Agreement.

Pulte Mortgage was in compliance with all covenants and requirements as of such dates.

2 unchanged sentences

Shareholders’ equity

In the six months ended June 30, 2026, we declared cash dividends totaling $ 99.5 million and repurchased 5.5 million shares under our share repurchase authorization for $ 681.2 million.

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 nine months ended September 30, 2026, we declared cash dividends totaling $ 148.1 million and repurchased 8.4 million shares under our share repurchase authorization for $ 1.0 billion.

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.

On January 29, 2025, the Board of Directors increased our share repurchase authorization by $ 1.5 billion, which was publicly announced on January 30, 2025.

On April 22, 2026, the Board of Directors approved an additional increase to our share repurchase authorization of $ 1.5 billion, which was publicly announced on April 23, 2026.

At June 30, 2026, we had remaining authorization to repurchase $ 1.8 billion of common shares.

At September 30, 2026, we had remaining authorization to repurchase $ 1.5 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, 2026 and 2025, participants surrendered shares valued at $ 38.1 million and $ 23.8 million, respectively, under these plans.

In the nine months ended September 30, 2026 and 2025, participants surrendered shares valued at $ 39.6 million and $ 24.3 million, respectively, under these plans.

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

Our effective tax rate was 24.2 % and 23.6 % for the three and six months ended June 30, 2026, respectively, compared with 24.6 % and 24.0 % for the comparable prior year periods in 2025.

Our effective tax rate was 23.9 % and 23.7 % for the three and nine months ended September 30, 2026, respectively, compared with 23.7 % and 23.9 % for the comparable prior year periods in 2025.

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 effective tax rate for the six months ended June 30, 2026 and 2025 also includes benefits from stock-based compensation.

At June 30, 2026 and December 31, 2025, we had net deferred tax liabilities of $ 412.8 million and $ 399.3 million, respectively.

Our effective tax rate for the nine months ended September 30, 2026 and 2025 also includes benefits from stock-based compensation.

At September 30, 2026 and December 31, 2025, we had net deferred tax liabilities of $ 423.9 million and $ 399.3 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 $ 29.6 million and $ 29.9 million of gross unrecognized tax benefits at June 30, 2026 and December 31, 2025, respectively.

Additionally, we had accrued interest and penalties of $ 0.1 million and $ 0.6 million at June 30, 2026 and December 31, 2025, respectively.

We had $ 29.1 million and $ 29.9 million of gross unrecognized tax benefits at September 30, 2026 and December 31, 2025, respectively.

Additionally, we had no accrued interest and penalties at September 30, 2026 and $ 0.6 million at December 31, 2025.

PULTEGROUP, INC.

9 unchanged sentences

Hierarchy Fair Value

September 30,

2026 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 $ 1.8 billion and $ 1.6 billion at June 30, 2026 and December 31, 2025, respectively.

The carrying value of senior notes was $ 1.8 billion and $ 1.6 billion at September 30, 2026 and December 31, 2025, respectively.

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 $ 343.2 million and $ 3.1 billion, respectively, at June 30, 2026, and $ 357.1 million and $ 3.1 billion, respectively, at December 31, 2025.

We had outstanding letters of credit and surety bonds totaling $ 368.3 million and $ 3.0 billion, respectively, at September 30, 2026, and $ 357.1 million and $ 3.1 billion, respectively, at December 31, 2025.

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,

2026 2025 2026 2025

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 $ 262.2 million and $ 259.4 million at June 30, 2026 and December 31, 2025, respectively.

Our recorded reserves for all such claims totaled $ 259.8 million and $ 259.4 million at September 30, 2026 and December 31, 2025, 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 71 % and 74 % of the total general liability reserves at June 30, 2026 and December 31, 2025, respectively.

Liabilities related to IBNR and related claim expenses represented approximately 71 % and 74 % of the total general liability reserves at September 30, 2026 and December 31, 2025, 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.

10 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,

2026 2025 2026 2025

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 $ 106.5 million and $ 130.0 million at June 30, 2026, respectively, and $ 109.7 million and $ 133.2 million at December 31, 2025, respectively.

In the three and six months ended June 30, 2026 we recorded an additional $ 5.4 million of lease liabilities under operating leases, and $ 14.5 million and $ 34.1 million, respectively, in the comparable prior year periods.

Payments on lease liabilities in the three and six months ended June 30, 2026 totaled $ 6.6 million and $ 13.4 million, respectively, and $ 5.7 million and $ 11.5 million in the comparable prior year periods.

ROU assets and lease liabilities were $ 107.8 million and $ 123.2 million at September 30, 2026, respectively, and $ 109.7 million and $ 133.2 million at December 31, 2025, respectively.

In the three and nine months ended September 30, 2026 we recorded an additional $ 7.6 million and $ 13.0 million, respectively, of lease liabilities under operating leases, and $ 2.7 million and $ 36.7 million, respectively, in the comparable prior year periods.

Payments on lease liabilities in the three and nine months ended September 30, 2026 totaled $ 6.0 million and $ 19.3 million, respectively, and $ 5.7 million and $ 17.2 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, 2026 our total lease expense was $ 13.7 million and $ 27.7 million, respectively, and $ 15.2 million and $ 30.9 million in the comparable prior year periods.

Our total lease expense is inclusive of variable lease costs of $ 2.1 million and $ 4.1 million in the three and six months ended June 30, 2026, respectively, and $ 2.3 million and $ 5.3 million in the comparable prior year periods, as well as short-term lease costs of $ 4.7 million and $ 9.4 million in the three and six months ended June 30, 2026, respectively, and $ 5.4 million and $ 11.5 million in the comparable prior year periods.

In the three and nine months ended September 30, 2026 our total lease expense was $ 13.3 million and $ 41.0 million, respectively, and $ 14.6 million and $ 45.6 million in the comparable prior year periods.

Our total lease expense is inclusive of variable lease costs of $ 2.0 million and $ 6.1 million in the three and nine months ended September 30, 2026, respectively, and $ 2.0 million and $ 7.3 million in the comparable prior year periods, as well as short-term lease costs of $ 4.6 million and $ 13.9 million in the three and nine months ended September 30, 2026, respectively, and $ 6.0 million and $ 17.4 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, 2026 were as follows ($000's omitted):

The future minimum lease payments required under our leases as of September 30, 2026 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, 2026.

(b) Lease payments include options to extend lease terms that are reasonably certain of being exercised and exclude $ 9.0 million of legally binding minimum lease payments for leases signed but not yet commenced at June 30, 2026.

(a) Remaining payments are for the three months ending December 31, 2026.

(b) Lease payments include options to extend lease terms that are reasonably certain of being exercised and exclude $ 0.6 million of legally binding minimum lease payments for leases signed but not yet commenced at September 30, 2026.

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 5.5 years and 4.6 %, respectively, at June 30, 2026.

(d) The weighted-average remaining lease term and weighted-average discount rate used in calculating our lease liabilities were 5.6 years and 4.7 %, respectively, at September 30, 2026.

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