Green Brick Partners, Inc.
Other securities:
GRBK$Apreferred
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PART I
ITEM 1. BUSINESS
Green Brick Partners, Inc. and its subsidiaries (“Green Brick”, “the Company”, “we” or “us”) is a diversified homebuilding and land development company. We acquire and develop land and build homes through our seven brands of builders in three major markets. Our core markets are in the high growth U.S. metropolitan areas of Dallas-Fort Worth (“DFW”), Austin, and Houston, Texas, and Atlanta, Georgia, as well as the Treasure Coast, Florida area. We handle every stage of homebuilding, from acquiring and developing land, securing entitlements, designing homes, constructing properties, to providing title, mortgage, and insurance agency services. We also manage marketing and sales, and the creation of master planned communities.
We believe we offer higher quality homes with more distinctive designs and floor plans than those built by our competitors at comparable prices. Many of our communities are located in premium locations and have high-end common areas and amenities. We seek to enhance our homebuyers’ experience by utilizing high-quality materials, and building well-crafted homes. We seek to not only maximize value over the long term but to mitigate risks in the event of a downturn by minimizing leverage, controlling costs, and quickly reacting to regional and local market trends
We are a leading lot developer in our markets and believe that our strict operating discipline provides us with a competitive advantage in seeking to maximize returns while minimizing risk. As of December 31, 2025, we owned or had under contract approximately 48,900 home sites in high-growth submarkets throughout the DFW, Austin, Houston, and Atlanta metropolitan areas and the Treasure Coast, Florida market. We previously referred to “lots controlled”, which included only lots past feasibility studies for which we did not hold title, but had the contractual right to acquire. However, as of December 31, 2025, we revised our definition of lots controlled to “lots under contract” to provide investors consistent disclosure with those of other home builders. Lots under contract include all land or lot parcels that we have a contractual right to acquire pursuant to a fully executed option contact or purchase and sale agreement. These contracts are subject to the fulfillment of certain conditions that may be out of our control such as zoning approval or environmental reports. We provide finished lots to our subsidiary builders or option lots from third-party developers for our builders’ homebuilding operations and provide them with construction funding and strategic planning.
We are a Delaware corporation, incorporated in 2006. We commenced operations as a publicly held homebuilding company in 2014. Our principal executive offices are located at 5501 Headquarters Drive, Ste 300W, Plano, TX 75024.
Business Strategy
We have been committed to building high quality neighborhoods in some of the best markets in the country, interwoven with modern technologies, innovative design and architecture. Our strategic advantages in sourcing and self-developing land in infill and infill-adjacent submarkets, as well as expert local teams, have been instrumental to our growth and expansion over the last decade. We believe our unique approach enables us to provide superior value to our customers and the communities in which they live, as well as long-term returns for our investors and stakeholders. We believe we are well-positioned for growth through the disciplined execution of the following elements of our strategy:
•Consistent Land Acquisition Program with Disciplined Underwriting. We believe our ability to identify, acquire and develop land in desirable locations and on favorable terms is critical to our success. We evaluate land opportunities based on how we expect such opportunities will contribute to overall profitability and returns. Through our rigorous national underwriting program, we seek to identify attractive properties that are typically located in prime neighborhood locations or in preferred growth corridors. We target entitled parcels to develop that can begin delivering finished lots to our builder subsidiaries within 12 to 24 months from acquisition. We will also purchase finished lots from 3rd-party developers, but to a much lesser extent. Our neighborhoods vary in size, depending on lot count and density. As such, project durations, from the beginning of development to the last delivery, can range from a couple of years to eight or more years depending on the amount of lots, the number of development phases, the variety of product lines and the sales pace of each product line. Our investment and capital allocation strategies vary by market, but we typically target minimum underwriting thresholds for returns and margins.
•Focus on Markets with a Favorable Growth Outlook and Strong Demand Fundamentals. We have chosen to focus our operations on sunbelt states because we believe these markets offer attractive residential real estate investment characteristics, such as growing economies, improving levels of employment, population growth relative to national averages, favorable migration patterns, general housing affordability, and desirable lifestyle and weather characteristics. We currently generate income from home sales in Texas, Georgia, and Florida. As of October 2025, Texas, Florida and Georgia were ranked first, second and fifth, respectively, in terms of single-family building permits issued according to the National Association of Home Builders.
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•Strategically Increase Market Positions in our Existing Markets. We believe there are significant opportunities to profitably expand in our core markets. As of December 31, 2025, we believe our extensive land and lot inventory will allow us to maximize our profitability and return on capital. In DFW, Austin, Houston, and Atlanta, we seek to acquire land with convenient access to metropolitan areas which have diverse economic and employment bases and demographics that we believe will support long-term growth. In the Treasure Coast market, we seek land in highly desirable, but limited, coastal regions that attract relocating homebuyers. We continuously review the allocation of our investments in these markets, taking into account demographic trends and the likely impact on our operating results and will reallocate our investments when necessary.
•Deliver Superior Designs, Broad Product Ranges and Enhanced Homebuying Experience. We partner with our builders to design attractive neighborhoods and homes that appeal to a wide variety of potential homebuyers. Our homebuilding projects include single family homes, townhomes, master-planned communities, condos, luxury homes, and patio homes. Additionally, we offer a spec home business model with a focus on quick move-in homes through our Trophy brand.
•We believe we can adapt quickly to changing market conditions and optimize performance and returns while strategically reducing portfolio risk because of our diversified product strategy. One of our core operating philosophies is to create a culture that provides a positive, memorable experience for our homebuyers. In consultation with nationally and locally recognized architecture firms and interior and exterior consultants, we research and design a diversified range of products at various levels and price points.
•Disciplined Investment Strategy Combined with the Prudent Use of Leverage. We seek to maximize value over the long-term and operate our business to mitigate risks in the event of a downturn by controlling costs and focusing on regional and local market trends. We believe our strict operating discipline combined with our prudent use of financial leverage to continue to invest in our land acquisition, development and homebuilding businesses provides us with a competitive advantage in seeking to maximize returns while minimizing risk. Based on current interest rate levels, our target debt-to-capital capitalization ratio is approximately 20%. We believe this will allow us to maintain sufficient capital to fund our continued growth. As of December 31, 2025, our debt to total capitalization ratio was 14.7%.
•Targeted Expansion into Adjacent Markets. We currently intend to pursue targeted expansion of our first-time homebuyer or entry-level builder, Trophy Signature Homes (“Trophy”), into new markets. We believe Trophy’s more affordable product and quicker inventory turns make its platform uniquely scalable to expand outside of the DFW metroplex. We plan to expand Trophy into markets compatible with our existing markets that demonstrate strong trends in demographics, employment, and in-migration by leveraging existing relationships with land developers and homebuilders. In 2025 we expanded into the Austin and Houston, Texas markets. In addition, we have historically, and may in the future, grow through the acquisition of homebuilders in our current markets or other markets that meet our demographic and economic growth criteria.
Our Builders and Homes
The following table presents general information about each of our builders, including the types of homes they build and their price ranges as of December 31, 2025.
| Builder* | Ownership | Market | Products Offered | Price Range | ||||||||||||||||||
| Trophy Signature Homes LLC (“Trophy”) | 100% | DFW, Austin, and Houston | Single family | Mid $200s to mid $700s | ||||||||||||||||||
| CB JENI Homes DFW LLC (“CB JENI”) | 100% | DFW | Townhomes | Mid $200s to mid $600s | ||||||||||||||||||
| Normandy Homes LLC (“Normandy Homes”) | 100% | DFW | Single family | Mid $400s to over $1 million | ||||||||||||||||||
| SGHDAL LLC (“Southgate”) | 100% | DFW | Luxury homes | Mid $700s to over $1.5 million | ||||||||||||||||||
| CLH20 LLC (“Centre Living”) | 90% | DFW | Single Family and Townhomes | Mid $300s to upper $800s | ||||||||||||||||||
| The Providence Group of Georgia LLC (“TPG”) | 50% | Atlanta | Townhomes, Condominiums and Single Family | Mid $400s to over $1.8 million | ||||||||||||||||||
| GRBK GHO Homes LLC (“GRBK GHO”) | 80% | Treasure Coast | Patio homes and Single Family | High $300s to over $2.8 million | ||||||||||||||||||
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K/A (this “Report”) contains “forward-looking statements” within the meaning of the securities laws. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. All statements other than statements of historical facts included or incorporated by reference in this Report, including the statements regarding our strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans, and objectives, are forward-looking statements. When used in this Annual Report, the words “will,” “believe,” “anticipate,” “plan,” “intend,” “estimate,” “expect,” “project,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Although we believe that our plans, intentions, and expectations reflected in or suggested by the forward-looking statements we make in this Report are reasonable, we cannot assure you that these plans, intentions, or expectations will be achieved. Forward-looking statements included or incorporated by reference in this Report include statements concerning (1) our balance sheet strategy and belief that we have ample liquidity; (2) the success of our financial services and its impact on our growth; (3) our goals and strategies and their anticipated benefits, including expansion into new markets or new related businesses and the attractiveness of the new markets; (3) our intentions and the expected benefits and advantages of our product and land positioning strategies; (4) our expectations regarding the reduction in our targeted debt to total capitalization ratio and its impact on our capital; (5) our expectations regarding future finished lots, the quality of those lots and the timing of backlog fulfillment; (6) expansion through Trophy Homes; (7) expectations regarding our industry and our business in 2026 and beyond; (8) the contribution of certain market factors to our growth; (9) the impact of elevated mortgage rates and high interest rate volatility on our operations; (10) our land and lot acquisition strategy; (11) the sufficiency of our capital resources to support our business strategy and to service our debt; (12) our expectations regarding backlog; (13) the impact of new accounting standards and changes in accounting estimates; (14) trends and expectations regarding sales prices, sales orders, sales pace, cancellations, construction costs, gross margins, land costs and profitability and future home inventories; (15) our expectations regarding increased regulations on homebuilders and land developers; (16) our future cash needs; (17) our strategy to utilize leverage to invest in our business; (18) seasonal factors and the impact of seasonality in future quarters; (19) our expectations regarding access to additional growth capital; (20) our expectations regarding future land revenue recognition; (21) our ability to adapt to changing market conditions; and (22) the disposition of legal claims and related contingencies.
These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements. These risks include, but are not limited to: (1) general economic conditions in our markets, seasonality, cyclicality and competition in the homebuilding industry; (2) changes in macroeconomic conditions, including interest rates, that could adversely impact demand for new homes or the ability of our buyers to qualify; (3) shortages, delays or increased costs or performance issues of raw materials, or increases in other operating costs, including costs related to labor, real estate taxes and insurance, which in each case exceed our ability to increase prices; (4) significant periods of inflation or deflation; (5) a shortage of labor, (6) an inability to acquire land in our markets at anticipated prices or difficulty in obtaining land-use entitlements; (7) our inability to successfully execute our strategies, including the successful development of our communities within expected timeframes and the growth and expansion of our Trophy brand; (8) a failure to recruit, retain or develop highly skilled and competent employees; (9) the geographic concentration of our operations; (10) government regulation risks; (11) adverse changes in the availability or volatility of mortgage financing; (12) severe weather events or natural disasters; (13) difficulty in obtaining sufficient capital to fund our growth; (14) our ability to meet our debt service obligations; (15) a decline in the value of our inventories and resulting write-downs of the carrying value of our real estate assets; (16) our ability to adequately self-insure; and (17) changes in accounting standards that adversely affect our reported earnings or financial condition.
Please see “Risk Factors” located in Part I, Item 1A in this Report for a further discussion of these and other risks and uncertainties which could affect our future results. We undertake no obligation to revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events, except to the extent we are legally required to disclose certain matters in SEC filings or otherwise.
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with our restated consolidated financial statements and the related notes included in this Form 10‑K/A and have been revised solely to reflect the corrections described in Note 1, “Restatement of Previously Issued Financial Statements”. No other information in this MD&A has been updated or modified, and this Form 10‑K/A does not reflect events or developments occurring after February 25, 2026.
Overview and Outlook
Our key financial and operating metrics are home deliveries, home closings revenue, average sales price of homes delivered, net new home orders, which refers to the number of sales contracts executed reduced by the number of sales contracts canceled during the relevant period, and homebuilding gross margin. Our results for each key financial and operating metric, as compared to the year ended December 31, 2024, are provided below:
| Year Ended | |||||||
| December 31, 2025 | |||||||
As restated | |||||||
| New homes delivered | Increased by 4.2% | ||||||
| Home closings revenue | Unchanged | ||||||
| Average sales price of homes delivered | Decreased by 4.0% | ||||||
| Net new home orders | Increased by 3.1% | ||||||
Homebuilding gross margin percentage | Decreased by 300 bps | ||||||
The results achieved in our key metrics compared to last year are largely driven by our strategic focus on infill and infill-adjacent locations in high growth markets, our land approach to self-develop raw land into finished lots that are held on our balance sheet, and our reduced cycle times. Our home deliveries and net new home orders increased 4.2% and 3.1%, respectively. Home closings revenue remained flat mainly due to a 4.0% decrease in the average sales price of homes delivered, which also resulted in a lower homebuilding gross margin percentage. We remain focused on disciplined land acquisition and operational efficiency to drive long-term value, even as we navigate a more competitive pricing environment.
We believe we operate in some of the most desirable housing markets in the nation and that increasing demand and supply levels in our target markets create favorable conditions for our future growth. As of October 2025, Texas, Florida and Georgia were ranked first, second and fifth, respectively, in terms of single-family building permits issued according to the National Association of Home Builders.
Results of Operations
Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024
Residential Units Revenue and New Homes Delivered
The table below represents residential units revenue and new homes delivered for the years ended December 31, 2025 and December 31, 2024 (dollars in thousands):
| Years Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
As restated | As restated | Change | % | ||||||||||||||||||||
| Home closings revenue | $ | 2,032,781 | $ | 2,032,288 | $ | 493 | — | % | |||||||||||||||
| Mechanic’s lien contracts revenue | 219 | 380 | (161) | (42.4) | % | ||||||||||||||||||
| Residential units revenue | $ | 2,033,000 | $ | 2,032,668 | $ | 332 | — | % | |||||||||||||||
| New homes delivered | 3,943 | 3,783 | 160 | 4.2 | % | ||||||||||||||||||
| Average sales price of homes delivered | $ | 515.5 | $ | 537.2 | $ | (21.7) | (4.0) | % | |||||||||||||||
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Residential units revenue remained flat mainly due to a 4.2% increase in the number of homes delivered partially offset by a 4.0% decrease in average sales price of new homes delivered. The increase in new homes delivered was primarily driven by our Trophy Signature Homes and CB JENI Homes brands. The decrease in the average sales price of homes delivered was attributable to product mix, higher incentives, discounts, and closing costs to sustain order pace.
New Home Orders and Backlog
The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s liens contracts (dollars in thousands):
| Years Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
As restated | As restated | Change | % | ||||||||||||||||||||
| Net new home orders | 3,795 | 3,681 | 114 | 3.1 | % | ||||||||||||||||||
| Revenue from net new home orders | $ | 1,891,002 | $ | 1,972,745 | $ | (81,743) | (4.1) | % | |||||||||||||||
| Average selling price of net new home orders | $ | 498.3 | $ | 535.9 | $ | (37.6) | (7.0) | % | |||||||||||||||
| Cancellation rate | 7.5 | % | 7.3 | % | 0.2 | % | 2.7 | % | |||||||||||||||
| Absorption rate per average active selling community per quarter | 9.3 | 9.1 | 0.2 | 2.2 | % | ||||||||||||||||||
| Average active selling communities | 102 | 101 | 1 | 1.0 | % | ||||||||||||||||||
| Active selling communities at end of period | 101 | 106 | (5) | (4.7) | % | ||||||||||||||||||
| Backlog revenue | $ | 347,283 | $ | 489,282 | $ | (141,999) | (29.0) | % | |||||||||||||||
| Backlog units | 520 | 668 | (148) | (22.2) | % | ||||||||||||||||||
| Average sales price of backlog | $ | 667.9 | $ | 732.5 | $ | (64.6) | (8.8) | % | |||||||||||||||
Net new home orders increased by 3.1% over the prior year while our average active selling communities remained relatively flat. Revenue from net new home orders declined $81.7 million or 4.1% consistent with the decline in the average selling price of net new home orders. The increase in net new home orders is attributable to a lower cancellation rate and higher incentives offered to drive sales orders.
Backlog refers to homes under sales contracts that have not yet closed at the end of the relevant period, and absorption rate refers to the rate at which net new home orders are contracted per average active selling community during the relevant period. Sales contracts may be canceled prior to closing for a number of reasons, including the inability of the homebuyer to obtain suitable mortgage financing. Accordingly, backlog may not be indicative of our future revenue.
Backlog revenue decreased by 29.0% mainly due to a decrease of 148 backlog units and a 8.8% decrease in the average sales price of backlog units compared to the prior year period. The change in backlog is due to increase in homes delivered of 160 units partially offset by an increase in new home orders of 114 units.
Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the respective period, was 7.5% for the year ended December 31, 2025, compared to 7.3% for the year ended December 31, 2024. Our cancellation rate remained in a historically low range under 10.0% since December 31, 2022.
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Residential Units Gross Margin
The table below represents the components of residential units gross margin (dollars in thousands):
| Years Ended December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||
As restated | As restated | ||||||||||||||||||||||||
| Home closings revenue | $ | 2,032,781 | 100.0 | % | $ | 2,032,288 | 100.0 | % | |||||||||||||||||
| Cost of homebuilding units | 1,394,572 | 68.6 | % | 1,333,145 | 65.6 | % | |||||||||||||||||||
| Homebuilding gross margin | $ | 638,209 | 31.4 | % | $ | 699,143 | 34.4 | % | |||||||||||||||||
| Mechanic’s lien contracts revenue | $ | 219 | 100.0 | % | $ | 380 | 100.0 | % | |||||||||||||||||
| Cost of mechanic’s lien contracts | 134 | 61.2 | % | 275 | 72.4 | % | |||||||||||||||||||
| Mechanic’s lien contracts gross margin | $ | 85 | 38.8 | % | $ | 105 | 27.6 | % | |||||||||||||||||
| Residential units revenue | $ | 2,033,000 | 100.0 | % | $ | 2,032,668 | 100.0 | % | |||||||||||||||||
| Cost of residential units | 1,394,706 | 68.6 | % | 1,333,420 | 65.6 | % | |||||||||||||||||||
| Residential units gross margin | $ | 638,294 | 31.4 | % | $ | 699,248 | 34.4 | % | |||||||||||||||||
Residential units revenue increased by $0.3 million or —% during the year ended December 31, 2025 due to the increase in home deliveries of 4.2% partially offset by a 4.0% reduction in average sales price as discussed above. Cost of residential units as a percent of residential units revenue for the year ended December 31, 2025 increased to 68.6% compared to 65.6% in the previous year due to a combination of higher discounts and closing costs.
Residential units gross margin for the year ended December 31, 2025 decreased to 31.4%, compared to 34.4% for the year ended December 31, 2024. The decrease in residential units gross margin is primarily driven by higher incentives, discounts, and closing costs.
Land and Lots Revenue
The table below represents lots closed and land and lots revenue (dollars in thousands):
| Years Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | Change | % | ||||||||||||||||||||
| Lots revenue | $ | 6,994 | $ | 14,723 | $ | (7,729) | (52.5) | % | |||||||||||||||
| Land revenue | — | 14,084 | (14,084) | (100.0) | % | ||||||||||||||||||
| Land and lots revenue | $ | 6,994 | $ | 28,807 | $ | (21,813) | (75.7) | % | |||||||||||||||
| Lots closed | 68 | 185 | (117) | (63.2) | % | ||||||||||||||||||
| Average sales price of lots closed | $ | 102.9 | $ | 79.6 | $ | 23.3 | 29.3 | % | |||||||||||||||
From time to time, we will opportunistically sell finished lots to other homebuilders. Lots revenue decreased by 52.5% during the year ended December 31, 2025, driven by a 63.2% decrease in the number of lots closed partially offset by a 29.3% decrease in the average lot price. Land revenue represents sales of tracts of land during the year ended December 31, 2024.
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Selling, General and Administrative Expenses
The table below represents the components of selling, general and administrative expense (dollars in thousands):
| Years Ended December 31, | As Percentage of Segment Revenue | |||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| 2025 | 2024 | As restated | As restated | |||||||||||||||||||||
| Builder operations | $ | 220,977 | $ | 218,201 | ||||||||||||||||||||
| Corporate, other and unallocated expense | 9,225 | 8,083 | ||||||||||||||||||||||
| Net builder operations | 230,202 | 226,284 | 11.3 | % | 11.1 | % | ||||||||||||||||||
| Land development | 1,161 | 282 | 16.6 | % | 1.0 | % | ||||||||||||||||||
| Total selling, general and administrative expenses | $ | 231,363 | $ | 226,566 | 11.3 | % | 11.0 | % | ||||||||||||||||
Total selling, general and administrative expense as a percentage of revenue increased to 11.3% for the year ended December 31, 2025, which is substantially in line with 11.0% for the year ended December 31, 2024.
Builder Operations
Selling, general and administrative expenses as a percentage of revenue for builder operations was 11.3% compared to 11.1% in the prior year period. Builder operations expenditures include salaries, sales commissions, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.
Corporate, Other and Unallocated
Selling, general and administrative expense for the corporate, other and unallocated non-operating segment for the year ended December 31, 2025 was $9.2 million, compared to $8.1 million for the year ended December 31, 2024. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.
Equity in Income of Unconsolidated Entities
Equity in income of unconsolidated entities decreased to $1.0 million, or 80.3%, for the year ended December 31, 2025, compared to $5.1 million for the year ended December 31, 2024, primarily due to the winding down of our BHome Mortgage joint venture and ramping up of our wholly-owned subsidiary GRBK Mortgage during the year ended December 31, 2025. See Note 5 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for a summary of Green Brick’s share in net earnings by unconsolidated entity.
Other Income, Net
Other income, net, decreased to $27.7 million for the year ended December 31, 2025, compared to $29.8 million for the year ended December 31, 2024. The change was primarily due to gain in the sale of our investment in Challenger during the year ended December 31, 2024 partially offset by income generated from our wholly-owned mortgage subsidiary during the year ended December 31, 2025.
Income Tax Expense
Income tax expense was $94.7 million for each of the years ended December 31, 2025 and 2024. See Note 13 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for a discussion on the Company’s income tax expense for the year ended December 31, 2025.
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Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023
Residential Units Revenue and New Homes Delivered
The table below represents residential units revenue and new homes delivered for the years ended December 31, 2024 and December 31, 2023 (dollars in thousands):
| Years Ended December 31, | |||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
As restated | As restated | Change | % | ||||||||||||||||||||
| Home closings revenue | $ | 2,032,288 | $ | 1,739,388 | $ | 292,900 | 16.8 | % | |||||||||||||||
| Mechanic’s lien contracts revenue | 380 | 1,467 | (1,087) | (74.1) | % | ||||||||||||||||||
| Residential units revenue | $ | 2,032,668 | $ | 1,740,855 | $ | 291,813 | 16.8 | % | |||||||||||||||
| New homes delivered | 3,783 | 3,123 | 660 | 21.1 | % | ||||||||||||||||||
| Average sales price of homes delivered | $ | 537.2 | $ | 557.0 | $ | (19.8) | (3.6) | % | |||||||||||||||
The $291.8 million increase in residential units revenue was driven by the 21.1% increase in the number of homes delivered partially offset by a 3.6% decrease in average sales price of new homes delivered. The increase in new homes delivered is attributable to our increase in community count, the limited competition in our infill and infill-adjacent community sites, our reduced cycle times, and the continued low supply of existing and new home inventory in our markets. The decrease in the average sales price of homes delivered is primarily attributable to an increase in the percentage of home deliveries by Trophy Signature Homes over the last year and higher incentives driven by the high mortgage rate environment. Trophy had an average sales price below the Company average due to a mix of product type and selling more inventory in perimeter locations.
New Home Orders and Backlog
The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s liens contracts (dollars in thousands):
| Years Ended December 31, | |||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
As restated | As restated | Change | % | ||||||||||||||||||||
| Net new home orders | 3,681 | 3,356 | 325 | 9.7 | % | ||||||||||||||||||
| Revenue from net new home orders | $ | 1,972,745 | $ | 1,920,965 | $ | 51,780 | 2.7 | % | |||||||||||||||
| Average selling price of net new home orders | $ | 535.9 | $ | 572.4 | $ | (36.5) | (6.4) | % | |||||||||||||||
| Cancellation rate | 7.3 | % | 6.6 | % | 0.7 | % | 10.6 | % | |||||||||||||||
| Absorption rate per average active selling community per quarter | 9.1 | 9.9 | (0.8) | (8.1) | % | ||||||||||||||||||
| Average active selling communities | 101 | 85 | 16 | 18.8 | % | ||||||||||||||||||
| Active selling communities at end of period | 106 | 91 | 15 | 16.5 | % | ||||||||||||||||||
| Backlog revenue | $ | 489,282 | $ | 549,205 | $ | (59,923) | (10.9) | % | |||||||||||||||
| Backlog units | 668 | 770 | (102) | (13.2) | % | ||||||||||||||||||
| Average sales price of backlog | $ | 732.5 | $ | 713.3 | $ | 19.2 | 2.7 | % | |||||||||||||||
Net new home orders increased by 9.7% over the prior year and our average active selling communities increased by 18.8% due to the continued opening of new communities that outpaced the sellout of existing communities. As a result, our absorption rate per average active selling community decreased 8.1% year over year, which we believe is due to elevated mortgage rates, high interest rate volatility, and the lock-in effect of homeowners with existing lower rate mortgages. The increase in net new home orders is attributable to the increase in our active selling communities, the limited competition in our infill and infill-adjacent community sites, and the strength in demand in our primary higher growth markets.
Backlog refers to homes under sales contracts that have not yet closed at the end of the respective period, and absorption rate refers to the rate at which net new home orders are contracted per average active selling community during the respective period. Sales contracts may be canceled prior to closing for a number of reasons, including the inability of the homebuyer to obtain suitable mortgage financing. Accordingly, backlog may not be indicative of our future revenue.
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Backlog revenue decreased by 10.9% due to a 13.2% decrease in backlog units partially offset by a 2.7% increase in the average sales price of backlog units. As a result, our spec units under construction as a percentage of total units under construction increased from 69.8% as of December 31, 2023 to 75.6% as of December 31, 2024.
Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 7.3% for the year ended December 31, 2024, compared to 6.6% for the year ended December 31, 2023. Our cancellation rate remained in a historically low range under 10.0% since December 31, 2022.
Residential Units Gross Margin
The table below represents the components of residential units gross margin (dollars in thousands):
| Years Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||
As restated | As restated | ||||||||||||||||||||||||
| Home closings revenue | $ | 2,032,288 | 100.0 | % | $ | 1,739,388 | 100.0 | % | |||||||||||||||||
| Cost of homebuilding units | 1,333,145 | 65.6 | % | 1,193,734 | 68.6 | % | |||||||||||||||||||
| Homebuilding gross margin | $ | 699,143 | 34.4 | % | $ | 545,654 | 31.4 | % | |||||||||||||||||
| Mechanic’s lien contracts revenue | $ | 380 | 100.0% | $ | 1,467 | 100.0 | % | ||||||||||||||||||
| Cost of mechanic’s lien contracts | 275 | 72.4 | % | 945 | 64.4 | % | |||||||||||||||||||
| Mechanic’s lien contracts gross margin | $ | 105 | 27.6 | % | $ | 522 | 35.6 | % | |||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-09 | Press Richard S | Director | Sell | -5,000 ×2 | $70.59 | -$352,930 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-07-29 10-Q expected by 2026-08-07 (in 44 days)
- ~2026-10-28 10-Q expected by 2026-11-06 (in 135 days)
- ~2027-02-24 10-K expected by 2027-03-05 (in 254 days)
- ~2027-05-10 10-Q expected by 2027-05-19 (in 329 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-06-11 8-K Officer/Director Change
- 2026-05-22 DEF 14A Proxy Statement
- 2026-05-11 10-K/A Annual Report (Amended)
- 2026-05-11 10-Q Quarterly Report
- 2026-04-30 10-K/A Annual Report (Amended)
- 2026-04-29 8-K Completion of Acquisition/Disposition; Other Events; Financial Statements and Exhibits
- 2026-04-29 8-K Financial Statements No Longer Reliable
- 2026-02-25 10-K Annual Report
- 2026-02-25 8-K Earnings Release; Financial Statements and Exhibits
- 2026-02-19 8-K Other Events
- 2025-12-16 8-K Material Agreement Entered; Material Financial Obligation; Other Events; Financial Statements and Exhibits
- 2025-10-29 10-Q Quarterly Report
- 2025-10-29 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-07-30 10-Q Quarterly Report
- 2025-07-30 8-K Earnings Release; Other Events; Financial Statements and Exhibits