Financial Analysis

Contingencies Beazer Homes and certain of its subsidiaries have been and continue to be named as defendants in various construction defect claims, complaints, and other legal actions. The Company is subject to the possibility of loss contingencies related to these alleged defects as well as others arising from its business. In determining loss contingencies, we consider the likelihood of loss and our ability to reasonably estimate the amount of such loss. An estimated loss is recorded when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated. Warranty Reserves We currently provide a limited warranty ranging from one to two years covering workmanship and materials per our defined quality standards. In addition, we provide a limited warranty for up to ten years covering certain defined structural element failures. Warranty reserves are included in other liabilities within the consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed, which are a function of the number of home closings in the period, the selling prices of the homes closed and the rates of accrual per home estimated as a percentage of the selling price of the home. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Retirement and Deferred Compensation Plans 401(k) Retirement Plan The Company sponsors a defined-contribution plan that is a tax-qualified retirement plan under section 401(k) of the Internal Revenue Code (the Plan). Substantially all employees are eligible for participation in the Plan. Participants may defer and contribute from 1% to 80% of their salary to the Plan, with certain limitations on highly compensated individuals. The Company matches up to 50% of the participant's contributions limited to 6% of the participant's earnings. The participant's contributions vest immediately, while the Company's contributions vest over five years. The total Company contributions for the fiscal years ended September 30, 2025, 2024 and 2023 were $3.7 million , $3.5 million and $3.2 million, respectively. During fiscal 2025, 2024 and 2023, participants forfeited $0.9 million , $0.9 million and $0.7 million, respectively, of unvested matching contributions. Deferred Compensation Plan The Beazer Homes USA, Inc. Deferred Compensation Plan (DCP) is a non-qualified deferred compensation plan for a select group of executives and highly compensated employees. The DCP allows the executives to defer current compensation on a pre-tax basis to a future year, until termination of employment. The objectives of the DCP are to assist executives with financial planning and capital accumulation and to provide the Company with a method of attracting, rewarding and retaining executives. Participation in th …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

Borrowings The Company's debt, net of unamortized debt issuance costs consisted of the following as of September 30, 2025 and 2024: in thousands Maturity Date September 30, 2025 September 30, 2024 5.875% Senior Notes (2027 Notes) October 2027 $ 357,255 $ 357,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 7.500% Senior Notes (2031 Notes) March 2031 250,000 250,000 Unamortized debt issuance costs (6,611) (8,310) Total Senior Notes, net 950,644 948,945 Junior Subordinated Notes (net of unamortized accretion of $22,303 and $24,369, respectively) July 2036 78,470 76,404 Senior Unsecured Revolving Credit Facility March 2028 Total debt, net $ 1,029,114 $ 1,025,349 As of September 30, 2025, the future maturities of our borrowings were as follows: Fiscal Years Ending September 30, in thousands 2026 $ 2027 2028 357,255 2029 2030 350,000 Thereafter 350,773 Total $ 1,058,028 Senior Unsecured Revolving Credit Facility The Senior Unsecured Revolving Credit Facility (Unsecured Facility) provides working capital and letter of credit borrowing capacity. On January 28, 2025, the Company increased its available borrowing capacity under the Unsecured Facility from $300.0 million to $365.0 million. The $365.0 million capacity includes a letter of credit facility of up to $100.0 million. The Company also will have the right from time to time to request to increase the size of the commitments under the Unsecured Facility by up to $35.0 million for a maximum of $400.0 million. The …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our total revenue disaggregated by revenue stream for the periods presented: Fiscal Year Ended September 30, in thousands 2025 2024 2023 Homebuilding revenue $ 2,302,630 $ 2,292,984 $ 2,198,400 Land sales and other revenue 68,925 37,213 8,385 Total revenue (a) $ 2,371,555 $ 2,330,197 $ 2,206,785 (a) Please see Note 17 for total revenue disaggregated by reportable segment.

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Stock-Based Compensation The Company has shares available for grant under the Amended and Restated 2014 Beazer Homes USA, Inc. Long-Term Incentive Plan, as amended. We issue new shares upon the exercise of stock options and the grant of restricted stock awards. In cases of forfeitures and cancellations, those shares are returned to the share pool for future issuance. As of September 30, 2025, we had 2.7 million shares of common stock available for future issuances under our equity incentive plan, of which 1,642 shares are to be issued upon exercise of outstanding options. Stock-based compensation expense is included in general and administrative expenses in our consolidated statements of operations. The following table presents a summary of stock-based compensation expense related to stock options and restricted stock awards for the periods presented. Fiscal Year Ended September 30, in thousands 2025 2024 2023 Stock options expense $ 7 $ 1 $ Restricted stock awards expense 7,331 7,390 7,275 Stock-based compensation expense $ 7,338 $ 7,391 $ 7,275 Stock Options Stock options have an exercise price equal to the fair market value of the common stock on the grant date, generally vest two or three years after the date of grant, and may be exercised thereafter until their expiration, subject to forfeiture upon termination of employment as provided in the applicable plan. Under certain conditions of retirement, eligible participants may receive a partial vesting of stock options. St …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements As of the dates presented, we had assets on our consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and Level 3 Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recoverable. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. The fair value of assets deemed to be impaired is determined based upon the type of asset being evaluated. The fair value of our owned inventory assets, when required to be calculated, is further discussed within Notes 2 and 4. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3. Determining within which hierarchical level an asset or liabilit …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The Company's (benefit) expense from income taxes from continuing operations consists of the following for the periods presented: Fiscal Year Ended September 30, in thousands 2025 2024 2023 Current federal $ 6,019 $ 8,377 $ Current state 3,299 5,101 1,896 Deferred federal (13,202) 6,317 18,997 Deferred state (854) (885) 3,065 Total (benefit) expense from income taxes $ (4,738) $ 18,910 $ 23,958 The Company's (benefit) expense from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2025 2024 2023 Income tax computed at statutory rate $ 8,579 $ 33,408 $ 38,356 State income taxes, net of federal benefit 2,223 3,273 2,874 Permanent differences 4,261 9,140 2,037 Stock-based compensation 611 1,055 179 Tax credits (20,253) (27,918) (20,287) Deferred rate change (343) 53 665 Other, net 184 (101) 134 Total (benefit) expense from income taxes $ (4,738) $ 18,910 $ 23,958 The principal differences between our effective tax rate and the U.S. federal statutory rate for fiscal years 2025, 2024 and 2023 relate to state taxes, permanent differences and tax credits. Due to the effects of tax credits, our income tax (benefit) expense is not always directly correlated to the amount of pre-tax income for the associated periods. Deferred income taxes refl ect the net tax effects of temporary differences between the carrying amounts …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Operating Leases The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Certain of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expense that do not depend on an index or rate. We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease right to use assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date. Operating lease expense is included as a component of general and administrative expenses in our consolidated statements of operations. Sublease income and variable lease expenses are de minimis. For the fiscal years ended September 30, 2025, 2024 and 2023, we recorded operating lease expense of $4.7 million, $4.4 million and $4.0 million, respectively. Cash payments on …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Segment Reporting. In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 expands public entities segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segments profit or loss and assets. ASU 2023-07 became effective for us for the fiscal year ending September 30, 2025, and we applied the amendments retrospectively to all prior periods presented in our consolidated financial statements. See Note 17 for more information regarding our reportable segments. Income Taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 will be effective for our fiscal year ending September 30, 2026. Early adoption is permitted and the amendments in this update should be applied on a prospective basi …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Segment Information Per ASC Topic 280, Segment Reporting (ASC 280), an operating segment is defined as a component of an enterprise that engages in business activities from which it earns revenues and incur expenses and has discrete financial information available that is reviewed regularly by the Company's chief operating decision maker (CODM) to evaluate performance, make operating decisions, and determine how to allocate resources. We have identified each homebuilding component as an operating segment because each homebuilding component is engaged in development, design, construction, marketing, and sale of homes as well as land and lot sales, and provides title examinations for our homebuyers in certain markets. In accordance with the aggregation criteria def ined in ASC 280, w e aggregate our homebuilding operating segments into reportable segments based on similar long-term economic characteristics and geographical proximity. We curre ntly operate in 13 states that are grouped into three reportable segments as follows : West : Arizona, California, Nevada, and Texas East : Delaware, Indiana, Maryland, Tennessee, and Virginia Southeast : Florida, Georgia, North Carolina, and South Carolina Our Corporate and unallocated component includes amortization of capitalized interest, capitalization and amortization of indirect costs, impairment of capitalized interest and capitalized indirect costs, expenses for various shared services functions that benefit all segments but are n …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders' Equity Preferred Stock The Company currently has no shares of preferred stock outstanding. Common Stock As of September 30, 2025, the Company had 63,000,000 sha res of common stock authorized and 29,762,293 s hares both issued and outstanding. Common Stock Repurchases In April 2025, the Company's Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $100.0 million of its outstanding common stock. The newly authorized program replaced the prior share repurchase program authorized in May 2022 of up to $50.0 million of common stock repurchases, pursuant to which $8.3 million of the capacity remained prior to the replacement of the program. Under our share repurchase programs, t he Company repurchased 1.5 million shares of its common stock for $33.1 million at an average price per share of $22.20 during the fiscal year ended September 30, 2025 through open market transactions. All shares have been retired upon repurchase. The aggregate reduction to stockholders' equity related to share repurchases during the fiscal year ended September 30, 2025 was $33.1 million. As of September 30, 2025 , the remaining availability of the share repurchase program was $87.5 million. During the fiscal year ended September 30, 2024, the Company repurchased 455 thousand shares of its common stock for $12.9 million at an average price per share of $28.41 through open market transactions. The aggregate reduction to stockholders equity …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Contingencies Beazer Homes and certain of its subsidiaries have been and continue to be named as defendants in various construction defect claims, complaints, and other legal actions. The Company is subject to the possibility of loss contingencies related to these alleged defects as well as others arising from its business. In determining loss contingencies, we consider the likelihood of loss and our ability to reasonably estimate the amount of such loss. An estimated loss is recorded in other liabilities on the condensed consolidated balance sheets when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated. Warranty Reserves We currently provide a limited warranty ranging from one to two years covering workmanship and materials per our defined quality standards. In addition, we provide a limited warranty for up to ten years covering certain defined structural element failures. Warranty reserves are included in other liabilities within the consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed, which are a function of the number of home closings in the period, the selling prices of the homes closed and the rates of accrual per home estimated as a percentage of the selling price of the home. Management assesses the adequacy of warranty res …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Borrowings The Company's debt, net of unamortized debt issuance costs consisted of the following as of March 31, 2026 and September 30, 2025: in thousands Maturity Date March 31, 2026 September 30, 2025 5.875% Senior Notes (2027 Notes) October 2027 $ 357,255 $ 357,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 7.500% Senior Notes (2031 Notes) March 2031 250,000 250,000 Unamortized debt issuance costs (5,762) (6,611) Total Senior Notes, net 951,493 950,644 Junior Subordinated Notes (net of unamortized accretion of $21,270 and $22,303, respectively) July 2036 79,503 78,470 Senior Unsecured Revolving Credit Facility March 2030 195,000 Total debt, net $ 1,225,996 $ 1,029,114 Senior Unsecured Revolving Credit Facility The Senior Unsecured Revolving Credit Facility (Unsecured Facility) provides working capital and letter of credit capacity. In March 2026, the Company executed an amendment to increase its available borrowing capacity under the Unsecured Facility from $365.0 million to $525.0 million. The $525.0 million borrowing capacity includes a letter of credit facility of up to $100.0 million. The Company will have the right from time to time to request to i ncrease the size of the commitments under the Unsecured Facility by up to $100.0 million for a maximum of $625.0 million. The Company also extended the termination date (Termination Date) from March 15, 2028 to March 13, 2030. The Company may borrow, repay, and reborrow amounts under the Unsecured Facilit …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our total revenue disaggregated by revenue stream for the periods presented: Three Months Ended Six Months Ended March 31, March 31, in thousands 2026 2025 2026 2025 Homebuilding revenue $ 397,748 $ 556,032 $ 757,490 $ 1,016,454 Land sales and other revenue 12,098 9,307 15,847 17,838 Total revenue (a) $ 409,846 $ 565,339 $ 773,337 $ 1,034,292 (a) Please see Note 14 for total revenue disaggregated by reportable segment.

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Stock-Based Compensation Stock-based compensation expense is included in general and administrative expenses in our condensed consolidated statements of operations. The f ollowing table presents a summary of stock-based compensation expense related to stock options and restricted stock awards for the periods presented: Three Months Ended Six Months Ended March 31, March 31, in thousands 2026 2025 2026 2025 Stock-based compensation expense $ 1,876 $ 1,712 $ 3,430 $ 3,625 Stock Options Following is a summary of stock option activity for the six months ended March 31, 2026: Six Months Ended March 31, 2026 Shares Weighted Average Exercise Price Outstanding at beginning of period 1,642 $ 23.14 Granted 20,769 22.92 Outstanding at end of period 22,411 22.93 Exercisable at end of period 100 $ 27.98 As of March 31, 2026 and September 30, 2025, total unrecognized compensation cost related to unvested stock options was $0.2 million and less than $0.1 million, respectively. The remaining cost as of March 31, 2026 is expected to be recognized over a weighted average period of 2.6 years. Restricted Stock Awards During the six months ended March 31, 2026, the Company issued time-based and performance-based restricted stock awards. The time-based restricted shares granted to our non-employee directors vest on the first anniversary of the grant, while the time-based restricted shares granted to our executive officers and other employees generally vest ratably over three years from the date of …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements As of the dates presented, we had assets on our condensed consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and Level 3 Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recoverable. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. The fair value of assets deemed to be impaired is determined based upon the type of asset being evaluated. The fair value of our inventory assets, when required to be calculated, is further discussed within Note 4. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3. Determining within which hierarchical level an asset or liability f …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes Income Tax Provision Our income tax expense or benefit is not always directly correlated to the amount of pre-tax income or loss for the associated period due to a variety of factors, including, but not limited to, the impact of tax credits and permanent differences. Historically, the Company's income tax provision for quarterly interim periods was based on an estimated annual effective income tax rate, adjusted for the effect of discrete items arising in that quarter. For the three and six months ended March 31, 2026, the Company utilized the discrete effective tax rate method, as allowed by ASC Subtopic 740- 270, Income TaxesInterim Reporting , to calculate its interim income tax provision. The discrete method is applied when the use of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year-to-date period as if it were the annual period and determines the income tax expense or benefit on that basis. The Company believes that use of the discrete method is more appropriate than the estimated annual effective tax rate method because the significant impact of expected energy efficiency tax credits for the current fiscal year prevents the Company from reliably estimating its annual effective tax rate. We recognized income tax benefit of $17.6 million and $16.1 million for the three and six months ended March 31, 2026, compared to income tax expense of $ …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Operating Leases The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Some of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expenses that do not depend on an index or rate. We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date. Operating lease expense is included as a component of general and administrative expenses in our condensed consolidated statements of operations. Sublease income and variable lease expenses are de minimis. The following table presents operating lease expense and cash payments on lease liabilities for the periods presented: Three Months Ended March 31, Six Months Ended Mar …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Income Taxes. In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 will be effective for our fiscal year ending September 30, 2026. Early adoption is permitted and the amendments in this update should be applied on a prospective basis. The Company is currently evaluating the impact that the adoption of ASU 2023-09 may have on our consolidated financial statements and disclosures. Income Statement Disclosures. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . ASU 2024-03 requires disclosure of additional information about specific expense categories in the notes to the financial statements. ASU 2024-03 will be effective for our fiscal year ending September 30, 2028. Early adoption is permitted and the amendments in this update should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all p …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Segment Information Per ASC Topic 280, Segment Reporting (ASC 280), an operating segment is defined as a component of an enterprise that engages in business activities from which it earns revenues and incur expenses and has discrete financial information available that is reviewed regularly by the Company's chief operating decision maker (CODM) to evaluate performance, make operating decisions, and determine how to allocate resources. We have identified each homebuilding component as an operating segment because each homebuilding component is engaged in development, design, construction, marketing, and sale of homes as well as land and lot sales, and provides title examinations for our homebuyers in certain markets. In accordance with the aggregation criteria def ined in ASC 280, w e aggregate our homebuilding operating segments into reportable segments based on similar long-term economic characteristics and geographical proximity. We currently operate in 13 states that are grouped into three reportable segments as follows: West : Arizona, California, Nevada, and Texas East : Delaware, Indiana, Maryland, Tennessee, and Virginia Southeast : Florida, Georgia, North Carolina, and South Carolina Our Corporate and unallocated component includes amortization of capitalized interest, capitalization and amortization of indirect costs, impairment of capitalized interest and capitalized indirect costs, expenses for various shared services functions that benefit all segments but are not …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing