Financial Analysis

Acquisitions Financial Services Alliant Title On April 18, 2025, the Company acquired Colorado-based title insurance underwriter, Alliant National Title Insurance Company, Inc. and a related affiliate (collectively, Alliant Title), the operations of which are included in the Financial Services segment as of that date. The cash consideration paid for the Alliant Title acquisition, inclusive of measurement period adjustments, was $37.2 million, net of $3.0 million of cash acquired. The purpose of this acquisition was to expand the Companys financial services offerings to include title insurance underwriting. The acquisition was accounted for as a business combination under ASC Topic 805. The fair value of the assets acquired and the liabilities assumed (acquired net assets) resulted in $46.2 million of other assets and $35.4 million in accrued liabilities on the Condensed Consolidated Balance Sheet as of the date of acquisition, mostly related to available-for-sale (AFS) debt securities and reserve for title claim losses, respectively. The excess of the aggregate purchase price over the aggregate fair value of the acquired net assets resulted in goodwill of $22.6 million, all of which was assigned to the Financial Services segment. Goodwill consists primarily of expected synergies from vertical integration with the Companys title and homebuilding operations, the acquired workforce and growth opportunities. Homebuilding Green River Builders On May 2, 2025, the Company acquired A …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Legal Proceedings The Company is party to legal matters from time to time that are typically derived from the Companys general business practices, primarily related to the construction and sale of homes. The Company believes that if a claim has merit, parties other than the Company would be, at least in part, liable for the claim, and the eventual outcome of the claim would not have a material adverse effect upon the condensed consolidated financial statements. On April 28, 2025, the former owner of Crescent Ventures, LLC (Crescent Homes) and his affiliates (the plaintiffs) filed a complaint in Chancery Court in Delaware against the Company for an alleged breach of contract related to the Crescent Homes acquisition. Earlier mediation was not successful and the former owner filed a motion for summary judgment. On June 2, 2026, the plaintiffs filed an amended complaint in the Superior Court in Delaware (the Superior Court) after the Chancery Court in Delaware dismissed the complaint against the Company and permitted the plaintiffs to transfer the complaint to the Superior Court. The Company intends to defend the lawsuit and file counterclaims against the plaintiffs. As of July 30, 2026, it is not possible to reasonably estimate the probability that either party will prevail. The Company does not believe that any future outcomes of any claims or lawsuits currently outstanding will have a material adverse effect upon the condensed consolidated financ …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt The outstanding debt obligations included the following as of the periods indicated (in thousands): As of June 30, 2026 As of December 31, 2025 Revolving credit facility $ 999,000 $ 798,000 6.875% senior unsecured notes, due September 2030 295,345 294,758 8.250% senior unsecured notes, due August 2028 296,997 296,302 Mortgage warehouse facilities 186,785 192,837 Other borrowings 38,986 24,296 Total debt $ 1,817,113 $ 1,606,193 The Company is subject to specified financial covenants as part of its debt obligations. The Company was in compliance with these financial covenants as of June 30, 2026 and December 31, 2025, as applicable, and expects to remain in compliance over the next 12 months. Senior Unsecured Notes The Company had the following senior unsecured notes (collectively, the Senior Notes) outstanding as of June 30, 2026: 2030 Notes On September 5, 2025, the Company issued $300.0 million in aggregate principal amount of 6.875% senior unsecured notes due September 15, 2030 (the 2030 Notes) pursuant to an indenture. Interest on the 2030 Notes is payable in arrears semiannually on each March 15 and September 15. The 2030 Notes are redeemable by the Company prior to September 15, 2027 by the payment of the principal amount due, which can be accomplished through the issuance of certain restricted equity offerings for specified portions of the principal balance of notes outstanding, plus specified rates and accrued and unpaid interest, and a make-whole premium in the e …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fair Value Disclosures Fair value represents the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is determined using a fair value hierarchy established by GAAP, based on the inputs used to measure fair value. Level 1 inputs are unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable and significant to the fair value. The Company applies the fair value hierarchy to certain assets and liabilities remeasured or disclosed at fair value on a recurring basis, including mortgage loans held for sale, derivative assets and liabilities, AFS debt securities, equity investments in common stock (equity securities) and senior unsecured notes, net. The fair value of mortgage loans held for sale is based on either investor commitments or quoted secondary-market prices. Derivative assets and liabilities are associated with mandatory and best effort interest rate lock commitments (IRLC) and mortgage backed securities (MBS) used to hedge interest rate risk on certain of the IRLC. The fair values for IRLC are derived from market pricing for instruments with similar characteristics or forward sale commitment prices, as well as certain unobservable inputs such as estimated costs to or …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The effective tax rate for the six months ended June 30, 2026 and 2025 was estimated to be 25.6% and 23.2%, respectively. The effective tax rate increase of 2.4% was primarily attributable to decreased tax benefits from stock-based compensation due to a lower Company stock price on the vesting date when compared to the grant date for certain awards, as well as additional non-deductible executive stock-based compensation resulting from changes in tax legislation.

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Related Party Transactions The Company generally enters into related party transactions to secure finished lots for the construction of new homes. DF Capital Funds DF Capital Management, LLC (DF Capital) organizes real estate investment funds to acquire land and develop and sell finished lots. DF Capital is the investment manager of the funds. The Company owns a 49.0% membership interest in DF Capital and periodically enters into land bank arrangements with DF Capital. DF Capital and its funds are controlled by unaffiliated parties and the Company is not the primary beneficiary of DF Capital and its funds. The Company holds limited partnership interests in certain of the funds as well as indirect ownership through membership interests in the general partners of the respective funds. From time to time, certain members of executive management have invested as limited partners in the funds. Amounts due to and from the funds are based on the timing and amount of capital calls, as well as distributions of capital and earnings, all of which, as applicable, are made on a periodic basis over several years, consistent with the typical lifecycle of any land bank financing project. DF Residential II, LP (Fund II) had an exclusive right of first offer on any land bank financing projects that meet its investment criteria and are undertaken by the Company. Fund II is currently in the harvesting period. As of June 30, 2026 and December 31, 2025, the Company had $14.4 million and $17.6 milli …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Segment Reporting The Company primarily operates in the homebuilding business and is organized and reported mainly by region. The Companys four reportable segments consist of the three homebuilding segmentsthe Southeast, Mid-Atlantic and Midwestas well as the Financial Services segment. The homebuilding segments produce the majority of their homebuilding revenues through the sale and delivery of completed homes. The Financial Services segment generates the majority of its revenues from originating and selling mortgages, and collecting premiums and fees for closing services and title insurance. The four reportable segments are comprised of the following: Southeast (Jacksonville, Orlando and Tampa, Florida and operations in the southeast coast of Florida and southwest Florida; Atlanta and Savannah, Georgia; Hilton Head and Bluffton, South Carolina; custom homes operations in northeast Florida) Mid-Atlantic (DC Metro; Nashville, Tennessee; Charlotte, Fayetteville, Raleigh and Wilmington, North Carolina; Charleston, Myrtle Beach and Greenville, South Carolina) Midwest (Austin, Dallas, Houston and San Antonio, Texas; Denver, Colorado; Phoenix, Arizona) Financial Services (primarily Jet HomeLoans, DF Title and Alliant Title) The corporate component, which is not considered an operating segment, is reported separately as corporate. Certain corporate SG&A expenses are charged to the segments and eliminated in consolidation. During the three months ended June 30, 2026, the chief o …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Equity Share Buyback Program In June 2023, the Companys Board of Directors approved a share buyback program under which the Company can repurchase its Class A common stock in open market purchases, privately negotiated transactions, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. During the year ended December 31, 2025, the repurchase limit under the share buyback program was increased to $100.0 million and the period to repurchase shares was extended through June 30, 2027. The actual timing, number and value of shares repurchased under the share buyback program depend on a number of factors, including constraints specified in any Rule 10b5-1 trading plans, price, general business and market conditions, and alternative investment opportunities. The share buyback program does not obligate the Company to acquire any specific number of shares in any period and may be expanded, extended, modified or discontinued at any time. As of June 30, 2026 and December 31, 2025, approximately $17.2 million and $50.5 million, respectively, remained available for purchase under the share buyback program. During the three and six months ended June 30, 2026, the Company repurchased 1,012,621 and 2,076,181 shares of Class A common stock for an aggregate purchase price of $14.8 million and $33.3 million, respectively. During the three and six months ended June 30, 2025, 705,404 and 989,968 shares, respectively, were repurchased for an aggregate pu …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing