Financial Analysis

Commitments and Contingencies Commitments and contingencies include typical obligations of homebuilders for the completion of contracts and those incurred in the ordinary course of business. Warranty. We provide a limited warranty on all of our homes. The specific terms and conditions of our limited warranty program vary depending upon the markets in which we do business. We generally provide a structural warranty of 10 years , a warranty on electrical, heating, cooling, plumbing and certain other building systems each varying from two to five years based on geographic market and state law, and a warranty of one year for other components of the home. Our limited warranty program is ordinarily how we respond to and account for homeowners requests to local division offices seeking repairs of certain conditions or defects, including claims where we could have liability under applicable state statutes or tort law for a defective condition in or damages to a home. Our warranty liability covers our costs of repairs associated with homeowner claims made under our limited warranty program. These claims are generally made directly by a homeowner and involve their individual home. We periodically assess the adequacy of our accrued warranty liability, which is included in accrued expenses and other liabilities in our consolidated balance sheets, and adjust the amount as necessary based on our assessment. Our assessment includes the review of our actual warranty costs incurred to identif …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Notes Payable Notes payable consisted of the following (in thousands): November 30, 2025 2024 Senior unsecured term loan due November 12, 2029 $ 358,317 $ 358,826 6.875% Senior notes due June 15, 2027 299,096 298,560 4.80% Senior notes due November 15, 2029 298,309 297,932 7.25% Senior notes due July 15, 2030 347,084 346,574 4.00% Senior notes due June 15, 2031 387,095 386,638 Mortgages and land contracts due to land sellers and other loans (at an interest rate of 4.3% at November 30, 2025 and 2024) 3,076 3,149 Total $ 1,692,977 $ 1,691,679 The carrying amounts of the Term Loan and senior notes listed above are net of debt issuance costs, which totaled $10.1 million at November 30, 2025 and $11.5 million at November 30, 2024 . Unsecured Revolving Credit Facility. On November 12, 2025 , we obtained a $1.20 billion Credit Facility , which refinanced and replaced our prior $1.09 billion unsecured revolving credit facility that was due to mature on February 18, 2027 . The Credit Facility will mature on November 12, 2030 and contains an uncommitted accordion feature under which its aggregate principal amount of available loans can be increased to a maximum of $1.70 billion under certain conditions, including obtaining additional bank commitments. The Credit Facility also contains a sublimit of $250.0 million for the issuance of letters of credit. Interest on amounts borrowed under the Credit Facility accrues at a term SOFR, daily SOFR or a base rate, plus a spread that depends on …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Employee Benefit and Stock Plans Most of our employees are eligible to participate in the KB Home 401(k) Savings Plan ( 401(k) Plan ) under which we match employee contributions up to 6% of eligible compensation per payroll period. The aggregate cost of the 401(k) Plan to us was $9.0 million in 2025 , $8.8 million in 2024 and $8.3 million in 2023 . The assets of the 401(k) Plan are held by a third- party trustee, with an affiliate of the trustee managing some fund options offered by the 401(k) Plan. The 401(k) Plan participants may direct the investment of their funds among one or more of the several fund options offered by the 401(k) Plan . As of November 30, 2025 , 2024 and 2023 , approximately 4% , 6% and 5% , respectively, of the 401(k) Plan s net assets at each period were invested in our common stock. Approval of the Amended and Restated KB Home 2014 Equity Incentive Plan. We maintain one active equity compensation plan, the Amended and Restated KB Home 2014 Equity Incentive Plan (Amended and Restated 2014 Plan), with an aggregate share grant capacity for stock-based awards to our employees, non-employee directors and consultants of 18,200,000 shares. In addition, if an award made under the Amended and Restated KB Home 2014 Equity Incentive Plan subsequently expires or is canceled, forfeited or settled for cash, then any shares associated with such award may, to the extent of such expiration, cancellation, forfeiture or cash settlement, be used again for new grants unde …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Disclosures Fair value measurements of assets and liabilities are categorized based on the following hierarchy: Level 1 Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2 Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means. Level 3 Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. These measurements are generally Level 3 within the fair value hierarchy. See Note 7 Inventory Impairments and Land Option Contract Abandonments for information regarding the valuation of these assets. November 30, 2025 November 30, 2024 Description Fair Value Hierarchy Pre- Impairment Value Inventory Impairment Charges Fair Value (a) Pre- Impairment Value Inventory Impairment Charges Fair Value (a) Inventories Level 3 $ 54,095 $ (15,531) $ 38,564 $ $ $ (a) Amounts represent the aggregate fair value for real estate assets impacted by inventory impai …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxe s Income Tax Expense. The components of the income tax expense in our consolidated statements of operations are as follows (in thousands): Federal State Total 2025 Current $ (90,600) $ (21,100) $ (111,700) Deferred (8,600) (5,100) (13,700) Income tax expense $ (99,200) $ (26,200) $ (125,400) 2024 Current $ (147,300) $ (31,500) $ (178,800) Deferred (3,100) (14,000) (17,100) Income tax expense $ (150,400) $ (45,500) $ (195,900) 2023 Current $ (123,200) $ (17,200) $ (140,400) Deferred (8,400) (32,300) (40,700) Income tax expense $ (131,600) $ (49,500) $ (181,100) Our effective tax rates were 22.6% for 2025 , 23.0% for 2024 and 23.5% for 2023 . In 2025 , our income tax expense and effective tax rate included the favorable impacts of $13.1 million of Section 45L tax credits we recognized primarily from building energy-efficient homes and $8.2 million of excess tax benefits related to stock- based compensation, partly offset by $12.9 million of non-deductible executive compensation expense. In 2024 , our income tax expense and effective tax rate reflected the favorable impacts of $19.3 million of Section 45L tax credits and $7.9 million of excess tax benefits related to stock-based compensation, partly offset by $10.7 million of non-deductible executive compensation expense. In 2023 , our income tax expense and effective tax rate reflected the favorable impacts of $25.2 million of Section 45L tax credits and $5.5 million of excess tax benefits related to stock-based com …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Legal Matters We are involved in litigation and regulatory proceedings incidental to our business that are in various procedural stages. We believe the accruals we have recorded for probable and reasonably estimable losses with respect to these proceedings are adequate and that, as of November 30, 2025 , it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the estimated amounts already recognized or disclosed in our consolidated financial statements. We evaluate our accruals for litigation and regulatory proceedings at least quarterly and, as appropriate, adjust them to reflect (a) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments; (b) the advice and analyses of counsel; and (c) the assumptions and judgment of management. Similar factors and considerations are used in establishing new accruals for proceedings as to which losses have become probable and reasonably estimable at the time an evaluation is made. Our accruals for litigation and regulatory proceedings are presented on a gross basis without consideration of recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimates of recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any, are recorded as receivables when such recoveries are considered probable. Based on our ex …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Leases We lease certain property and equipment for use in our operations. We recognize lease expense for these leases generally on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Lease right-of-use assets and lease liabilities are recorded in our consolidated balance sheets for leases with an expected term at the commencement date of more than 12 months. Some of our leases include one or more renewal options, the exercise of which is generally at our discretion. Such options are excluded from the expected term of the lease unless we determine it is reasonably certain the option will be exercised. Lease liabilities are equal to the present value of the remaining lease payments while the amount of lease right-of-use assets is based on the lease liabilities, subject to adjustment, such as for lease incentives. Our leases do not provide a readily determinable implicit interest rate; therefore, we estimate our incremental borrowing rate to calculate the present value of remaining lease payments. In determining our incremental borrowing rate, we considered the lease term, market interest rates, current interest rates on our senior notes and the effects of collateralization. Our lease population at November 30, 2025 was comprised of operating leases where we are the lessee, primarily real estate leases for our corporate offices, division offices and design studios, as well as certain equipment leases. Our lease agreements do not c …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Pronouncement. In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ( ASU 2023-07 ), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with retrospective application required for all prior periods presented. We adopted ASU 2023-07 for 2025 and included the related disclosures in Note 2 Segment Information . The adoption of this guidance, which is related to disclosures only, had no impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among ot …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Postretirement Benefits We have a supplemental non-qualified, unfunded retirement plan, the KB Home Retirement Plan ( Retirement Plan ), effective as of July 11, 2002, pursuant to which we have offered to pay supplemental pension benefits to certain designated individuals (consisting of current and former employees) in connection with their retirement. The Retirement Plan was closed to new participants in 2004. We also have an unfunded death benefit plan, the KB Home Death Benefit Only Plan ( DBO Plan ), implemented on November 1, 2001, for certain designated individuals (consisting of current and former employees). The DBO Plan was closed to new participants in 2006. In connection with these plans and two other minor benefit programs, we have purchased cost recovery life insurance contracts on the lives of the designated individuals. The insurance contracts associated with the Retirement Plan and DBO Plan are held by a trust. The trust is the owner and beneficiary of such insurance contracts. The amount of the insurance coverage under the contracts is designed to provide sufficient funds to cover all costs of the plans if assumptions made as to employment term, mortality experience, policy earnings and other factors, as applicable, are realized. The cash surrender value of the Retirement Plan life insurance contracts was $29.3 million at November 30, 2025 and $31.4 million at November 30, 2024 . We recognized investment gains on the cash surrender value of the Retirement Pla …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Segment Information We operate two principal businesses: homebuilding and financial services. An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and in assessing performance. Each of our homebuilding divisions has been identified as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments, based primarily on similarities in economic and geographic characteristics, product types, regulatory environments, methods used to sell and construct homes and land acquisition characteristics. Our CODM, identified as our chief executive officer and chief operating officer for purposes of our reportable segment disclosures, regularly reviews operating results for the individual operating segments that comprise our reporting segments. The CODM evaluates the performance of our homebuilding operating segments primarily based on their respective housing gross profit margin and pretax income (loss). These profitability measures are used by the CODM in making operating and capital resource allocation decisions at the segment level, including their review and approval of land acquisition and land sale transactions. The CODM also uses these measures in business planning and forecasting, and considers budget-to-actual variances for the …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity Preferred Stock. Prior to its April 30, 2024 expiration, we had in place a stockholder-approved rights agreement, and each share of our common stock included a related preferred share purchase right, to help protect the benefits of our NOL s and other deferred tax assets from an ownership change under Section 382. With the expiration of the rights agreement, which was initially established in 2009, we de-listed and de-registered the related rights in August 2024. Additionally, per its authority thereunder, our board of directors fixed October 10, 2024 as the expiration date for Article Ninth of our Restated Certificate of Incorporation, as amended, which was also put in place in 2009 as a supplemental mechanism to help protect such NOL -related benefits. Common Stock. In the 2023 first quarter, we repurchased 1,965,442 shares of our common stock on the open market pursuant to a 2022 board of directors authorization at a total cost of $75.0 million . On March 21, 2023, our board of directors authorized us to repurchase up to $500.0 million of our outstanding common stock. This authorization replaced the 2022 authorization. In the 2023 second, third and fourth quarters, we repurchased 7,278,995 shares of our common stock on the open market pursuant to the 2023 authorization at a total cost of $336.4 million , bringing our total repurchases for the year ended November 30, 2023 to 9,244,437 shares of common stock at a total cost of $411.4 million . As of Novem …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Commitments and contingencies include typical obligations of homebuilders for the completion of contracts and those incurred in the ordinary course of business. Warranty . We provide a limited warranty on all of our homes. The specific terms and conditions of our limited warranty program vary depending upon the markets in which we do business. We generally provide a structural warranty of 10 years, a warranty on electrical, heating, cooling, plumbing and certain other building systems each varying from two to five years based on geographic market and state law, and a warranty of one year for other components of the home. Our limited warranty program is ordinarily how we respond to and account for homeowners requests to local division offices seeking repairs of certain conditions or defects, including claims where we could have liability under applicable state statutes or tort law for a defective condition in or damages to a home. Our warranty liability covers the costs of repairs associated with homeowner claims made under our limited warranty program. These claims are generally made directly by a homeowner and involve their individual home. We estimate the costs that may be incurred under each limited warranty and record a liability in the amount of such costs at the time the revenue associated with the sale of each home is recognized. Our primary assumption in estimating the amounts we accrue for warranty costs is that historical claims experie …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Notes Payable Notes payable consisted of the following (in thousands): May 31, 2026 November 30, 2025 Unsecured revolving credit facility $ 275,000 $ Senior unsecured term loan due November 12, 2029 358,532 358,317 6.875% Senior notes due June 15, 2027 299,379 299,096 4.80% Senior notes due November 15, 2029 298,505 298,309 7.25% Senior notes due July 15, 2030 347,354 347,084 4.00% Senior notes due June 15, 2031 387,330 387,095 Mortgages and land contracts due to land sellers and other loans 2,614 3,076 Total $ 1,968,714 $ 1,692,977 The carrying amounts of our senior notes listed above are net of unamortized debt issuance costs, which totaled $8.9 million at May 31, 2026 and $10.1 million at November 30, 2025. Unsecured Revolving Credit Facility. We have a $1.20 billion Credit Facility that will mature on November 12, 2030. The Credit Facility contains an uncommitted accordion feature under which its aggregate principal amount of available loans can be increased to a maximum of $1.70 billion under certain conditions, including obtaining additional bank commitments. The Credit Facility also contains a sublimit of $250.0 million for the issuance of letters of credit. Interest on amounts borrowed under the Credit Facility accrues at a term Secured Overnight Financing Rate (SOFR), daily SOFR or a base rate, plus a spread that depends on our consolidated leverage ratio (Leverage Ratio), as defined under the Credit Facility. Interest is payable monthly (base rate or daily SOFR borr …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation Stock Options. At May 31, 2026 and November 30, 2025, we had 316,378 and 350,864 stock options outstanding, each with a weighted average exercise price of $16.21. We have not granted any stock option awards since 2016. During the six months ended May 31, 2026, a total of 34,486 stock options with a weighted average exercise price of $16.21 were exercised. As of May 31, 2026, stock options outstanding and stock options exercisable each had a weighted average remaining contractual life of .4 years. As all outstanding stock options have been fully vested since 2019, there was no stock-based compensation expense associated with stock options for the three-month and six-month periods ended May 31, 2026 and 2025. Stock options outstanding and stock options exercisable each had an aggregate intrinsic value of $10.3 million at May 31, 2026. (The intrinsic value of a stock option is the amount by which the market value of a share of the underlying common stock exceeds the exercise price of the stock option.) Other Stock-Based Awards. From time to time, we grant restricted stock and PSUs to various employees as a compensation benefit. We recognized total compensation expense of $5.5 million and $9.2 million for the three months ended May 31, 2026 and 2025, respectively, related to restricted stock and PSUs. For the six months ended May 31, 2026 and 2025, we recognized total compensation expense of $11.5 million and $16.7 million, respectively, related to restri …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Disclosures Fair value measurements of assets and liabilities are categorized based on the following hierarchy: Level 1 Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2 Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means. Level 3 Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. The following table presents the fair value hierarchy and our assets measured at fair value on a nonrecurring basis for the six months ended May 31, 2026 and the year ended November 30, 2025 (in thousands): May 31, 2026 November 30, 2025 Description Fair Value Hierarchy Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Inventories Level 3 $ 6,516 $ (3,111) $ 3,405 $ 54,095 $ (15,531) $ 38,564 (a) Amounts represent the aggregate fair value for real estate assets impacted …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes Income Tax Expense. Our income tax expense and effective tax rates were as follows (dollars in thousands): Three Months Ended May 31, Six Months Ended May 31, 2026 2025 2026 2025 Income tax expense $ 9,900 $ 34,500 $ 16,800 $ 64,300 Effective tax rate 26.6 % 24.2 % 21.7 % 22.8 % Our income tax expense and effective tax rate for the three months ended May 31, 2026 reflected $1.6 million of non-deductible executive compensation expense, partly offset by the favorable impact of $1.1 million of Internal Revenue Code Section 45L (Section 45L) tax credits we recognized primarily from building energy-efficient homes. Our income tax expense and effective tax rate for the three months ended May 31, 2025 included the favorable impact of $3.1 million of Section 45L tax credits, partly offset by $2.8 million of non-deductible executive compensation expense. For the six months ended May 31, 2026, our income tax expense and effective tax rate included the favorable impact of $3.8 million of excess tax benefits related to stock-based compensation and $1.5 million of Section 45L tax credits, partly offset by $2.7 million of non-deductible executive compensation expense. Our income tax expense and effective tax rate for the six months ended May 31, 2025 reflected the favorable impact of $5.4 million of excess tax benefits related to stock-based compensation and $4.8 million of Section 45L tax credits, partly offset by $5.2 million of non-deductible executive compensation expense. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Legal Matters We are involved in litigation and regulatory proceedings incidental to our business that are in various procedural stages. We believe the accruals we have recorded for probable and reasonably estimable losses with respect to these proceedings are adequate and that, as of May 31, 2026, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the estimated amounts already recognized or disclosed in our consolidated financial statements. We evaluate our accruals for litigation and regulatory proceedings at least quarterly and, as appropriate, adjust them to reflect (a) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments; (b) the advice and analyses of counsel; and (c) the assumptions and judgment of management. Similar factors and considerations are used in establishing new accruals for proceedings as to which losses have become probable and reasonably estimable at the time an evaluation is made. Our accruals for litigation and regulatory proceedings are presented on a gross basis without consideration of recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimates of recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any, are recorded as receivables when such recoveries are considered probable. Based on our experien …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Leases We lease certain property and equipment for use in our operations. We recognize lease expense for these leases generally on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Lease right-of-use assets and lease liabilities are recorded in our consolidated balance sheets for leases with an expected term at the commencement date of more than 12 months. Lease expense is included in selling, general and administrative expenses in our consolidated statements of operations and includes costs for leases with terms of more than 12 months as well as short-term leases with terms of 12 months or less. Our total lease expense for the three months ended May 31, 2026 and 2025 was $5.3 million and $5.1 million, respectively , and included short-term lease costs of $1.9 million and $1.8 million, respectively. For the six months ended May 31, 2026 and 2025, our total lease expense was $10.5 million and $9.9 million, respectively, and included short-term lease costs of $3.6 million and $3.3 million, respectively. Variable lease costs and external sublease income for the three-month and six-month periods ended May 31, 2026 and 2025 were immaterial. The following table presents our lease right-of-use assets and lease liabilities (in thousands): May 31, 2026 November 30, 2025 Lease right-of-use assets $ 27,088 $ 17,519 Lease liabilities 29,959 19,801 Lease right-of-use assets and lease liabilities are predominately within our homebuilding o …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Not Yet Adopted. In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures. In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which requires disclosure of certain costs and expen …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Relocation of Corporate Headquarters On April 8, 2026, we announced plans to relocate our corporate headquarters office from Los Angeles, California to Tempe, Arizona. The relocation is intended to bring executive leadership and corporate functions together in a more centralized location and is expected to reduce our cost structure over time. Relocation activities will primarily occur in two phases, with the larger phase anticipated to be substantially complete in 2027 and a smaller phase expected to continue into 2028. Based on our current estimates and assumptions, and subject to our relocation efforts proceeding as currently planned, we expect to incur total costs associated with the relocation of approximately $8.0 million to $12.0 million. The majority of these costs are expected to be incurred in 2027, with certain costs extending into 2028. These estimates are subject to change as our relocation plan progresses and workforce transition decisions and other factors continue to evolve; accordingly, actual costs and the timing of when such costs are incurred may differ from current expectations. The relocation cost estimates mainly consist of employee separation, retention and relocation expenses, with a smaller portion related to other exit costs such as travel; legal, consulting and other professional services; contract terminations; and asset impairments. As employees are required to provide service through applicable dates to receive separation or retention benefits, t …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Segment Information We operate two principal businesses: homebuilding and financial services. An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and in assessing performance. Each of our homebuilding divisions has been identified as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments, based primarily on similarities in economic and geographic characteristics, product types, regulatory environments, methods used to sell and construct homes and land acquisition characteristics. Through February 28, 2026, our chief executive officer and chief operating officer together served as our CODM for purposes of our reportable segment disclosures and regularly reviewed the operating results for the individual operating segments that comprise our reporting segments. Effective March 1, 2026, our chief executive officer transitioned to executive chairman of the board and our chief operating officer was promoted to chief executive officer. As a result, effective March 1, 2026, our CODM is our executive chairman of the board and our chief executive officer. This CODM transition did not affect the CODMs approach to deciding how to allocate resources or to assessing performance with respect to our operating segments. The CODM …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity On February 20, 2026, the management development and compensation committee of our board of directors approved the payout of 568,696 shares of our common stock in connection with the vesting of PSUs that were granted to certain employees on November 14, 2022. The shares paid out under the PSUs reflected our achievement of certain performance measures that were based on cumulative earnings per share, average return on invested capital, and revenue growth relative to a peer group of high-production public homebuilding companies over the three-year period from December 1, 2022 through November 30, 2025. Of the shares of common stock paid out, 261,364 shares, or $17.1 million, were purchased by us in the 2026 first quarter to satisfy the recipients withholding taxes on the vesting of the PSUs. The shares purchased were not considered repurchases under the authorizations described below. On October 9, 2025, our board of directors authorized us to repurchase up to $1.00 billion of our outstanding common stock. As of November 30, 2025, there was $900.0 million of remaining availability under this share repurchase authorization. In the 2026 first half, we repurchased 2,216,336 shares of our common stock at a total cost of $125.0 million. Repurchases under the authorization may occur periodically through open market purchases, privately negotiated transactions or otherwise, with the timing and amount at managements discretion and dependent on market, business and o …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing