Financial Analysis

COMMITMENTS AND CONTINGENCIES We are involved in various routine legal and regulatory proceedings, including, without limitation, claims and litigation alleging construction defects. In general, the proceedings are incidental to our business, and most exposure is subject to and should be covered by warranty and indemnity obligations of our consultants and subcontractors. Additionally, some such claims are also covered by insurance. With respect to the majority of pending litigation matters, our ultimate legal and financial responsibility, if any, cannot be estimated with certainty and, in most cases, any potential material losses related to these matters are not considered probable. Historically, most disputes regarding warranty claims are resolved prior to litigation. We believe there are no pending legal or warranty matters as of December 31, 2025 that could have a material adverse impact upon our consolidated financial condition, results of operations or cash flows that have not been sufficiently reserved. We have case specific reserves within our $26.7 million of total warranty reserves related to alleged stucco defects in certain homes we constructed predominantly between 2015 and 2019. Our review and management of these matters is ongoing and our estimate of and reserves for resolving them is based on internal data, historical experience, our judgment and various assumptions and estimates. Due to the degree of judgment and the potential for variability in our underlying …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"LOANS PAYABLE AND OTHER BORROWINGS Loans payable and other borrowings consist of the following (in thousands): At December 31, 2025 2024 Other borrowings, secured real estate notes payable (1) $ 24,328 $ 29,343 $910.0 million unsecured revolving credit facility Total $ 24,328 $ 29,343 (1) Reflects balance of non-recourse notes payable in connection with land purchases. The Company entered into an amended and restated unsecured revolving credit facility agreement (""Credit Facility"") in 2014 that has been amended from time to time. On July 9, 2025, we entered into the Eleventh Amendment to Amended and Restated Credit Agreement, which extends the maturity date from June 12, 2029 to July 9, 2030. The Credit Facility's aggregate commitment is $910.0 million with an accordion feature permitting the size of the facility to increase to a maximum of $1.4 billion, subject to certain conditions, including the availability of additional bank commitments. Borrowings under the Credit Facility bear interest at the Company's option, at either (1) term Secured Overnight Financing Rate (""SOFR"") (based on 1, 3, or 6 month interest periods, as selected by the Company) plus a 10 basis point adjustment plus an applicable margin (ranging from 110 basis points to 175 basis points (the ""applicable margin"")) based on the Company's leverage ratio as determined in accordance with a pricing grid, (2) the higher of (i) the prime lending rate (""Prime""), (ii) an overnight bank rate plus 50 basis po …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"STOCK BASED AND DEFERRED COMPENSATION We have a stock compensation plan, the Meritage Homes Corporation 2018 Stock Incentive Plan (the 2018 Plan""), that was approved by our Board of Directors and our stockholders and adopted in May 2018. In May 2023, the Board of Directors and stockholders approved an amendment to the 2018 Plan to increase the number of shares available for issuance by 1,600,000. The 2018 Plan is administered by our Board of Directors and allows for the grant of stock appreciation rights, restricted stock awards, restricted stock units, performance share awards and performance-based awards in addition to non-qualified and incentive stock options. All available shares from expired, terminated, or forfeited awards that remained under prior plans were merged into and became available for grant under the 2018 Plan. The 2018 Plan authorizes awards to officers, key employees, non-employee directors and consultants. The 2018 Plan authorizes 14,800,000 shares of stock to be awarded, of which 2,009,685 shares remain available for grant at December 31, 2025. We believe that such awards provide a means of long-term compensation to attract and retain qualified employees and better align the interests of our employees with those of our stockholders. Non-vested stock awards are usually granted with a five-year ratable vesting period for employees, a three-year cliff vesting for both restricted stock units and performance-based awards granted to senior executive officers …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE DISCLOSURES ASC 820-10, Fair Value Measurement (""ASC 820"") , defines fair value, establishes a framework for measuring fair value and addresses required disclosures about fair value measurements. This standard establishes a three-level hierarchy for fair value measurements based upon the significant inputs used to determine fair value. Observable inputs are those which are obtained from market participants external to the Company while unobservable inputs are generally developed internally, utilizing managements estimates, assumptions and specific knowledge of the assets/liabilities and related markets. The three levels are defined as follows: Level 1 Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active, or by model-based techniques in which all significant inputs are observable in the market. Level 3 Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on the Companys own estimates about the assumptions that market participants would use to value the asset or liability. If the only observable inputs are from inactive markets or for transactions which the Company evaluates as distressed, the use of Level 1 inputs should be modified by the Company to properly address these factors, …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES Components of the income tax provision are as follows (in thousands): Years Ended December 31, 2025 2024 2023 Current taxes: Federal $ 105,522 $ 166,028 $ 170,306 State 25,096 41,101 41,837 130,618 207,129 212,143 Deferred taxes: Federal 1,481 6,013 (1,888) State (512) 3,542 427 969 9,555 (1,461) Total $ 131,587 $ 216,684 $ 210,682 Income taxes for the years ended December 31, 2025, 2024 and 2023, differ from the expected amounts computed using the federal statutory income tax rate of 21% as a result of the following (in thousands): Years Ended December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent Expected taxes at current federal statutory income tax rate $ 122,766 21.0 % $ 210,603 21.0 % $ 199,380 21.0 % State and local income taxes, net of federal income tax benefit (1) 19,421 3.3 % 35,268 3.5 % 33,389 3.5 % Tax credits (10,161) (1.7) % (30,071) (3.0) % (25,219) (2.7) % Nontaxable or nondeductible items 87 % 1,891 0.2 % 3,509 0.4 % Other adjustment (526) (0.1) % (1,007) (0.1) % (377) % Income tax expense $ 131,587 22.5 % $ 216,684 21.6 % $ 210,682 22.2 % (1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Arizona and Florida for 2025; California, Arizona, and Georgia for 2024; and California, Arizona, and Florida for 2023. The amounts of cash taxes paid are as follows (in thousands): Years Ended December 31, 2025 2024 2023 Federal $ 127,650 163,000 167,700 State California …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"LEASES We lease certain office space and equipment for use in our operations. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842, Leases (""ASC 842""). In order to meet the definition of a lease under ASC 842, the contractual arrangement must convey to us the right to control the use of an identifiable asset for a period of time in exchange for consideration. We recognize lease expense for these leases on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Some of our leases contain renewal options and in accordance with ASC 842, our lease terms include those renewals only to the extent that they are reasonably certain to be exercised. The exercise of these lease renewal options is generally at our discretion. In accordance with ASC 842, the lease liability is equal to the present value of the remaining lease payments while the right-of-use (""ROU"") asset is based on the lease liability, subject to adjustment, such as for lease incentives. Our leases do not provide a readily determinable implicit interest rate and therefore, we must estimate our incremental borrowing rate. In determining our incremental borrowing rate, we consider the lease period, market interest rates, current interest rates on our senior notes and the effects of collateralization. Our lease population at December 31, 2025 is comprised of operating leases where we are the lessee and these leases are …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"SENIOR AND CONVERTIBLE SENIOR NOTES, NET Senior and convertible senior notes, net consist of the following (in thousands): At December 31, 2025 2024 5.125% senior notes due 2027 (""2027 Notes"") 300,000 300,000 1.750% convertible senior notes due 2028 (""2028 Convertible Notes"") 575,000 575,000 3.875% senior notes due 2029 (""2029 Notes"") 450,000 450,000 5.650% senior notes due 2035 (""2035 Notes""). At December 31, 2025, there was $2,571 in net unamortized discount. 497,429 Net debt issuance costs (17,703) (18,465) Total $ 1,804,726 $ 1,306,535 The indentures for our 2027 Notes, 2029 Notes and 2035 Notes contain covenants that place limits on secured debt and sale and leaseback transactions. We were in compliance with all such covenants as of December 31, 2025. Obligations to pay principal and interest on the senior and convertible senior notes are guaranteed by substantially all of our wholly-owned subsidiaries (each a Guarantor and, collectively, the Guarantor Subsidiaries), each of which is directly or indirectly 100% owned by Meritage Homes. Such guarantees are full and unconditional, and joint and several. In the event of a sale or other disposition of all of the assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all of the equity interests of any Guarantor then held by Meritage and its subsidiaries, then that Guarantor may be released and relieved of any obligations under its note guarantee. There are no signific …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements. In November 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (""ASU 2023-07""), which aligns interim segment disclosure requirements with existing annual requirements and includes updates to segment reporting, most notably through enhanced disclosures about significant segment expenses and the Chief Operating Decision Maker (""CODM""). We adopted ASU 2023-07 for the annual period beginning January 1, 2024, and for interim periods beginning January 1, 2025. ASU 2023-07 is applied retrospectively to all prior periods presented in these financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (""ASU 2023-09""), which modifies the disclosure requirements primarily related to the effective tax rate reconciliation and income taxes paid by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. We adopted ASU 2023-09 for the annual period beginning January 1, 2025, and for interim periods beginning January 1, 2026. ASU 2023-09 is applied retrospectively to all prior periods presented in these financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregatio …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS From time to time, in the normal course of business, we have transacted with related or affiliated companies and with certain of our officers and directors. We believe that the terms and fees negotiated for all transactions listed below are no less favorable than those that could be negotiated in arms length transactions. We charter aircraft services from companies that use the private plane of Steven J. Hilton, our Executive Chairman, although Mr. Hilton does not have an ownership interest in the charter companies. Payments made to these charter companies were approximately $448,000, $350,000 and $532,000 for the years ended December 31, 2025, 2024 and 2023, respectively. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

OPERATING AND REPORTING SEGMENTS We operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting , we have twelve homebuilding operating segments. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our three reportable homebuilding segments are as follows: West: Arizona, California, Colorado and Utah Central: Texas and Tennessee East: Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina We define our segments based on the way in which internally reported financial information is regularly provided and reviewed by the CODM to analyze financial performance, make decisions, and allocate resources. Our CODM is the chief executive officer. The CODMs evaluation of the homebuilding segment performance is based on segment home closing revenue, home closing gross profit and gross margin, total gross profit, commissions and other sales costs, general and administrative expenses incurred by or allocated to each segment, including impairments, and operating income. The CODM uses these performance metrics predominantly in the annual budget and forecasting process and considers budget-to-actual variances on a quarterly …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES We are involved in various routine legal and regulatory proceedings, including, without limitation, claims and litigation alleging construction defects. In general, the proceedings are incidental to our business, and most exposure is subject to and should be covered by warranty and indemnity obligations of our consultants and subcontractors. Additionally, some such claims are also covered by insurance. With respect to the majority of pending litigation matters, our ultimate legal and financial responsibility, if any, cannot be estimated with certainty and, in most cases, any potential material losses related to these matters are not considered probable. Historically, most disputes regarding warranty claims are resolved prior to litigation. We believe there are no pending legal or warranty matters as of June 30, 2026 that could have a material adverse impact upon our consolidated financial condition, results of operations or cash flows that have not been sufficiently reserved. We have case specific reserves within our $25.6 million of total Warranty reserves related to alleged stucco defects in certain homes we constructed predominantly between 2015 and 2019. Our review and management of these matters is ongoing and our estimate of and reserves for resolving them is based on internal data, historical experience, our judgment and various assumptions and estimates. Due to the degree of judgment and the potential for variability in our underlying ass …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"LOANS PAYABLE AND OTHER BORROWINGS Loans payable and other borrowings consist of the following (in thousands): As of June 30, 2026 December 31, 2025 Other borrowings, secured real estate notes payable (1) $ 39,535 $ 24,328 $980.0 million unsecured revolving credit facility Total $ 39,535 $ 24,328 (1) Reflects balance of non-recourse notes payable in connection with land purchases. The Company entered into an amended and restated unsecured revolving credit facility agreement (""Credit Facility"") in 2014 that has been amended from time to time. On June 24, 2026, we entered into the Twelfth Amendment to Amended and Restated Credit Agreement, which increases the facility size, amends the accordion feature to permit the facility size to be increased, subject to certain conditions, extends the maturity date from July 9, 2030 to June 24, 2031, and revises the adjusted SOFR rate. The Credit Facility's aggregate commitment is $980.0 million with an accordion feature permitting the size of the facility to increase to a maximum of $1.5 billion, subject to certain conditions, including the availability of additional bank commitments. Borrowings under the Credit Facility bear interest at the Company's option, at either (1) term Secured Overnight Financing Rate (""SOFR"") (based on 1, 3, or 6 month interest periods, as selected by the Company) plus an applicable margin (ranging from 110 basis points to 175 basis points (the ""applicable margin"")) based on the Company's leverage ratio as …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"STOCK BASED AND DEFERRED COMPENSATION We have a stock compensation plan, the Meritage Homes Corporation 2018 Stock Incentive Plan (the 2018 Plan""), that was approved by our Board of Directors and our stockholders and adopted in May 2018. In May 2023, the Board of Directors and stockholders approved an amendment to the 2018 Plan to increase the number of shares available for issuance by 1,600,000. The 2018 Plan is administered by our Board of Directors and allows for the grant of stock appreciation rights, restricted stock awards, restricted stock units, performance share awards and performance-based awards in addition to non-qualified and incentive stock options. All available shares from expired, terminated, or forfeited awards that remained under prior plans were merged into and became available for grant under the 2018 Plan. The 2018 Plan authorizes awards to officers, key employees, non-employee directors and consultants. The 2018 Plan authorizes 14,800,000 shares of stock to be awarded, of which 1,658,560 shares remain available for grant at June 30, 2026. We believe that such awards provide a means of long-term compensation to attract and retain qualified employees and better align the interests of our employees with those of our stockholders. Non-vested stock awards are usually granted with a five-year ratable vesting period for employees, a three-year cliff vesting for both restricted stock units and performance-based awards granted to executive officers and either …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE DISCLOSURES ASC 820-10, Fair Value Measurement (""ASC 820""), defines fair value, establishes a framework for measuring fair value and addresses required disclosures about fair value measurements. This standard establishes a three-level hierarchy for fair value measurements based upon the significant inputs used to determine fair value. Observable inputs are those which are obtained from market participants external to the Company while unobservable inputs are generally developed internally, utilizing managements estimates, assumptions and specific knowledge of the assets/liabilities and related markets. The three levels are defined as follows: Level 1 Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active, or by model-based techniques in which all significant inputs are observable in the market. Level 3 Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on the Companys own estimates about the assumptions that market participants would use to value the asset or liability. If the only observable inputs are from inactive markets or for transactions which the Company evaluates as distressed, the use of Level 1 inputs should be modified by the Company to properly address these factors, …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES Components of the provision for income taxes are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Federal $ 24,419 $ 38,498 $ 38,245 $ 69,129 State 5,515 7,683 8,904 14,405 Total $ 29,934 $ 46,181 $ 47,149 $ 83,534 The effective tax rate for the three and six months ended June 30, 2026 was 24.8% and 24.4%, respectively, and for the three and six months ended June 30, 2025 was 23.9% and 23.6%, respectively. The increase in the effective tax rate for both the three and six months ended June 30, 2026 was due to an increase in state income taxes. At June 30, 2026 and December 31, 2025, we have no unrecognized tax benefits. We believe our current income tax filing positions and deductions will be sustained on audit and we do not anticipate any adjustments that will result in a material change. Our policy is to accrue interest and penalties on unrecognized tax benefits and include them in the provision for income taxes. We determine our deferred tax assets and liabilities in accordance with ASC 740, Income Taxes . We evaluate our deferred tax assets, including the benefit from net operating losses (""NOLs""), by jurisdiction to determine if a valuation allowance is required. This evaluation considers, among other matters, the nature, frequency and severity of cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, experiences with operating losses and experiences of utilizi …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"SENIOR AND CONVERTIBLE SENIOR NOTES, NET Senior and convertible senior notes, net consist of the following (in thousands): As of June 30, 2026 December 31, 2025 5.125% senior notes due 2027 (""2027 Notes"") 300,000 300,000 1.750% convertible senior notes due 2028 (""2028 Convertible Notes"") 575,000 575,000 3.875% senior notes due 2029 (""2029 Notes"") 450,000 450,000 5.650% senior notes due 2035 (""2035 Notes""). At June 30, 2026, there was $2,431 in net unamortized discount. 497,569 497,429 Net debt issuance costs (14,727) (17,703) Total $ 1,807,842 $ 1,804,726 There have been no material changes to the terms of the 2028 Convertible Notes and the related capped call transactions since those described in Note 7 - Senior and Convertible Senior Notes, Net in the consolidated financial statements included in our Annual Report. During the three and six months ended June 30, 2026, the circumstances allowing holders of the 2028 Convertible Notes to convert were not met. The indentures for our 2027 Notes, 2029 Notes and 2035 Notes contain covenants that place limits on secured debt and sale and leaseback transactions. We were in compliance with all such covenants as of June 30, 2026. Obligations to pay principal and interest on the senior and convertible senior notes are guaranteed by substantially all of our wholly-owned subsidiaries (each a Guarantor and, collectively, the Guarantor Subsidiaries), each of which is directly or indirectly 100% owned by Meritage Homes. Such guarant …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements. In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (""ASU 2023-09""), which modifies the disclosure requirements primarily related to the effective tax rate reconciliation and income taxes paid by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. We adopted ASU 2023-09 for the annual period beginning January 1, 2025 and for interim periods beginning January 1, 2026. ASU 2023-09 is applied retrospectively to all prior periods presented in these financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (""ASU 2024-03""), which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. ASU 2024-03 is effective for our annual report covering the fiscal year beginning January 1, 2027, and for our interim reports beginning January 1, 2028. Upon adoption, the impact of ASU 2024-03 will be limited to additional disclosures in certain notes to the consolidated financial statements."

NewAccountingPronouncementsPolicyPolicyTextBlock

"OPERATING AND REPORTING SEGMENTS We operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting , we have twelve homebuilding operating segments. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our three reportable homebuilding segments are as follows: West: Arizona, California, Colorado and Utah Central: Tennessee and Texas East: Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina We define our segments based on the way in which internally reported financial information is regularly provided and reviewed by the Chief Operating Decision Maker (""CODM"") to analyze financial performance, make decisions, and allocate resources. Our CODM is the chief executive officer. The CODMs evaluation of the homebuilding segment performance is based on segment home closing revenue, home closing gross profit and gross margin, total closing gross profit, commissions and other sales costs, general and administrative expenses incurred by or allocated to each segment, including impairments, and operating income. The CODM uses these performance metrics predominantly in the annual budget and forecasting process and consi …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS EQUITY A summary of changes in stockholders equity is presented below (in thousands): Six Months Ended June 30, 2026 (In thousands) Number of Shares Common Stock Additional Paid-In Capital Retained Earnings Total Balance at December 31, 2025 68,169 $ 682 $ $ 5,194,961 $ 5,195,643 Net earnings 55,309 55,309 Stock-based compensation expense 5,860 5,860 Issuance of stock 349 3 (3) Dividends declared (32,017) (32,017) Share repurchases (1,816) (18) (5,857) (125,151) (131,026) Balance at March 31, 2026 66,702 $ 667 $ $ 5,093,102 $ 5,093,769 Net earnings 90,630 90,630 Stock-based compensation expense 5,822 5,822 Dividends declared (31,284) (31,284) Share repurchases (1,528) (15) (5,822) (95,163) (101,000) Balance at June 30, 2026 65,174 $ 652 $ $ 5,057,285 $ 5,057,937 Six Months Ended June 30, 2025 (In thousands) Number of Shares Common Stock Additional Paid-In Capital Retained Earnings Total Balance at December 31, 2024 71,922 $ 360 $ 143,036 $ 4,998,177 $ 5,141,573 Stock Split on January 2, 2025 360 (360) Net earnings 122,806 122,806 Stock-based compensation expense 6,325 6,325 Issuance of stock 514 5 (5) Dividends declared (30,887) (30,887) Share repurchases (605) (7) (45,066) (45,073) Balance at March 31, 2025 71,831 $ 718 $ 103,930 $ 5,090,096 $ 5,194,744 Net earnings 146,879 146,879 Stock-based compensation expense 3,597 3,597 Dividends declared (30,597) (30,597) Share repurchases (674) (6) (45,443) (45,449) Balance at June 30, 2025 71,157 $ 712 $ 62,084 $ 5,206, …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing