Beazer Homes Reports Fourth Quarter and Full Fiscal 2025 Results

ATLANTA--( BUSINESS WIRE)--Beazer Homes USA, Inc. (NYSE: BZH) ( www.beazer.com) today announced its financial results for the quarter and fiscal year ended September 30, 2025.

"Fiscal 2025 was both productive and challenging. We finished the year on a positive note, with solid fourth quarter results and continued progress toward each of our Multi-Year Goals," said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer. "In the fourth quarter, we exceeded 1,400 closings, driving profitability ahead of our expectations, and sales pace rebounded sequentially."

"While we are optimistic for more balanced supply and demand dynamics as 2026 unfolds, we believe the market will remain incentive-driven and highly competitive in the near-term. In this environment, we will focus on balance sheet efficiency and continued alignment of our assets with our differentiated strategy. As America’s #1 energy efficient homebuilder, we are uniquely positioned to offer a compelling, multi-faceted approach to lowering the total cost of home ownership and addressing affordability concerns."

Speaking to Beazer’s Multi-Year Goals, Mr. Merrill said, "By the end of fiscal 2027, we expect to reach more than 200 active communities, deleverage to the low-30% range and grow book value per share into the mid-$50s. We are confident achieving these goals will create substantial value for our shareholders."

Beazer Homes Fiscal 2025 Highlights and Comparison to Fiscal 2024

Beazer Homes Fiscal Fourth Quarter 2025 Highlights and Comparison to Fiscal Fourth Quarter 2024

The following provides additional details on the Company’s performance during the fiscal fourth quarter 2025:

Profitability. Net income from continuing operations was $30.0 million, generating diluted earnings per share of $1.02. Fourth quarter Adjusted EBITDA of $63.8 million was down $29.4 million, or 31.5%, primarily due to lower operating margin.

Orders. Net new orders for the fourth quarter decreased to 999, down 2.9% from the prior year quarter, primarily driven by a 10.7% decrease in sales pace to 2.0 orders per community per month, down from 2.2 in the previous year quarter, partially offset by an 8.7% increase in average active community count to 166 from 153 a year ago. The cancellation rate for the quarter was 17.9%, down from 21.9% in the prior year quarter.

Backlog. The dollar value of homes in backlog as of September 30, 2025 was $516.5 million, representing 945 homes, compared to $797.2 million, representing 1,482 homes, at the same time last year. The average selling price of homes in backlog was $546.5 thousand, up 1.6% year-over-year.

Homebuilding Revenue. Fourth quarter homebuilding revenue was $750.8 million, down 4.2% year-over-year. The decrease in homebuilding revenue was driven by a 6.0% decrease in home closings to 1,406 homes, partially offset by a 1.9% increase in ASP to $534.0 thousand. The decrease in closings was primarily due to lower beginning backlog, partially offset by higher volume of spec homes that sold and closed within the quarter and improved construction cycle times.

Homebuilding Gross Margin. Fourth quarter homebuilding gross margin was 13.7%, down 350 basis points year-over-year. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 17.2% for the fourth quarter, down 320 basis points year-over-year as a result of an increase in price concessions and incentives, such as mortgage rate buydowns, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 9.6% for the quarter, an improvement of 10 basis points year-over-year primarily due to lower commissions on lower homebuilding revenue, partially offset by higher sales and marketing expenses and other G&A expenses to support community count growth.

Land Position. For the current fiscal quarter, land acquisition and land development spending was $121.7 million, a decrease of 32.0% year-over-year. Controlled lots decreased 10.1% to 25,660, compared to 28,538 from the prior year. Excluding land held for future development and land held for sale lots, active controlled lots were 24,758, down 11.3% year-over-year. As of September 30, 2025, the Company controlled 62.1% of its total active lots through option agreements compared to 57.8% as of September 30, 2024.

Liquidity. At the close of the fourth quarter, the Company had $538.3 million of available liquidity, including $214.7 million of unrestricted cash and $323.6 million of remaining capacity under the senior unsecured revolving credit facility, compared to total available liquidity of $503.9 million a year ago.

Total Debt to Total Capitalization Ratio. Total debt to total capitalization ratio was 45.2% at fiscal year end compared to 45.4% a year ago. Net debt to net capitalization ratio was 39.5% at fiscal year end, down 50 basis points from 40.0% a year ago reflecting the Company's capital allocation and strategic asset alignment decisions to moderate land spend and increase land sales.

Protecting the Company’s Deferred Tax Assets

The Company currently possesses meaningful deferred tax assets, the majority of which were earned through the Company’s substantial investment in and commitment to energy-efficient building practices (Energy-Efficiency Tax Credits). The Company believes the deferred tax assets, inclusive of the Energy-Efficiency Tax Credits, provide substantial value to the Company and its stockholders and reflect the investment and commitment to its energy-efficient homebuilding strategy.

As of September 30, 2025 and 2024, the Company had net deferred tax assets of $142.6 million and $128.5 million, respectively, representing an 11.0% increase. Approximately $84.1 million of the net deferred tax assets are Energy-Efficiency Tax Credits. The Company expects these Energy-Efficiency Tax Credits to continue to increase through June 30, 2026, which is the final date the Company can generate these credits due to recent legislative changes.

In order to protect these assets, the Company has historically entered into a stockholder rights agreement and included certain transfer restrictions in the Company’s charter, both of which are designed to prevent an “ownership change” under Internal Revenue Code rules that would limit the Company’s ability to utilize these tax assets. The protective provisions in the Company’s charter expired on November 12, 2025, and the current rights agreement will expire on November 14, 2025. Accordingly, to continue to protect these valuable assets, the Company, with the unanimous approval of its Board of Directors, entered into a new Rights Agreement for the protection of net operating loss carryforwards and Energy-Efficiency Tax Credits (the New Rights Agreement). The New Rights Agreement will be submitted to a vote of the Company’s stockholders for ratification at the 2026 Annual Meeting of Stockholders (the 2026 Annual Meeting). The New Rights Agreement will automatically expire if the stockholders fail to ratify it at the 2026 Annual Meeting; however, if ratified by the stockholders, the New Rights Agreement will expire upon the earlier of (i) the first day of the Company’s taxable year when the Board of Directors determines that no Energy-Efficiency Tax Credits carry-forwards are available or (ii) any other event triggering expiration under its terms, but in no event later than November 14, 2028. Additionally, the Company intends to seek stockholder approval of a new charter amendment at the 2026 Annual Meeting.

Additional details regarding the New Rights Agreement are included in the Company’s Form 10-K and Form 8-K filed today, November 13, 2025, and additional information regarding the stockholder ratification of the New Rights Agreement and charter amendment, respectively, will be included in the Company’s upcoming proxy statement.

Commitment to Sustainability

In October 2025, Beazer Homes launched a new marketing campaign, Enjoy the Great Indoors™ , as part of a total brand refresh, which includes a new website, enhanced advertising, and a creative new look and feel. This initiative is designed to highlight the Company's advanced home performance features, such as energy efficiency, cleaner air quality, and exceptional comfort. A component of these advanced home features is solar-ready capability, allowing homeowners to install a solar renewable energy system with no additional infrastructure or retrofits needed.

Charity Title Agency and Charity Home Insurance Agency are wholly-owned by Beazer Homes and donate 100% of their net profits, after normal business expenses, taxes, reserves, and mission-related costs, to the Beazer Charity Foundation (the Foundation), the Company's philanthropic arm. During the fiscal year ended September 30, 2025, contributions to the Foundation totaled $2.2 million. The Foundation is a nonprofit entity that provides donations to vetted national and local non-profits. Partnering with charitable organizations at local level aligns the Foundation's financial contributions with opportunities for Beazer's employees to have a positive impact on the communities the Company serves. In March 2025, the Company held its inaugural Day of Service, a day devoted to making a collective impact in the community. In just one day, our employees contributed more than 4,000 volunteer hours to both national and local charitable organizations.

In September, the Company published its 2024 Sustainability Update, which highlights its leadership in building energy-efficient homes and significant progress in advancing sustainability.

Summary results for the fiscal year ended September 30, 2025 and 2024 are as follows:

Fiscal Year Ended September 30,

2025

2024

Change*

New home orders, net of cancellations

3,890

4,221

(7.8

Cancellation rates

17.7

— bps

Orders per community per month

2.0

2.4

(19.3

Average active community count

164

144

14.2

Active community count at period-end

169

162

4.3

Land acquisition and land development spending (in millions)

684.0

776.5

(11.9

Total home closings

4,427

4,450

(0.5

ASP from closings (in thousands)

520.1

515.3

0.9

Homebuilding revenue (in millions)

2,302.6

2,293.0

0.4

Homebuilding gross margin

14.3

18.0

(370) bps

Homebuilding gross margin, excluding impairments and abandonments (I&A) (Non-GAAP)

14.7

18.1

(340) bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales (Non-GAAP)

18.0

21.1

(310) bps

SG&A expenses as a percentage of total revenue

11.9

11.4

50 bps

Income from continuing operations before income taxes (in millions)

40.9

159.1

(74.3

(Benefit) expense from income taxes (in millions)

(4.7

)

18.9

(125.1

Income from continuing operations (in millions)

45.6

140.2

(67.5

Basic income per share from continuing operations

1.53

4.59

(66.7

Diluted income per share from continuing operations

1.52

4.53

(66.4

Income from continuing operations before income taxes (in millions)

40.9

159.1

(74.3

Loss on debt extinguishment, net (in millions)

—

(0.4

)

(100.0

Inventory impairments and abandonments (in millions)

(13.0

)

(2.0

)

549.2

Income from continuing operations excluding inventory impairments and abandonments and loss on debt extinguishment before income taxes (in millions) (a) (Non-GAAP)

53.9

161.5

(66.6

Income from continuing operations excluding inventory impairments and abandonments and loss on debt extinguishment after income taxes (in millions) (a)(b) (Non-GAAP)

60.1

142.3

(57.8

Net income (in millions)

45.6

140.2

(67.5

Adjusted EBITDA (in millions) (Non-GAAP)

157.7

243.4

(35.2

Total debt to total capitalization ratio

45.2

45.4

(20) bps

Net debt to net capitalization ratio (Non-GAAP)

39.5

40.0

(50) bps

* Change is calculated using unrounded numbers.

(a)

Management believes that these measures assist investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating the differences in companies' respective level of inventory impairments and abandonments. These measures should not be considered alternatives to income from continuing operations before income taxes and income from continuing operations after income taxes determined in accordance with GAAP as indicators of operating performance.

(b)

Inventory impairments and abandonments and loss on debt extinguishment were tax-effected at the effective tax rate of (11.6)% and 11.9% for the fiscal years ended September 30, 2025 and 2024, respectively.

Summary results for the three months ended September 30, 2025 and 2024 are as follows:

Three Months Ended September 30,

2025

2024

Change*

New home orders, net of cancellations

999

1,029

(2.9

Cancellation rates

17.9

21.9

(400) bps

Orders per community per month

2.0

2.2

(10.7

Average active community count

166

153

8.7

Land acquisition and land development spending (in millions)

121.7

179.0

(32.0

Total home closings

1,406

1,496

(6.0

ASP from closings (in thousands)

534.0

523.9

1.9

Homebuilding revenue (in millions)

750.8

783.8

(4.2

Homebuilding gross margin

13.7

17.2

(350) bps

Homebuilding gross margin, excluding I&A

13.8

17.4

(360) bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales

17.2

20.4

(320) bps

SG&A expenses as a percentage of total revenue

9.6

9.7

(10) bps

Income from continuing operations before income taxes (in millions)

26.0

60.6

(57.1

(Benefit) expense from income taxes (in millions)

(4.0

)

8.5

(146.6

Income from continuing operations (in millions)

30.0

52.1

(42.4

Basic income per share from continuing operations

1.03

1.72

(40.1

Diluted income per share from continuing operations

1.02

1.69

(39.6

Income from continuing operations before income taxes (in millions)

26.0

60.6

(57.1

Inventory impairments and abandonments (in millions)

(2.1

)

(1.8

)

16.5

Income from continuing operations excluding inventory impairments and abandonments and loss on debt extinguishment before income taxes (in millions) (a) (Non-GAAP)

28.1

62.4

(55.0

Income from continuing operations excluding inventory impairments and abandonments and loss on debt extinguishment after income taxes (in millions) (a)(b) (Non-GAAP)

31.4

55.0

(42.9

Net income (in millions)

30.0

52.1

(42.4

Adjusted EBITDA (in millions) (Non-GAAP)

63.8

93.1

(31.5

* Change is calculated using unrounded numbers.

(a)

(b)

Inventory impairments and abandonments were tax-effected at the effective tax rate of (11.6)% and 11.9% for the fiscal years ended September 30, 2025 and 2024, respectively.

As of September 30,

2025

2024

Change

Backlog units

945

1,482

(36.2

Dollar value of backlog (in millions)

516.5

797.2

(35.2

ASP in backlog (in thousands)

546.5

537.9

1.6

Land position and lots controlled

25,660

28,538

(10.1

Conference Call

The Company will hold a conference call on November 13, 2025 at 5:00 p.m. ET to discuss these results. The public may listen to the conference call and view the Company’s slide presentation on the “Investor Relations” page of the Company’s website at www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 630-395-0227). To be admitted to the call, enter the passcode “8571348.” A replay of the conference call will be available, until 11:59 PM ET on November 27, 2025 at 866-388-5329 (for international callers, dial 203-369-0410) with pass code “3740.”

About Beazer Homes

Beazer Homes (NYSE: BZH), headquartered in Atlanta, Georgia, is a leading national homebuilder in energy-efficient construction. Building on a legacy spanning nine generations, Beazer crafts homes that deliver savings and lasting value. Our trusted team of experts guide homebuyers through the building and purchasing process to deliver an industry-leading customer experience. With curated design options, buyers can personalize their homes with confidence. Beazer's exclusive Mortgage Choice program provides access to competitive loan offers from multiple lenders, helping homebuyers choose the best financing for their individual needs. Beazer builds in 13 states nationwide. Learn more at beazer.com or follow us @BeazerHomes.

America’s #1 Energy-Efficient Homebuilder:

Homes built by Beazer Homes had an average Home Energy Rating System (HERS) score of 32 in fiscal 2025. A lower HERS score indicates a more energy-efficient home. Beazer Home's position as America's #1 Energy-Efficient Homebuilder is based on the fact that Beazer Homes has the lowest HERS score of any national homebuilder based on publicly reported average HERS scores in fiscal 2025 for each of the top 30 homebuilders in the U.S. (based on 2024 sales according to Builder Magazine). Historically, we have reported our average HERS Index Score as a “gross” score that excludes the benefit of renewable energy technologies (i.e. solar-photovoltaic system). Our fiscal 2025 gross HERS score was 38. We are transitioning to reporting scores reflecting the benefits of renewable energy technologies to more closely align with how our industry peers report HERS scores.

This press release contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things:

Any forward-looking statement, including any statement expressing confidence regarding future outcomes, speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all such factors.

Additional Information and Where to Find it

This communication is being made in connection with the proposed ratification of the New Rights Agreement by the Company’s stockholders. In connection with the proposed ratification, the Company intends to file a proxy statement with the Securities and Exchange Commission (the “SEC”) in preliminary and definitive form. The Company may also file other relevant documents with the SEC regarding the proposed ratification. The information in the preliminary proxy statement will not be complete and may be changed. The definitive proxy statement (when available) will be mailed to stockholders of the Company. This communication is not a substitute for any proxy statement or any other document that may be filed with the SEC or sent to the Company’s stockholders in connection with the ratification of the New Rights Agreement.

STOCKHOLDERS OF THE COMPANY ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE NEW RIGHTS AGREEMENT.

Stockholders will be able to obtain free copies of the preliminary proxy statement and the definitive proxy statement (in each case, if and when available) and other documents containing important information about the Company and the New Rights Agreement once such documents are filed with the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by the Company are available free of charge on the Company’s website at www.ir.beazer.com.

Participants in the Solicitation

The Company and its directors, executive officers and other members of management and employees may, under the rules of the SEC, be deemed to be participants in the solicitation of proxies from the Company’s stockholders in connection with the proposed ratification of the New Rights Agreement. Information about the directors and executive officers of the Company and their ownership of the Company’s securities is set forth in the Company’s Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders, which was filed with the SEC on December 20, 2024 (the 2025 Annual Meeting Proxy Statement), including under the sections entitled “Summary of 2024 Non-Employee Director Compensation,” “ Non-Employee Director Cash Compensation,” “Annual Equity Grant,” “Director Compensation Table,” “Base Salary,” “Short-Term Incentive Compensation,” “Long-Term Incentive Compensation,” “Benefits,” “Summary Compensation Table,” “All Other Compensation,” “Grants of Plan-Based Awards Table,” “Outstanding Equity Awards at Fiscal Year-End Table,” “Option Exercises and Stock Vested Table,” “Potential Payments Upon Termination or Change of Control,” “Pay Ratio,” “Pay Versus Performance” and “Security Ownership” and the Company’s Annual Report on Form 10-K for the year ended September 30, 2024, which was filed with the SEC on November 13, 2024, including under the sections entitled “Item 10. Directors, Executive Officers and Corporate Governance,” “Item 11. Executive Compensation,” “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” and “Item 13. Certain Relationships and Related Transactions, and Director Independence.” To the extent holdings of the Company’s securities by such directors or executive officers (or the identity of such directors or executive officers) have changed since the information set forth in the 2025 Annual Meeting Proxy Statement, such information has been or will be reflected on the Initial Statements of Beneficial Ownership on Form 3 or Statements of Changes in Beneficial Ownership on Form 4. Additional information regarding the interests of the Company’s directors and executive officers in the proposed ratification of the New Rights Agreement, which may, in some cases, be different than those of the Company’s stockholders generally, will be included in the Company’s proxy statement for the 2026 Annual Meeting if and when it is filed with the SEC. You may obtain free copies of these documents using the sources indicated above.

-Tables Follow-

BEAZER HOMES USA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Fiscal Year Ended

September 30,

in thousands (except per share data)

2025

2024

2025

2024

Total revenue

791,896

806,157

2,371,555

2,330,197

Home construction and land sales expenses

682,946

662,954

2,021,082

1,903,907

Inventory impairments and abandonments

2,092

1,796

12,959

1,996

Gross profit

106,858

141,407

337,514

424,294

Commissions

23,400

27,292

76,911

80,056

General and administrative expenses

52,755

50,700

204,830

186,345

Depreciation and amortization

5,895

5,169

19,168

14,867

Operating income

24,808

58,246

36,605

143,026

Loss on extinguishment of debt, net

—

(437

)

Other income, net

1,214

2,360

4,245

16,496

Income from continuing operations before income taxes

26,022

60,606

40,850

159,085

(Benefit) expense from income taxes

(3,982

)

8,538

(4,738

)

18,910

Income from continuing operations

30,004

52,068

45,588

140,175

Loss from discontinued operations, net of tax

—

)

—

Net income

30,004

52,066

45,588

140,175

Weighted-average number of shares:

Basic

29,051

30,316

29,758

30,548

Diluted

29,336

30,765

30,011

30,953

Basic income per share:

Continuing operations

1.03

1.72

1.53

4.59

Discontinued operations

—

Total

1.03

1.72

1.53

4.59

Diluted income per share:

Continuing operations

1.02

1.69

1.52

4.53

Discontinued operations

—

Total

1.02

1.69

1.52

4.53

Three Months Ended

Fiscal Year Ended

September 30,

Capitalized Interest in Inventory

2025

2024

2025

2024

Capitalized interest in inventory, beginning of period

137,759

126,562

124,182

112,580

Interest incurred

22,311

21,326

86,529

79,835

Capitalized interest impaired

(366

)

—

(1,462

)

—

Capitalized interest amortized to home construction and land sales expenses

(27,859

)

(23,706

)

(77,404

)

(68,233

)

Capitalized interest in inventory, end of period

131,845

124,182

131,845

124,182

BEAZER HOMES USA, INC.

CONSOLIDATED BALANCE SHEETS

in thousands (except share and per share data)

September 30, 2025

September 30, 2024

ASSETS

Cash and cash equivalents

214,705

203,907

Restricted cash

3,866

38,703

Accounts receivable (net of allowance of $266 and $284, respectively)

78,145

65,423

Owned inventory

2,029,433

2,040,640

Deferred tax assets, net

142,647

128,525

Property and equipment, net

47,945

38,628

Operating lease right-of-use assets

34,987

18,356

Goodwill

11,376

Other assets

46,604

45,969

Total assets

2,609,708

2,591,527

LIABILITIES AND STOCKHOLDERS’ EQUITY

Trade accounts payable

143,481

164,389

Operating lease liabilities

27,762

19,778

Other liabilities

160,445

149,900

Total debt (net of debt issuance costs of $6,611 and $8,310, respectively)

1,029,114

1,025,349

Total liabilities

1,360,802

1,359,416

Stockholders’ equity:

Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)

—

Common stock (par value $0.001 per share, 63,000,000 shares authorized, 29,762,293 issued and outstanding and 31,047,510 issued and outstanding, respectively)

Paid-in capital

825,103

853,895

Retained earnings

423,773

378,185

Total stockholders’ equity

1,248,906

1,232,111

Total liabilities and stockholders’ equity

2,609,708

2,591,527

Inventory Breakdown

Homes under construction

692,327

754,705

Land under development

1,065,702

1,023,188

Land held for future development

19,489

19,879

Land held for sale

47,368

19,086

Capitalized interest

131,845

124,182

Model homes

72,702

99,600

Total owned inventory

2,029,433

2,040,640

BEAZER HOMES USA, INC.

SUPPLEMENTAL OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS

Three Months Ended September 30,

Fiscal Year Ended September 30,

SELECTED OPERATING DATA

2025

2024

2025

2024

Closings:

West region

870

972

2,805

2,821

East region

335

329

1,022

920

Southeast region

201

195

600

709

Total closings

1,406

1,496

4,427

4,450

New orders, net of cancellations:

West region

629

645

2,365

2,753

East region

227

935

912

Southeast region

143

157

590

556

Total new orders, net

999

1,029

3,890

4,221

Fiscal Year Ended September 30,

Backlog units at end of period:

2025

2024

West region

525

965

East region

228

315

Southeast region

192

202

Total backlog units

945

1,482

Aggregate dollar value of homes in backlog (in millions)

516.5

797.2

ASP in backlog (in thousands)

546.5

537.9

Three Months Ended September 30,

Fiscal Year Ended September 30,

SUPPLEMENTAL FINANCIAL DATA

2025

2024

2025

2024

Homebuilding revenue:

West region

442,321

503,428

1,422,260

1,448,607

East region

200,962

178,988

575,533

483,611

Southeast region

107,503

101,370

304,837

360,766

Total homebuilding revenue

750,786

783,786

2,302,630

2,292,984

Revenues:

Homebuilding

750,786

783,786

2,302,630

2,292,984

Land sales and other

41,110

22,371

68,925

37,213

Total revenues

791,896

806,157

2,371,555

2,330,197

Gross profit:

Homebuilding

102,795

134,911

329,376

413,611

Land sales and other

4,063

6,496

8,138

10,683

Total gross profit

106,858

141,407

337,514

424,294

Reconciliation of homebuilding gross profit and homebuilding gross margin (GAAP measures) to homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized to cost of sales (non-GAAP measures) is provided for each period discussed below. Management believes that this information assists investors in comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective level of impairments and level of debt. These non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

Three Months Ended September 30,

Fiscal Year Ended September 30,

2025

2024

2025

2024

Homebuilding gross profit/margin (GAAP)

102,795

13.7

134,911

17.2

329,376

14.3

413,611

18.0

Inventory impairments and abandonments (I&A)

825

1,796

10,226

1,996

Homebuilding gross profit/margin excluding I&A (Non-GAAP)

103,620

13.8

136,707

17.4

339,602

14.7

415,607

18.1

Interest amortized to cost of sales

25,224

23,130

73,743

67,658

Homebuilding gross profit/margin excluding I&A and interest amortized to cost of sales (Non-GAAP)

128,844

17.2

159,837

20.4

413,345

18.0

483,265

21.1

Reconciliation of Net Income (GAAP measure) to Adjusted EBITDA (Non-GAAP measure) is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing core operating results and underlying business trends by eliminating many of the differences in companies' respective capitalization, tax position, level of impairments, and other non-recurring items. This non-GAAP financial measure may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

Three Months Ended September 30,

Fiscal Year Ended September 30,

2025

2024

2025

2024

Net income (GAAP)

30,004

52,066

45,588

140,175

(Benefit) expense from income taxes

(3,982

)

8,537

(4,738

)

18,910

Interest amortized to home construction and land sales expenses and capitalized interest impaired

28,224

23,705

78,866

68,233

EBIT (Non-GAAP)

54,246

84,308

119,716

227,318

Depreciation and amortization

5,895

5,169

19,168

14,867

EBITDA (Non-GAAP)

60,141

89,477

138,884

242,185

Stock-based compensation expense

1,896

1,855

7,338

7,391

Loss on extinguishment of debt

—

437

Inventory impairments and abandonments (a)

1,726

1,796

11,497

1,996

Gain on sale of investment (b)

—

(8,591

)

Adjusted EBITDA (Non-GAAP)

63,763

93,128

157,719

243,418

(a)

In periods during which we impaired certain of our inventory assets, capitalized interest that is impaired is included in the line above titled "Interest amortized to home construction and land sales expenses and capitalized interest impaired."

(b)

We previously held a minority interest in a technology company specializing in digital marketing for new home communities, which was sold during the quarter ended March 31, 2024. In exchange for the previously held investment, we received cash in escrow along with a minority partnership interest in the acquiring company, which was recorded within other assets in our consolidated balance sheets. The resulting gain of $8.6 million from this transaction was recognized in other income, net on our consolidated statement of operations. The Company believes excluding this one-time gain from Adjusted EBITDA provides a better reflection of the Company's performance as this item is not representative of our core operations.

Reconciliation of total debt to total capitalization ratio (GAAP measure) to net debt to net capitalization ratio (non-GAAP measure) is provided for each period below. Management believes that net debt to net capitalization ratio is useful in understanding the leverage employed in our operations and as an indicator of our ability to obtain financing. This non-GAAP financial measure may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

Fiscal Year Ended September 30,

in thousands

2025

2024

Total debt (GAAP)

1,029,114

1,025,349

Stockholders' equity (GAAP)

1,248,906

1,232,111

Total capitalization (GAAP)

2,278,020

2,257,460

Total debt to total capitalization ratio (GAAP)

45.2

45.4

Total debt (GAAP)

1,029,114

1,025,349

Less: cash and cash equivalents (GAAP)

214,705

203,907

Net debt (Non-GAAP)

814,409

821,442

Stockholders' equity (GAAP)

1,248,906

1,232,111

Net capitalization (Non-GAAP)

2,063,315

2,053,553

Net debt to net capitalization ratio (Non-GAAP)

39.5

40.0