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The following Management’s Discussion and Analysis ("MD&A") should be read in conjunction with (i) our restated consolidated financial statements for the year ended December 31, 2025 and the related notes included in this Form 10‑K/A including the corrections described in Note 1, “Restatement of Previously Issued Financial Statements” and (ii) the condensed consolidated financial statements and the notes thereto included in the original Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 as previously filed (the “Original Form 10-Q”). This MD&A has been revised solely to reflect the corrections described in Note 1, “Restatement of Previously Issued Financial Statements”. No other information in this MD&A has been updated or modified, and the MD&A included below does not reflect events or developments occurring after the filing date of the Original Form 10-Q.

Our key financial and operating metrics are home deliveries, home closings revenue, average sales price of homes delivered, and net new home orders, which refers to sales contracts executed reduced by the number of sales contracts canceled during the relevant period, and homebuilding gross margin. Our results for each key financial and operating metric, as compared to the same period in 2024, are provided below:

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

As restated

Home deliveries

Increased by 5.6%

Increased by 8.0%

Home closings revenue

Decreased by 1.2%

Increased by 4.2%

Average sales price of homes delivered

Decreased by 6.4%

Decreased by 3.5%

Net new home orders

Increased by 6.2%

Increased by 4.6%

Homebuilding gross margin percentage

Decreased by 380 bps

Decreased by 290 bps

Our home deliveries increased 5.6% in the second quarter of 2025, while average sales prices decreased primarily as a result of elevated discounts and incentives to drive sales orders. Homebuilding gross margins decreased from 35.1% to 31.3%for the three months ended June 30, 2025, primarily due to higher incentives and closings costs to drive sales orders.

The table below represents residential units revenue and new homes delivered for the three months ended June 30, 2025 and 2024 (dollars in thousands):


	Three Months Ended June 30,
	2025		2024
	As restated		As restated		Change		%
Home closings revenue	$	532,525	$	538,824	$	(6,299)	(1.2)%
Mechanic’s lien contracts revenue	—		190		(190)		(100.0)%
Residential units revenue	$	532,525	$	539,014	$	(6,489)	(1.2)%
New homes delivered	1,042		987		55		5.6%
Average sales price of homes delivered	$	511.1	$	545.9	$	(34.8)	(6.4)%

Residential units revenue was substantially in line with the prior year period. New homes delivered increased by 5.6% while the average sales price of homes delivered decreased 6.4%. The increase in new homes delivered is attributable to an increased number of selling communities and a larger percentage of quick move-in sales that sold and closed during the three months ended June 30, 2025. The 6.4% decrease in the average sales price of homes delivered for the three months ended June 30, 2025 was due to higher discounts and incentives to drive sales orders.

The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s lien contracts (dollars in thousands):


	Three Months Ended June 30,
	2025			2024
	As restated			As restated			Change			%
Net new home orders	908			855			53			6.2	%
Revenue from net new home orders	$	454,900		$	464,259		$	(9,359)		(2.0)	%
Average selling price of net new home orders	$	501.0		$	543.0		$	(42.0)		(7.7)	%
Cancellation rate	9.9		%	9.2		%	0.7		%	7.6	%
Absorption rate per average active selling community per quarter	8.9			8.5			0.4			4.7	%
Average active selling communities	102			101			1			1.0	%
Active selling communities at end of period	102			105			(3)			(2.9)	%
Backlog revenue	$	507,137		$	644,011		$	(136,874)		(21.3)	%
Backlog units	730			889			(159)			(17.9)	%
Average sales price of backlog	$	694.7		$	724.4		$	(29.7)		(4.1)	%

Net new home orders increased 6.2% over the prior year period while our average active selling communities remained unchanged. This resulted in a 4.7% increase in the absorption rate per average active selling community year over year. Revenue from net new home orders was substantially in line with the prior year.

Backlog units refer to homes under sales contracts that have not yet closed at the end of the respective period, and absorption rate refers to the rate at which net new home orders are contracted per average active selling community during the respective period. Sales contracts may be canceled prior to closing for a number of reasons, including the inability of the homebuyer to obtain suitable mortgage financing. Accordingly, backlog may not be indicative of our future revenue.

Backlog revenue decreased by 21.3% year-over-year. As of June 30, 2025, our backlog revenue decreased 13.1% compared to March 31, 2025 and our spec units under construction as a percentage of total units under construction declined from 75.6% as of December 31, 2024 to 66.4% as of June 30, 2025.

Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 9.9% for the three months ended June 30, 2025, compared to 9.2% for the three months ended June 30, 2024. Our cancellation rate has remained in a historically low range under 10.0% since December 31, 2022.

The table below represents the components of residential units gross margin (dollars in thousands):


	Three Months Ended June 30,
	2025				2024
	As restated				As restated
Residential units revenue	$	532,525	100.0	%	$	539,014	100.0	%
Cost of residential units	366,072		68.7	%	350,059		64.9	%
Residential units gross margin	$	166,453	31.3	%	$	188,955	35.1	%

Residential units revenue decreased by $6.5 million while cost of residential units for the three months ended June 30, 2025 increased by $16.0 million, or 4.6%, compared to the same period in the previous year. This has resulted in a decrease in residential units gross margin of 380 bps to 31.3% for the three months ended June 30, 2025, from 35.1% for the three months ended June 30, 2024. The decrease in residential units gross margin is attributable to higher incentives, discounts, and closing costs to drive sales orders.

The table below represents lots closed and land and lots revenue (dollars in thousands):


	Three Months Ended June 30,
	2025		2024		Change		%
Lots revenue	$	2,038	$	790	$	1,248	158.0	%
Land revenue	—		12,703		(12,703)		(100.0)	%
Land and lots revenue	$	2,038	$	13,493	$	(11,455)	(84.9)	%
Lots closed	18		8		10		125.0	%
Average sales price of lots closed	$	113.2	$	98.8	$	14.4	14.6	%

From time to time, we may opportunistically sell finished lots to other homebuilders when we determine that we have excess capacity in specific neighborhoods or submarkets. Lots revenue decreased by $1.2 million during the three months ended June 30, 2025. Land revenue represents sales of two tracts of commercial land during the three months ended June 30, 2024.

The table below represents the components of selling, general and administrative expenses (dollars in thousands):


	Three Months Ended June 30,				As Percentage of Segment Revenue
	2025		2024		2025		2024
Builder operations	$	56,724	$	55,113
Corporate, other and unallocated (income) expense	2,810		2,411
Net builder operations	59,534		57,524		11.2	%	10.7	%
Land development	238		78		11.7	%	0.6	%
Total selling, general and administrative expenses	$	59,772	$	57,602	11.2	%	10.4	%

Selling, general and administrative expenses as a percentage of revenue for builder operations increased by 0.5% for the three months ended June 30, 2025 due to an increase in sales commissions, advertising, and corporate allocations. Builder operations expenditures also include salary expenses and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.

Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment for the three months ended June 30, 2025 were $2.8 million, compared to $2.4 million for the three months ended June 30, 2024. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.

Equity in income of unconsolidated entities decreased to $0.5 million, or 56.9%, for the three months ended June 30, 2025, compared to $1.2 million for the three months ended June 30, 2024. See Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of Green Brick’s share in net earnings by unconsolidated entity.

Other income, net, was $4.0 million for the three months ended June 30, 2025, compared to $5.9 million for the three months ended June 30, 2024. The decrease in other income is mainly due to forfeited earnest money deposits during the three months ended for the three months ended June 30, 2025.

Income tax expense was $23.0 million for the three months ended June 30, 2025 compared to $23.9 million for the three months ended June 30, 2024. See Note 11 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion on the Company’s income tax expense for the three months ended June 30, 2025.

The table below represents residential units revenue and new homes delivered for the six months ended June 30, 2025 and 2024 (dollars in thousands):


	Six Months Ended June 30,
	2025		2024
	As restated		As restated		Change		%
Home closings revenue	$	1,014,674	$	973,754	$	40,920	4.2%
Mechanic’s lien contracts revenue	—		380		(380)		(100.0)%
Residential units revenue	$	1,014,674	$	974,134	$	40,540	4.2%
New homes delivered	1,952		1,808		144		8.0%
Average sales price of homes delivered	$	519.8	$	538.6	$	(18.8)	(3.5)%

The $40.5 million increase in residential units revenue was driven by the 8.0% increase in new homes delivered partially offset by a 3.5% decrease in the average sales price of homes delivered for the six months ended June 30, 2025. The increase in new homes delivered was primarily driven by increased levels of finished and finishing spec home inventory at the end of the prior year. The 3.5% decrease in the average sales price of homes delivered for the six months ended June 30, 2025, was attributable to higher incentives, discounts, and closing costs to drive sales orders.

The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s lien contracts (dollars in thousands):


	Six Months Ended June 30,
	2025			2024
	As restated			As restated			Change			%
Net new home orders	2,014			1,926			88			4.6	%
Revenue from net new home orders	$	1,032,529		$	1,068,941		$	(36,412)		(3.4)	%
Average selling price of net new home orders	$	512.7		$	555.0		$	(42.3)		(7.6)	%
Cancellation rate	7.9		%	6.5		%	1.4		%	21.5	%
Absorption rate per average active selling community per quarter	9.7			9.8			(0.1)			(1.0)	%
Average active selling communities	104			98			6			6.1	%
Active selling communities at end of period	102			105			(3)			(2.9)	%

Net new home orders increased 4.6% over the prior year period mainly due to higher incentives and discounts. Our average active selling communities increased 6.1%. As a result, our absorption rate per average active selling community decreased 1.0% year over year. The 3.4% decrease in revenue from net new home orders is also tied to the higher incentives offered to drive sales orders.

Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 7.9% for the six months ended June 30, 2025, compared to 6.5% for the six months ended June 30, 2024. Our cancellation rate has remained in a historically low range under 10.0% since December 31, 2022.


	Six Months Ended June 30,
	2025				2024
	As restated				As restated
Residential units revenue	$	1,014,674	100.0	%	$	974,134	100.0	%
Cost of residential units	693,525		68.3	%	637,208		65.4	%
Residential units gross margin	$	321,149	31.7	%	$	336,926	34.6	%

Residential units revenue increased $40.5 million or 4.2% during the six months ended June 30, 2025, due to the increase in home deliveries of 8.0% while cost of residential units for the six months ended June 30, 2025, increased by $56.3 million, or 8.8%, compared to the six months ended June 30, 2024. This resulted in a decrease in residential units gross margin for the six months ended June 30, 2025, of 290 bps to 31.7%, from 34.6% for the six months ended June 30, 2024 mainly due to higher incentives, discounts, and closing costs to drive sales orders.

The table below represents lots closed and land and lots revenue (dollars in thousands):


	Six Months Ended June 30,
	2025		2024		Change		%
Lots revenue	$	4,342	$	4,844	$	(502)	(10.4)	%
Land revenue	—		12,703		(12,703)		(100.0)	%
Land and lots revenue	$	4,342	$	17,547	$	(13,205)	(75.3)	%
Lots closed	42		71		(29)		(40.8)	%
Average sales price of lots closed	$	103.4	$	68.2	$	35.2	51.6	%

From time to time we may opportunistically sell finished lots to other homebuilders when we determine that we have excess capacity in specific neighborhoods or submarkets. Lots revenue decreased by $0.5 million during the six months ended June 30, 2025. Land revenue represents sales of two tracts of commercial land during the six months ended June 30, 2024.

The table below represents the components of selling, general and administrative expenses (dollars in thousands):


	Six Months Ended June 30,				As Percentage of Segment Revenue
	2025		2024		2025		2024
Builder operations	$	110,141	$	104,316
Corporate, other and unallocated (income) expense	4,141		3,713
Net builder operations	114,282		108,029		11.3	%	11.1	%
Land development	385		143		8.9	%	0.8	%
Total selling, general and administrative expenses	$	114,667	$	108,172	11.3	%	10.9	%

Selling, general and administrative expenses as a percentage of revenue for builder operations of 11.3% for the six months ended June 30, 2025, was substantially in line with the prior year period. Builder operations expenditures include salary expenses, sales commissions, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.

Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment for the six months ended June 30, 2025, were $4.1 million and $3.7 million for the six months ended June 30, 2024. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.

Equity in income of unconsolidated entities decreased to $1.0 million, for the six months ended June 30, 2025, compared to $3.8 million for the six months ended June 30, 2024. See Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of Green Brick’s share in net earnings by unconsolidated entity.

Other income, net, decreased to $8.8 million for the six months ended June 30, 2025, compared to $21.3 million for the six months ended June 30, 2024. The decrease was primarily due to a $10.7 million gain in the sale of our investment in GB Challenger, LLC during the six months ended June 30, 2024.

Income tax expense was $45.2 million for the six months ended June 30, 2025 compared to $48.7 million for the six months ended June 30, 2024. The decrease was primarily due to lower taxable income partially offset by a higher effective tax rate. See Note 11 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion on the Company’s income tax expense for the six months ended June 30, 2025.

The following table presents the lots we owned or controlled, including lot option contracts, as of June 30, 2025 and December 31, 2024. Owned lots are those for which we hold title, while controlled lots are those for which we have the contractual right to acquire title but we do not currently own.


	June 30, 2025						December 31, 2024
	Central		Southeast		Total		Central		Southeast		Total
Lots owned
Finished lots	3,841		723		4,564		3,932		790		4,722
Lots in communities under development	25,345		1,759		27,104		22,524		1,670		24,194
Land held for future development(1)	3,800		—		3,800		3,800		—		3,800
Total lots owned	32,986		2,482		35,468		30,256		2,460		32,716

Lots controlled
Lots under third party option contracts	504		121		625		806		—		806
Land under option for future acquisition and development	1,170		266		1,436		1,091		349		1,440
Lots under option through unconsolidated development joint ventures	2,564		107		2,671		2,614		255		2,869
Total lots controlled	4,238		494		4,732		4,511		604		5,115
Total lots owned and controlled (2)	37,224		2,976		40,200		34,767		3,064		37,831
Percentage of lots owned	88.6	%	83.4	%	88.2	%	87.0	%	80.3	%	86.5	%


	June 30, 2025		December 31, 2024
Total lots owned(1)	35,468		32,716
Land under option for future acquisition and development	1,436		1,440
Lots under option through unconsolidated development joint ventures	2,671		2,869
Total lots self-developed	39,575		37,025
Self-developed lots as a percentage of total lots owned and controlled(1)	98.4	%	97.9	%

As of June 30, 2025 and December 31, 2024, we had $112.5 million and $141.5 million of unrestricted cash and cash equivalents, respectively. Our historical cash management strategy includes redeploying net cash from the sale of home inventory to acquire and develop land and lots that represent opportunities to generate desired margins and returns, and using cash to make additional investments in business acquisitions, joint ventures, share repurchases or other strategic activities.

Our principal uses of capital for the six months ended June 30, 2025 were home construction, land purchases, land development, repayments of debt, operating expenses, share repurchases, and payment of routine liabilities. Historically, we have used funds generated by operations and available borrowings to meet our short-term working capital requirements. We remain focused on generating positive margins in our homebuilding operations and acquiring desirable land positions in order to maintain a strong balance sheet and remain poised for continued growth.

Cash flows for each of our communities depend on the community’s stage in the development cycle. Early stages of development or expansion require significant cash outlays for land acquisitions, entitlements and other approvals, roads, utilities, general landscaping and other amenities, and home construction. These costs are a component of our inventory and are not recognized in our statement of income until a home closes. In the later stages of community life cycle, cash inflows may significantly exceed earnings reported for financial statement purposes, as the cash outflows associated with home construction and land development primarily occurred in prior periods.

Our debt to total capitalization ratio, which is calculated as the sum of borrowings on lines of credit, the senior unsecured notes, and notes payable, net of debt issuance costs (“total debt”), divided by the total capitalization, which equals the sum of Green Brick Partners, Inc. stockholders’ equity and total debt, was approximately 14.4% as of June 30, 2025.

Additionally, as of June 30, 2025, our net debt to total capitalization ratio, which is a non-GAAP financial measure, remained low at 9.4%. It is our intent to prudently employ leverage to continue to invest in our land acquisition, development and homebuilding activities. We target a debt to total capitalization ratio of up to approximately 20%, which we expect will provide us with significant additional growth capital.

•Operating activities. Net cash provided by operating activities for the six months ended June 30, 2025, was $143.5 million, compared to $3.2 million during the six months ended June 30, 2024. The net cash inflows for the six months ended June 30, 2025, were generated by our business operations.

•Investing activities. Net cash used in investing activities for the six months ended June 30, 2025 was $25.6 million, compared to net cash from investing activities of $58.1 million during the six months ended June 30, 2024. Cash outflows for the six months ended June 30, 2025, were primarily related to other investments in unconsolidated entities.

•Financing activities. Net cash used in financing activities for the six months ended June 30, 2025 was $131.8 million, compared to net cash used of $102.6 million during the six months ended June 30, 2024. The cash outflows were primarily related to share repurchases of $60.7 million, repayments of our senior unsecured notes of $25.0 million, and net repayments to our lines of credit of $20.8 million.

Secured Revolving Credit Facility – As of June 30, 2025 and December 31, 2024, we had no amounts outstanding under our $35.0 million Secured Revolving Credit Facility. On May 1, 2025, the Company entered into the Tenth Amendment to the Secured Revolving Credit Facility to extend its maturity date to May 1, 2028. Outstanding borrowings under the amended Secured Revolving Credit Facility bear interest payable monthly at a floating rate per annum equal to SOFR plus 2.25%, but in no event less than 3.15% per annum or more than the lesser of 18% and the highest maximum rate allowed by applicable law. The entire unpaid principal balance and any accrued but unpaid interest is due and payable on the maturity date.

Unsecured Revolving Credit Facility – As of June 30, 2025, we had no amounts outstanding under our Unsecured Revolving Credit Facility and $25.0 million outstanding as of December 31, 2024. On December 13, 2024, the Company entered into the Twelfth Amendment (the “Twelfth Amendment”) to this credit agreement that adopted a leverage-based pricing grid for a reduction in both interest rate and non-use fee and other administrative changes. The Twelfth Amendment removed one lender with a $25 million prior commitment and added $30 million in new commitments, thereby increasing total commitments to $330.0 million. The maturity of all commitments under the Unsecured Revolving Credit Facility were extended to December 14, 2027.

Senior Unsecured Notes - As of June 30, 2025, we had four series of senior unsecured notes outstanding that were each issued pursuant to a note purchase agreement. The aggregate principal amount of senior unsecured notes outstanding was $274.3 million as of June 30, 2025 compared to $299.1 million as of December 31, 2024, net of issuance costs.

•In August 2019, we issued $75.0 million of senior unsecured notes (the “2026 Notes”). Interest accrues at an annual rate of 4.0% and is payable quarterly. Principal on the 2026 Notes is required to be paid in increments of $12.5 million on each of August 8, 2024 and August 8, 2025 with a final principal payment of $50.0 million on August 8, 2026.

•In August 2020, we issued $37.5 million of senior unsecured notes (the “2027 Notes”). Interest accrues at an annual rate of 3.35% and is payable quarterly. Principal on the 2027 Notes is due on August 26, 2027.

•In February 2021, we issued $125.0 million of senior unsecured notes (the “2028 Notes”) of which $75.0 million is outstanding as of June 30, 2025. Interest accrues at an annual rate of 3.25% and is payable

•In December 2021, we issued $100.0 million of senior unsecured notes (the “2029 Notes”). Interest accrues at an annual rate of 3.25% and is payable quarterly. A required principal prepayment of $30.0 million is due on December 28, 2028. The remaining unpaid principal balance is due on December 28, 2029.

Our debt instruments require us to maintain specific financial covenants, each of which we were in compliance with as of June 30, 2025. Specifically, under the most restrictive covenants, we are required to maintain the following:

As of June 30, 2025, we believe that our cash on hand, capacity available under our lines of credit and cash flows from operations for the next twelve months will be sufficient to service our outstanding debt during the next twelve months and fund our operations. For additional information on our lines of credit, senior unsecured notes, and notes payable, refer to Note 5 to the condensed consolidated financial statements located in Part I, Item 1 of this Quarterly Report on Form 10-Q.


			Outstanding Balance As of
Maturity Date	Maximum Aggregate Commitment		June 30, 2025		December 31, 2024
October 31, 2025	$	40,000	$	—	$	—
December 18, 2025	40,000		4,194		—
	$	80,000	$	4,194	$	—

The Warehouse Facilities provide for an aggregate uncommitted amount of $80.0 million. The Warehouse Facilities are (i) secured by the underlying mortgage loans and bear interest at a variable rate based on SOFR plus a margin ranging from 1.75% to 2% and (ii) guaranteed by Green Brick. The facilities are subject to annual renewal and contain customary covenants and conditions regarding minimum net worth, leverage, profitability and liquidity. The Company was in compliance with the financial covenants under the Warehouse Facilities as of June 30, 2025.

Under the Warehouse Facilities, the banks purchase a participation interest in individual mortgage loans, with GRBK Mortgage providing the remainder of the principal of the mortgage, typically up to 2% depending on the loan product. The mortgage loans, with the servicing rights, are then sold, typically within 30 to 75 days, to a third party investor and the bank is repaid its participation interest plus interest and the remainder is remitted to GRBK Mortgage. If a third party investor has not purchased the mortgage loan within the anticipated timeframes then GRBK Mortgage is required to repurchase the mortgage loan for the full amount of the participation interest plus interest.

As of June 30, 2025 and December 31, 2024 we had 2,000,000 Depositary Shares issued and outstanding, each representing 1/1000 of a share of our 5.75% Series A Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”). We will pay cumulative cash dividends on the Series A Preferred Stock, when and as declared by the Board, at the rate of 5.75% of the $25,000 liquidation preference per share. Dividends will be payable quarterly in arrears. During the six months ended June 30, 2025, we paid dividends of $1.4 million on the Series A Preferred Stock. On July 24, 2025, the Board declared a quarterly cash dividend of $0.359 per depositary share on the Series A Preferred Stock. The dividend is payable on September 15, 2025 to stockholders of record as of September 1, 2025.

In September 2023, we filed with the SEC an automatic shelf registration statement on Form S-3 which enables us to issue shares of common stock, preferred stock or debt securities either separately or represented by warrants, or depositary shares as well as units that include any of these securities. Under the rules governing shelf registration statements, we will file a prospectus supplement and advise the SEC of the amount and type of securities each time we issue securities under this registration statement. We have not issued any securities under this registration statement through the date of this filing.

In this Quarterly Report on Form 10-Q, we utilize a financial measure of net debt to total capitalization ratio that is a non-GAAP financial measure as defined by the SEC. Net debt to total capitalization is calculated as total debt less cash and cash equivalents, divided by the sum of total Green Brick Partners, Inc. stockholders’ equity and total debt less cash and cash equivalents. We present this measure because we believe it is useful to management and investors in evaluating the Company’s financing structure. We also believe this measure facilitates the comparison of our financing structure with other companies in our industry. Because this measure is not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), it 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.

The closest GAAP financial measure to the net debt to total capitalization ratio is the debt to total capitalization ratio. The following table represents a reconciliation of the net debt to total capitalization ratio as of June 30, 2025 (dollars in thousands):


	Gross			Cash and cash equivalents		Net
Total debt, net of debt issuance costs	$	291,335		$	(112,459)	$	178,876
Total Green Brick Partners, Inc. stockholders’ equity	1,725,373			—		1,725,373
Total capitalization	$	2,016,708		$	(112,459)	$	1,904,249

Debt to total capitalization ratio	14.4		%
Net debt to total capitalization ratio						9.4		%

In the ordinary course of business, we enter into land purchase contracts in order to procure lots for the construction of our homes in the future. We are subject to customary obligations associated with such contracts. These purchase contracts typically require an earnest money deposit, and the purchase of properties under these contracts is generally contingent upon satisfaction of certain requirements, including obtaining applicable property and development entitlements.

To a much lesser extent and due to a limited availability in our market of true lot developers, we also utilize option contracts with lot sellers as a method of acquiring lots in staged takedowns, which are the schedules that dictate when lots must be purchased to help manage the financial and market risk associated with land holdings, and to reduce the use of funds from our corporate financing sources. Lot option contracts generally require us to pay a non-refundable deposit for the right to acquire lots over a specified period of time at pre-determined prices that typically include escalations in lot prices over time.

Our utilization of lot option contracts is dependent on, among other things, the availability of land sellers willing to enter into these arrangements, the availability of capital to finance the development of optioned lots, general housing market conditions and local market dynamics. Options may be more difficult to procure from land sellers in strong housing markets and are more prevalent in certain geographic regions.

We generally have the right, at our discretion, to terminate our obligations under both purchase contracts and option contracts by forfeiting the earnest money deposit with no further financial responsibility to the seller.

As of June 30, 2025, we had earnest money deposits of $10.2 million at risk associated with contracts to purchase raw land and finished lots representing 3,221 total lots past feasibility studies with an aggregate purchase price of approximately $217.7 million.

The homebuilding industry experiences seasonal fluctuations in quarterly operating results and capital requirements. We typically experience the highest new home order activity in spring and summer, although this activity is highly dependent on the number of active selling communities, timing of new community openings, interest rates and other market factors. Since it typically takes four to seven months to construct a new home, we normally deliver more homes in the second half of the year as spring and summer home orders are delivered. Because of this seasonality, home starts, construction costs and related cash outflows have historically been highest in the second and third quarters, and the majority of cash receipts from home deliveries occur typically during the second half of the year.

Our critical accounting policies are described in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2024.