v3.26.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
Revenue recognition

Home Sales Revenue
Home sale revenue is generally recognized when title to and possession of the home are transferred to the buyer, and our performance obligation to deliver the home is generally satisfied at the home closing date. All seller-paid closing cost incentives, including interest rate buydowns, are recorded as a reduction to residential units revenue.

Land and Lots Revenue
Occasionally, the Company sells developed and undeveloped land parcels. If the land parcel is developed prior to the sale of the land, the revenue is recognized at closing since we deliver a single performance obligation in the form of a developed parcel. We also recognize revenue at closing on undeveloped land parcel sales as there are no other obligations beyond delivering the undeveloped land.
Financial Services Revenue
Loan origination fees net of any lender-paid incentives, brokered loan revenue, and discount points are recognized upon loan origination. Expected gains and losses from the sale of residential mortgage loans are included in the measurement of interest rate lock commitments (“IRLCs”) that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of IRLCs and residential mortgage loans available-for-sale are reflected in Financial Services revenues as they occur. Interest income is accrued from the date a mortgage loan is originated until the loan is sold.
Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Insurance agency commissions relate to commissions on home and other insurance policies placed with third-party carriers through various agency channels. Our performance obligations for policy renewal commissions are considered satisfied upon issuance of the initial policy.
Contract Balances
Opening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands):
September 30, 2026December 31, 2025
Customer and builder deposits$27,983 $25,716 

The opening balance of customer and builder deposits was $25.7 million as of January 1, 2026, and the closing balance was $28.0 million as of September 30, 2026, as presented in the table above. The opening balance of customer and builder deposits was $37.1 million as of January 1, 2025. The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customers’ payments of deposits and the Company’s delivery of the home, impacted slightly by cancellations of contracts.

The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three and nine months ended September 30, 2026 and 2025 are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Type of Customer
Homebuyers $11,263 $14,839 $24,025 $32,474 
Homebuilders and Multi-Family Developers— — 50 643 
Total deposits recognized as revenue$11,263 $14,839 $24,075 $33,117 

Transaction Price Allocated to the Remaining Performance Obligations
The aggregate amount allocated to the remaining performance obligations on our land sale and lot option contracts is $5.7 million. The Company will recognize the remaining revenue when and if the lots are taken down, or upon closing for the sale of a land parcel, all of which is expected to occur in the remainder of 2026.
The timing of lot takedowns is contingent upon a number of factors, including customer and business needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules.

Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, and therefore has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.

Disaggregation of Revenue
The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three and nine months ended September 30, 2026 and 2025 (in thousands):
Three Months Ended September 30, 2026Three Months Ended September 30, 2025
Residential units revenueLand and lots revenueResidential units revenueLand and lots revenue
Primary Geographical Market
Central$352,439 $— $377,118 $— 
Southeast84,604 — 107,098 — 
Total revenues$437,043 $— $484,216 $— 
Type of Customer
Homebuyers$437,043 $— $484,216 $— 
Homebuilders and Multi-family Developers— — — — 
Total revenues$437,043 $— $484,216 $— 
Product Type
Residential units$437,043 $— $484,216 $— 
Land and lots— — — — 
Total revenues$437,043 $— $484,216 $— 
Timing of Revenue Recognition
Transferred at a point in time$436,919 $— $484,184 $— 
Transferred over time(1)
124 — 32 — 
Total revenues$437,043 $— $484,216 $— 

Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
Residential units revenueLand and lots revenueResidential units revenueLand and lots revenue
Primary Geographical Market
Central$1,073,728 $17,100 $1,134,466 $4,342 
Southeast283,798 — 364,424 — 
Total revenues$1,357,526 $17,100 $1,498,890 $4,342 
Type of Customer
Homebuyers$1,357,526 $— $1,498,890 $— 
Homebuilders and Multi-family Developers— 17,100 — 4,342 
Total revenues$1,357,526 $17,100 $1,498,890 $4,342 
Product Type
Residential units$1,357,526 $— $1,498,890 $— 
Land and lots— 17,100 — 4,342 
Total revenues$1,357,526 $17,100 $1,498,890 $4,342 
Timing of Revenue Recognition
Transferred at a point in time$1,356,380 $17,100 $1,498,858 $4,342 
Transferred over time(1)
1,146 — 32 — 
Total revenues$1,357,526 $17,100 $1,498,890 $4,342 
(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.