v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company primarily operates in the homebuilding business and is organized and reported mainly by region. The Company’s four reportable segments consist of the three homebuilding segments—the Southeast, Mid-Atlantic and Midwest—as well as the Financial Services segment. The homebuilding segments produce the majority of their homebuilding revenues through the sale and delivery of completed homes. The Financial Services segment generates the majority of its revenues from originating and selling mortgages, and collecting premiums and fees for closing services and title insurance. The four reportable segments are comprised of the following:
•Southeast (Jacksonville, Orlando and Tampa, Florida and operations in the southeast coast of Florida and southwest Florida; Atlanta and Savannah, Georgia; Hilton Head and Bluffton, South Carolina; custom homes operations in northeast Florida)
•Mid-Atlantic (DC Metro; Nashville, Tennessee; Charlotte, Fayetteville, Raleigh and Wilmington, North Carolina; Charleston, Myrtle Beach and Greenville, South Carolina)
•Midwest (Austin, Dallas, Houston and San Antonio, Texas; Denver, Colorado; Phoenix, Arizona)
•Financial Services (primarily Jet HomeLoans, DF Title and Alliant National Title)
The corporate component, which is not considered an operating segment, is reported separately as “corporate.” Certain corporate SG&A expenses are charged to the segments and eliminated in consolidation.
On June 1, 2026, the chief operating decision makers group (the “CODM”) was updated to include the Chief Operating Officer upon his appointment on that date. The change did not result in a change to the Company’s operating segments, reportable segments or the measure of segment profit or loss used by the CODM.
The following table summarizes revenues, significant expenses and income (loss) before taxes by segment for the three months ended September 30, 2026 and 2025 (in thousands):
Southeast(1)
Mid-Atlantic(2)
MidwestFinancial Services
Corporate(3)
Consolidated
2026
Total revenues$343,281 $236,604 $362,455 $53,709 $— $996,049 
Homebuilding cost of sales292,234 200,978 309,188 — — 802,400 
Financial services expense(4)
— — — 46,263 — 46,263 
Selling, general and administrative expense41,818 33,411 42,800 — 26,230 144,259 
Other segment (income) expense, net⁽⁵⁾(17)156 310 (457)(10,022)(10,030)
Income (loss) before taxes$9,246 $2,059 $10,157 $7,903 $(16,208)$13,157 
2025
Total revenues$317,159 $242,181 $357,331 $53,133 $— $969,804 
Homebuilding cost of sales257,556 200,775 297,604 — — 755,935 
Financial services expense(4)
— — — 45,081 — 45,081 
Selling, general and administrative expense39,062 30,600 37,494 — 2,353 109,509 
Contingent consideration revaluation— — 1,786 — — 1,786 
Other segment (income) expense, net⁽⁵⁾(380)3 (710)(758)(1,412)(3,257)
Income (loss) before taxes$20,921 $10,803 $21,157 $8,810 $(941)$60,750 
(1)Noncash items for the Southeast segment included inventory impairment and deal abandonment charges of $2.0 million and $2.4 million, respectively, for the three months ended September 30, 2026 and 2025.
(2)Noncash items for the Mid-Atlantic segment included inventory impairment and deal abandonment charges of $6.1 million and $0.2 million, respectively, for the three months ended September 30, 2026 and 2025.
(3)Corporate includes operations and investments of the corporate component. Corporate SG&A primarily consists of depreciation of corporate assets, professional services fees, certain payroll costs and other general corporate expenses not allocated to the segments. Corporate other segment items primarily consist of interest income and expense, investment income, rental income and income from unconsolidated entities. During the three months ended September 30, 2026, changes in fair value of investments in equity securities related to a pre-acquisition investment in Beazer resulted in unrealized gains of $4.9 million which are recognized within other income, net on the Condensed Consolidated Statements of Operations. During the three months ended September 30, 2026, transaction costs associated with the Beazer acquisition were $23.5 million which are included within selling, general and administrative expense on the Condensed Consolidated Statements of Operations. There were no such corporate investment income or transaction costs for the three months ended September 30, 2025.
(4)Financial services expense primarily consists of commissions, salaries and benefits.
(5)Other segment items related to the homebuilding segments primarily consist of interest income and expense, management fees and gains and losses on sales of fixed assets. Other segment items related to financial services primarily consist of investment income.
The following table summarizes revenues, significant expenses and income before taxes by segment for the nine months ended September 30, 2026 and 2025 (in thousands):
Southeast(6)
Mid-Atlantic(7)
MidwestFinancial Services
Corporate(3)(8)
Consolidated
2026
Total revenues$1,005,087 $731,888 $1,049,168 $161,169 $— $2,947,312 
Homebuilding cost of sales855,455 621,837 904,533 — — 2,381,825 
Financial services expense(4)
— — — 134,213 — 134,213 
Selling, general and administrative expense120,509 99,335 127,758 — 36,000 383,602 
Other segment expense (income), net⁽⁵⁾308 1,319 282 (2,002)(21,044)(21,137)
Income (loss) before taxes$28,815 $9,397 $16,595 $28,958 $(14,956)$68,809 
2025
Total revenues$992,364 $755,067 $1,238,928 $123,821 $— $3,110,180 
Homebuilding cost of sales806,873 613,078 1,037,391 — — 2,457,342 
Financial services expense(4)
— — — 98,005 — 98,005 
Selling, general and administrative expense122,750 94,863 139,692 — 3,597 360,902 
Contingent consideration revaluation— — (9,820)— — (9,820)
Other segment (income) expense, net⁽⁵⁾(578)6,739 (1,310)(1,521)(5,558)(2,228)
Income before taxes$63,319 $40,387 $72,975 $27,337 $1,961 $205,979 
See notes (3) to (5) above under the segment results for the three months ended September 30, 2026 and 2025.
(6)Noncash items for the Southeast segment included inventory impairment and deal abandonment charges of $3.8 million and $3.2 million, respectively, for the nine months ended September 30, 2026 and 2025.
(7)Noncash items for the Mid-Atlantic segment included inventory impairment and deal abandonment charges of $7.1 million and $0.7 million, respectively, for the nine months ended September 30, 2026 and 2025. During the nine months ended September 30, 2025, other segment items for the Mid-Atlantic segment included $6.7 million of accrued expense from March 2025 purchase price adjustments related to the Crescent Homes acquisition.
(8)During the nine months ended September 30, 2026, changes in fair value of investments in equity securities related to a pre-acquisition investment in Beazer resulted in unrealized gains of $10.4 million, which are recognized within other income, net on the Condensed Consolidated Statements of Operations. During the nine months ended September 30, 2026, transaction costs associated with the Beazer acquisition were $23.9 million, which are included within selling, general and administrative expense on the Condensed Consolidated Statements of Operations. There were no such corporate investment income or transaction costs for the nine months ended September 30, 2025.
The following table summarizes total assets and goodwill by segment as of the periods indicated (in thousands):
Assets:Goodwill:
As of
September 30, 2026		As of
December 31, 2025		As of
September 30, 2026		As of
December 31, 2025
Southeast
$1,097,404 $1,010,715 $68,467 $68,467 
Mid-Atlantic1,042,939 904,598 144,959 144,959 
Midwest1,290,952 1,086,398 141,071 141,071 
Financial Services
331,480 347,791 22,864 22,864 
Corporate(1)
437,655 377,982 — — 
Consolidated$4,200,430 $3,727,484 $377,361 $377,361 
(1)Corporate assets are comprised of, but are not limited to, operating and restricted cash, deferred tax assets, prepaids and other assets not directly attributable to a reportable segment.