Meritage Homes | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 1.424 B

Revenue: As of FY2025 Q3, the actual value is USD 1.424 B, missing the estimate of USD 1.474 B.

EPS: As of FY2025 Q3, the actual value is USD 1.39.

EBIT: As of FY2025 Q3, the actual value is USD 120.12 M.

Homebuilding Segment

West Region

• Home Closing Revenue: $420.7 million for Q3 2025, a decrease of 29.2% from $594.5 million in Q3 2024.
• Homes Closed: 883 homes in Q3 2025, down 27.6% from 1,220 homes in Q3 2024.
• Average Sales Price: $476.4 thousand in Q3 2025, down 2.2% from $487.3 thousand in Q3 2024.
• Home Closing Gross Margin: 19.6% in Q3 2025, down from 23.3% in Q3 2024.
• Adjusted Home Closing Gross Margin: 20.3% in Q3 2025, down from 23.4% in Q3 2024.

Central Region

• Home Closing Revenue: $443.1 million for Q3 2025, a decrease of 8.6% from $484.7 million in Q3 2024.
• Homes Closed: 1,260 homes in Q3 2025, down 6.4% from 1,346 homes in Q3 2024.
• Average Sales Price: $351.7 thousand in Q3 2025, down 2.3% from $360.1 thousand in Q3 2024.
• Home Closing Gross Margin: 21.4% in Q3 2025, down from 25.6% in Q3 2024.
• Adjusted Home Closing Gross Margin: 21.7% in Q3 2025, down from 25.7% in Q3 2024.

East Region

• Home Closing Revenue: $535.6 million for Q3 2025, an increase of 5.7% from $506.5 million in Q3 2024.
• Homes Closed: 1,542 homes in Q3 2025, up 12.1% from 1,376 homes in Q3 2024.
• Average Sales Price: $347.3 thousand in Q3 2025, down 5.7% from $368.1 thousand in Q3 2024.
• Home Closing Gross Margin: 16.7% in Q3 2025, down from 25.6% in Q3 2024.
• Adjusted Home Closing Gross Margin: 18.6% in Q3 2025, down from 25.8% in Q3 2024.

Financial Services Segment

• Revenue: $8.5 million for Q3 2025, up from $8.1 million in Q3 2024.
• Expense: $4.3 million for Q3 2025, up from $3.7 million in Q3 2024.
• Profit: $4.5 million for Q3 2025, up from $3.1 million in Q3 2024.

Cash Flow

• Operating Cash Flow: Net cash used in operating activities was $125.4 million for the nine months ended September 30, 2025, compared to $128.0 million for the same period in 2024.
• Investing Cash Flow: Net cash used in investing activities was $41.0 million for the nine months ended September 30, 2025, compared to $31.4 million for the same period in 2024.
• Financing Cash Flow: Net cash provided by financing activities was $243.8 million for the nine months ended September 30, 2025, compared to $69.8 million for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue its strategy of offering affordable, move-in ready homes with a 60-day closing ready commitment, partnering with external realtors, and focusing on first-time and first move-up homebuyers.
• Non-Core Business: The company may opportunistically repurchase its senior notes and continue to manage its liquidity and balance sheet to support growth and shareholder returns.
• Priority: Emphasis on maintaining a strong balance sheet, managing construction efficiencies, and promoting a positive environment for employees.