Revenue: As of FY2026 Q2, the actual value is USD 1.063 B, missing the estimate of USD 1.091 B.

EPS: As of FY2026 Q2, the actual value is USD 0.27, missing the estimate of USD 0.295.

EBIT: As of FY2026 Q2, the actual value is USD 36.85 M.

Second Quarter 2026 Financial Highlights

Dream Finders Homes, Inc. reported net sales of 2,232 units for the second quarter of 2026, which represents a 15% increase compared to 1,938 units in the second quarter of 2025. Home closings increased by 3% year-over-year to 2,290 units from 2,232 units. Homebuilding revenues were $1.0 billion in the second quarter of 2026, a decrease from $1.1 billion in the second quarter of 2025. The homebuilding gross margin was 14.2%, down from 16.5% in the prior year’s quarter. Adjusted homebuilding gross margin (non-GAAP) stood at 24.2%, compared to 25.9% in the second quarter of 2025. Pre-tax income decreased to $37 million from $74 million in the second quarter of 2025. Net income attributable to Dream Finders Homes, Inc. was $28 million, a decline from $57 million in the comparable period. Financial services pre-tax income remained consistent at $12 million. Total liquidity as of June 30, 2026, was $605 million. Return on participating equity was 9.6%, a decrease from 25.0% in the second quarter of 2025. The company repurchased 1,012,621 Class A common shares for $15 million during the three months ended June 30, 2026.

Homebuilding Segment Performance

Homebuilding revenues for the second quarter of 2026 were $1,007,144 thousand, an 8% decrease compared to $1,099,580 thousand in the second quarter of 2025, primarily due to lower average selling prices partially offset by higher home closings. The homebuilding gross margin percentage for the second quarter of 2026 was 14.2%, down from 16.5% in the second quarter of 2025, mainly due to higher land and financing costs, partially mitigated by direct cost reductions and cycle-time improvements. Selling, general and administrative (SG&A) expense decreased by 5% to $128,440 thousand in the second quarter of 2026, from $134,699 thousand in the second quarter of 2025, mainly due to lower compensation costs. SG&A as a percentage of homebuilding revenues increased by 50 basis points to 12.8% in the second quarter of 2026, from 12.3% in the second quarter of 2025. Other income for the second quarter of 2026 included $9 million in gains on equity securities. The cancellation rate improved to 11.1% in the second quarter of 2026, from 14.0% in the second quarter of 2025. The active community count increased by 30% year-over-year, reaching 353 communities.

Financial Services Segment Performance

Financial services revenues increased by $5 million, or 11%, for the three months ended June 30, 2026, compared to the same period in 2025, driven by loan execution efficiency and hedging strategies. Income before taxes for financial services remained consistent year-over-year.

Backlog and Average Sales Price

As of June 30, 2026, Dream Finders Homes, Inc. had a backlog of 2,319 homes, valued at $1.2 billion, compared to 2,377 homes valued at $1.1 billion as of March 31, 2026. The average sales price (ASP) in backlog was $497,716 as of June 30, 2026, up from $465,237 as of March 31, 2026. Approximately 213 homes in backlog are expected to be delivered in 2027 and beyond. The average sales price of homes closed was $438,171 for the second quarter of 2026, compared to $481,027 for the second quarter of 2025.

Balance Sheet Data

Cash and cash equivalents were $203,494 thousand as of June 30, 2026, down from $234,766 thousand as of December 31, 2025. Inventories increased to $2,327,779 thousand from $2,025,662 thousand over the same period. Total liabilities were $2,347,804 thousand as of June 30, 2026, an increase from $2,123,373 thousand as of December 31, 2025. Total equity was $1,433,827 thousand as of June 30, 2026, compared to $1,426,072 thousand as of December 31, 2025. Treasury stock, at cost, was - $82,837 thousand as of June 30, 2026, compared to - $49,526 thousand as of December 31, 2025. Net homebuilding debt to net capitalization was 46.5% as of June 30, 2026, compared to 41.8% as of December 31, 2025. The controlled lot pipeline was 54,091 as of June 30, 2026, a decrease from 63,121 as of December 31, 2025.

Full Year 2026 Outlook

Dream Finders Homes, Inc. reiterates its full-year 2026 guidance of approximately 9,250 home closings. The company aims to optimize communities, execute absorption targets, and manage margin underwriting to improve profitability and return on participating equity. Management is also focused on reducing SG&A expense and streamlining operations, with this process expected to be completed by year-end.