Beazer Homes Reports Third Quarter Fiscal 2025 Results
ATLANTA, July 31, 2025 - Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the three and nine months ended June 30, 2025.
"During the third quarter, we continued to take actions aligned with achieving our Multi-Year Goals as we navigated a challenging sales environment," said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer. "Double-digit growth in our community count and resilient gross margins helped to offset a weaker-than-expected sales pace, particularly in our Texas markets. We also increased book value per share to more than $41 through share repurchases."
Speaking to the Company's Multi-Year Goals, Mr. Merrill said, "With 167 communities and nearly 28,000 controlled lots, we are well positioned to reach our 200 active community count goal by the end of fiscal 2027. As such, we now expect to direct more of our discretionary capital toward meeting our two other fiscal 2027 objectives. These include attaining a net debt to net capitalization ratio in the low 30% range and generating double-digit growth in book value per share, both of which we expect to achieve."
Commenting on the Company's longer-term outlook and differentiation strategy, Mr. Merrill said, "Overall, we remain highly confident in our differentiated market position, reflected in the utility cost savings, comfort and healthy indoor air provided by the superior construction of our homes. As America's #1 Energy-Efficient Homebuilder, we remain optimistic about the growth opportunities ahead."
Beazer Homes Fiscal Third Quarter 2025 Highlights and Comparison to Fiscal Third Quarter 2024
•Net loss from continuing operations was $0.3 million, or net loss of $0.01 per diluted share. This included inventory impairment and abandonment charges of $10.3 million or $0.27 per share. During the fiscal third quarter 2024, net income from continuing operations was $27.2 million, or $0.88 per diluted share
•Adjusted EBITDA was $32.1 million, down 40.0%
•Homebuilding revenue was $535.4 million, down 9.2% on a 11.3% decrease in home closings to 1,035, partially offset by a 2.4% increase in average selling price (ASP) to $517.3 thousand
•Homebuilding gross margin was 13.5%, down 380 basis points compared to a year ago. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 18.4%, down 190 basis points
•SG&A as a percentage of total revenue was 13.2%, up 130 basis points
•Net new orders were 861, down 19.5% on a 30.0% decrease in orders per community per month to 1.7, partially offset by a 14.9% increase in average active community count to 167
•Active community count at period-end of 167, up 14.4%
•Backlog dollar value was $742.5 million, down 29.0% on a 30.6% decrease in backlog units to 1,352, partially offset by a 2.3% increase in ASP of homes in backlog to $549.2 thousand
•Land acquisition and land development spending was $153.8 million, down 23.5% from $201.1 million
•Repurchased $12.5 million of the Company's outstanding common stock through open market transactions
•Controlled lots of 27,794, down 2.0% from 28,365
•Unrestricted cash at quarter end was $82.9 million; total liquidity was $292.3 million
•Total debt to total capitalization ratio of 48.4% at quarter end compared to 47.6% a year ago. Net debt to net capitalization ratio was 46.6% at quarter end compared to 45.8% a year ago
The following provides additional details on the Company's performance during the fiscal third quarter 2025:
Profitability. Net loss from continuing operations was $0.3 million, generating diluted loss per share of $0.01. This included inventory impairment and abandonment charges of $10.3 million or $0.27 per share. Third quarter adjusted EBITDA of $32.1 million was down $21.4 million, or 40.0%, primarily due to lower operating margin.
1
Orders. Net new orders for the third quarter decreased to 861, down 19.5% from 1,070 in the prior year quarter, driven by a 30.0% decrease in sales pace to 1.7 orders per community per month from 2.4 in the prior year quarter, partially offset by a 14.9% increase in average community count to 167 from 146 a year ago. The cancellation rate for the quarter was 19.8%, up from 18.6% in the prior year quarter.
Backlog. The dollar value of homes in backlog as of June 30, 2025 was $742.5 million, representing 1,352 homes, compared to $1,046.5 million, representing 1,949 homes, at the same time last year. The ASP of homes in backlog was $549.2 thousand, up 2.3% versus the prior year quarter. The increase in backlog ASP was primarily due to changes in product and community mix.
Homebuilding Revenue. Third quarter homebuilding revenue was $535.4 million, down 9.2% year-over-year. The decrease in homebuilding revenue was driven by a 11.3% decrease in home closings to 1,035 homes, partially offset by a 2.4% increase in ASP to $517.3 thousand. The decrease in closings was primarily due to the lower beginning backlog, partially offset by higher volume of spec homes that sold and closed within the current fiscal quarter and improved construction cycle times.
Homebuilding Gross Margin. Homebuilding gross margin was 13.5%, down 380 basis points compared to a year ago. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 18.4% for the third quarter, down from 20.3% in the prior year quarter primarily due to an increase in price concessions and closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 13.2% for the quarter, up 130 basis points year-over-year primarily due to lower homebuilding revenue.
Land Position. For the current fiscal quarter, land acquisition and land development spending was $153.8 million, down 23.5% year-over-year. Controlled lots decreased 2.0% to 27,794, compared to 28,365 from the prior year quarter. Excluding land held for future development and land held for sale lots, active lots controlled were 26,944, down 3.2% year-over-year. As of June 30, 2025, the Company controlled 60.1% of its total active lots through option agreements compared to 55.5% as of June 30, 2024.
Liquidity. At the close of the third quarter, the Company had $292.3 million of available liquidity, including $82.9 million of unrestricted cash and $209.4 million of remaining capacity under the unsecured revolving credit facility, compared to total available liquidity of $328.2 million a year ago.
Share Repurchases. In April 2025, the Company's Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $100.0 million of its outstanding common stock. This newly authorized program replaced the prior share repurchase program. During the quarter, the Company repurchased $12.5 million of its outstanding common stock through open market transactions at an average price per share of $21.38.
2
Summary results for the three and nine months ended June 30, 2025 are as follows:
Three Months Ended June 30,
2025
2024
Change*
New home orders, net of cancellations
861
1,070
(19.5)
%
Cancellation rates
19.8
%
18.6
%
120
bps
Orders per community per month
1.7
2.4
(30.0)
%
Average active community count
167
146
14.9
%
Active community count at quarter-end
167
146
14.4
%
Land acquisition and land development spending (in millions)
$
153.8
$
201.1
(23.5)
%
Total home closings
1,035
1,167
(11.3)
%
ASP from closings (in thousands)
$
517.3
$
505.3
2.4
%
Homebuilding revenue (in millions)
$
535.4
$
589.6
(9.2)
%
Homebuilding gross margin
13.5
%
17.3
%
(380) bps
Homebuilding gross margin, excluding impairments and abandonments (I&A) (Non-GAAP)
15.2
%
17.3
%
(210) bps
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales (Non-GAAP)
18.4
%
20.3
%
(190) bps
SG&A expenses as a percent of total revenue
13.2
%
11.9
%
130 bps
(Loss) income from continuing operations before income taxes (in millions)
$
(2.5)
$
29.7
(108.4)
%
(Benefit) expense from income taxes (in millions)
$
(2.2)
$
2.5
(189.0)
%
(Loss) income from continuing operations, net of tax (in millions)
$
(0.3)
$
27.2
(101.2)
%
Basic (loss) income per share from continuing operations
$
(0.01)
$
0.89
(101.1)
%
Diluted (loss) income per share from continuing operations
$
(0.01)
$
0.88
(101.1)
%
(Loss) income from continuing operations before income taxes (in millions)
$
(2.5)
$
29.7
(108.4)
%
Inventory impairments and abandonments (in millions)
$
10.3
$
0.2
5,069.5
%
Income from continuing operations excluding inventory impairments and abandonments before income taxes (in millions)(a) (Non-GAAP)
$
7.8
$
29.9
(73.9)
%
Income from continuing operations excluding inventory impairments and abandonments after income taxes (in millions)(a)(b) (Non-GAAP)
$
7.6
$
26.8
(71.6)
%
Net (loss) income (in millions)
$
(0.3)
$
27.2
(101.2)
%
Adjusted EBITDA (in millions) (Non-GAAP)
$
32.1
$
53.5
(40.0)
%
LTM Adjusted EBITDA (in millions) (Non-GAAP)
$
187.1
$
240.3
(22.1)
%
Total debt to total capitalization ratio
48.4
%
47.6
%
80 bps
Net debt to net capitalization ratio (Non-GAAP)
46.6
%
45.8
%
80 bps
* Change and totals are calculated using unrounded numbers.
(a) Management believes that these measures assist investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating the differences in companies' respective level of inventory impairments and abandonments. These measures should not be considered alternatives to income from continuing operations before income taxes and income from continuing operations after income taxes determined in accordance with GAAP as indicators of operating performance.
(b) Inventory impairments and abandonments were tax-effected at the effective tax rate of (2.5)% and 20.2% for the three months ended June 30, 2025 and 2024, respectively.
"LTM" indicates amounts for the trailing 12 months.
3
Nine Months Ended June 30,
2025
2024
Change*
New home orders, net of cancellations
2,891
3,192
(9.4)
%
Cancellation rates
17.7
%
16.2
%
150
bps
LTM orders per community per month
2.0
2.5
(19.8)
%
Land acquisition and land development spending (in millions)
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales (Non-GAAP)
18.3
%
21.4
%
(310) bps
SG&A expenses as a percent of total revenue
13.0
%
12.4
%
60 bps
Income from continuing operations before income taxes (in millions)
$
14.8
$
98.5
(84.9)
%
(Benefit) expense from income taxes (in millions)
$
(0.8)
$
10.4
(107.3)
%
Income from continuing operations, net of tax (in millions)
$
15.6
$
88.1
(82.3)
%
Basic income per share from continuing operations
$
0.52
$
2.88
(81.9)
%
Diluted income per share from continuing operations
$
0.52
$
2.84
(81.7)
%
Income from continuing operations before income taxes (in millions)
$
14.8
$
98.5
(84.9)
%
Inventory impairments and abandonments (in millions)
$
10.9
$
0.2
5,333.5
%
Income from continuing operations excluding inventory impairments and abandonments before income taxes (in millions)(a) (Non-GAAP)
$
25.7
$
98.7
(74.0)
%
Income from continuing operations excluding inventory impairments and abandonments after income taxes (in millions)(a)(b) (Non-GAAP)
$
24.7
$
88.3
(72.0)
%
Net income (in millions)
$
15.6
$
88.1
(82.3)
%
Adjusted EBITDA (in millions) (Non-GAAP)
$
94.0
$
150.3
(37.5)
%
* Change and totals are calculated using unrounded numbers.
(a) Management believes that these measures assist investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating the differences in companies' respective level of inventory impairments and abandonments. These measures should not be considered alternatives to income from continuing operations before income taxes and income from continuing operations after income taxes determined in accordance with GAAP as indicators of operating performance.
(b) Inventory impairments and abandonments were tax-effected at the effective tax rate of (2.5)% and 20.2% for the nine months ended June 30, 2025 and 2024, respectively.
"LTM" indicates amounts for the trailing 12 months.
4
As of June 30,
2025
2024
Change
Backlog units
1,352
1,949
(30.6)
%
Dollar value of backlog (in millions)
$
742.5
$
1,046.5
(29.0)
%
ASP in backlog (in thousands)
$
549.2
$
536.9
2.3
%
Land and lots controlled
27,794
28,365
(2.0)
%
Conference Call
The Company will hold a conference call on July 31, 2025 at 5:00 p.m. ET to discuss these results. Interested parties may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 630-395-0227). To be admitted to the call, enter the pass code "8571348." A replay of the conference call will be available, until 11:59 PM ET on August 14, 2025 at 866-491-2908 (for international callers, dial 203-369-1716) with pass code "3740."
About Beazer Homes
Headquartered in Atlanta, Beazer Homes (NYSE: BZH) is one of the country’s largest homebuilders. Every Beazer home is designed and built to provide Surprising Performance, giving you more quality and more comfort from the moment you move in – saving you money every month. With Beazer's Choice Plans™, you can personalize your primary living areas – giving you a choice of how you want to live in the home, at no additional cost. And unlike most national homebuilders, we empower our customers to shop and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, saving you thousands over the life of your loan.
We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. For more information, visit beazer.com, or check out Beazer on Facebook, Instagram and Twitter.
Homes built by Beazer Homes have an average gross Home Energy Rating System (HERS) score of 42 in 2024. A lower HERS score indicates a more energy-efficient home. Beazer Home's position as America's #1 Energy-Efficient Homebuilder is based on the fact that Beazer Homes has the lowest HERS score of any national homebuilder based on publicly reported average HERS scores in 2024 for each of the top 30 homebuilders in the U.S. (based on 2024 sales according to Builder Magazine). Beazer Homes reports average HERS scores without solar power savings. It is unclear if other national homebuilders report their HERS scores with or without solar power savings.
This press release contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things:
•macroeconomic uncertainty, including high levels of inflation, elevated interest rates and insurance costs, stock market volatility, and historic changes in U.S. trade policy, negatively impacting consumer sentiment and softening demand for the homes we sell;
•elevated mortgage interest rates for prolonged periods, as well as further increases to, and reduced availability of, mortgage financing due to, among other factors, additional actions by the Federal Reserve to address inflation;
•supply chain challenges (including as a result of U.S. trade policies and retaliatory responses from other countries) negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances;
•our ability to meet or achieve our sustainability related goals, aspirations, initiatives, and our public statements and disclosures regarding them;
•inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled;
•factors affecting margins, such as adjustments to home pricing, increased sales incentives and mortgage rate buy down programs in order to remain competitive;
•decreased revenues;
•decreased land values underlying land option agreements;
5
•increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our cycle times and production and overhead cost structures;
•not being able to pass on cost increases (including cost increases due to increasing the energy efficiency of our homes) through pricing increases;
•the availability and cost of land and the risks associated with the future value of our inventory, including impairment and abandonment charges;
•our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility), adverse credit market conditions and financial institution disruptions, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations), including the impact of any downgrades of our credit ratings or reduction in our liquidity levels;
•market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital);
•inefficient or ineffective allocation of capital, including with respect to planned share repurchases;
•changes in tax laws, such as the recently passed One Big Beautiful Bill Act, or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes, including those resulting from regulatory guidance and interpretations issued with respect thereto, such as the IRS's guidance regarding heightened qualification requirements for federal credits for building energy-efficient homes;
•increased competition or delays in reacting to changing consumer preferences in home design;
•natural disasters or other related events that could result in delays in land development or home construction, increase our costs or decrease demand in the impacted areas;
•shortages of or increased costs for labor used in housing production, including as a result of federal or state legislation and/or enforcement, and the level of quality and craftsmanship provided by such labor;
•terrorist acts, protests and civil unrest, political uncertainty, acts of war or other factors over which the Company has no control;
•potential negative impacts of public health emergencies and lingering impacts of past pandemics;
•the potential recoverability of our deferred tax assets;
•potential delays or increased costs in obtaining necessary permits as a result of changes to, or complying with, laws, regulations or governmental policies, and possible penalties for failure to comply with such laws, regulations or governmental policies, including those related to the environment;
•the results of litigation or government proceedings and fulfillment of any related obligations;
•the impact of construction defect and home warranty claims;
•the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred;
•the impact of information technology failures, cybersecurity issues or data security breaches, including cybersecurity incidents deploying evolving artificial intelligence tools and incidents impacting third-party service providers that we depend on to conduct our business;
•the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water and electricity (including availability of electrical equipment such as transformers and meters); and
•the success of our sustainability initiatives, including our ability to meet our goal that by the end of 2025 every home we start will be Zero Energy Ready, as well as the success of any other related partnerships or pilot programs we may enter into in order to increase the energy efficiency of our homes and prepare for a Zero Energy Ready future.
Any forward-looking statement, including any statement expressing confidence regarding future outcomes, speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all such factors.
CONTACT: Beazer Homes USA, Inc.
David I. Goldberg
Sr. Vice President & Chief Financial Officer
770-829-3700
investor.relations@beazer.com
-Tables Follow-
6
BEAZER HOMES USA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
in thousands (except per share data)
2025
2024
2025
2024
Total revenue
$
545,367
$
595,682
$
1,579,659
$
1,524,040
Home construction and land sales expenses
462,448
492,178
1,338,136
1,240,953
Inventory impairments and abandonments
10,339
200
10,867
200
Gross profit
72,580
103,304
230,656
282,887
Commissions
18,615
21,233
53,511
52,764
General and administrative expenses
53,104
49,655
152,075
135,645
Depreciation and amortization
4,571
3,892
13,273
9,698
Operating (loss) income
(3,710)
28,524
11,797
84,780
Loss on extinguishment of debt, net
—
—
—
(437)
Other income, net
1,204
1,136
3,031
14,136
(Loss) income from continuing operations before income taxes
(2,506)
29,660
14,828
98,479
(Benefit) expense from income taxes
(2,182)
2,452
(756)
10,372
(Loss) income from continuing operations
(324)
27,208
15,584
88,107
Income from discontinued operations, net of tax
—
2
—
2
Net (loss) income
$
(324)
$
27,210
$
15,584
$
88,109
Weighted-average number of shares:
Basic
29,440
30,513
29,996
30,625
Diluted
29,440
30,935
30,238
31,017
Basic (loss) income per share:
Continuing operations
$
(0.01)
$
0.89
$
0.52
$
2.88
Discontinued operations
—
—
—
—
Total
$
(0.01)
$
0.89
$
0.52
$
2.88
Diluted (loss) income per share:
Continuing operations
$
(0.01)
$
0.88
$
0.52
$
2.84
Discontinued operations
—
—
—
—
Total
$
(0.01)
$
0.88
$
0.52
$
2.84
Three Months Ended
Nine Months Ended
June 30,
June 30,
Capitalized Interest in Inventory
2025
2024
2025
2024
Capitalized interest in inventory, beginning of period
$
134,292
$
123,214
$
124,182
$
112,580
Interest incurred
22,441
20,615
64,219
58,510
Capitalized interest impaired
(1,096)
—
(1,096)
—
Capitalized interest amortized to home construction and land sales expenses
(17,878)
(17,267)
(49,546)
(44,528)
Capitalized interest in inventory, end of period
$
137,759
$
126,562
$
137,759
$
126,562
7
BEAZER HOMES USA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
in thousands (except share and per share data)
June 30, 2025
September 30, 2024
ASSETS
Cash and cash equivalents
$
82,932
$
203,907
Restricted cash
7,490
38,703
Accounts receivable (net of allowance of $266 and $284, respectively)
76,124
65,423
Income tax receivable
1,532
—
Owned inventory
2,292,063
2,040,640
Deferred tax assets, net
135,281
128,525
Property and equipment, net
46,382
38,628
Operating lease right-of-use assets
17,305
18,356
Goodwill
11,376
11,376
Other assets
41,839
45,969
Total assets
$
2,712,324
$
2,591,527
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable
$
184,528
$
164,389
Operating lease liabilities
18,774
19,778
Other liabilities
148,818
149,900
Total debt (net of debt issuance costs of $7,036 and $8,310, respectively)
1,143,173
1,025,349
Total liabilities
1,495,293
1,359,416
Stockholders’ equity:
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)
—
—
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 29,726,410 issued and outstanding and 31,047,510 issued and outstanding, respectively)
30
31
Paid-in capital
823,232
853,895
Retained earnings
393,769
378,185
Total stockholders’ equity
1,217,031
1,232,111
Total liabilities and stockholders’ equity
$
2,712,324
$
2,591,527
Inventory Breakdown
Homes under construction
$
914,261
$
754,705
Land under development
1,073,661
1,023,188
Land held for future development
19,489
19,879
Land held for sale
44,024
19,086
Capitalized interest
137,759
124,182
Model homes
102,869
99,600
Total owned inventory
$
2,292,063
$
2,040,640
8
BEAZER HOMES USA, INC.
SUPPLEMENTAL OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS
Three Months Ended June 30,
Nine Months Ended June 30,
SELECTED OPERATING DATA
2025
2024
2025
2024
Closings:
West region
647
728
1,935
1,849
East region
256
240
687
591
Southeast region
132
199
399
514
Total closings
1,035
1,167
3,021
2,954
New orders, net of cancellations:
West region
482
715
1,736
2,108
East region
224
250
708
685
Southeast region
155
105
447
399
Total new orders, net
861
1,070
2,891
3,192
As of June 30,
Backlog units:
2025
2024
West region
766
1,292
East region
336
417
Southeast region
250
240
Total backlog units
1,352
1,949
Aggregate dollar value of homes in backlog (in millions)
$
742.5
$
1,046.5
ASP in backlog (in thousands)
$
549.2
$
536.9
in thousands
Three Months Ended June 30,
Nine Months Ended June 30,
SUPPLEMENTAL FINANCIAL DATA
2025
2024
2025
2024
Homebuilding revenue:
West region
$
322,935
$
365,906
$
979,939
$
945,179
East region
145,587
121,239
374,571
304,623
Southeast region
66,868
102,498
197,334
259,396
Total homebuilding revenue
$
535,390
$
589,643
$
1,551,844
$
1,509,198
Revenue:
Homebuilding
$
535,390
$
589,643
$
1,551,844
$
1,509,198
Land sales and other
9,977
6,039
27,815
14,842
Total revenue
$
545,367
$
595,682
$
1,579,659
$
1,524,040
Gross profit:
Homebuilding
$
72,474
$
101,983
$
226,581
$
278,700
Land sales and other
106
1,321
4,075
4,187
Total gross profit
$
72,580
$
103,304
$
230,656
$
282,887
9
Reconciliation of homebuilding gross profit and homebuilding gross margin (GAAP measures) to homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized to cost of sales (non-GAAP measures) is provided for each period discussed below. Management believes that this information assists investors in comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective level of impairments and level of debt. These non-GAAP financial measures 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.
Homebuilding gross profit/margin excluding I&A and interest amortized to cost of sales (Non-GAAP)
$
98,730
18.4
%
$
119,450
20.3
%
$
284,501
18.3
%
$
323,428
21.4
%
10
Reconciliation of net (loss) income (GAAP measure) to Adjusted EBITDA (Non-GAAP measure) is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing core operating results and underlying business trends by eliminating many of the differences in companies' respective capitalization, tax position, level of impairments, and other non-recurring items. This non-GAAP financial measure 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.
Three Months Ended June 30,
Nine Months Ended June 30,
LTM Ended June 30,(a)
in thousands
2025
2024
2025
2024
2025
2024
Net (loss) income (GAAP)
$
(324)
$
27,210
$
15,584
$
88,109
$
67,650
$
143,865
(Benefit) expense from income taxes
(2,182)
2,453
(756)
10,373
7,781
18,843
Interest amortized to home construction and land sales expenses and capitalized interest impaired
18,974
17,267
50,642
44,528
74,347
64,447
EBIT (Non-GAAP)
16,468
46,930
65,470
143,010
149,778
227,155
Depreciation and amortization
4,571
3,892
13,273
9,698
18,442
13,456
EBITDA (Non-GAAP)
21,039
50,822
78,743
152,708
168,220
240,611
Stock-based compensation expense
1,817
2,474
5,442
5,536
7,297
7,564
Loss on extinguishment of debt
—
—
—
437
—
450
Inventory impairments and abandonments(b)
9,243
200
9,771
200
11,567
225
Gain on sale of investment(c)
—
—
—
(8,591)
—
(8,591)
Adjusted EBITDA (Non-GAAP)
$
32,099
$
53,496
$
93,956
$
150,290
$
187,084
$
240,259
(a) "LTM" indicates amounts for the trailing 12 months.
(b) In periods during which we impaired certain of our inventory assets, capitalized interest that is impaired is included in the line above titled "Interest amortized to home construction and land sales expenses and capitalized interest impaired."
(c) We previously held a minority interest in a technology company specializing in digital marketing for new home communities, which was sold during the quarter ended March 31, 2024. In exchange for the previously held investment, we received cash in escrow along with a minority partnership interest in the acquiring company, which was recorded within other assets in our condensed consolidated balance sheets. The resulting gain of $8.6 million from this transaction was recognized in other income, net on our condensed consolidated statement of operations. The Company believes excluding this one-time gain from Adjusted EBITDA provides a better reflection of the Company's performance as this item is not representative of our core operations.
11
Reconciliation of total debt to total capitalization ratio (GAAP measure) to net debt to net capitalization ratio (non-GAAP measure) is provided for each period below. Management believes that net debt to net capitalization ratio is useful in understanding the leverage employed in our operations and as an indicator of our ability to obtain financing. This non-GAAP financial measure 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.