M/I HOMES, INC.

Previous wording

M/I Homes, Inc. and subsidiaries (the “Company” or “we”) is one of the nation’s leading builders of single-family homes having sold over 166,200 homes since commencing homebuilding activities in 1976. The Company’s homes are marketed and sold primarily under the M/I Homes brand. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Ft. Myers/Naples, Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and Nashville, Tennessee.

Current wording

M/I Homes, Inc. and subsidiaries (the “Company” or “we”) is one of the nation’s leading builders of single-family homes having sold over 170,500 homes since commencing homebuilding activities in 1976. The Company’s homes are marketed and sold primarily under the M/I Homes brand. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Ft. Myers/Naples, Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and Nashville, Tennessee.

Previous wording

During the first nine months of 2025, the housing market continued to face significant pressure due to persistent macroeconomic challenges, including elevated mortgage interest rates, rising lot costs, limited affordable housing availability, and overall economic uncertainty. To stimulate demand, we implemented various affordability strategies, including sales incentives and mortgage rate buydowns for homebuyers. Although we saw increased traffic in the third quarter compared to the prior year, the urgency of buyers to purchase a home remained subdued. Interest rates declined slightly following the Federal Reserve’s 25 basis point rate cut late in the third quarter, but the impact on demand was minimal. Despite these headwinds, we achieved a third-quarter record for homes delivered. However, profitability was negatively affected compared to the prior year by the cost of incentives and rate buydowns offered.

Current wording

During the first quarter of 2026, the housing market experienced continued pressure due to persistent macroeconomic challenges, including elevated mortgage interest rates, rising lot costs, limited affordable housing, and broader economic and geopolitical uncertainty. Consistent with 2025, we continued to offer sales incentives including mortgage interest rate buydowns to stimulate demand. Our sales incentives increased in the first quarter of 2026 compared to the first quarter of 2025. Our new contracts improved compared to the prior year as a result of the increased sales incentives, and a higher community count, but our closings declined. Our overall profitability compared to the prior year was negatively affected by the increased sales incentives and higher lot costs.

Previous wording

Although our performance in the first nine months of 2025 did not match the record levels achieved in 2024, it remained consistent with our expectations. Key comparisons between the third quarter and first nine months of 2025 and 2024 are as follows:

Current wording

Our performance in the first three months of 2026 remained consistent with our current expectations. Key comparisons between the first quarters of 2026 and 2025 are as follows:

Previous wording

•Income before income taxes decreased 26% to $139.8 million and decreased 21% to $446.0 million, respectively

Current wording

•Income before income taxes decreased 39% to $89.2 million

Previous wording

•Shareholders’ equity of $3.1 billion (all time record), an 11% increase from a year ago, with book

Current wording

•Shareholders’ equity of $3.2 billion, a 6% increase from a year ago, with book value per common share increasing to a record high $125 per share

Previous wording

•Homebuilding debt to capital was 18% and 20%, respectively

Current wording

•Homebuilding debt to capital was 18%

Previous wording

Our company-wide absorption pace of sales per community for the third quarter of 2025 declined to 2.7 per month compared to 3.2 per month for the prior year’s third quarter as a result of the macroeconomic conditions described above. We plan to open additional new communities during the remainder of 2025 and increase our average community count by about 5% from 2024.

Current wording

Our company-wide absorption pace of sales per community for the first quarter of 2026 was 3.4 per month consistent with prior year’s first quarter. We plan to open additional new communities during the remainder of 2026 and increase our average community count by about 5% from 2025.

Previous wording

During the quarter ended September 30, 2025, our total revenue was $1.13 billion, of which $1.10 billion was from homebuilding and $34.6 million was from our financial services operations. Revenue from homebuilding decreased 1% in 2025's third quarter compared to the same period in 2024 driven primarily by a 2% decrease in the average sales price of homes delivered ($12,000 per home delivered) offset in part by a 1% increase in the number of homes delivered (25 units). Our revenue and average sales price reflect a $53.5 million reduction for incentives and closing costs in 2025’s third quarter compared to a $39.6 million reduction for incentives and closing costs in 2024’s third quarter. Revenue from our financial services segment increased 16% to $34.6 million in the third quarter of 2025 as a result of higher margins on loans sold, improved capture rate and an increase in loans originated during the period compared to the third quarter of 2024. For the nine months ended September 30, 2025, we recorded year-to-date total revenue of $3.27 billion, of which $3.16 billion was from homes delivered and $97.6 million was from our financial services operations. Revenue from homes delivered decreased 1% in the nine months ended September 30, 2025 compared to the same period in 2024 driven primarily by decreases in the number of homes delivered (33 units) and the average sales price of homes delivered ($4,000 per home delivered). Our revenue and average sales price reflect an $140.6 million reduction for incentives and closing costs in 2025’s first nine months compared to a $90.6 million reduction for incentives and closing costs in 2024’s first nine months. Revenue from our financial services segment increased 11% to $97.6 million in the first nine months of 2025 compared to the nine months ended September 30, 2024 as a result of an increase in the average loan amount, improved capture rate, higher margins on loans sold during the period and an increase in loans sold during the period.

Current wording

During the quarter ended March 31, 2026, our total revenue was $920.7 million, of which $889.5 million was from homebuilding and $31.2 million was from our financial services operations. Revenue from homebuilding decreased 6% in 2026's first quarter compared to the same period in 2025 driven primarily by a 4% decrease in the average sales price of homes delivered ($17,000 per home delivered) and a 3% decrease in the number of homes delivered (62 units) offset in part by a 1% increase in land sales. Our revenue and average sales price reflect a $52.7 million reduction for sales incentives and closing costs in the first quarter of 2026 compared to a $40.0 million reduction for sales incentives and closing costs in 2025's first quarter. Revenue from our financial services segment decreased 1% to $31.2 million in the first quarter of 2026 as a result of lower margins on loans sold, partially offset by improved capture rate and an increase in loans originated during the period compared to the first quarter of 2025.

Previous wording

Total gross margin (total revenue less total land and housing costs) decreased $39.4 million in the third quarter of 2025 compared to the third quarter of 2024 as a result of a $44.0 million decline in the gross margin of our homebuilding operations partially offset by a $4.6 million increase in the gross margin of our financial services operations. Our homebuilding gross margin percentage declined by 360 basis points to 21.5% in the third quarter of 2025 from 25.1% in the third quarter of 2024. The decline in gross margin dollars primarily resulted from the decrease in average sales price of homes delivered, $18.7 million increase in lot costs and a $10.8 million increase in interest rate buydowns offered partially offset by a 1% increase in homes delivered in 2025 compared to 2024. Our homebuilding gross margin may fluctuate from quarter to quarter depending on the mix of communities delivering homes due to the variation in margin between different communities and incentives used to encourage demand due to market conditions. The gross margin of our financial services operations increased $4.6 million in the third quarter of 2025 compared to the third quarter of 2024 as a result of higher margins on loans sold, improved capture rate and an increase in the number of loan originations. Total gross margin decreased $92.6 million in the nine months ended September 30, 2025 compared to the same period in 2024 as a result of a $102.5 million decline in the gross margin of our homebuilding operations offset, in part, by a $9.9 million improvement in the gross margin of our financial services operations. This decrease in the gross margin of our homebuilding operations is primarily due to a decrease in the number of homes delivered, a $52.2 million increase in lot costs and a $35.9 million increase in interest rate buydowns. The gross margin of our financial services operations increased $9.9 million in the nine months ended September 30, 2025 compared to the same period in 2024 as a result of higher margins on loans sold, an increased number of loans sold and an increase in the number of loan originations during the first nine months of 2025 compared to the first nine months of 2024.

Current wording

Total gross margin (total revenue less total land and housing costs) decreased $50.2 million in the first quarter of 2026 compared to the first quarter of 2025 as a result of a $49.9 million decline in the gross margin of our homebuilding operations and a $0.3 million decrease in the gross margin of our financial services operations. Our homebuilding gross margin percentage declined by 410 basis points to 19.3% in the first quarter of 2026 from 23.4% in the first quarter of 2025. The decline in gross margin dollars primarily resulted from the decrease in average sales price of homes delivered, a $6.2 million increase in lot costs, a $13.4 million increase in mortgage interest rate buydowns offered and a 3% decrease in homes delivered in 2026 compared to 2025. Our homebuilding gross margin may fluctuate from quarter to quarter depending on the mix of communities delivering homes due to the variation in margin between different communities, homes under construction and incentives used to encourage demand due to market conditions. During the first quarter of 2026, margin was compressed primarily due to mix of inventory homes delivered, incentives offered and increased lot costs. The gross margin of our financial services operations decreased $0.3 million in the first quarter of 2026 compared to the first quarter of 2025 as a result of lower margins on loans sold, partially offset by improved capture rate and an increase in the number of loan originations.

Previous wording

We opened 64 new communities during the nine months ended September 30, 2025 and closed 51 communities. We sell a variety of home types in various communities and markets, each of which yields a different gross margin. The timing of the openings of new replacement communities as well as underlying lot costs varies from year to year. The mix of communities delivering homes may cause fluctuations in our new contracts, absorption pace and housing gross margin from year to year.

Current wording

We opened 22 new communities during the first quarter of 2026 and closed 24 communities. We sell a variety of home types in various communities and markets, each of which yields a different gross margin. The timing of the openings of new replacement communities as well as underlying lot costs varies from year to year. The mix of communities delivering homes may cause fluctuations in our new contracts, absorption pace and housing gross margin from year to year.

Previous wording

For the three months ended September 30, 2025, selling, general and administrative expense increased $7.4 million, and increased as a percentage of revenue from 11.2% in the third quarter of 2024 to 11.9% in the third quarter of 2025. Selling expense increased $4.9 million from 2024's third quarter and increased as a percentage of revenue to 5.7% in 2025's third quarter from 5.2% for the same period in 2024. The dollar increase in selling expense related to a $3.1 million increase in realtor commissions and a $0.8 million increase in bonuses and sales commissions due to the increase in the homes delivered during the period compared to prior year and a $1.0 million increase in costs associated with our sales offices, including compensation-related expenses in the third quarter of 2025. General and administrative expense increased $2.5 million in the third quarter of 2025 compared to third quarter of 2024 and increased as a percentage of revenue to 6.3% in the third quarter of 2025 from 6.0% in the third quarter of 2024. The dollar increase in general and administrative expense was primarily due to a $0.9 million increase in compensation-related expenses due to increased head count, a $0.9 million increase in costs associated with information systems, a $0.4 million increase in land related expenses and a $0.3 million increase in miscellaneous expenses. For the nine months ended September 30, 2025, selling, general and administrative expense increased $17.6 million, and increased as a percentage of revenue from 10.9% in the nine months ended September 30, 2024 to 11.5% in the nine months ended September 30, 2025. Selling expense increased $8.9 million from the nine months ended September 30, 2024 and increased as a percentage of revenue to 5.5% in 2025's first nine months from 5.2% for the same period in 2024. The dollar increase in selling expense in the third quarter of 2025 related to a $5.1 million increase in costs associated with our sales offices, including compensation-related and advertising expenses, and a $4.3 million increase in realtor commissions offset in part by a $0.5 million decrease in sales commissions. General and administrative expense increased $8.7 million compared to the nine months ended September 30, 2024 and increased as a percentage of revenue from 5.7% in the nine months ended September 30, 2024 to 6.0% in the nine months ended September 30, 2025. The increase in general and administrative expense was primarily due to a $4.5 million increase in compensation-related expenses due to higher average headcount and equity incentives offset in part by bonus expense, a $2.3 million increase in costs associated with information systems, a $0.9 million increase in land-related expenses, and a $1.0 million increase in various other expenses.

Current wording

For the three months ended March 31, 2026, selling, general and administrative expense increased $4.6 million, and increased as a percentage of revenue from 11.5% in the first quarter of 2025 to 12.7% in the first quarter of 2026. Selling expense increased $2.5 million from 2025's first quarter and increased as a percentage of revenue to 6.0% in 2026's first quarter from 5.4% for the same period in 2025. The dollar increase in selling expense related to a $1.0 million increase in realtor commissions and a $1.5 million increase in costs associated with our sales offices, including compensation-related expenses in the first quarter of 2026. General and administrative expense increased $2.1 million in the first quarter of 2026 compared to first quarter of 2025 and increased as a percentage of revenue to 6.6% in the first quarter 2026 from 6.1% in the first quarter of 2025. The dollar increase in general and administrative expense was primarily due to a $0.8 million increase in compensation-related expenses due to increased head count, a $0.2 million increase in costs associated with information systems, a $0.6 million increase in land related expenses and a $0.5 million increase in miscellaneous expenses.

Previous wording

The housing market continues to face persistent macroeconomic challenges including elevated mortgage interest rates, affordability concerns and general economic uncertainties such as tariffs, inflation, job security and recession concerns. Despite these pressures, we remain optimistic about the long-term outlook for our business. We expect the softer market conditions observed in the first nine months of 2025 to continue through the remainder of the year. These conditions have contributed to reduced consumer confidence and extended homebuying decision timelines compared to recent years. In response, we are taking proactive measures, including controlling overhead, managing land investments and development expenditures prudently, maintaining pricing discipline, and offering targeted incentives including mortgage interest rate buydowns, to support affordability, stimulate demand, drive order activity, and reduce cancellations.

Current wording

The housing market continues to be affected by persistent macroeconomic challenges, including elevated mortgage interest rates, affordability constraints, and broader economic uncertainty, including tariffs, inflationary pressures, labor market conditions, recessionary concerns and geopolitical uncertainty. While we remain constructive on the long-term outlook for our business, these market conditions may persist throughout the remainder of the year. In response, we are focused on executing operating strategies designed to mitigate these conditions, including controlling overhead costs, prudently managing land investments and development spending, maintaining pricing discipline, and selectively offering incentives—including mortgage interest rate buydowns—to enhance affordability, support demand, increase order activity, and minimize cancellations.

Previous wording

We believe we are well-positioned to navigate this period of uncertainty. Our backlog remains healthy—though lower than the prior year—with an average sales price 2% higher than at the end of the third quarter of 2024. We also believe our strong balance sheet and ample liquidity provide us with the flexibility to respond effectively to changing market conditions. Nonetheless, we recognize that continued success will require agility, and we cannot guarantee that our current strategies will remain effective as the housing market continues to evolve.

Current wording

We believe we are well positioned to navigate the current operating environment. Although our backlog at the end of the first quarter of 2026 was lower than in the prior year, it remains solid, with an average sales price approximately 2% lower than at the end of the first quarter of 2025. Our strong balance sheet and liquidity position provide financial flexibility to respond to changing market conditions. Nevertheless, continued success will depend on our ability to remain responsive to evolving economic conditions, and there can be no assurance that our current strategies will be sufficient to offset the risks associated with ongoing market uncertainty.

Previous wording

•Maintain a strong balance sheet and liquidity levels

Current wording

•Maintain a strong balance sheet and liquidity levels, and low leverage

Previous wording

During the nine months ended September 30, 2025, we invested$363.1 million in land acquisitions and$421.9 million in land development compared to $365.6 million and $444.7 million, respectively, during the nine months ended September 30, 2024. We invested in fewer land acquisitions in the nine months ended September 30, 2025 compared to the first nine months of 2024 as a result of the land supply needs of our divisions. We continue to closely review our land acquisition and land development spending and monitor our ongoing pace of home sales and deliveries, and we will adjust our land acquisition and development spend accordingly.

Current wording

During the first three months of 2026, we invested$79.2 million in land acquisitions and$104.4 million in land development compared to $146.0 million and $101.6 million, respectively, during the first three months of 2025. We invested infewer land acquisitions in the first quarter of 2026 compared to the first quarter of 2025 as a result of the land supply needs of our divisions. We continue to closely review our land acquisition and land development spending and monitor our ongoing pace of home sales and deliveries, and we will adjust our land acquisition and development spend accordingly.

Previous wording

We ended the third quarter of 2025 with approximately 50,600 lots under control, which represents an approximately six-year supply of lots based on the past twelve months of homes delivered, including certain lots that we anticipate selling to third parties. This represents a 3% decrease from our approximately 52,200 lots under control at the end of last year’s third quarter.

Current wording

We ended the first quarter of 2026 with approximately 50,000 lots under control, which represents an approximately five-year supply of lots based on the past twelve months of homes delivered, including certain lots that we anticipate selling to third parties. This represents a 2% decrease from our approximately 51,100 lots under control at the end of last year’s first quarter.

Previous wording

We opened 64 communities and closed 51 communities in the nine months ended September 30, 2025, ending the third quarter with 233 active communities, compared to 217 at the end of last year’s third quarter. Although the timing of opening new communities and closing existing communities is subject to substantial variation, we expect to grow our average community count by approximately 5% in 2025 compared to 2024.

Current wording

We opened 22 communities and closed 24 communities in the first quarter of 2026, ending the first quarter with 230 active communities, compared to 226 at the end of last year’s first quarter. Although the timing of opening new communities and closing existing communities is subject to substantial variation, we expect to grow our average community count by approximately 5% in 2026 compared to 2025.

Previous wording

The following table shows, by segment: revenue; cost of sales; selling, general and administrative expense; operating income; and interest (income) expense - net for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table shows, by segment: revenue; cost of sales; selling, general and administrative expense; operating income; and interest (income) expense - net for the three months ended March 31, 2026 and 2025:

Previous wording

The following table presents, by reportable segment, selected operating and financial information as of and for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table presents, by reportable segment, selected operating and financial information as of and for the three months ended March 31, 2026 and 2025:

Previous wording

(a)Includes the effect of total homebuilding selling, general and administrative expense for the region as disclosed in the first table set forth in this “Outlook” section.

Current wording

(a)Includes the effect of total homebuilding general and administrative expense and selling expense for the region as disclosed in the first table set forth in this “Outlook” section.

Previous wording

The following table sets forth the cancellation rates for each of our homebuilding segments for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table sets forth the cancellation rates for each of our homebuilding segments for the three months ended March 31, 2026 and 2025:

Previous wording

Northern Region. During the three months ended September 30, 2025, revenue in our Northern region decreased $10.6 million, from $498.5 million in the third quarter of 2024 to $487.9 million in the third quarter of 2025. This decrease in revenue was primarily the result of a 7% decrease in number of homes delivered, partially offset by a 6% increase in the average sales price of homes being delivered. Operating income in our Northern region increased $1.9 million from $75.5 million in the third quarter of 2024 to $77.4 million during the quarter ended September 30, 2025. This increase in operating income was the result of a $1.6 million improvement in our gross margin and a $0.3 million decrease in selling, general and administrative expense. Our gross margin improved $1.6 million to $112.4 million in the third quarter of 2025 from $110.8 million in the third quarter of 2024. Our gross margin percentage improved 80 basis points to 23.0% from 22.2% in the prior year’s third quarter primarily due to a 6% increase in the average sales price of homes being delivered offset in part by a 7% decrease in number of homes delivered and a $6.4 million increase in lot costs compared to prior year.

Current wording

Northern Region. During the three months ended March 31, 2026, revenue in our Northern region decreased $33.5 million, from $410.4 million in the first quarter of 2025 to $376.9 million in the first quarter of 2026. This decrease in revenue was primarily the result of a 9% decrease in number of homes delivered, partially offset by a 1% increase in the average sales price of homes delivered. Operating income in our Northern region decreased $17.7 million from $60.6 million in the first quarter of 2025 to $42.9 million during the quarter ended March 31, 2026. This decrease in operating income was the result of a $17.5 million decline in our gross margin and a $0.2 million increase in selling, general and administrative expense. Our gross margin percentage declined 270 basis points to 19.5% from 22.2% in the prior year’s first quarter primarily due to an increase in homebuyer incentives and a $2.1 million increase in lot costs compared to prior year. The average sales price in 2026 reflects a reduction of $8,600 per home when compared to 2025 due to increased homebuyer incentive costs including mortgage interest rate buydowns when compared to 2025.

Previous wording

Selling, general and administrative expense decreased $0.3 million, from $35.3 million for the quarter ended September 30, 2024 to $35.0 million for the quarter ended September 30, 2025 and increased 10 basis points as a percentage of revenue to 7.2% in 2025's third quarter from 7.1% in 2024's third quarter. The decrease in selling, general and administrative expense was attributable to a$0.3 million decrease in selling expense. The decrease in selling expense was due to a $0.5 million decrease in sales and realtor commissions produced by the lower number of homes delivered offset in part by a $0.2 million increase in costs associated with our sales offices, including compensation and advertising.

Current wording

Selling, general and administrative expense increased $0.2 million, from $30.3 million for the quarter ended March 31, 2025 to $30.5 million for the quarter ended March 31, 2026 and increased 70 basis points as a percentage of revenue to 8.1% in 2026's first quarter from 7.4% in 2025's first quarter. The increase in selling, general and administrative expense was attributable to a $0.5 million increase in general and administrative expense partially offset by a $0.3 million decrease in selling expense. The increase in general and administrative expense was due to a $0.3 million increase related to land expenses and a $0.2 million increase in compensation related expenses. The decrease in selling expense was due to a $0.5 million decrease in sales and realtor commissions produced by the lower number of homes delivered offset in part by a $0.2 million increase in costs associated with our model homes and sales offices, including compensation.

Previous wording

Selling, general and administrative expense increased $5.7 million from $54.5 million in the third quarter of 2024 to $60.2 million in the third quarter of 2025 and increased 100 basis points as a percentage of revenue to 9.9% in the third quarter of 2025 from 8.9% in the third quarter of 2024. General and administrative expense increased $0.5 million due to a $1.0 million increase in land-related expenses and a $0.2 million increase in miscellaneous expenses, partially offset by a $0.7 million decrease in compensation-related expenses. Selling expense increased $5.2 million due to a $4.4 million increase in realtor and sales commissions and a $0.8 million increase in costs related to our sales office, including compensation.

Current wording

Selling, general and administrative expense increased $2.1 million from $49.9 million in the first quarter of 2025 to $52.0 million in the first quarter of 2026 and increased 80 basis points as a percentage of revenue to 10.1% in the first quarter of 2026 from 9.3% in the first quarter of 2025. Selling expense increased $2.7 million due to a $1.5 million increase in realtor and sales commissions and a $1.2 million increase in costs related to our sales office, including compensation and advertising. General and administrative expense decreased $0.6 million due to a reduction in compensation-related expenses.

Previous wording

During the three months ended September 30, 2025, our new contracts increased in our Southern region from 1,133 in the third quarter of 2024 to 1,166 in the third quarter of 2025, which was primarily due to new communities. Homes in backlog decreased by 34% from 1,681 homes at September 30, 2024 to 1,108 homes at September 30, 2025, primarily as a result of weakened demand and a shift in demand to inventory homes which offer incentives compared to last year. Average sales price in backlog decreased to $544,000 at September 30, 2025 from $549,000 at September 30, 2024 primarily due to the mix of homes being sold. During the three months ended September 30, 2025, we opened 10 new communities in our Southern region compared to opening 12 communities during 2024's third quarter. Our monthly absorption rate in our Southern region declined to 2.9 per community in the third quarter of 2025 compared to 3.1 per community in the third quarter of 2024 as a result of an increase in new communities.

Current wording

During the three months ended March 31, 2026, our new contracts in our Southern region increased from 1,227 in the first quarter of 2025 to 1,324 in the first quarter of 2026, which was primarily due to new communities. Homes in backlog decreased by 23% from 1,472 homes at March 31, 2025 to 1,135 homes at March 31, 2026, primarily as a result of weakened demand and a shift in demand to inventory homes which offer incentives compared to last year. Average sales price in backlog decreased to $503,000 at March 31, 2026 from $540,000 at March 31, 2025 primarily due to the mix of homes being sold. During the three months ended March 31, 2026, we opened 14 new communities in our Southern region compared to opening 11 communities during 2025's first quarter. Our monthly absorption rate in our Southern region remained at 3.2 per community in the first quarter of 2026 from the first quarter of 2025.

Previous wording

Financial Services. Revenue from our mortgage and title operations increased 16% to $34.6 million (a third quarter record) in the third quarter of 2025 from $30.0 million in the third quarter of 2024 due to higher margins on loans sold and capture rate during the period compared to prior year’s third quarter, a 9% increase in the number of loan originations from 1,695 in 2024's third quarter to 1,848 in the third quarter of 2025, and an increase in the average loan amount from $403,000 in the quarter ended September 30, 2024 to $406,000 in the quarter ended September 30, 2025.

Current wording

Financial Services. Revenue from our mortgage and title operations decreased 1% to $31.2 million in the first quarter of 2026 from $31.5 million in the first quarter of 2025 due to lower margins on loans sold and a decrease in the average loan amount from $406,000 in the quarter ended March 31, 2025 to $401,000 in the quarter ended March 31, 2026, partially offset by higher capture rate during the period compared to prior year’s first quarter and a 3% increase in the number of loan originations from 1,530 in 2025's first quarter to 1,579 in the first quarter of 2026.

Previous wording

Our financial services segment experienced a $3.4 million increase in operating income in the third quarter of 2025 compared to 2024's third quarter, which was primarily due to an increase in revenue offset in part by a $1.3 million increase in selling, general and administrative expense compared to the third quarter of 2024, which was primarily the result of an increase in compensation-related expenses.

Current wording

Our financial services segment experienced a $2.0 million decrease in operating income in the first quarter of 2026 compared to 2025's first quarter, which was primarily due a $1.7 million increase in general and administrative expense, which was primarily the result of an increase in compensation-related expenses, and the decrease in revenue compared to the first quarter of 2025 described above.

Previous wording

At September 30, 2025, M/I Financial provided financing services in all of our markets. Approximately 93% of our homes delivered during the third quarter of 2025 were financed through M/I Financial, compared to approximately 89% in the third quarter of 2024. Capture rate is influenced by financing availability and competition in the mortgage market and can fluctuate from quarter to quarter.

Current wording

At March 31, 2026, M/I Financial provided financing services in all of our markets. Approximately 96% of our homes delivered during the first quarter of 2026 were financed through M/I Financial, compared to approximately 92% in the first quarter of 2025. Capture rate is influenced by financing availability and competition in the mortgage market and can fluctuate from quarter to quarter.

Previous wording

Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased $0.8 million from $24.2 million for the third quarter of 2024 to $25.0 million for the third quarter of 2025. This increase resulted from a $0.5 million increase in compensation-related expenses and a $0.3 million increase in costs associated with information systems.

Current wording

Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased $0.6 million from $18.9 million for the first quarter of 2025 to $19.5 million for the first quarter of 2026. This increase resulted from a $0.3 million increase in advertising expenses and a $0.6 million increase in miscellaneous expenses offset in part by a $0.3 million decrease in compensation-related expenses.

Previous wording

Interest Income, net of Interest Expense. The Company earned $4.5 million of interest income - net for the three months ended September 30, 2025 compared to $6.7 million for the three months ended September 30, 2024. This decrease was primarily due to a lower average cash balance on hand compared to prior year.

Current wording

Interest Income, net of Interest Expense. The Company earned $3.1 million of interest income - net for the three months ended March 31, 2026 compared to $5.2 million for the three months ended March 31, 2025. This decrease was primarily due to a lower average cash balance on hand compared to prior year.

Previous wording

At September 30, 2025, we had $734.2 million of cash, cash equivalents and restricted cash, with approximately $734.1 million of this amount comprised of unrestricted cash and cash equivalents, which represents an $87.4 million decrease in unrestricted cash and cash equivalents from December 31, 2024. This decrease in cash is primarily due to the timing of land spend and decline in home deliveries compared to prior year partially offset by a larger beginning of year balance on hand. Our principal uses of cash for the nine months ended September 30, 2025 were investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, short-term working capital, debt service requirements, including the repayment of amounts outstanding under our credit facilities, and the repurchase of $150.4 million of our outstanding common shares under our share repurchase programs. In order to fund these uses of cash, we used proceeds from home deliveries, the sale of mortgage loans, the sale of mortgage servicing rights, excess cash balances, borrowings under our MIF Mortgage Repurchase Facility (as defined below), and other sources of liquidity.

Current wording

At March 31, 2026, we had $767.4 million of cash, cash equivalents and restricted cash (all of which was comprised of unrestricted cash and cash equivalents), which represents a $78.2 million increase in unrestricted cash and cash equivalents from December 31, 2025. This increase in cash was primarily due to the timing of land spend, lower inventory investment and the proceeds from mortgage loan sales exceeding originations, partially offset by a decline in home deliveries compared to prior year. Our principal uses of cash for the three months ended March 31, 2026 were investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, short-term working capital, debt service requirements, including the repayment of amounts outstanding under our credit facilities, and the repurchase of $50.1 million of our outstanding common shares under our share repurchase program. In order to fund these uses of cash, we used proceeds from home deliveries, the sale of mortgage loans, the sale of mortgage servicing rights, excess cash balances, borrowings under our MIF Mortgage Repurchase Facility and MIF Master Repurchase Facility (as defined below), and other sources of liquidity.

Previous wording

The Company is a party to three primary credit agreements: (1) a $900 million unsecured revolving credit facility, dated July 18, 2013, as amended (the “Credit Facility”), with M/I Homes, Inc. as borrower and guaranteed by the Company’s wholly owned homebuilding subsidiaries; (2) a $200 million mortgage repurchase agreement, dated October 24, 2023, as amended (the

Current wording

The Company is a party to three primary credit agreements: (1) a $900 million unsecured revolving credit facility, dated July 18, 2013, as amended (the “Credit Facility”), with M/I Homes, Inc. as borrower and guaranteed by the Company’s wholly owned homebuilding subsidiaries; (2) a $200 million mortgage repurchase agreement, dated October 24, 2023, as amended most recently on April 16, 2026 (the “MIF Mortgage Repurchase Facility”), with M/I Financial as borrower; and (3) an uncommitted $100 million mortgage repurchase agreement dated October 21, 2025 (the “MIF Master Repurchase Facility”),with M/I Financial as borrower.

Previous wording

As of September 30, 2025, we had outstanding notes payable (consisting primarily of notes payable for our financial services operations, the 2030 Senior Notes and the 2028 Senior Notes) with varying maturities in an aggregate principal amount of $932.0 million, with $232.0 million payable within 12 months. Future interest payments associated with these notes payable totaled $103.0 million as of September 30, 2025, with $31.8 million payable within 12 months.

Current wording

As of March 31, 2026, we had outstanding notes payable (consisting primarily of notes payable for our financial services operations, the 2030 Senior Notes and the 2028 Senior Notes) with varying maturities in an aggregate principal amount of $960.2 million, with $260.2 million payable within 12 months. Future interest payments associated with these notes payable totaled $87.2 million as of March 31, 2026, with $31.9 million payable within 12 months.

Previous wording

As of September 30, 2025, there were no borrowings outstanding and $91.0 million of letters of credit outstanding under our $900 million Credit Facility, leaving $809.0 million available. We expect to continue to manage our balance sheet and liquidity carefully during the remainder of 2025 by managing our spending on land acquisition and development and construction of inventory homes, as well as overhead expenditures, relative to our ongoing volume of home deliveries, and we expect to meet our current and anticipated cash requirements in 2025 from cash receipts, excess cash balances and availability under our credit facilities.

Current wording

As of March 31, 2026, there were no borrowings outstanding and $88.1 million of letters of credit outstanding under our Credit Facility, leaving $811.9 million available. We expect to continue to manage our balance sheet and liquidity carefully during the remainder of 2026 by managing our spending on land acquisition and development and construction of inventory homes, as well as overhead expenditures, relative to our ongoing volume of home deliveries, and we expect to meet our current and anticipated cash requirements in 2026 from cash receipts, excess cash balances and availability under our credit facilities.

Previous wording

During the nine months ended September 30, 2025, we delivered 6,620 homes, started 6,953 homes, ended the quarter with 5,021 homes under construction compared to 5,056 at the end of last year’s third quarter, and spent$363.1 million on land purchases and$421.9 million on land development.

Current wording

During the first quarter of 2026, we delivered 1,914 homes, started 2,031 homes, ended the quarter with approximately 4,600 homes under construction compared to approximately 4,800 at the end of last year’s first quarter, and spent $79.2 million on land purchases and $104.4 million on land development.

Previous wording

We are actively acquiring and developing lots in our markets to replenish our lot supply and will continue to monitor market conditions and our pace of home sales and deliveries and adjust our land spending accordingly. Pursuant to our land option agreements, as of September 30, 2025, we had a total of 26,217 lots under contract, with an aggregate purchase price of approximately $1.61 billion, to be acquired during the remainder of 2025 through 2031.

Current wording

We are actively acquiring and developing lots in our markets to replenish our lot supply and will continue to monitor market conditions and our pace of home sales and deliveries and adjust our land spending accordingly. Pursuant to our land option agreements, as of March 31, 2026, we had a total of 25,785 lots under contract, with an aggregate purchase price of approximately $1.70 billion, to be acquired during the remainder of 2026 through 2031.

Previous wording

Operating Cash Flow Activities. During the nine-month period ended September 30, 2025, we generated $146.1 million of cash from operating activities, compared to generating $75.3 million of cash from operating activities during the nine months ended September 30, 2024. The cash provided by operating activities in the first nine months of 2025 was primarily a result of net income of $339.0 million, and an increase of $80.8 million in accounts payable, customer deposits and other liabilities, proceeds from the sale of mortgage loans which exceeded mortgage loan originations by $49.9 million, offset, in part, by a $314.5 million increase in inventory purchases, an decrease in other assets of $12.0 million, and a decrease in accrued compensation totaling $17.3 million. The cash generated in operating activities during the nine months ended September 30, 2024 was primarily a result of net income of $430.3 million, and an increase of $67.4 million in accounts payable, customer deposits and other liabilities, offset, in part, by a $335.1 million increase in inventory purchases and payments for mortgage loan originations which exceeded the proceeds from the sale of mortgage loans by $66.4 million, an increase in other assets of $33.4 million, and a decrease in accrued compensation totaling $4.3 million. Net cash provided by operating activities for the nine-month period ended September 30, 2025 benefitted primarily by the sale of mortgage loans which exceeded mortgage loan originations improving by $116.2 million and inventory management reducing spending by $20.5 million partially offset by the decrease of net income by $91.3 million.

Current wording

Operating Cash Flow Activities. During the three-month period ended March 31, 2026, we generated $135.7 million of cash from operating activities, compared to $64.9 million during the first quarter of 2025. The cash provided by operating activities in the first quarter of 2026 was primarily a result of net income of $67.8 million, a $29.8 million increase in accounts payable, customer deposits and other liabilities, proceeds from the sale of mortgage loans exceeding mortgage loan originations by $43.8 million, a $41.8 million decrease in inventory, a decrease in other assets of $12.5 million, offset, in part, by a $44.2 million decrease in accrued compensation. The cash provided by operating activities during the first quarter of 2025 was primarily a result of net income of $111.2 million, a $72.4 million increase in accounts payable, customer deposits and other liabilities, and proceeds from the sale of mortgage loans exceeding mortgage loan originations by $50.5 million, offset, in part, by a $107.3 million increase in inventory, a $12.5 million increase in other assets and a $48.9 million decrease in accrued compensation.

Previous wording

Investing Cash Flow Activities. During the nine months ended September 30, 2025, we used $30.7 million of cash in investing activities, compared to using $45.0 million of cash in investing activities during the nine months ended September 30, 2024. The cash used in investing activities in the first nine months of 2025 was primarily a result of a $34.4 million increase in our investment in joint venture arrangements and a $5.4 million increase in property and equipment, offset, in part, by $7.1 million of proceeds from the sale of a portion of our mortgage servicing rights and $2.0 million in return of capital from joint venture arrangements. The cash used in investing activities during the nine months ended September 30, 2024 was primarily a result of a $45.9 million increase in our investment in joint venture arrangements and a$6.4 million increase in property and equipment, offset, in part, by $7.2 million of proceeds from the sale of a portion of our mortgage servicing rights. The Company used less cash in investing activies for the nine-month period ended September 30, 2025 primarily due to a decrease in investments in joint ventures of $11.5 million offset by a return of $2 million of capital from joint ventures.

Current wording

Investing Cash Flow Activities. During the first quarter of 2026, we generated $5.1 million of cash in investing activities, compared to using $2.9 million of cash in investing activities during the first quarter of 2025. The cash provided by investing activities in the first quarter of 2026 was primarily a result of $9.1 million of proceeds from the sale of a portion of our mortgage servicing rights, offset, in part, bya $3.8 million contribution in our investment in joint venture arrangements and a $0.2 million increase in property and equipment. The cash used in investing activities during the first quarter of 2025 was primarily a result of a $8.3 million increase in our investment in joint venture arrangements and a$1.3 million increase in property and equipment, offset, in part, by $6.7 million of proceeds from the sale of a portion of our mortgage servicing rights.

Previous wording

Financing Cash Flow Activities. During the nine months ended September 30, 2025, we used $202.8 million of cash in financing activities, compared to using $43.2 million of cash in financing activities during the nine months ended September 30, 2024. The cash used in financing activities in 2025 was primarily due to the repurchase of $150.4 million of our outstanding common shares during the nine months ended September 30, 2025, and repayments (net of borrowings) under our MIF

Current wording

Financing Cash Flow Activities. During the three months ended March 31, 2026, we used $62.6 million of cash in financing activities, compared to using $107.2 million of cash in financing activities during the first three months of 2025. The cash used in financing activities in 2026 was primarily due to the repurchase of $50.1 million of our outstanding common shares during the first quarter of 2026, and repayments (net of borrowings) under our MIF Mortgage Repurchase Facility and MIF Master Repurchase Facility of $16.7 million offset partially by $4.1 million in proceeds from the exercise of stock options during the first quarter of 2026. The cash used in financing activities in 2025 was primarily due to the repurchase of $50.1 million of our outstanding common shares during the first quarter of 2025, and repayments (net of borrowings) under our MIF Mortgage Repurchase Facility of $58.2 million offset partially by $1.1 million in proceeds from the exercise of stock options during the first quarter of 2025.

Previous wording

On February 11, 2025, the Company announced that its Board of Directors authorized a new share repurchase program pursuant to which the Company was permitted to purchase up to $250 million of its outstanding common shares (the “2025 Share Repurchase Program”), which replaced the 2024 Share Repurchase Program. During the nine months ended September 30, 2025, the Company repurchased 1.2 million outstanding common shares for an aggregate purchase price of $150.4 million under the 2025 Share Repurchase Program which was funded with cash on hand. As of September 30, 2025, the Company is authorized to repurchase an additional $99.6 million of outstanding common shares under the 2025 Share Repurchase Program (see Note 12 to our financial statements for more information).

Current wording

On November 12, 2025, the Company announced that its Board of Directors authorized a new share repurchase program pursuant to which the Company may purchase up to $250 million of its outstanding common shares (the “Second 2025 Share Repurchase Program”), which replaced the Company’s previous share repurchase program. During the first quarter of 2026, the Company repurchased 0.4 million outstanding common shares for an aggregate purchase price of $50.1 million under the Second 2025 Share Repurchase Program which was funded with cash on hand. As of March 31, 2026, the Company was authorized to repurchase an additional $170.4 million of outstanding common shares under the Second 2025 Share Repurchase Program (see Note 12 to our financial statements for more information).