M/I HOMES, INC.
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 31, 2026
MHO$131.60-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-24.
0000799292-26-000017
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0000799292-26-000028
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 145 current paragraphs.
69 unchanged; 49 reworded; 24 added; 11 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Housing market conditions remained challenging due to persistent affordability pressures driven by elevated mortgage interest rates, inflation, rising lot costs, limited affordable housing inventory, and ongoing economic and geopolitical uncertainty. Mortgage interest rates remained in the mid-to-upper 6% range throughout the second quarter of 2026, while inflationary pressures and broader economic concerns continued to negatively impact consumer confidence.
Current report
To support affordability and stimulate demand, we continued to offer targeted sales incentives, including mortgage interest rate buydowns, consistent with our approach in 2025. These incentives contributed to improved contract activity compared to the prior year and resulted in a record number of second quarter new contracts. Despite stronger sales activity, home closings declined compared to the second quarter of 2025. Overall profitability decreased from the prior year, primarily reflecting higher lot costs and mortgage rate buydown incentives that continue to be an important part of our sale strategy. Nevertheless, we remain encouraged by the underlying fundamentals of our business, as demand for attainable housing continues to be supported by a structural undersupply of homes. Additionally, housing affordability remains a key focus for federal policymakers, with continued attention on initiatives aimed at increasing housing availability and improving access to homeownership.
Current report
Our results during the second quarter and first half of 2026 in comparison to the second quarter and first half of 2025 were as follows:
Current report
•New contracts increased 15% to a record 2,387 from 2,078 and increased 8% to 4,737 from 4,370, respectively
Current report
•Number of homes delivered decreased 6% to 2,206 homes and decreased 5% to 4,120 homes, respectively
Current report
•Revenue decreased 9% to $1.06 billion and decreased 7% to $1.98 billion, respectively
Current report
•Gross margin decreased 260 basis points to 22.1% and decreased 310 basis points to 22.1%, respectively
Current report
•Net income decreased 35% to $79.1 million and decreased 37% to $146.9 million, respectively
Current report
Income before income taxes for the second quarter of 2026 decreased $55.5 million from $160.1 million in the second quarter of 2025 to $104.6 million in 2026. Net income was $79.1 million, or $3.02 per diluted share, in 2026's second quarter, compared to $121.2 million, or $4.42 per diluted share, in 2025's second quarter. Our effective tax rate was 24.4% and 24.3% in the second quarter of 2026 and 2025, respectively. For the first half of 2026, income before income taxes decreased $112.5 million from $306.2 million in the first half of 2025 to $193.7 million in 2026. We achieved net income of $146.9 million, or $5.57 per diluted share, during the first half of 2026 compared to net income of $232.5 million, or $8.40 per diluted share, in the six months ended June 30, 2025. Our effective tax rate was 24.2% in 2026's first half compared to 24.1% in the same period in 2025.
Current report
For the three months ended June 30, 2026, selling, general and administrative expense increased $3.3 million, and increased as a percentage of revenue from 11.3% in the second quarter of 2025 to 12.6% in the second quarter of 2026. Selling expense increased $0.4 million from 2025's second quarter and increased as a percentage of revenue to 6.0% in 2026's second quarter from 5.5% for the same period in 2025. The dollar increase in selling expense is related to a $1.2 million increase in advertising expenses and a $2.1 million increase in expenses related to model homes and sales offices, including compensation related expenses, partially offset by a $2.9 million decrease in realtor and sales commissions in the second quarter of 2026. General and administrative expense increased $2.9 million in the second quarter of 2026 compared to the second quarter of 2025 and increased as a percentage of revenue to 6.6% in the second quarter 2026 from 5.8% in the second quarter of 2025. The dollar increase in general and administrative expense was primarily due to a $1.3 million increase in compensation-related expenses due to increased head count, a $0.6 million increase in costs associated with information systems, a $0.2 million increase in land-related expenses and a $0.8 million increase in miscellaneous expenses. For the six months ended June 30, 2026, selling, general and administrative expense increased $8.0 million, and increased as a percentage of revenue from 11.4% in the six months ended June 30, 2025 to 12.6% in the first six months of 2026. Selling expense increased $2.9 million from the first half of 2025 and increased as a percentage of revenue to 6.0% in 2026's first half from 5.4% for the same period in 2025. The dollar increase in selling expense in the second quarter of 2026 related to a $4.8 million increase in costs associated with our sales offices, including compensation-related and advertising expenses, offset by a $1.9 million decrease in realtor and sales commissions. General and administrative expense increased $5.1 million compared to the first half of 2025 and increased as a percentage of revenue from 5.9% in the six months ended June 30, 2025 to 6.6% in the first six months of 2026. The increase in general and administrative expense was primarily due to a $2.0 million increase in compensation-related expenses due to higher average headcount and equity incentives offset in part by bonus expense, a $0.9 million increase in costs associated with information systems, a $0.8 million increase in land-related expenses, and a $1.4 million increase in various other expenses, including advertising expenses.
Current report
Despite these challenges, we believe the long-term fundamentals supporting the housing market remain favorable. Demand continues to be driven by demographic trends, household formation, and an undersupply of both new and existing homes, particularly in the affordable housing segment. We also believe that any future moderation in mortgage interest rates could improve affordability and further support housing demand. However, the timing and magnitude of such changes remain uncertain and will depend on economic conditions, monetary policy, capital markets, and geopolitical developments. Additionally, housing affordability and supply remain important policy priorities at the federal level, with continued focus on initiatives intended to expand housing availability and improve access to homeownership.
Current report
(b)For the three and six months ended June 30, 2026, total cost of sales and operating income were impacted by $4.2 million in inventory charges taken during the period. $0.4 million and $3.8 million of these charges were attributable to the Northern homebuilding operating segment and the Southern homebuilding operating segment, respectively. Additionally, total cost of sales and operating income in the Southern homebuilding operating segment were impacted by $4.0 million and $5.5 million, respectively, for warranty charges in two of our Florida communities primarily relating to attic ventilation issues (See Note 6).
Current report
(b)Includes $4.2 million in inventory charges taken during the period. $0.4 million and $3.8 million of these charges were attributable to the Northern homebuilding operating segment and the Southern homebuilding operating segment, respectively. Additionally, total cost of sales and operating income in the Southern homebuilding operating segment were impacted by $4.0 million and $5.5 million, respectively, for warranty charges in two of our Florida communities primarily relating to attic ventilation issues (See Note 6).
Current report
During the three months ended June 30, 2026, we experienced a 16% increase in new contracts in our Northern region from 873 in the second quarter of 2025 to 1,016 in the second quarter of 2026. Homes in backlog decreased 4% from 1,281 homes at June 30, 2025 to 1,234 homes at June 30, 2026 as a result ofmore inventory homes sold in the second quarter of 2026 compared to prior year. The average sales price in backlog increased approximately 1% to $567,000 at June 30, 2026 compared to $563,000 at June 30, 2025 primarily due to the mix of homes being sold. During the three months ended June 30, 2026, we opened twelve new communities in our Northern region compared to opening eight during 2025's second quarter. Our monthly absorption rate in our Northern region was 3.7 per community in the second quarter of 2026 compared to 3.0 in the second quarter of 2025 due to an increase in new contracts and a decrease in average community count.
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current report
Northern Region. During the first half of 2026, homebuilding revenue in our Northern region decreased $69.1 million, from $898.6 million in the first six months of 2025 to $829.5 million in the first six months of 2026. This 8% decrease in revenue was primarily the result of a $2.3 million decrease in land sale revenue and an 8% decrease in the number of homes delivered, partially offset by an increase in the average sales price of homes delivered ($5,000 per home delivered). Operating income in our Northern region decreased $35.5 million, from $136.6 million during the first half of 2025 to $101.1 million during the six months ended June 30, 2026. The decrease in operating income was primarily the result of a $33.0 million decrease in our gross margin and a $2.5 million increase in selling, general and administrative expense. Our gross margin declined $33.0 million, and our gross margin percentage declined 210 basis points from 22.5% in the first six months of 2025 to 20.4% for the same period in 2026, primarily due to a decrease in the number of homes delivered, a $9.1 million increase in lot costs and a decrease in land sales. 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.
Current report
During the six months ended June 30, 2026, we experienced a 5% increase in new contracts in our Northern region, from 1,938 in the six months ended June 30, 2025 to 2,042 in the first half of 2026. Homes in backlog decreased 4% from 1,281 at June 30, 2025 to 1,234 homes at June 30, 2026. Average sales price in backlog increased to $567,000 at June 30, 2026 compared to $563,000 at June 30, 2025 primarily due to the mix of homes being sold. During the six months ended June 30, 2026, we opened 20 new communities in our Northern region compared to 24 new communities opened during the first half of 2025. Our monthly absorption rate in our Northern region improved to 3.7 per community in the six months ended June 30, 2026 from 3.4 per community in the same period in 2025 as a result of an increase in new contracts and reduced average community count.
Current report
Southern Region. During the six months ended June 30, 2026, homebuilding revenue in our Southern region decreased $86.2 million from $1.18 billion in the first half of 2025 to $1.09 billion in the first half of 2026. This 7% decrease in homebuilding revenue was the result of a 2% decrease in the number of homes delivered (55 units) and a 7% decrease in the average sales price of homes delivered ($33,000 per home delivered) primarily due to the mix of homes delivered and incentives, partially offset by a $20.9 million increase in land sales. Operating income in our Southern region decreased 42% from $164.7 million in the first half of 2025 to $95.8 million during the six months ended June 30, 2026. This decrease in operating income was the result of a $68.9 million decline in our gross margin. Our gross margin percentage declined 450 basis points from 23.3% in the six months ended June 30, 2025 to 18.8% in the same period in 2026 primarily due to the decrease in average sales price for homes delivered, a $5.4 million increase in lot costs and a decrease in the number of homes delivered.
Current report
Selling, general and administrative expense remained at $109.5 million in the first half of 2025 and first half of 2026 but increased as a percentage of revenue to 10.0% compared to 9.3% in the first six months of 2025. General and administrative expense decreased $1.4 million primarily due to a $1.2 million decrease in compensation-related expenses as a result of a decrease in bonus expense and a $0.4 million decrease in other miscellaneous expenses related to professional fees, partially offset by a $0.2 million increase in land-related expense. Selling expense increased $1.4 million primarily due to a $2.8 million increase related to costs associated with our sales offices, partially offset by a $1.4 million decrease in realtor and sales commissions.
Current report
During the six months ended June 30, 2026, we experienced an 11% increase in new contracts in our Southern region, from 2,432 in the six months ended June 30, 2025 to 2,695 in the first half of 2026. Homes in backlog decreased 8% from 1,296 homes at June 30, 2025 to 1,192 homes at June 30, 2026 primarily as a result of a shift in demand to inventory homes which offer incentives compared to last year. Average sales price in backlog decreased from $543,000 at June 30, 2025 to $508,000 at June 30, 2026 primarily due to the mix of homes delivered, including inventory homes and locations of communities. During the six months ended June 30, 2026, we opened 29 communities in our Southern region, compared to opening 26 during the first half of 2025. Our monthly absorption rate in our Southern region improved to 3.2 per community in the first half of 2026 from 3.1 per community in the first half of 2025 as a result ofincreased new contracts.
Current report
Financial Services. Revenue from our mortgage and title operations increased 1% from $63.0 million in the first half of 2025 to $63.6 million in the first half of 2026 due to an improved capture rate compared to 2025's first half, a slight increase in the number of loan originations from 3,395 in the first half of 2025 to 3,396 in the first half of 2026, partially offset by a decrease in the average loan amount from $404,000 in the six months ended June 30, 2025 to $403,000 in the six months ended June 30, 2026 resulting in lower margins on loans sold.
Current report
Our financial services segment experienced a $2.6 million decrease in operating income in the first half of 2026 compared to the same period in 2025, which was primarily due to a $3.2 million increase in selling, general and administrative expense compared to the first half of 2025, partially offset by the increase in revenue discussed above. The increase in selling, general and administrative expense was primarily attributable to a $2.3 million increase in compensation-related expenses and a $0.9 million increase in other miscellaneous expenses.
Current report
Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased $2.3 million from $41.0 million for the six months ended June 30, 2025 to $43.3 million for the six months ended June 30, 2026, primarily due to a $0.3 million increase in computer-related costs and a $1.3 million increase in miscellaneous expenses incurred during the period, $0.1 million increase in compensation-related expenses and a $0.6 million increase in advertising expenses.
Current report
Income Taxes. Our overall effective tax rate was 24.2% for the six months ended June 30, 2026 and 24.1% for the six months ended June 30, 2025. The increase in the effective rate from the six months ended June 30, 2025 was primarily attributable to a $1.0 million decrease in tax benefit from equity compensation in 2026.
Removed paragraphs (11)
Previous report
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 report
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 report
•Number of homes delivered decreased 3% to 1,914 homes
Previous report
•Revenue decreased 6% to $920.7 million
Previous report
•Gross margin decreased 390 basis points to 22.0%
Previous report
•Net income decreased 39% to $67.8 million
Previous report
•New contracts increased 3% to 2,350 from 2,292
Previous report
Income before income taxes for the first quarter of 2026 decreased $56.9 million from $146.1 million in the first quarter of 2025 to $89.2 million in 2026. Net income was $67.8 million, or $2.55 per diluted share, in 2026's first quarter, compared to $111.2 million, or $3.98 per diluted share, in 2025's first quarter. Our effective tax rate was 23.9% in both the first quarter of 2026 and 2025.
Previous report
We believe the long-term fundamentals of the housing market remain supported by favorable demographic trends, continued household formation, and a sustained undersupply of both new and existing homes. In addition, we are optimistic that mortgage interest rates may decline in the future, which may improve affordability and homebuyer demand. However, the timing and extent of any such improvement remain uncertain and will depend on broader economic, political and capital market conditions beyond our control.
Previous report
During the three months ended March 31, 2026, we experienced a 4% decrease in new contracts in our Northern region from 1,065 in the first quarter of 2025 to 1,026 in the first quarter of 2026. Homes in backlog decreased 19% from 1,375 homes at March 31, 2025 to 1,110 homes at March 31, 2026 as a result of more inventory homes sold in 2026 first quarter compared to prior year. The average sales price in backlog increased approximately 3% to $570,000 at March 31, 2026 compared to
Previous report
$556,000 at March 31, 2025 primarily due to the mix of homes being sold. During the three months ended March 31, 2026, we opened eight new communities in our Northern region compared to opening sixteen during 2025's first quarter. Our monthly absorption rate in our Northern region was 3.7 per community in the first quarter of 2026 compared to 3.8 in the first quarter of 2025 due to a decrease in new contracts.
Reworded paragraphs (49)
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 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.
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 172,900 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
•Income before income taxes decreased 39% to $89.2 million
Current wording
•Income before income taxes decreased 35% to $104.6 million and decreased 37% to $193.7 million, respectively
Previous 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
Current wording
•Shareholders’ equity of $3.2 billion, a 5% increase from a year ago, with book value per common share increasing to arecord high $128 per share
Previous wording
•Homebuilding debt to capital was 18%
Current wording
•Homebuilding debt to capital ratio was 18% for both periods
Previous wording
Additionally, our financial services segment achieved its second highest revenue in a first quarter, improved capture rate and increased loan originations to a first quarter record.
Current wording
Additionally, our financial services segment achieved itshighest revenue in a second quarter and improved capture rate to 96% from 92% in second quarter 2025.
Previous 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.
Current wording
Our company-wide absorption pace of sales per community for the second quarter of 2026 was 3.4 per month compared to 3.0 for the prior year’s second 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 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.
Current wording
During the quarter ended June 30, 2026, our total revenue was $1.06 billion, of which $1.03 billion was from homebuilding and $32.3 million was from our financial services operations. Revenue from homebuilding decreased 9% in 2026's second quarter compared to the same period in 2025 driven primarily by a 4% decrease in the average sales price of homes delivered ($20,000 per home delivered) and a 6% decrease in the number of homes delivered (142 units) offset in part by a $12.3 million increase in land sales. Our revenue and average sales price reflect a $63.2 million reduction for sales incentives and closing costs in the second quarter of 2026 compared to a $47.1 million reduction for sales incentives and closing costs in 2025's second quarter. Revenue from our financial services segment increased 3% to $32.3 million in the second quarter of 2026 as a result of slightly higher margins on loans sold and an improved capture rate, partially offset by a decrease in loans originated during the period compared to the second quarter of 2025. For the first half of 2026, werecorded year-to-date total revenue of $1.98 billion, of which $1.92 billion was from homes delivered and $63.6 million was from our financial services operations. Revenue from homebuilding decreased 8% in the first half of 2026 compared to the same period in 2025 driven primarily by decreases in the number of homes delivered (204 units) and the average sales price of homes delivered ($19,000 per home delivered). Our revenue and average sales price reflect a $115.9 million reduction for incentives and closing costs in 2026’s first six months compared to an $87.1 million reduction for incentives and closing costs in 2025’s first six months. Revenue from our financial services segment increased 1% to $63.6 million in the first half of 2026 compared to the first half of 2025 as a result of an increase in loans originated during the period and an improved capture rate, offset by a decrease in the average loan amount during the period.
Previous 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.
Current wording
Total gross margin (total revenue less total land and housing costs) decreased $51.1 million in the second quarter of 2026 compared to the second quarter of 2025 as a result of a $52.0 million decline in the gross margin of our homebuilding operations, partially offset by a $0.9 million increase in the gross margin of our financial services operations. Our homebuilding gross margin percentage declined by 290 basis points to 19.7% in the second quarter of 2026 from 22.6% in the second quarter of 2025. The decline in homebuilding gross margin dollars primarily resulted from the decrease in average sales price of homes delivered, an $8.7 million increase in lot costs, a $22.0 million increase in mortgage interest rate buydowns offered, a 6% decrease in homes delivered and $4.2 million in inventory charges in 2026. 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, number of homes under construction and sales incentives. During the second quarter of 2026, homebuilding gross margin was compressed primarily due to mix of inventory homes delivered, incentives offered and increasedlot costs. The gross margin of our financial services operations increased $0.9 million in the second quarter of 2026 compared to the second quarter of 2025 as a result of higher margins on loans sold, an improved capture rate, partially offset by a decrease in the number of loan originations. Total gross margin decreased $101.3 million in the first half of 2026 compared to the same period in 2025 as a result of a $101.9 million decline in the gross margin of our homebuilding operations offset, in part, by a $0.6 million improvement in the gross margin of our financial services operations. This decline in the gross margin of our homebuilding operations is primarily due to a decrease in the number of homes delivered, a decrease in the average sales price of homes delivered ($19,000 per home delivered), a $14.5 million increasein lot costs, and $4.2 million in inventory charges. The gross margin of our financial services operations increased $0.6 million in the first half of 2026 compared to the same period in 2025 as a result of an increase in loans originated during the period and an improved capture rate, partially offset by a decrease in the average loan amount during the period.
Previous 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.
Current wording
We opened 49 new communities during the first half of 2026 and closed 47 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
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.
Current wording
The housing market continues to face macroeconomic challenges, including elevated mortgage interest rates, affordability constraints, inflationary pressures, evolving trade and tariff policies, labor market uncertainty, recession concerns, and ongoing geopolitical volatility, which have continued to affect consumer confidence and homebuying activity. While we remain confident in the long-term prospects of our business, we believe these market conditions may persist through the remainder of 2026. In response, we remain focused on executing strategies designed to navigate this environment, including disciplined overhead management, prudent land acquisition and development spending, pricing discipline, and the selective use of sales incentives, including mortgage interest rate buydowns, to improve affordability, support demand, increase sales activity, and reduce contract cancellations.
Previous 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.
Current wording
We believe we are well positioned to operate successfully in the current environment. Although our backlog at the end of the second quarter of 2026 was lower than the prior-year period, it remained healthy, with an average sales price approximately 3% below the comparable prior-year level, reflecting our continued focus on affordability. Our strong balance sheet, liquidity, and disciplined capital allocation provide the financial flexibility to respond to changing market conditions and pursue opportunities as they arise. Nevertheless, the operating environment remains dynamic, and our future performance will depend on our ability to adapt to evolving economic and market conditions. Accordingly, there can be no assurance that our current strategies will fully offset the effects of continued market volatility and uncertainty.
Previous 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.
Current wording
During the first six months of 2026, we invested$210.3 million in land acquisitions and$259.1 million in land development compared to $247.7 million and $240.6 million, respectively, during the first six months of 2025. We invested infewer land acquisitions in the first half of 2026 compared to the first half 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 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.
Current wording
We ended the second quarter of 2026 with approximately 49,100 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 3% decrease from our approximately 50,500 lots under control at the end of last year’s second quarter.
Previous 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.
Current wording
We opened 49 communities and closed 47 communities in the first half of 2026, ending the second quarter with 234 active communities, the same as at the end of last year’s second 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 months ended March 31, 2026 and 2025:
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 and six months ended June 30, 2026 and 2025:
Previous 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:
Current wording
The following table presents, by reportable segment, selected operating and financial information as of and for the three and six months ended June 30, 2026 and 2025:
Previous 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:
Current wording
The following table sets forth the cancellation rates for each of our homebuilding segments for the three and six months ended June 30, 2026 and 2025:
Previous 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.
Current wording
Northern Region. During the three months ended June 30, 2026, revenue in our Northern region decreased $35.7 million, from $488.3 million in the second quarter of 2025 to $452.6 million in the second quarter of 2026. This decrease in revenue was primarily the result of an 8% decrease in the 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 $17.8 million from $76.0 million in the second quarter of 2025 to $58.2 million during the quarter ended June 30, 2026. This decrease in operating income was the result of a $15.5 million decline in our gross margin and a $2.3 million increase in selling, general and administrative expense. Our gross margin percentage declined 160 basis points to 21.2% from 22.8% in the prior year’s second quarter primarily due to an increase in homebuyer incentives and a $7.0 million increasein 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.
Previous 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.
Current wording
Selling, general and administrative expense increased $2.3 million, from $35.3 million for the quarter ended June 30, 2025 to $37.6 million for the quarter ended June 30, 2026 and increased 110 basis points as a percentage of revenue to 8.3% in 2026's second quarter from 7.2% in 2025's second quarter. The increase in selling, general and administrative expense was attributable to a $0.9 million increase in general and administrative expense and a $1.4 million increase in selling expense. The increase in general and administrative expense was due to a $0.6 million increase in compensation-related expenses and a $0.3 million increase in miscellaneous expense, including costs associated with research, design and development. The increase in selling expense was due to a $0.5 million increase in advertising expense, a $0.4 million increase in expenses related to our model homes and a $0.5 million increase in costs associated with our sales offices, including compensation-related expenses.
Previous wording
Southern Region. During the three month period ended March 31, 2026, revenue in our Southern region decreased $21.6 million, from $534.2 million in the first quarter of 2025 to $512.6 million in the first quarter of 2026. This 4% decrease in revenue was the result of a 6% decrease in the average sales price of homes delivered ($28,000 per home delivered), offset in part by a 1% increase in the number of homes delivered (12 units) and a $5.3 million increase in land sale revenue. Operating income in our Southern region decreased $34.5 million from $80.4 million in the first quarter of 2025 to $45.9 million in the first quarter of 2026. This decrease in operating income was the result of a $32.4 million decline in our gross margin and a $2.1 million increase in selling, general, and administrative expense. Our gross margin percentage declined 530 basis points from 24.4% in prior year’s first quarter to 19.1% in the first quarter of 2026. The decline in our homebuilding gross margin was primarily due to the decrease in the average sales price of homes delivered and a $4.2 million increase in lot costs. Increased homebuyer incentive costs, including mortgage interest rate buydowns, decreased the average sales price of homes delivered by $6,200 per home when compared to 2025.
Current wording
Southern Region. During the three month period ended June 30, 2026, revenue in our Southern region decreased $64.6 million, from $642.9 million in the second quarter of 2025 to $578.3 million in the second quarter of 2026. This 10% decrease in revenue was the result of an 8% decrease in the average sales price of homes delivered ($37,000 per home delivered) and a 5% decrease in the number of homes delivered (67 units), offset in part by a $15.6 million increase in land sale revenue. Operating income in our Southern region decreased $34.4 million from $84.3 million in the second quarter of 2025 to $49.9 million in the second quarter of 2026. This decrease in operating income was the result of a $36.5 million decline in our gross margin, partially offset by a $2.1 million decrease in selling, general, and administrative expense. Our gross margin percentage declined 380 basis points from 22.4% in prior year’s second quarter to 18.6% in the second quarter of 2026. The decline in our homebuilding gross margin was primarily due to the decrease in the number of homes delivered, a decrease in the average sales price of homes delivered, and a $1.8 million increase in lot costs offset in part by increase in land sales. Increased homebuyer incentive costs, including mortgage interest rate buydowns, decreased the average sales price of homes delivered by $8,500 per home when compared to 2025.
Previous 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.
Current wording
Selling, general and administrative expense decreased $2.1 million from $59.6 million in the second quarter of 2025 to $57.5 million in the second quarter of 2026 but increased 60 basis points as a percentage of revenue to 9.9% in the second quarter of 2026 from 9.3% in the second quarter of 2025. The decrease in selling, general and administrative expense was attributable to a $1.2 million decrease in selling expense and a $0.9 million decrease in general administrative expense. The decrease in selling expense was due to a $2.9 million decrease in realtor and sales commissions, partially offset by a $1.7 million increase in costs related to our sales office, including compensation and advertising expenses. The decrease in general and administrative expense was due to a $0.6 million decrease in compensation-related expenses, and a $0.3 million decrease of miscellaneous expenses.
Previous 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.
Current wording
During the three months ended June 30, 2026, our new contracts in our Southern region increased 14% from 1,205 in the second quarter of 2025 to 1,371 in the second quarter of 2026. Homes in backlog decreased by 8% from 1,296 homes at June 30, 2025 to 1,192 homes at June 30, 2026, primarily as a result of a shift in demand to inventory homes which offer incentives compared to last year offset in part by improved sales in current quarter. Average sales price in backlog decreased to $508,000 at June 30, 2026 from $543,000 at June 30, 2025 primarily due to the mix of homes being sold, including an increase in inventory homes. During the three months ended June 30, 2026, we opened 15 new communities in our Southern region compared to opening 15 communities during 2025's second quarter. Our monthly absorption rate in our Southern region improved to 3.3 per community in the second quarter of 2026 from 3.1 in the second quarter of 2025.
Previous 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.
Current wording
Financial Services. Revenue from our mortgage and title operations increased 3% to $32.3 million in the second quarter of 2026 from $31.5 million in the second quarter of 2025 due to higher margins on loans sold, an increase in the average loan amount from $403,000 in the quarter ended June 30, 2025 to $405,000 in the quarter ended June 30, 2026 and ahigher capture rate during the period compared to prior year’s second quarter, partially offset by a 3% decrease in the number of loan originations from 1,865 in 2025's second quarter to 1,817 in the second quarter of 2026.
Previous 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.
Current wording
Our financial services segment experienced a $0.5 million decrease in operating income in the second quarter of 2026 compared to 2025's second quarter, which was primarily due to a $1.4 million increase in general and administrative expense, which was primarily the result of a $0.9 million increase in compensation-related expenses, and a $0.5 million increase in miscellaneous expenses relating to information systems compared to the second quarter of 2025.
Previous 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.
Current wording
At June 30, 2026, M/I Financial provided financing services in all of our markets. Approximately 96% of our homes delivered during the second quarter of 2026 were financed through M/I Financial, compared to approximately 92% in the second 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 $0.6 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.
Current wording
Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased $1.7 million from $22.1 million for the second quarter of 2025 to $23.8 million for the second quarter of 2026. This increase resulted from a $0.3 million increase in compensation-related expenses, a $0.3 million increase in depreciation, a $0.3 million increase in computer related expense, a $0.3 million increase in advertising expenses and a $0.5 million increase in miscellaneous expenses.
Previous 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.
Current wording
Interest Income, net of Interest Expense. The Company earned $3.3 million of interest income - net for the three months ended June 30, 2026 compared to $4.4 million for the three months ended June 30, 2025. This decrease was primarily due to alower average cash balance on hand compared to prior year.
Previous wording
Income Taxes. Our overall effective tax rate was 23.9% for both the three months ended March 31, 2026 and the three months ended March 31, 2025.
Current wording
Income Taxes. Our overall effective tax rate was 24.4% for the three months ended June 30, 2026 and 24.3% for the three months ended June 30, 2025.
Previous 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.
Current wording
Selling, general and administrative expense increased $2.5 million, from $65.6 million for the six months ended June 30, 2025 to $68.1 million for the six months ended June 30, 2026, and increased 90 basis points to 8.2% in 2026's second quarter from 7.3% in 2025's second quarter. The increase in selling, general and administrative expense was attributable to a $1.4 million increase in general and administrative expense and a $1.1 million increase in selling expense. The increase in general and administrative expense related to a $0.8 million increase in compensation-related expenses, a $0.4 million increase in land-related expenses and a $0.2 million increase in miscellaneous expenses. The increase in selling expenses was attributable to a $1.0 million increase in compensation-related expenses and advertising expenses and a $0.6 million increase in miscellaneous expense partially offset by a $0.5 million decrease in sales and realtor commissions.
Previous 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.
Current wording
At June 30, 2026, we had $735.9 million of cash, cash equivalents and restricted cash, with approximately $735.7 million of this amount comprised of unrestricted cash and cash equivalents, which represents a $46.5 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 six months ended June 30, 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 $100.1 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
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.
Current wording
As of June 30, 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 $952.4 million, with $252.4 million payable within 12 months. Future interest payments associated with these notes payable totaled $87.2 million as of June 30, 2026, with $31.9 million payable within 12 months.
Previous 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.
Current wording
As of June 30, 2026, there were no borrowings outstanding and $82.5 million of letters of credit outstanding under our Credit Facility, leaving $817.5 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 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.
Current wording
During the first half of 2026, we delivered 4,120 homes, started 4,773 homes, ended the quarter with approximately 5,100 homes under construction consistent with the end of last year’s second quarter, and spent $210.3 million on land purchases and $259.1 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 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.
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 June 30, 2026, we had a total of 25,668 lots under contract, with an aggregate purchase price of approximately $1.71 billion, to be acquired during the remainder of 2026 through 2031.
Previous 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.
Current wording
Operating Cash Flow Activities. During the six-month period ended June 30, 2026, we generated $172.5 million of cash from operating activities, compared to $102.6 million during the first half of 2025. The cash provided by operating activities in the first half of 2026 was primarily a result of net income of $146.9 million, a $78.8 million increase in accounts payable, customer deposits and other liabilities, proceeds from the sale of mortgage loans exceeding mortgage loan originations by $47.2 million, a decrease in other assets of $11.6 million, offset, in part, by a $76.0 million increase in inventory and a $33.1 million decrease in accrued compensation. The cash provided by operating activities during the first half of 2025 was primarily a result of net income of $232.5 million, a $96.7 million increase in accounts payable, customer deposits and other liabilities, and proceeds from the sale of mortgage loans exceeding mortgage loan originations by $8.1 million, offset, in part, by a $183.6 million increase in inventory, a $22.0 million increase in other assets and a $35.8 million decrease in accrued compensation.
Previous 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.
Current wording
Investing Cash Flow Activities. During the first half of 2026, we used $6.8 million of cash in investing activities, compared to using $15.2 million of cash in investing activities during the first half of 2025. The cash used in investing activities in the first half of 2026 was primarily a result of a $10.3 million contribution in our investment in joint venture arrangements and a $5.5 million increase in property and equipment, offset, in part, by $9.1 million in proceeds from the sale of a portion of our mortgage servicing rights. The cash used in investing activities during the first half of 2025 was primarily a result of a $18.4 million increase in our investment in joint venture arrangements and a$3.9 million increase in property and equipment, offset, in part, by $7.1 million in proceeds from the sale of a portion of our mortgage servicing rights.
Previous 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.
Current wording
Financing Cash Flow Activities. During the six months ended June 30, 2026, we used $119.0 million of cash in financing activities, compared to using $108.6 million of cash in financing activities during the first six months of 2025. The cash used in financing activities in 2026 was primarily due to the repurchase of $100.1 million of our outstanding common shares during the first half of 2026, and repayments (net of borrowings) under our MIF Mortgage Repurchase Facility and MIF Master Repurchase Facility of $24.5 million offset partially by $5.6 million in proceeds from the exercise of stock options during the first half of 2026. The cash used in financing activities in 2025 was primarily due to the repurchase of $100.2 million of our outstanding common shares during the first half of 2025, and repayments (net of borrowings) under our MIF Mortgage Repurchase Facility of $10.2 million offset partially by $1.9 million in proceeds from the exercise of stock options during the first half of 2025.
Previous 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).
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 “2025 Share Repurchase Program”), which replaced the Company’s previous share repurchase program. During the first half of 2026, the Company repurchased 0.7 million outstanding common shares for an aggregate purchase price of $100.1 million under the 2025 Share Repurchase Program which was funded with cash on hand. As of June 30, 2026, the Company was authorized to repurchase an additional $120.3 million of outstanding common shares under the 2025 Share Repurchase Program (see Note 12 to our financial statements for more information).
Previous wording
Based on current market conditions, expected capital needs and availability, and the current market price of the Company’s common shares, we expect to continue repurchasing common shares during the remainder of 2026. The timing and amount of any future purchases under the Second 2025 Share Repurchase Program will be based on a variety of factors, including the market price of the Company’s common shares, business considerations, general market and economic conditions and legal requirements.
Current wording
Based on current market conditions, expected capital needs and availability, and the current market price of the Company’s common shares, we expect to continue repurchasing common shares during the remainder of 2026. The timing and amount of any future purchases under the 2025 Share Repurchase Program will be based on a variety of factors, including the market price of the Company’s common shares, business considerations, general market and economic conditions and legal requirements.
Previous wording
(a)The available amount under the Credit Facility is computed in accordance with the borrowing base calculation under the Credit Facility, which applies various advance rates for different categories of inventory and totaled$2.42 billion of availability for additional senior debt at March 31, 2026. As a result, the full $900 million commitment amount of the facility was available, less any borrowings and letters of credit outstanding. There were no borrowings outstanding and $88.1 million of letters of credit outstanding at March 31, 2026, leaving $811.9 million available. The Credit Facility has an expiration date of September 18, 2030.
Current wording
(a)The available amount under the Credit Facility is computed in accordance with the borrowing base calculation under the Credit Facility, which applies various advance rates for different categories of inventory and totaled$2.49 billion of availability for additional senior debt at June 30, 2026. As a result, the full $900 million commitment amount of the facility was available, less any borrowings and letters of credit outstanding. There were no borrowings outstanding and $82.5 million of letters of credit outstanding at June 30, 2026, leaving $817.5 million available. The Credit Facility has an expiration date of September 18, 2030.
Showing the first 40 of 49 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Increased homebuyer incentive costs, including mortgage interest rate buydowns, decreased the average sales price of homes delivered by $7,400 per home when compared to 2025.
Current report — wording carried from elsewhere
At June 30, 2026, M/I Financial provided financing services in all of our markets. Approximately 96% of our homes delivered during the first half of 2026 were financed through M/I Financial, compared to 92% during the six months ended June 30, 2025. Capture rate is influenced by financing availability and can fluctuate from quarter to quarter.
Current report — wording carried from elsewhere
Interest Income, net of Interest Expense. The Company earned $6.4 million of interest income - net for the six months ended June 30, 2026 compared to $9.6 million for the six months ended June 30, 2025. This decrease was primarily due to a lower average cash balance on hand compared to prior year.