NVR INC

Previous wording

Results of Operations for the Three Months Ended March 31, 2025 and 2024

Current wording

Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024

Previous wording

During the first quarter of 2025, demand for new homes was negatively impacted by continued affordability issues, declining consumer confidence and economic volatility. We expect that affordability issues, interest rate volatility and economic volatility may continue to weigh on demand and home prices. We also expect to continue to face margin pressure due to the previously mentioned affordability issues and cost pressure. Although we are unable to predict the extent to which this will impact our operational and financial performance, we believe that we are well positioned to take advantage of opportunities that may arise from future economic and homebuilding market volatility due to the strength of our balance sheet and our disciplined lot acquisition strategy.

Current wording

During the second quarter of 2025, demand for new homes continued to be negatively impacted by affordability issues, rising resale and new home inventory, declining consumer confidence and economic volatility. We expect that affordability issues, interest rate volatility and economic volatility may continue to weigh on demand and home prices. We also expect to continue to face margin pressure due to affordability issues and cost pressures. Although we are unable to predict the extent to which this will impact our operational and financial performance, we believe that we are well positioned to take advantage of opportunities that may arise from future economic and homebuilding market volatility due to the strength of our balance sheet and our disciplined lot acquisition strategy.

Previous wording

As of March 31, 2025, we controlled approximately 167,600 lots as described below.

Current wording

As of June 30, 2025, we controlled approximately 171,400 lots as described below.

Previous wording

We controlled approximately 159,000 lots under LPAs with third parties through deposits in cash and letters of credit totaling approximately $792,600 and $4,600, respectively. Included in the number of controlled lots are approximately 12,500 lots for which we have recorded a contract land deposit impairment allowance of approximately $66,700 as of March 31, 2025.

Current wording

We controlled approximately 162,100 lots under LPAs with third parties through deposits in cash and letters of credit totaling approximately $881,900 and $4,200, respectively. Included in the number of controlled lots are approximately 14,000 lots for which we have recorded a contract land deposit impairment allowance of approximately $76,400 as of June 30, 2025.

Previous wording

We had an aggregate investment totaling approximately $37,700 in four JVs, expected to produce approximately 6,050 lots. Of the lots to be produced by the JVs, approximately 5,700 lots were controlled by us and approximately 350 were either under contract with unrelated parties or currently not under contract. We had additional JV funding commitments totaling approximately $12,400 as of March 31, 2025.

Current wording

We had an aggregate investment totaling approximately $65,500 infive JVs, expected to produce approximately 7,300 lots. Of the lots to be produced by the JVs, approximately 6,950 lots were controlled by us and approximately 350 were either under contract with unrelated parties or currently not under contract. We had additional JV funding commitments totaling approximately $13,300 as of June 30, 2025.

Previous wording

We owned land with a carrying value of approximately $70,000 that we intend to develop into approximately 2,900 finished lots.

Current wording

We owned land with a carrying value of approximately $39,500 that we intend to develop into approximately 2,350 finished lots.

Previous wording

In addition, we have certain properties under contract with land owners that are expected to yield approximately 40,300 lots, which are not included in the number of total lots controlled. Some of these properties may require rezoning or other approvals to achieve the expected yield. As of March 31, 2025, these properties are controlled with deposits in cash totaling approximately $31,300, of which approximately $7,600 is refundable if certain contractual conditions are not met. We generally expect to assign the raw land contracts to a land developer and simultaneously enter into an LPA with the assignee if the project is determined to be feasible.

Current wording

In addition, we have certain properties under contract with land owners that are expected to yield approximately 39,600 lots, which are not included in the number of total lots controlled. Some of these properties may require rezoning or other approvals to achieve the expected yield. As of June 30, 2025, these properties are controlled with deposits in cash totaling approximately $32,400, of which approximately $9,600 is refundable if certain contractual conditions are not met. We generally expect to assign the raw land contracts to a land developer and simultaneously enter into an LPA with the assignee if the project is determined to be feasible.

Previous wording

Our consolidated revenues for the first quarter of 2025 totaled $2,403,032, a 3% increase from the first quarter of 2024. Net income for the first quarter ended March 31, 2025 was $299,576, or $94.83 per diluted share, decreases of 24% and 19% when compared to net income and diluted earnings per share in the first quarter of 2024, respectively. Our homebuilding gross profit margin percentage decreased to 21.9% in the first quarter of 2025 from 24.5% in the first quarter of 2024. New orders, net of cancellations (“New Orders”) decreased by 12% in the first quarter of 2025 compared to the first quarter of 2024. The average sales price for New Orders in the first quarter of 2025 was $448.5, a decrease of 1% compared to the first quarter of 2024.

Current wording

Our consolidated revenues for the second quarter of 2025 totaled $2,598,814, a slight decrease from the second quarter of 2024. Net income for the second quarter ended June 30, 2025 was $333,737, or $108.54 per diluted share. For the second quarter ended June 30, 2025, net income decreased 17% and diluted earnings per share decreased 10% when compared to net income and diluted earnings per share for the second quarter of 2024, respectively. Our homebuilding gross profit margin percentage decreased to 21.5% in the second quarter of 2025 from 23.6% in the second quarter of 2024. New orders, net of cancellations (“New Orders”) decreased by 11% in the second quarter of 2025 compared to the second quarter of 2024. The New Order cancellation rate for the second quarter of 2025 increased to 16.5% from 12.9% in the same period in 2024. The average sales price for New Orders remained relatively flat when compared to the same period in the prior year.

Previous wording

Selling, general and administrative (“SG&A”) expense in the first quarter of 2025 increased by approximately $12,600 compared to the first quarter of 2024, and increased as a percentage of revenue to 7.0% from 6.7%. The increase in SG&A expense was primarily attributable to an increase of approximately $10,300 in personnel costs due primarily to increased headcount quarter over quarter.

Current wording

Selling, general and administrative (“SG&A”) expense in the second quarter of 2025 increased by approximately $8,000 compared to the second quarter of 2024, and increased as a percentage of revenue to 5.9% from 5.5%. The increase in SG&A expense was attributable in part to a $3,500 increase in sales and marketing expenses, due to an increase in model home related expenses and advertising costs, coupled with higher overhead costs associated with increased headcount quarter over quarter.

Previous wording

Homebuilding revenues increased 3% in the first quarter of 2025 compared to the same period in 2024, as a result of a 1% increase in the number of units settled coupled with a 2% increase in the average settlement price. The increase in the number of units settled was attributable to a higher backlog turnover rate quarter over quarter. The increase in the average settlement price was primarily attributable to a 4% higher average sales price of units in backlog entering 2025 compared to backlog entering 2024. The gross profit margin percentage in the first quarter of 2025 decreased to 21.9%, compared to 24.5% in the first quarter of 2024. Gross profit margin was negatively impacted by higher lot costs and pricing pressure due to continued affordability challenges. Additionally, gross profit margins were negatively impacted by an approximate $8,100 lot deposit impairment charge in the first quarter of 2025 compared to an approximate $7,500 expense reversal related to previously impaired lot deposits in the first quarter of 2024.

Current wording

Homebuilding revenues increased 1% in the first six months of 2025 compared to the same period in 2024, as a result of a 3% increase in the average settlement price, offset partially by a 1% decrease in the number of units settled. The increase in the average settlement price was primarily attributable to a 4% higher average sales price of units in backlog entering 2025 compared to the backlog entering 2024. The decrease in settlements was attributable to a 3% lower backlog unit balance entering 2025 compared to the backlog unit balance entering 2024. Gross profit margin percentage in the first six months of 2025 decreased to 21.7% from 24.0% in the first six months of 2024. Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges and a lot deposit impairment charge of approximate $21,300 in the first half of 2025. In the first half of 2024, the Company recorded an approximate $8,800 expense reversal related to previously impaired lot deposits.

Previous wording

Our backlog represents homes sold but not yet settled with our customers. As of March 31, 2025, our backlog decreased on a unit basis by 9% to 10,165 units and on a dollar basis by 7% to $4,837,847 when compared to 11,189 units and $5,218,598, respectively, as of March 31, 2024. The decrease in the number of backlog units was primarily attributable to a 3% lower backlog unit balance entering 2025 compared to the backlog unit balance entering 2024 coupled with the aforementioned 12% decrease in new orders quarter over quarter. Backlog dollars were lower primarily due to the decrease in backlog units in 2025.

Current wording

Our backlog represents homes sold but not yet settled with our customers. As of June 30, 2025, our backlog decreased on a unit and dollar basis by 13% to 10,069 units and $4,753,905, respectively, when compared to 11,597 units and $5,454,470, respectively, as of June 30, 2024. The decrease in the number of backlog units was primarily attributable to an 11% decrease in New Orders year over year, coupled with a 3% lower backlog unit balance entering 2025 compared to the backlog unit balance entering 2024. Backlog dollars were lower primarily due to the decrease in backlog units in 2025.

Previous wording

Our backlog may be impacted by customer cancellations for various reasons that are beyond our control, such as failure to obtain mortgage financing, inability to sell an existing home, job loss, or a variety of other reasons. In any period, a portion of the cancellations that we experience are related to new sales that occurred during the same period, and a portion are related to sales that occurred in prior periods and therefore appeared in the opening backlog for the current period. Our first quarter cancellation rate was approximately 16% and 13% for 2025 and 2024, respectively, calculated as the total of all cancellations during the period as a percentage of gross sales during that same period. During the most recent four quarters, approximately 5% of the quarter’s opening backlog cancelled during the fiscal quarter. We can provide no assurance that our historical cancellation rates are indicative of the actual cancellation rate that may occur during the remainder of 2025 or future years. Other than those units that are cancelled, we expect to settle substantially all of our March 31, 2025 backlog within the next twelve months.

Current wording

Our backlog may be impacted by customer cancellations for various reasons that are beyond our control, such as failure to obtain mortgage financing, inability to sell an existing home, job loss, or a variety of other reasons. In any period, a portion of the cancellations that we experience are related to new sales that occurred during the same period, and a portion are related to sales that occurred in prior periods and therefore appeared in the opening backlog for the current period. Our cancellation rate was approximately 16% and 13% in the first six months of 2025 and 2024, respectively, calculated as the total of all cancellations during the period as a percentage of gross sales during the same period. During the most recent four quarters, approximately 6% of a reporting quarter’s opening backlog cancelled during the fiscal quarter. We can provide no assurance that our historical cancellation rates are indicative of the actual cancellation rate that may occur during the remainder of 2025 or future years. Other than units that are cancelled, we expect to settle substantially all of our June 30, 2025 backlog within the next twelve months.

Previous wording

We record impairment charges on contract land deposits when we determine that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are generally charged to the operating segment upon the termination of an LPA with the developer, or the restructuring of an LPA resulting in the forfeiture of the deposit. We evaluate our entire net contract land deposit portfolio for impairment each quarter. For presentation purposes below, the contract land deposit allowance as of March 31, 2025 and December 31, 2024 has been allocated to the respective year’s reportable segments to show contract land deposits on a net basis. The net contract land deposit balances below also include approximately $4,600 and $8,700 as of March 31, 2025 and December 31, 2024, respectively, of letters of credit issued as deposits in lieu of cash.

Current wording

We record charges on contract land deposits when we determine that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are generally charged to the operating segment upon the termination of an LPA with the developer, or the restructuring of an LPA resulting in the forfeiture of the deposit. We evaluate our entire net contract land deposit portfolio for impairment each quarter. For presentation purposes below, the contract land deposit reserve as of June 30, 2025 and December 31, 2024 has been allocated to the respective year’s reportable segments to show contract land deposits on a net basis. The net contract land deposit balances below also include approximately $4,200 and $8,700 as of June 30, 2025 and December 31, 2024, respectively, of letters of credit issued as deposits in lieu of cash.

Previous wording

The following tables summarize certain homebuilding operating activity by reportable segment for the three months ended March 31, 2025 and 2024.

Current wording

The following tables summarize certain homebuilding operating activity by reportable segment for the three and six months ended June 30, 2025 and 2024.

Previous wording

Segment New Orders decreased 18%, while the average sales price of New Orders remained relatively flat in the first quarter of 2025 compared to the first quarter of 2024. New Orders were lower primarily due to a 24% decrease in the average number of active communities, offset partially by a 7% higher sales absorption rate.

Current wording

Segment New Orders and the average sales price of New Orders decreased 16% and 1%, respectively, in the second quarter of 2025 compared to the second quarter of 2024. New Orders were lower primarily due to a 21% decrease in the average number of active communities, offset partially by a 7% higher sales absorption rate.

Previous wording

The Mid Atlantic segment had an approximate $3,100, or 2%, decrease in segment profit in the first quarter of 2025 compared to the first quarter of 2024, due primarily to a decrease in gross profit margins to 24.1% in the first quarter of 2025 from 25.7% in the same period of 2024, offset partially by a 6% increase in revenues quarter over quarter. Gross profit margins were negatively impacted by higher lot costs and pricing pressure due primarily to continued affordability challenges. Segment revenues increased due to a 4% increase in the number of units settled, coupled with a 2% increase in the average settlement price quarter over quarter. The increase in the number of units settled was attributable to a higher backlog turnover rate quarter over quarter. The increase in the average settlement price was primarily attributable to a 4% higher average sales price of units in backlog entering 2025 compared to backlog entering 2024.

Current wording

The Mid Atlantic segment had an approximate $20,900, or 5%, decrease in segment profit in the first six months of 2025 compared to the first six months of 2024. This decrease was due primarily to a decrease in gross profit margins to 23.8% in the first six months of 2025 from 25.2% in the first six months of 2024, offset partially by a 3% increase in segment revenues. Gross profit margins were negatively impacted by higher lot costs and pricing pressure due primarily to continued affordability challenges. Segment revenues increased due to a 3% higher average settlement price in 2025 compared to 2024 attributable primarily to a 4% higher average sales price of units in backlog entering 2025 compared to backlog entering 2024.

Previous wording

The North East segment had an approximate $8,300, or 18%, increase in segment profit in the first quarter of 2025 compared to the first quarter of 2024, due primarily to an increase in segment revenues of approximately $33,200, or 13%. Segment revenues increased due primarily to an 11% increase in the average settlement price quarter over quarter, attributable to a 9% higher average price of units in backlog entering 2025 compared to backlog entering 2024. The segment’s gross profit margin percentage remained relatively flat quarter over quarter.

Current wording

The North East segment had an approximate $11,800, or 12%, increase in segment profit in the first six months of 2025 compared to the first six months of 2024, due primarily to an increase in segment revenue of approximately $54,800, or 10%. Segment revenues were favorably impacted by an 11% increase in the average settlement price year over year. The increase in the average settlement price was primarily attributable to a 9% higher average sales price of units in backlog entering 2025 compared to backlog entering 2024. The segment's gross profit margin percentage remained relatively flat year over year.

Previous wording

The number of New Orders decreased 12% and the average sales price decreased 1% in the first quarter of 2025 compared to the first quarter of 2024. New Orders were negatively impacted by a 6% decrease in the average number of active communities and a lower sales absorption rate, due in part to a higher cancellation rate quarter over quarter. The decrease in the average sales price of New Orders is primarily attributable to a shift in New Orders to our South East segment, which has lower average sales prices than our other segments.

Current wording

Segment New Orders decreased 14% while the average sales price of New Orders increased 4% in the first six months of 2025 compared to the first six months of 2024. New Orders were negatively impacted by a 6% decrease in the number of active communities and an 8% lower sales absorption rate year over year. The average sales price of New Orders was favorably impacted by a shift to higher priced communities in certain markets within the segment year over year.

Previous wording

Segment New Orders increased 1% while the average sales price of New Orders decreased 4% in the first quarter of 2025 when compared to the first quarter of 2024. The increase in New Orders was primarily attributable to a 20% increase in average number of active communities, offset by a 16% lower absorption rate within the segment quarter over quarter. Both the absorption rate and the average sales price of New Orders have been negatively impacted by rising inventory levels in several of the markets within the segment.

Current wording

Segment New Orders and the average sales price of New Orders decreased 4% and 1%, respectively, in the second quarter of 2025 compared to the second quarter of 2024. New Orders were negatively impacted by a 23% lower absorption rate, offset partially by the aforementioned increase in the average number of active communities within the segment quarter over quarter. Both the absorption rate and the average sales price of New Orders have been negatively impacted by rising resale and new home inventory in several of the markets within the segment.

Previous wording

The South East segment had an approximate $45,700, or 50%, decrease in segment profit in the first quarter of 2025 compared to the first quarter of 2024. The decrease in segment profit was primarily due to a decrease in the segment's gross profit margin percentage, a decrease in segment revenues and an increase in SG&A expenses. The segment’s gross profit margin percentage decreased to 19.7% in the first quarter of 2025 from 24.5% in the first quarter of 2024. Gross profit margins were negatively impacted by higher lot costs, an increase in certain operating costs, and by pricing pressure attributable to continued affordability challenges. Segment revenues decreased approximately $29,100, or 5%, quarter over quarter primarily due to a 4% decrease in the average settlement price. The decrease in the average settlement price was attributable to a 1% lower average sales price of units in backlog entering 2025 compared to backlog entering 2024, and a shift in settlements to lower priced markets within the segment. SG&A expenses were 22% higher quarter over quarter, resulting primarily from higher personnel costs and by higher marketing costs associated a 20% increase in the average number of active communities.

Current wording

The South East segment had an approximate $88,600, or 48%, decrease in segment profit in the first six months of 2025 compared to the first six months of 2024. The decrease in segment profit was primarily due to a decrease in the segment's gross profit margin percentage, a decrease in segment revenues and an increase in SG&A expenses. The segment's gross profit margin percentage decreased to 19.2% in the first six months of 2024 from 23.3% in the first six months of 2024. Gross profit margins were negatively impacted by higher lot costs, an increase in certain operating costs, and by pricing pressure attributable to continued affordability challenges. Segment revenues decreased by approximately $61,500, or 5%, due to a 3% decrease in the number of units settled, coupled with a 2% decrease in the average settlement price. The decrease in settlements is attributable to an 11% lower backlog unit balance entering 2025 compared to the backlog entering 2024, offset partially by a higher backlog turnover rate year over year. The decrease in the average settlement price is primarily attributable to a 1% lower average sales price of homes in backlog entering 2025 compared to backlog entering 2024. SG&A expenses were 20% higher year over year, resulting primarily from higher personnel and marketing costs attributable to a 23% increase in the average number of active communities quarter over quarter.

Previous wording

(1)This item represents changes to the contract land deposit impairment allowance, which are not allocated to the reportable segments. See further discussion of lot deposit impairment charges in Note 2 in the accompanying condensed consolidated financial statements.

Current wording

(1)This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. See further discussion of lot deposit impairment charges in Note 2 in the accompanying condensed consolidated financial statements.

Previous wording

We conduct our mortgage banking activity through NVR Mortgage Finance, Inc. (“NVRM”), a wholly owned subsidiary. NVRM focuses exclusively on serving the homebuilding segment customer base. NVRM sells the loans it originates into the secondary markets primarily on a servicing-released basis, typically within 30 days from the loan closing. The following table summarizes the results of our mortgage banking operations and certain statistical data for the three months ended March 31, 2025 and 2024:

Current wording

We conduct our mortgage banking activity through NVR Mortgage Finance, Inc. (“NVRM”), a wholly owned subsidiary. NVRM focuses exclusively on serving the homebuilding segment's customers. NVRM sells almost all of the mortgage loans it closes to investors in the secondary markets on a servicing-released basis, typically within 30 days from the loan closing. The following table summarizes the results of our mortgage banking operations and certain statistical data for the three and six months ended June 30, 2025 and 2024:

Previous wording

Loan closing volume for the three months ended March 31, 2025 increased by approximately $54,900, or 4%, from the same period in 2024. The increase in loan closing volume during the three months ended March 31, 2025 was primarily attributable to the 4% increase in the average principal amount per loan closed in the first quarter of 2025 compared to the first quarter of 2024.

Current wording

Loan closing volume for the three and six months ended June 30, 2025 increased by approximately $25,200, or 2%, and $80,100, or 3%, respectively, from the same periods in 2024. The increase in loan closing volume during the three and six months ended June 30, 2025 was primarily attributable to higher average loan amounts in the respective periods.

Previous wording

Our effective tax rate during the three months ended March 31, 2025 was 25.5% compared to 16.2% for the three months ended March 31, 2024. The increase in the effective tax rate in the first quarter of 2025 is primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled approximately $2,700 and $43,800 for the three months ended March 31, 2025 and March 31, 2024, respectively.

Current wording

Our effective tax rate for the three and six month periods ended June 30, 2025 was 25.4%, in each respective period, compared to 24.9% and 20.8% for the three and six months ended June 30, 2024, respectively. The increase in the effective tax rate in the three and six month periods ended June 30, 2025 compared to the same periods in 2024 was primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled approximately $3,500 and $6,200 for the three and six months ended June 30, 2025, respectively, and approximately $6,800 and $50,600 for the three and six months ended June 30, 2024, respectively.

Previous wording

We fund our operations primarily from our current cash holdings and cash flows generated by operating activities. In addition, we have available a short-term unsecured working capital revolving credit facility and revolving mortgage repurchase facility, as further described below. As of March 31, 2025, we had approximately $2,200,000 in cash and cash equivalents, approximately $289,300 in unused committed capacity under our revolving credit facility and $150,000 in unused committed capacity under our revolving mortgage repurchase facility.

Current wording

We fund our operations primarily from our current cash holdings and cash flows generated by operating activities. In addition, we have available a short-term unsecured working capital revolving credit facility and revolving mortgage repurchase facility, as further described below. As of June 30, 2025, we had approximately $1,800,000 in cash and cash equivalents, approximately $289,700 in unused committed capacity under our revolving credit facility and $150,000 in unused committed capacity under our revolving mortgage repurchase facility.

Previous wording

(i) Payments due to service our debt and interest on that debt. Our current outstanding Senior Notes total $900,000 and mature in May 2030. Future interest payments on our outstanding Senior Notes total approximately $145,050, with $27,000 due within the next twelve months.

Current wording

(i) Payments due to service our debt and interest on that debt. Our Senior Notes have an outstanding aggregate principal balance of $900,000 and mature in May 2030. Future interest payments on our outstanding Senior Notes total $131,550, with $27,000 due within the next twelve months.

Previous wording

(ii) Payment obligations totaling approximately $627,000 under existing LPAs for deposits to be paid to land developers, assuming that contractual development milestones are met by the developers and we exercise our option to acquire finished lots under those LPAs. We expect to make the majority of these payments within the next three years.

Current wording

(ii) Payment obligations totaling approximately $598,900 under existing LPAs for deposits to be paid to land developers, assuming that contractual development milestones are met by the developers and we exercise our option to acquire finished lots under those LPAs. We expect to make the majority of these payments within the next three years.

Previous wording

(iii) Obligations under operating and finance leases related primarily to office space and our production facilities (see Note 13 of this Form 10-Q for additional discussion of our leases).

Current wording

(iii) Obligations under operating and finance leases related primarily to office space and our production facilities. See Note 13 of this Quarterly Report on Form 10-Q for additional discussion of our leases.

Previous wording

In addition to funding growth in our homebuilding and mortgage banking operations, we historically have used a substantial portion of our excess liquidity to repurchase outstanding shares of our common stock in open market and privately negotiated transactions. This ongoing repurchase program assists us in accomplishing our primary objective, creating increases in shareholder value. See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, of this Form 10-Q for further discussion of repurchase activity during the first quarter of 2025. For the quarter ended March 31, 2025, we repurchased 77,120 shares of our common stock at an aggregate purchase price of $583,394. As of March 31, 2025, we had approximately $284,800 available under Board approved repurchase authorizations.

Current wording

In addition to funding growth in our homebuilding and mortgage banking operations, we historically have used a substantial portion of our excess liquidity to repurchase outstanding shares of our common stock in open market and privately negotiated transactions. This ongoing repurchase program assists us in accomplishing our primary objective, creating increases in shareholder value. See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, of this Quarterly Report on Form 10-Q for further discussion of repurchase activity during the second quarter of 2025. For the six months ended June 30, 2025, we repurchased 142,954 shares of our common stock at an aggregate purchase price of $1,054,807. As of June 30, 2025, we had approximately $563,400 available under Board approved repurchase authorizations.

Previous wording

NVRM has an unsecured revolving mortgage repurchase facility (the “Repurchase Agreement”) which provides for aggregate borrowings up to $150,000 and is non-recourse to NVR. The Repurchase Agreement expires on July 14, 2025. As of March 31, 2025, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement. There were no borrowings outstanding under the Repurchase Agreement as of March 31, 2025. Prior to its expiration, we expect to renew the Repurchase Agreement with terms substantially similar to those in the current agreement.

Current wording

NVRM has an unsecured revolving mortgage repurchase facility (the "Repurchase Agreement") which provides for aggregate borrowings up to $150,000 and is non-recourse to NVR. In July 2025, NVRM entered into the Fourth Amendment to Second Amended and Restated Master Repurchase Agreement, which extended the term of the Repurchase Agreement through July 10, 2026. All other terms and conditions under the amended Repurchase Agreement remained materially consistent. As of June 30, 2025, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement. There were no borrowings outstanding under the Repurchase Agreement as of June 30, 2025.

Previous wording

There have been no changes to our Repurchase Agreement during the three months ended March 31, 2025. For additional information regarding lines of credit and senior notes, see Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

For additional information regarding the Senior Notes, Credit Agreement and Repurchase Agreement, see Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Previous wording

For the three months ended March 31, 2025, cash, restricted cash, and cash equivalents decreased by $376,757. Net cash provided by operating activities was $207,781, due primarily to cash provided by earnings for the three months ended March 31, 2025 and an increase in accounts payable and accrued expenses of $55,502. Cash was primarily used to fund the increase in inventory of $51,665, attributable to an increase in units under construction as of March 31, 2025 compared to December 31, 2024, and net mortgage loan activity of $59,685.

Current wording

For the six months ended June 30, 2025, cash, restricted cash, and cash equivalents decreased by $834,742. Net cash provided by operating activities was $242,886 for the six months ended June 30, 2024, due primarily to cash provided by earnings. Cash was primarily used to fund the increase in inventory of $111,333, attributable to an increase in units under construction as of June 30, 2025 compared to December 31, 2024 and to fund the $132,440 increase in contract land deposits.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025 was $15,016. Cash was used primarily for investments in unconsolidated joint ventures totaling $8,167 and purchases of property, plant and equipment of $7,059.

Current wording

Net cash used in investing activities for the six months ended June 30, 2025 was $50,264. Cash was used primarily for investments in unconsolidated joint ventures totaling $35,350 and purchases of property, plant and equipment of $15,362.

Previous wording

Net cash used in financing activities was $569,522 for the three months ended March 31, 2025. Cash was used to repurchase 77,120 shares of our common stock at an aggregate purchase price of $583,394 under our ongoing common stock repurchase program, discussed above. Cash was provided from stock option exercise proceeds totaling $14,938.

Current wording

Net cash used in financing activities was $1,027,364 for the six months ended June 30, 2025. Cash was used to repurchase 142,954 shares of our common stock at an aggregate purchase price of $1,054,807 under our ongoing common stock repurchase program, discussed above. Cash was provided from stock option exercise proceeds totaling $29,662.

Previous wording

There have been no material changes to our critical accounting policies and estimates as previously disclosed in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

There have been no material changes to our critical accounting estimates as previously disclosed in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.