Century Communities, Inc.
For the period ended Dec 31, 2025. Filed Jan 29, 2026.
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FY2025 · Filed Jan 29, 2026
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Report of Independent Registered Public Accounting Firm (PCAOB 00042)
Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of Century Communities, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Century Communities, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January 28, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
| Indicators of Impairment of Homebuilding Inventories | |
| Description of the Matter | At December 31, 2025, the Company reported inventories of approximately $3.4 billion. The Company’s inventories are inclusive of pre-acquisition, land, land development, and other allocated costs, including interest, during periods of entitlement, development and home construction. As more fully described in Note 1 to the consolidated financial statements, the Company reviews for events or circumstances that indicate the carrying amount of its homebuilding inventories may be impaired. The evaluation of indicators of impairment includes, but is not limited to, judgments based on factors such as significant decreases in local housing market values, significant decreases to gross margins, costs significantly in excess of budget, and operating cash flow losses. The Company recorded inventory impairment charges of $21.8 million during the year ended December 31, 2025. Auditing the Company’s evaluation for indicators of impairment requires a higher degree of auditor judgment in the identification and evaluation of events or changes in circumstances that may indicate the carrying amount of a community’s inventory balance is not recoverable. Differences or changes in these judgments could have a material impact on the Company’s analysis. |
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| How We Addressed the Matter in Our Audit | We tested the Company’s internal controls over the inventory impairment evaluation process, including controls over management’s determination and review of the information used in the impairment indicator analysis. Our audit procedures to test the Company's evaluation for indicators of impairment included, among others, evaluating management’s judgments applied in determining whether indicators of impairment were present and testing the completeness and accuracy of information used in management’s assessment. We also independently evaluated internal and external information to identify communities with potential indicators of impairment, considering historical operating results and current market conditions; performed inquiries of management including personnel involved in operations; and inspected meeting minutes and materials provided to the Board of Directors to identify information relevant to the impairment evaluation. |
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/s/Ernst & Young LLP
We have served as the Company’s auditor since 2013.
Denver, Colorado
January 28, 2026
Consolidated B
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