LGI Homes, Inc.
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
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.
Sep 30, 2025 · Filed Nov 4, 2025
LGIH$45.57-3.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001580670-25-000058
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP MeasuresCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001580670-25-000076
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP MeasuresThe 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 201 previous paragraphs and 211 current paragraphs.
116 unchanged; 62 reworded; 30 added; 22 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 10 previous and 11 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 (30)
Current report
Our third quarter 2025 results were achieved against a challenging macroeconomic backdrop that included elevated mortgage rates, persistent inflation, and a government shutdown. Throughout the quarter, we continued executing on our strategy of delivering affordable homes to entry-level buyers across our markets. Although mortgage rates have trended downward since June, they continue to be a key pressure point for entry-level buyers. Additionally, subdued consumer sentiment continues to impact buyers’ willingness to purchase new homes. In response, we continued offering affordable, move-in ready homes supported by financial incentives and discounts on older inventory. These strategies are designed to bridge the ongoing affordability gap and make homeownership accessible to as many customers as possible.
Current report
For the nine months ended September 30, 2025, we closed 3,384 homes, compared to 4,495 homes during the nine months ended September 30, 2024.
Current report
Impact of October 2025 U.S. Government Shutdown
Current report
During October 2025, the U.S. federal government experienced a partial shutdown that affected several agencies and regulatory functions. While LGI Homes’ core operations continued uninterrupted, we have identified certain areas where the shutdown may have implications for our business and financial reporting:
Current report
Government-Backed Mortgage Programs: LGI Homes serves a significant number of entry-level and first-time homebuyers who utilize federally backed mortgage programs, including FHA and VA loans. During the shutdown, we observed delays in loan processing and approvals, which may impact the timing of certain home closings and backlog conversion in future periods. In addition to delays in FHA and VA loan processing, the government shutdown has impacted USDA loan programs, which are a critical financing option for many of our entry-level buyers in rural and suburban markets. The disruption in USDA loan approvals may result in delayed closings and increased cancellations.
Current report
Economic Data Availability: The shutdown disrupted the release of key economic indicators, including employment and inflation data, which are typically used to inform our market outlook and strategic planning. As a result, our forward-looking statements and guidance may reflect increased uncertainty.
Current report
Affordable Housing and Development Approvals: For communities involving federal funding or oversight, including certain affordable housing initiatives, we may experience delays in approvals and contract processing. While these delays were not material to our results for the third quarter of 2025, extended disruptions could affect future development timelines and revenue recognition.
Current report
We continue to monitor the situation closely and will provide updates in future filings should the shutdown or its effects materially impact our operations, financial condition, or results of operations.
Current report
•Home sales revenues decreased 39.2% to $396.6 million from $651.9 million.
Current report
•Homes closed decreased 39.4% to 1,065 homes from 1,757 homes.
Current report
•Gross margin as a percentage of home sales revenues decreased to 21.5% from 25.1%.
Current report
•Net income before income taxes decreased 70.9% to $26.7 million from $91.9 million.
Current report
•Net income decreased 71.7% to $19.7 million from $69.6 million.
Current report
•EBITDA (non-GAAP) as a percentage of home sales revenues decreased to 9.8% from 16.2%.
Current report
•Home sales revenues decreased 25.1% to $1.2 billion from $1.6 billion.
Current report
•Homes closed decreased 24.7% to 3,384 homes from 4,495 homes.
Current report
•Average sales price per home closed decreased 0.6% to $363,929 from $366,007.
Current report
•Gross margin as a percentage of home sales revenues decreased to 21.9% from 24.7%.
Current report
•Net income before income taxes decreased 61.2% to $74.5 million from $191.8 million.
Current report
•Net income decreased 62.0% to $55.2 million from $145.2 million.
Current report
•EBITDA (non-GAAP) as a percentage of home sales revenues decreased to 8.8% from 13.6%.
Current report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Current report
Operating Income and Net Income before Income Taxes. Operating income for the nine months ended September 30, 2025 was $61.3 million, a decrease of $105.3 million, or 63.2%, from $166.6 million for the nine months ended September 30,
Current report
Net debt to capital ratio is a non-GAAP financial measure used by management as a supplemental measure in understanding the leverage employed in our operations and as an indicator of our ability to obtain financing. We define net debt to capital ratio as net debt (which is total debt minus cash and cash equivalents) divided by net debt plus total equity. Our management believes that the presentation of net debt to capital ratio provides useful information to investors regarding the Company’s financial leverage and its ability to meet long-term obligations. By excluding cash and cash equivalents from total debt, the ratio offers a clearer view of our capital structure and financial flexibility. Our management uses this metric to monitor our capital efficiency and to evaluate the effectiveness of our capital management strategies over time. Other companies may define this measure differently and, as a result, our measure of net debt to capital ratio may not be directly comparable to the measures of other companies.
Current report
The following table reconciles net debt to capital ratio (a non-GAAP financial measure) to debt to capital ratio, which is the GAAP financial measure that our management believes to be most directly comparable (dollars in thousands):
Current report
(1) Net debt to capital ratio is calculated as net debt (which is total debt minus cash and cash equivalents) divided by net debt plus total equity.
Current report
Our net orders decreased for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to lower demand in the first six months of the year. The number of homes in our backlog at September 30, 2025 increased 19.9% compared to September 30, 2024. The increase generally relates to management’s focus on newly implemented sales initiatives, an increase in sales personnel and an increase in community count, partially offset by ongoing affordability constraints and the limited use of incentives during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.
Current report
As of September 30, 2025, our net debt to capital ratio was 44.8%. We use this ratio as a supplemental measure of financial leverage and capital efficiency. This ratio is calculated as net debt (which is total debt minus cash and cash equivalents) divided by net debt plus total equity. Our net debt to capital ratio reflects our balanced approach to financing growth while maintaining liquidity. We continue to monitor leverage levels in light of evolving market conditions to keep an eye on capital efficiency and shareholder value. At September 30, 2025, we were in compliance with all of the covenants contained in the Credit Agreement, including minimum tangible net worth, maximum leverage ratio, minimum liquidity amount, and minimum EBITDA to interest expense ratio, and with all of the covenants contained in the Loan Agreement. As of September 30, 2025, $367.9 million was available to borrow under the Credit Agreement, providing ample liquidity to support operations and growth initiatives.
Removed paragraphs (22)
Previous report
Our results in the second quarter of 2025 were achieved against a challenging macroeconomic backdrop. Mortgage rates have remained persistently high, straining affordability and while the demand environment remains positive, muted consumer sentiment is impacting customers’ willingness to purchase new homes. Against this backdrop, we continued to offer buyers financial incentives in an effort to bridge the affordability gap and put homeownership within reach of as many customers as possible while preserving margins at our targeted level. During the six months ended June 30, 2025, we had 2,319 home closings, compared to 2,738 home closings during the six months ended June 30, 2024.
Previous report
Amendment to June 2025 Credit Agreement
Previous report
On August 1, 2025, we entered into the Letter Agreement Amendment, which amended the June 2025 Credit Agreement. The Letter Agreement Amendment, among other things, amended (i) the borrowing base by removing model housing units from the borrowing base sublimit, (ii) the financial covenants to (a) decrease the minimum EBITDA to interest expense ratio through December 31, 2026, (b) increase the minimum liquidity amount, (c) decrease the maximum leverage ratio through December 31, 2026 and (d) delete the covenant related to limitations on wholesale sales contracts, (iii) the permitted secured debt basket by increasing the available capacity thereunder and (iv) the restricted payment covenant to restrict the repurchase of shares and payment of dividends through December 31, 2026, subject to the terms and conditions set forth therein. For additional information on the Credit Agreement (including defined terms used in this paragraph), see Note 4, “Notes Payable” to our consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Previous report
LGI Living Loan Agreement
Previous report
One Big Beautiful Bill Act
Previous report
On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform provisions affecting corporations. The OBBBA, among other changes, terminates the energy efficient homes tax credit for homes closing after June 30, 2026. However, none of these tax law changes are expected to have an impact on the consolidated financial statements beginning in the period in which the OBBBA was signed into law.
Previous report
•Home sales revenues decreased 19.8% to $483.5 million from $602.5 million.
Previous report
•Homes closed decreased 20.1% to 1,323 homes from 1,655 homes.
Previous report
•Gross margin as a percentage of home sales revenues decreased to 22.9% from 25.0%.
Previous report
•Net income before income taxes decreased 45.3% to $42.0 million from $76.9 million.
Previous report
•Net income decreased 46.2% to $31.5 million from $58.6 million.
Previous report
•EBITDA (non-GAAP) as a percentage of home sales revenues decreased to 11.4% from 14.7%.
Previous report
•Home sales revenues decreased 16.0% to $834.9 million from $993.3 million.
Previous report
•Homes closed decreased 15.3% to 2,319 homes from 2,738 homes.
Previous report
•Average sales price per home closed decreased 0.8% to $360,028 from $362,801.
Previous report
•Gross margin as a percentage of home sales revenues decreased to 22.1% from 24.4%.
Previous report
•Net income before income taxes decreased 52.2% to $47.8 million from $100.0 million.
Previous report
•Net income decreased 53.0% to $35.5 million from $75.6 million.
Previous report
•EBITDA (non-GAAP) as a percentage of home sales revenues decreased to 8.4% from 11.9%.
Previous report
Home sales revenues for the three months ended June 30, 2025 were $483.5 million, a decrease of $119.0 million, or 19.8%, from $602.5 million for the three months ended June 30, 2024. The decrease in home sales revenues was primarily due to a 20.1% decrease in homes closed, partially offset by a 0.4% increase in the average sales price per home closed during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The overall decrease in home closings was a result of a lower absorption rate, partially offset by a higher average community count, during the three months ended
Previous report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Previous report
Our net orders decreased for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to ongoing affordability constraints and other challenges in the overall housing market including muted consumer sentiment impacting customers’ willingness to purchase new homes. As a result of the slower sales pace, the number of homes in our backlog at June 30, 2025 decreased 42.0% compared to June 30, 2024.
Reworded paragraphs (62)
Previous wording
We sell homes under the LGI Homes and Terrata Homes brands. Our 146 active communities at June 30, 2025 included 16 Terrata Homes communities. At June 30, 2024, we had 128 active communities, including 17 Terrata Homes communities.
Current wording
We sell homes under the LGI Homes and Terrata Homes brands. Our 141 active communities at September 30, 2025 included 14 Terrata Homes communities. At September 30, 2024, we had 138 active communities, including 18 Terrata Homes communities.
Previous wording
•Average sales price per home closed increased 0.4% to $365,446 from $364,047.
Current wording
•Average sales price per home closed increased 0.4% to $372,424 from $371,004.
Previous wording
•Adjusted gross margin (non-GAAP) as a percentage of home sales revenues decreased to 25.5% from 27.0%.
Current wording
•Adjusted gross margin (non-GAAP) as a percentage of home sales revenues decreased to 24.5% from 27.2%.
Previous wording
Key financial results as of and for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, were as follows:
Current wording
Key financial results as of and for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, were as follows:
Previous wording
•Adjusted gross margin (non-GAAP) as a percentage of home sales revenues decreased to 24.7% from 26.3%.
Current wording
•Adjusted gross margin (non-GAAP) as a percentage of home sales revenues decreased to 24.6% from 26.7%.
Previous wording
We owned and controlled 64,756 lots at June 30, 2025 as compared to 67,792 lots at March 31, 2025 and 70,899 lots at December 31, 2024.
Current wording
We owned and controlled 62,564 lots at September 30, 2025 as compared to 64,756 lots at June 30, 2025 and 70,899 lots at December 31, 2024.
Previous wording
The following table sets forth our results of operations for the three and six months ended June 30, 2025 and 2024:
Current wording
The following table sets forth our results of operations for the three and nine months ended September 30, 2025 and 2024:
Previous wording
June 30, 2025 as compared to the three months ended June 30, 2024. The overall increase in average community count relates to timing associated with new community openings, offset by the close out of some communities and transition between certain active communities during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The average sales price per home closed during the three months ended June 30, 2025 was $365,446, an increase of $1,400, or 0.4%, from the average sales price per home closed of $364,047 for the three months ended June 30, 2024. The increase in the average sales price per home closed was primarily due to geographic mix. The overall decrease in absorption rate generally relates to the impact of ongoing affordability constraints, new community openings, and the overall increase in community count.
Current wording
Home sales revenues for the three months ended September 30, 2025 were $396.6 million, a decrease of $255.2 million, or 39.2%, from $651.9 million for the three months ended September 30, 2024. The decrease in home sales revenues was primarily due to a 39.4% decrease in the number of homes closed during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The overall decrease in home closings was a result of a lower absorption rate, partially offset by a higher average community count, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The overall increase in average community count relates to timing associated with new community openings, offset by the close out of some communities and transition between certain active communities during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The average sales price per home closed during the three months ended September 30, 2025 was $372,424, an increase of $1,420, or 0.4%, from the average sales price per home closed of $371,004 for the three months ended September 30, 2024. The increase in the average sales price per home closed was primarily due to geographic mix and a decrease in sales incentives. The overall decrease in absorption rate generally relates to the impact of ongoing affordability constraints, new community openings, and the overall increase in community count.
Previous wording
Included within our home sales revenues for the three months ended June 30, 2025 was $71.4 million in wholesale revenues resulting from 237 home closings, representing 17.9% of the 1,323 total homes closed during the three months ended June 30, 2025. Included within our home sales revenues for the three months ended June 30, 2024 was $35.7 million in wholesale revenues resulting from 117 home closings, representing 7.1% of the 1,655 total homes closed during the three months ended June 30, 2024. The increase in home closings as a percentage of revenues through our wholesale channel was primarily related to higher demand from our wholesale channel customers during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.
Current wording
Included within our home sales revenues for the three months ended September 30, 2025 was $54.5 million in wholesale revenues resulting from 163 home closings, representing 15.3% of the 1,065 total number of homes closed during the three months ended September 30, 2025. Included within our home sales revenues for the three months ended September 30, 2024 was $49.5 million in wholesale revenues resulting from 160 home closings, representing 9.1% of the 1,757 total number of homes closed during the three months ended September 30, 2024. The increase in home closings as a percentage of revenues through our wholesale channel was primarily related to lower retail demand during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.
Previous wording
•Home sales revenues in our Central reportable segment decreased by $60.4 million, or 34.9%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to a 32.7% decrease in the number of homes closed and a 3.2% decrease in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Current wording
•Home sales revenues in our Central reportable segment decreased by $65.1 million, or 39.6%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to a 39.7% decrease in the number of homes closed, partially offset by an increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate and a decrease in the average community count.
Previous wording
•Home sales revenues in our Southeast reportable segment increased by $14.7 million, or 10.8%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to an 11.2% increase in the number of homes closed, partially offset by a 0.3% decrease in the average sales price per home closed. The increase in home closings was the result of an increase in the average community count, partially offset by a lower absorption rate.
Current wording
•Home sales revenues in our Southeast reportable segment decreased by $53.8 million, or 34.7%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to a 35.8% decrease in the number of homes closed, partially offset by an increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Previous wording
•Home sales revenues in our Northwest reportable segment decreased by $16.5 million, or 15.8%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to a 14.9% decrease in the number of homes closed and a 1.0% decrease in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Current wording
•Home sales revenues in our Northwest reportable segment decreased by $33.7 million, or 40.5%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to a 27.3% decrease in the number of homes closed and an 18.1% decrease in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Previous wording
•Home sales revenues in our West reportable segment decreased by $27.8 million, or 21.7%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to a 25.3% decrease in the number of homes closed, partially offset by a 4.8% increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Current wording
•Home sales revenues in our West reportable segment decreased by $58.9 million, or 39.1%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to a 43.8% decrease in the number of homes closed, partially offset by an 8.2% increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Previous wording
•Home sales revenues in our Florida reportable segment decreased by $30.8 million, or 31.6%, during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to a 34.4% decrease in the number of homes closed, partially offset by a 4.3% increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Current wording
•Home sales revenues in our Florida reportable segment decreased by $43.8 million, or 44.4%, during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, primarily due to a 45.8% decrease in the number of homes closed, partially offset by an increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Previous wording
Cost of Sales and Gross Margin (home sales revenues less cost of sales). Cost of sales for the three months ended June 30, 2025 was $372.9 million, a decrease of $78.7 million, or 17.4%, from $451.6 million for the three months ended June 30, 2024. This overall decrease was primarily due to a 20.1% decrease in homes closed. Gross margin for the three months ended June 30, 2025 was $110.6 million, a decrease of $40.3 million, or 26.7%, from $150.9 million for the three months ended June 30, 2024. Gross margin as a percentage of home sales revenues was 22.9% for the three months ended June 30, 2025 and 25.0% for the three months ended June 30, 2024. The decrease in gross margin as a percentage of home sales revenues was primarily due to a higher number of wholesale closings, higher lot costs, higher capitalized interest, and higher indirect overhead as a percentage of revenue, partially offset by a decrease in sales incentives offered during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.
Current wording
Cost of Sales and Gross Margin (home sales revenues less cost of sales). Cost of sales for the three months ended September 30, 2025 was $311.5 million, a decrease of $176.8 million, or 36.2%, from $488.4 million for the three months ended September 30, 2024. This overall decrease was primarily due to a 39.4% decrease in the number of homes closed. Gross margin for the three months ended September 30, 2025 was $85.1 million, a decrease of $78.4 million, or 47.9%, from $163.5 million for the three months ended September 30, 2024. Gross margin as a percentage of home sales revenues was 21.5% for the three months ended September 30, 2025 and 25.1% for the three months ended September 30, 2024. The decrease in gross margin as a percentage of home sales revenues was primarily due to higher lot costs, higher capitalized interest and higher indirect overhead, partially offset by the impact of lower sales incentives offered during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.
Previous wording
Selling Expenses. Selling expenses for the three months ended June 30, 2025 were $41.6 million, a decrease of $11.3 million, or 21.3%, from $52.9 million for the three months ended June 30, 2024. The decrease in selling expenses was primarily due to a decrease in sales commissions and, to a lesser extent, personnel expenses. Sales commissions decreased to $18.9 million for the three months ended June 30, 2025 from $27.2 million for the three months ended June 30, 2024, primarily due to a 19.8% decrease in home sales revenues during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Selling expenses as a percentage of home sales revenues were 8.6% and 8.8% for the three months ended June 30, 2025 and 2024, respectively. The decrease in selling expenses as a percentage of home sales revenues was primarily due to lower commissions and other personnel expenses during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.
Current wording
Selling Expenses. Selling expenses for the three months ended September 30, 2025 were $35.7 million, a decrease of $19.5 million, or 35.4%, from $55.2 million for the three months ended September 30, 2024. The decrease in selling expenses was primarily due to a decrease in the number of homes closed for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. Sales commissions decreased to $15.2 million for the three months ended September 30, 2025 from $27.6 million for the three months ended September 30, 2024, primarily due to a decrease in the number of homes closed. Selling expenses as a percentage of home sales revenues were 9.0% and 8.5% for the three months ended September 30, 2025 and 2024, respectively. The increase in selling expenses as a percentage of home sales revenues was primarily due to a decrease in home sales revenues during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.
Previous wording
General and Administrative. General and administrative expenses for the three months ended June 30, 2025 were $29.4 million, a decrease of $1.1 million, or 3.6%, from $30.5 million for the three months ended June 30, 2024. The decrease in general and administrative expenses was primarily due to a decrease in indirect overhead expenses and bonuses, partially offset by an increase in other expenses. General and administrative expenses as a percentage of home sales revenues were 6.1% and 5.1% during the three months ended June 30, 2025 and 2024, respectively. The increase in general and administrative expenses as a percentage of home sales revenues was primarily due to lower home sales revenues during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.
Current wording
General and Administrative. General and administrative expenses for the three months ended September 30, 2025 were $28.0 million, which was consistent with $28.0 million for the three months ended September 30, 2024. General and administrative expenses as a percentage of home sales revenues were 7.1% and 4.3% during the three months ended September 30, 2025 and 2024, respectively. The increase in general and administrative expenses as a percentage of home sales revenues was primarily due to lower home sales revenues during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.
Previous wording
Other Income, Net. Other income, net of other expenses was $2.4 million for the three months ended June 30, 2025, a decrease of $6.9 million from $9.4 million for the three months ended June 30, 2024. The decrease in other income, net of other expenses, primarily reflects the decrease in income associated with our investment in unconsolidated entities, the decrease in interest income and the decrease in gains realized from the sale of residential lots not directly associated with our core homebuilding operations.
Current wording
Other Income, Net. Other income, net of other expenses was $5.2 million for the three months ended September 30, 2025, a decrease of $6.3 million from $11.5 million for the three months ended September 30, 2024. The decrease in other income, net of other expenses, primarily reflects the decrease in income associated with our investment in unconsolidated entities and the decrease in interest income recognized.
Previous wording
Operating Income and Net Income before Income Taxes. Operating income for the three months ended June 30, 2025 was $39.6 million, a decrease of $27.9 million, or 41.3%, from $67.5 million for the three months ended June 30, 2024. Net income before income taxes for the three months ended June 30, 2025 was $42.0 million, a decrease of $34.8 million, or 45.3%, from $76.9 million for the three months ended June 30, 2024. The overall decreases in operating income and net income before income taxes were primarily due to overall lower home closings at a lower absorption rate, lower gross margin and higher indirect overhead expenses associated with the increase in average community count during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Our reportable segments contributed to net income before income taxes during the three months ended June 30, 2025 as follows: Central - $9.1 million, or 21.5%; Southeast - $18.2 million, or 43.2%; Northwest - $2.2 million, or 5.2%; West - $10.7 million, or 25.5%; and Florida - $1.9 million, or 4.6%.
Current wording
Operating Income and Net Income before Income Taxes. Operating income for the three months ended September 30, 2025 was $21.5 million, a decrease of $58.8 million, or 73.2%, from $80.3 million for the three months ended September 30, 2024. Net income before income taxes for the three months ended September 30, 2025 was $26.7 million, a decrease of $65.2 million, or 71.0%, from $91.9 million for the three months ended September 30, 2024. The overall decreases in operating income and net income before income taxes were primarily due to overall lower home closings at a lower absorption rate, lower gross margin and other costs associated with the increase in average community count during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. Our reportable segments contributed to net income before income taxes during the three months ended September 30, 2025 as follows: Central - $9.1 million, or 34.2%; Southeast - $10.7 million, or 40.1%; Northwest - $(0.8) million, or (2.9)%; West - $9.7 million, or 36.4%; and Florida - $(1.1) million, or (4.1)%.
Previous wording
Income Taxes. Income tax provision for the three months ended June 30, 2025 was $10.5 million, a decrease of $7.8 million, or 42.6%, from income tax provision of $18.3 million for the three months ended June 30, 2024. The decrease in our income tax provision is primarily due to the overall decrease in net income before income taxes. The increase in our effective tax rate to 25.0% for the three months ended June 30, 2025 from 23.8% for the three months ended June 30, 2024 was primarily a result of an increase in the rate for state income taxes, net of the federal benefit, and the compensation limitation under Section 162(m) of the Internal Revenue Code, as amended.
Current wording
Income Taxes. Income tax provision for the three months ended September 30, 2025 was $7.0 million, a decrease of $15.3 million, or 68.7%, from income tax provision of $22.3 million for the three months ended September 30, 2024. The decrease in our income tax provision was primarily due to the overall decrease in net income before income taxes. The increase in our effective tax rate to 26.2% for the three months ended September 30, 2025 from 24.3% for the three months ended September 30, 2024 was primarily a result of an increase in the rate for state income taxes, net of the federal benefit, and the compensation limitation under Section 162(m) of the Internal Revenue Code, as amended.
Previous wording
Net Income. Net income for the three months ended June 30, 2025 was $31.5 million, a decrease of $27.0 million, or 46.2%, from $58.6 million for the three months ended June 30, 2024. The decrease in net income was primarily attributed to overall lower home sales revenues and gross margin during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.
Current wording
Net Income. Net income for the three months ended September 30, 2025 was $19.7 million, a decrease of $49.9 million, or 71.7%, from $69.6 million for the three months ended September 30, 2024. The decrease in net income was primarily attributed to an overall decrease in the number of homes closed, home sales revenues and gross margin during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.
Previous wording
Homes Sales. Our home sales revenues, home closings, average sales price per home closed (ASP), average community count and average monthly absorption rate by reportable segment for the six months ended June 30, 2025 and 2024 were as follows (revenues in thousands):
Current wording
Homes Sales. Our home sales revenues, home closings, average sales price per home closed (ASP), average community count and average monthly absorption rate by reportable segment for the nine months ended September 30, 2025 and 2024 were as follows (revenues in thousands):
Previous wording
Home sales revenues for the six months ended June 30, 2025 were $834.9 million, a decrease of $158.4 million, or 16.0%, from $993.3 million for the six months ended June 30, 2024. The decrease in home sales revenues was primarily due to a 15.3% decrease in homes closed and a 0.8% decrease in the average sales price per home closed during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The overall decrease in home closings was a result of a lower absorption rate, partially offset by a higher average community count, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The overall increase in average community count relates to timing associated with new community openings, offset by the close out of some communities and transition between certain active communities during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The average sales price per home closed during the six months ended June 30, 2025 was $360,028, a decrease of $2,773, or 0.8%, from the average sales price per home closed of $362,801 for the six months ended June 30, 2024. The decrease in the average sales price per home closed was primarily due to geographic mix and an increase in the number of wholesale homes closed. The overall decrease in absorption rate generally relates to the impact of ongoing affordability constraints, new community openings, and the overall increase in community count.
Current wording
Home sales revenues for the nine months ended September 30, 2025 were $1.2 billion, a decrease of $413.7 million, or 25.1%, from $1.6 billion for the nine months ended September 30, 2024. The decrease in home sales revenues was primarily due to a 24.7% decrease in the number of homes closed and a decrease in the average sales price per home closed during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The overall decrease in home closings was a result of a lower absorption rate, partially offset by a higher average community count, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The overall increase in average community count relates to timing associated with new community openings, offset by the close out of some communities and transition between certain active communities during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The average sales price per home closed during the nine months ended September 30, 2025 was $363,929, a decrease of $2,078, or 0.6%, from the average sales price per home closed of $366,007 for the nine months ended September 30, 2024. The decrease in the average sales price per home closed was primarily due to an increase in wholesale home closings and to a lesser extent geographic mix. The overall decrease in absorption rate generally relates to the impact of ongoing affordability constraints, new community openings, and the overall increase in community count.
Previous wording
Included within our home sales revenues for the six months ended June 30, 2025 was $125.9 million in wholesale revenues resulting from 416 home closings, representing 17.9% of the 2,319 total homes closed during the six months ended June 30, 2025. Included within our home sales revenues for the six months ended June 30, 2024 was $64.3 million in wholesale revenues resulting from 219 home closings, representing 8.0% of the 2,738 total homes closed during the six months ended June 30, 2024. The increase in home closings as a percentage of revenues through our wholesale channel was primarily related to higher demand from our wholesale channel customers during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Current wording
Included within our home sales revenues for the nine months ended September 30, 2025 was $180.4 million in wholesale revenues resulting from 579 home closings, representing 17.1% of the 3,384 total number of homes closed during the nine months ended September 30, 2025. Included within our home sales revenues for the nine months ended September 30, 2024 was $113.7 million in wholesale revenues resulting from 379 home closings, representing 8.4% of the 4,495 total number of homes closed during the nine months ended September 30, 2024. The increase in home closings as a percentage of revenues through our wholesale channel was primarily related to higher demand from our wholesale channel customers during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.
Previous wording
•Home sales revenues in our Central reportable segment decreased by $63.0 million, or 22.7%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to a 19.2% decrease in the number of homes closed and a 4.4% decrease in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Current wording
•Home sales revenues in our Central reportable segment decreased by $128.1 million, or 29.0%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to a 26.9% decrease in the number of homes closed and a 3.0% decrease in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Previous wording
•Home sales revenues in our Southeast reportable segment decreased by $0.1 million during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to a 0.4% decrease in the average sales price per home closed, offset by a 0.4% increase in the number of homes closed. The increase in home closings was the result of an increase in community count, partially offset by a lower absorption rate.
Current wording
•Home sales revenues in our Southeast reportable segment decreased by $53.9 million, or 13.2%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to a 13.3% decrease in the number of homes closed, partially offset by an increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Previous wording
•Home sales revenues in our Northwest reportable segment decreased by $14.6 million, or 21.5%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to a 24.2% decrease in the number of homes closed, partially offset by a 3.6% increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Current wording
•Home sales revenues in our Northwest reportable segment decreased by $50.1 million, or 26.8%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to a 20.3% decrease in the number of homes closed and an 8.1% decrease in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Previous wording
•Home sales revenues in our West reportable segment decreased by $33.9 million, or 16.9%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to a 20.1% decrease in the number of homes closed, partially offset by a 4.1% increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Current wording
•Home sales revenues in our West reportable segment decreased by $92.9 million, or 26.4%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to a 30.2% decrease in the number of homes closed, partially offset by a 5.4% increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Previous wording
•Home sales revenues in our Florida reportable segment decreased by $44.9 million, or 28.3%, during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to a 29.9% decrease in the number of homes closed, partially offset by a 2.3% increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Current wording
•Home sales revenues in our Florida reportable segment decreased by $88.7 million, or 34.5%, during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to a 36.0% decrease in the number of homes closed, partially offset by a 2.4% increase in the average sales price per home closed. The decrease in home closings was the result of a lower absorption rate, partially offset by an increase in the average community count.
Previous wording
Cost of Sales and Gross Margin (home sales revenues less cost of sales). Cost of sales for the six months ended June 30, 2025 was $650.6 million, a decrease of $100.5 million, or 13.4%, from $751.1 million for the six months ended June 30, 2024. This overall decrease was primarily due to a 15.3% decrease in homes closed. Gross margin for the six months ended June 30, 2025 was $184.3 million, a decrease of $58.0 million, or 23.9%, from $242.3 million for the six months ended June 30, 2024. Gross margin as a percentage of home sales revenues was 22.1% for the six months ended June 30, 2025 and 24.4% for the six months ended June 30, 2024. The decrease in gross margin as a percentage of home sales revenues was primarily due to a lower average sales price per home closed, a higher number of wholesale closings, higher lot costs and higher capitalized interest as a percentage of revenue, partially offset by a decrease in sales incentives offered during the six months ended June 30, 2025.
Current wording
Cost of Sales and Gross Margin (home sales revenues less cost of sales). Cost of sales for the nine months ended September 30, 2025 was $962.1 million, a decrease of $277.3 million, or 22.4%, from $1.2 billion for the nine months ended September 30, 2024. This overall decrease was primarily due to a 24.7% decrease in the number of homes closed. Gross margin for the nine months ended September 30, 2025 was $269.4 million, a decrease of $136.3 million, or 33.6%, from $405.8 million for the nine months ended September 30, 2024. Gross margin as a percentage of home sales revenues was 21.9% for the nine months ended September 30, 2025 and 24.7% for the nine months ended September 30, 2024. The decrease in gross margin as a percentage of home sales revenues during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 was primarily due to a lower average sales price per home closed, a higher number of wholesale closings, higher lot costs, higher capitalized interest and higher indirect overhead as a percentage of revenue, partially offset by a decrease in sales incentives offered during the nine months ended September 30, 2025.
Previous wording
Selling Expenses. Selling expenses for the six months ended June 30, 2025 were $83.9 million, a decrease of $10.1 million, or 10.7%, from $94.0 million for the six months ended June 30, 2024. The decrease in selling expenses was primarily due to a decrease in sales commissions and other selling expenses, partially offset by an increase in advertising and other personnel selling expenses, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Sales commissions decreased to $33.0 million during the six months ended June 30, 2025 from $44.6 million for the six months ended June 30, 2024, primarily due to a 16.0% decrease in home sales revenues during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Selling expenses as a percentage of home sales revenues were 10.1% and 9.5% for the six months ended June 30, 2025 and 2024, respectively. The increase in selling expenses as a percentage of home sales revenues was primarily due to higher advertising and other personnel expenses, offset by a decrease in commissions during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Current wording
Selling Expenses. Selling expenses for the nine months ended September 30, 2025 were $119.6 million, a decrease of $29.6 million, or 19.8%, from $149.2 million for the nine months ended September 30, 2024. The decrease in selling expenses was primarily due to a decrease in the number of homes closed for the nine months ended September 30, 2025 as compared to the three months ended September 30, 2024. Sales commissions decreased to $48.1 million during the nine months ended September 30, 2025 from $72.2 million for the nine months ended September 30, 2024, primarily due to a decrease in the number of homes closed. Selling expenses as a percentage of home sales revenues were 9.7% and 9.1% for the nine months ended September 30, 2025 and 2024, respectively. The increase in selling expenses as a percentage of home sales revenues was primarily due to a decrease in home sales revenues during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.
Previous wording
General and Administrative. General and administrative expenses for the six months ended June 30, 2025 were $60.6 million, a decrease of $1.4 million, or 2.3%, from $62.0 million for the six months ended June 30, 2024. The decrease in general and administrative expenses was primarily due to a decrease in indirect overhead expenses and bonuses, partially offset by an increase in other expenses. General and administrative expenses as a percentage of home sales revenues were 7.3% and 6.2% for the six months ended June 30, 2025 and 2024, respectively. The increase in general and administrative expenses as a percentage of home sales revenues was primarily due to lower home sales revenues during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Current wording
General and Administrative. General and administrative expenses for the nine months ended September 30, 2025 were $88.6 million, a decrease of $1.5 million, or 1.7%, from $90.0 million for the nine months ended September 30, 2024. The decrease in general and administrative expenses was primarily due to a decrease in bonuses and indirect overhead costs, partially offset by an increase in other general and administrative expense. General and administrative expenses as a percentage of home sales revenues were 7.2% and 5.5% for the nine months ended September 30, 2025 and 2024, respectively. The increase in general and administrative expenses as a percentage of home sales revenues was primarily due to lower home sales revenues during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.
Previous wording
Other Income, Net. Other income, net of other expenses was $8.0 million for the six months ended June 30, 2025, a decrease of $5.7 million from $13.7 million for the six months ended June 30, 2024. The decrease in other income, net of other expenses, primarily reflects the decrease in income associated with our investment in unconsolidated entities and the decrease in interest income, partially offset by gains realized from the sale of residential lots not directly associated with our core homebuilding operations.
Current wording
Other Income, Net. Other income, net of other expenses was $13.2 million for the nine months ended September 30, 2025, a decrease of $12.1 million from $25.3 million for the nine months ended September 30, 2024. The decrease in other income, net of other expenses, primarily reflects the decrease in income associated with our investment in unconsolidated entities and the decrease in interest income.
Previous wording
Operating Income and Net Income before Income Taxes. Operating income for the six months ended June 30, 2025 was $39.8 million, a decrease of $46.5 million, or 53.9%, from $86.3 million for the six months ended June 30, 2024. Net income before income taxes for the six months ended June 30, 2025 was $47.8 million, a decrease of $52.2 million, or 52.2%, from $100.0 million for the six months ended June 30, 2024. The overall decreases in operating income and net income before income taxes were primarily due to overall lower home closings at a lower absorption rate, lower gross margin and higher advertising and other costs associated with the increase in average community count during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Our reportable segments contributed to net income before income taxes during the six months ended June 30, 2025 as follows: Central - $6.0 million, or 12.5%; Southeast - $26.3 million, or 55.0%; Northwest - $3.4 million, or 7.1%; West - $13.2 million, or 27.7%; and Florida - $(0.5) million, or (1.1)%.
Current wording
Net income before income taxes for the nine months ended September 30, 2025 was $74.5 million, a decrease of $117.4 million, or 61.2%, from $191.8 million for the nine months ended September 30, 2024. The overall decreases in operating income and net income before income taxes were primarily due to overall lower home closings at a lower absorption rate, lower gross margin and the increase in other costs associated with the increase in average community count during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. Our reportable segments contributed to net income before income taxes during the nine months ended September 30, 2025 as follows: Central - $15.1 million, or 20.3%; Southeast - $37.0 million, or 49.7%; Northwest - $2.6 million, or 3.5%; West - $23.0 million, or 30.8%; and Florida - $(1.6) million, or (2.2)%.
Previous wording
Income Taxes. Income tax provision for the six months ended June 30, 2025 was $12.2 million, a decrease of $12.1 million, or 49.7%, from income tax provision of $24.4 million for the six months ended June 30, 2024. The decrease in our income tax provision is primarily due to the overall decrease in net income before income taxes. The increase in our effective tax rate to 25.6% for the six months ended June 30, 2025 from 24.4% for the six months ended June 30, 2024 was primarily a result of an increase in the rate for state income taxes, net of the federal benefit, the compensation cost in excess of deductions for share-based payments, and the compensation limitation under Section 162(m) of the Internal Revenue Code, as amended.
Current wording
Income Taxes. Income tax provision for the nine months ended September 30, 2025 was $19.2 million, a decrease of $27.4 million, or 58.8%, from income tax provision of $46.6 million for the nine months ended September 30, 2024. The decrease in our income tax provision was primarily due to the overall decrease in net income before income taxes. The increase in our effective tax rate to 25.8% for the nine months ended September 30, 2025 from 24.3% for the nine months ended September 30, 2024 was primarily a result of an increase in the rate for state income taxes, net of the federal benefit, the compensation cost in excess of deductions for share-based payments, and the compensation limitation under Section 162(m) of the Internal Revenue Code, as amended.
Previous wording
Net Income. Net income for the six months ended June 30, 2025 was $35.5 million, a decrease of $40.1 million, or 53.0%, from $75.6 million for the six months ended June 30, 2024. The decrease in net income was primarily attributed to overall lower home sales revenues during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Current wording
Net Income. Net income for the nine months ended September 30, 2025 was $55.2 million, a decrease of $90.0 million, or 62.0%, from $145.2 million for the nine months ended September 30, 2024. The decrease in net income was primarily attributed to overall lower number of homes closed, home sales revenues and gross margin during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.
Previous wording
We sell our homes under standard purchase contracts, which generally require a homebuyer to pay a deposit at the time of signing the purchase contract. The amount of the required deposit is minimal (typically $1,000 to $10,000). We permit our retail homebuyers to cancel the purchase contract and obtain a refund of their deposit in the event mortgage financing cannot be obtained within a certain period of time, as specified in their purchase contract. Typically, our retail homebuyers provide documentation regarding their ability to obtain mortgage financing within 14 days after the purchase contract is signed. If we determine that the homebuyer is not qualified to obtain mortgage financing or is not otherwise financially able to purchase the home, we will terminate the purchase contract. If a purchase contract has not been cancelled or terminated within 14 days after the purchase contract has been signed, then the homebuyer has met the preliminary criteria to obtain mortgage financing. Only purchase contracts that are signed by homebuyers who have met the preliminary criteria to obtain mortgage financing are included in new (gross) orders.
Current wording
We sell our homes under standard purchase contracts, which generally require a homebuyer to pay a deposit at the time of signing the purchase contract. The amount of the required deposit is minimal (typically $1,000 to $10,000). We permit our retail homebuyers to cancel the purchase contract and obtain a refund of their deposit in the event mortgage financing cannot be obtained within a certain period of time, as specified in their purchase contract. Typically, our retail homebuyers provide documentation regarding their ability to obtain mortgage financing within 14 days after the purchase contract is signed. If we determine that the homebuyer is not qualified to obtain mortgage financing or is not otherwise financially able to purchase the home, we will terminate the purchase contract. If a purchase contract has not been cancelled or terminated within 14 days after the purchase contract has been signed, then we have assumed the homebuyer will meet the preliminary criteria to obtain mortgage financing. Only purchase contracts that are signed by homebuyers who have met the preliminary criteria to obtain mortgage financing are included in new (gross) orders.
Previous wording
(4)As of June 30, 2025, we had 91 units related to bulk sales agreements associated with our wholesale business.
Current wording
(4)As of September 30, 2025, we had 60 units related to bulk sales agreements associated with our wholesale business.
Previous wording
(5)As of June 30, 2024, we had 181 units related to bulk sales agreements associated with our wholesale business.
Current wording
(5)As of September 30, 2024, we had 212 units related to bulk sales agreements associated with our wholesale business.
Previous wording
We had 146 and 151 active communities as of June 30, 2025 and December 31, 2024, respectively. Generally, it takes us two to three years to turn raw or undeveloped land into an active community. To mitigate our exposure to real estate inventory risks, we have utilized, on a limited and strategic basis, land banking financing arrangements.
Current wording
We had 141 and 151 active communities as of September 30, 2025 and December 31, 2024, respectively. Generally, it takes us three to four years to turn raw or undeveloped land into an active community. To mitigate our exposure to real estate inventory risks, we have utilized, on a limited and strategic basis, land banking financing arrangements.
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Margin. At September 30, 2025, the Applicable Margin was 1.95%, and SOFR was 4.16%, subject to the 0.50% SOFR floor as included in the Credit Agreement.
Current report — wording carried from elsewhere
On July 23, 2025, the Company’s indirect, wholly owned special purpose subsidiary LGI Living - SFR 1, LLC (“LGI Living SFR”) entered into a Loan Agreement (the “Loan Agreement”) with Evergreen Residential Capital, LLC, as lender. The Loan Agreement provides for a secured non-recourse loan for up to $50.0 million, which can be increased at the request of LGI Living SFR by up to $75.0 million (for a total of $125.0 million), subject to the terms and conditions of the Loan Agreement.
Current report — wording carried from elsewhere
As of September 30, 2025, the total amount of borrowings outstanding under the Loan Agreement was $50.0 million. The loan matures on July 8, 2030 and bears interest at a rate of 6.433% per annum, which may be adjusted in connection with an increase in the amount of the loan. The loan is unconditionally guaranteed as to payment and performance by the Company under a limited recourse guaranty with respect to (i) certain losses and liabilities to the extent such losses or liabilities are actually incurred by the lender and (ii) the entire amount of the loan upon the occurrence of certain events. The Loan Agreement requires that the Company, as guarantor, maintain (i) liquidity of not less than 15% of the loan amount and (ii) maintain net worth in excess of 50% of the loan amount.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Fifth Supplemental Indenture thereto, dated as of November 15, 2024, as may be supplemented from time to time, among us, our subsidiaries that guarantee our obligations under the Credit Agreement and Regions Bank, as trustee.