Green Brick Partners, Inc.
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 29, 2026
GRBK$64.82-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001628280-26-033612
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsUnregistered Sales of Equity Securities and Use of ProceedsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001628280-26-050640
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe 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 95 previous paragraphs and 128 current paragraphs.
47 unchanged; 38 reworded; 31 added; 10 removed; 0 previous and 12 current paragraphs rearranged.
Tables are not compared: 11 previous and 17 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 (31)
Current report
Residential units revenue decreased 11.4% and new homes delivered were substantially in line with the prior year period. The 11.9% decrease in the average sales price of homes delivered during the three months ended June 30, 2026, is due to increased incentives and product mix.
Current report
Net new home orders increased 18.8% to 1,079 for the three months ended June 30, 2026, compared to 908 for the three months ended June 30, 2025, while average active selling communities increased by 5.9% to 108 communities. Revenue from net new home orders increased $33.7 million, or 7.4%, to $488.6 million, partially offset by a 9.6% decrease in the average selling price of net new home orders to $452.9 thousand, driven primarily by a higher mix of orders from Trophy Signature Homes, which operates at a lower price point relative to our other builders and targets first-time homebuyers. The 12.4% increase in the absorption rate per average active selling community, from 8.9 to 10.0 net new home orders per community per quarter was driven by higher levels of net new home orders from Trophy Signature Homes and a lower cancellation rate.
Current report
Backlog revenue decreased by 23.6% to $387.4 million as of June 30, 2026, compared to $507.1 million as of June 30, 2025, driven by a 6.7% decrease in backlog units to 681 homes and a 18.1% decrease in the average sales price of backlog to $568.8 thousand, reflecting higher sales from Trophy Signature Homes in addition to higher incentives and discounts offered to sustain orders.
Current report
(1) Includes selling, general and administrative expenses and other income and expenses related to Financial services.
Current report
Financial services revenues increased $5.9 million, or 93.9%, to $12.2 million for the three months ended June 30, 2026, compared to $6.3 million for the three months ended June 30, 2025. The increase was primarily driven by mortgage revenues, which grew from $1.9 million to $7.9 million, as total loans funded increased 256.8% to 521 loans with total origination principal of $196.5 million, compared to 146 loans and $31.4 million in the prior year period. Our mortgage capture rate increased to 66% from 53.1%, reflecting growth in our captive mortgage business. Financial services expenses increased $3.3 million, or 97.1%, primarily due to higher costs associated with increased mortgage origination volume. As a result, income before income taxes increased $2.7 million, or 90.2%, to $5.6 million.
Current report
Other Income, Net
Current report
Other income (loss), net, was $2.3 million for the three months ended June 30, 2026, compared to $(1.2) million for the three months ended June 30, 2025. The change was driven by a decrease in pursuit costs during the three months ended June 30, 2026.
Current report
Income tax expense was $20.7 million for the three months ended June 30, 2026 compared to $23.0 million for the three months ended June 30, 2025. The decrease in income tax expense is mainly due to lower taxable income for the three months ended June 30, 2026. See Note 12 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion on the Company’s income tax expense for the three months ended June 30, 2026.
Current report
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Current report
The $94.2 million or 9.3% decrease in residential units revenue was driven by the 9.5% decrease in the average sales price of homes delivered for the six months ended June 30, 2026. The 9.5% decrease in the average sales price of homes delivered for the six months ended June 30, 2026, was attributable to product mix, higher incentives and discounts.
Current report
New Home Orders
Current report
Net new home orders increased 5.1% over the prior year period mainly due to a 1.9% increase in average selling communities. In addition, the absorption rate per average active selling community per quarter increased 3.1% to 10.0 net new home orders per community, compared to 9.7 for the six months ended June 30, 2025, primarily driven by increased absorption by Trophy Signature Homes.
Current report
Revenue from net new home orders decreased 6.0% to $970.2 million for the six months ended June 30, 2026, compared to $1,032.5 million for the six months ended June 30, 2025, primarily due to a 10.6% decrease in the average selling price of net new home orders to $458.5 thousand, reflecting higher sales from Trophy Signature Homes, our first-time homebuyer or entry-level builder, in addition to increased incentives and discounts offered to sustain sales pace.
Current report
Residential Units Gross Margin
Current report
Residential units revenue decreased $94.2 million or 9.3% during the six months ended June 30, 2026, due to a decrease in the average sales price of homes delivered arising from a higher proportion of sales from Trophy Signature Homes and incentives. Cost of residential units for the six months ended June 30, 2026, decreased by $43.5 million, or 6.3%, compared to the six months ended June 30, 2025. This resulted in a decrease in residential units gross margin for the six months ended June 30, 2026, of 230 bps to 29.4%, from 31.7% for the six months ended June 30, 2025 mainly due to higher incentives and discounts.
Current report
Land and Lots Revenue
Current report
The table below represents lots closed and land and lots revenue (dollars in thousands):
Current report
From time to time we may opportunistically sell finished lots to other homebuilders. Lots revenue increased by $3.2 million during the six months ended June 30, 2026. Land revenue represents the sale of one tract of land intended for multifamily development during the six months ended June 30, 2026.
Current report
Selling, General and Administrative Expenses
Current report
Selling, general and administrative expenses as a percentage of homebuilding revenue increased by 0.6% for the six months ended June 30, 2026, the increase is mainly due to lower revenues and increased salaries and share-based compensation.
Current report
Builder Operations
Current report
Corporate, Other and Unallocated
Current report
Financial Services
Current report
(1) Includes selling, general and administrative expenses and other income and expenses related to Financial services.
Current report
Financial services revenues increased $10.7 million, or 96.0%, to $21.9 million for the six months ended June 30, 2026, compared to $11.2 million for the prior year period. The increase was primarily driven by mortgage revenues, which grew from $3.2 million to $13.5 million, reflecting an increase in total loans funded to 886 loans with a total origination principal of $346.9 million from 251 loans and $108.9 million in the prior year period, and an improvement in our mortgage capture rate to 66% from 58.5%.
Current report
Financial services expenses increased $5.5 million, or 86.5%, to $12.0 million, driven by higher costs associated with increased mortgage origination volume. As a result, income before income taxes increased $5.2 million, or 108.7%, to $10.0 million for the six months ended June 30, 2026.
Current report
Other Income, Net
Current report
Other income (loss), net, increased to $2.0 million for the six months ended June 30, 2026, compared to $(0.5) million for the six months ended June 30, 2025.
Current report
Income Tax Expense
Current report
Income tax expense was $39.1 million for the six months ended June 30, 2026 compared to $45.2 million for the six months ended June 30, 2025. The decrease was primarily due to lower taxable income. See Note 12 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion on the Company’s income tax expense for the six months ended June 30, 2026.
Current report
Our borrowings and repayments on the warehouse lines of credit are directly related to the origination and sale of mortgage loans held for sale. As such, the gross activity in the warehouse lines of credit during the period substantially reconciles to the net change in mortgage loans held for sale, as reflected in the condensed consolidated statements of cash flows and discussed in Note 11 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Removed paragraphs (10)
Previous report
The $33.7 million or 7.0% decrease in residential units revenue was primarily driven by higher discounts and closing cost incentives offered to buyers who originated their loans with our wholly owned mortgage subsidiary. The 6.9% decrease in the average sales price of homes delivered during the three months ended March 31, 2026 is consistent with the decrease in home closings revenue.
Previous report
Net new home orders decreased 6.2% over the prior year period while our average active selling communities increased by 1.9%. Revenue from net new home orders declined 16.8% consistent with the 11.3% decline in the average selling price of net new home orders and 6.2% decrease in net new home orders. The absorption rate declined by 4.7% primarily due to persistent headwinds associated with low consumer sentiment and high interest rates.
Previous report
Backlog revenue decreased by 34.8% year-over-year, with a 24.9% decrease in backlog units and 13.2% decrease in the average price of backlog units. As of March 31, 2026, backlog revenue increased 9.8% compared to December 31, 2025. Moreover, our spec units under construction as a percentage of total units under construction declined from 73.3% as of December 31, 2025 to 67.3% as of March 31, 2026.
Previous report
Other (Loss) Income, Net
Previous report
Other (loss) income, net, was a $0.3 million net loss for the three months ended March 31, 2026, compared to $0.6 million net other income for the three months ended March 31, 2025.
Previous report
Income tax expense was $18.4 million for the three months ended March 31, 2026 compared to $22.2 million for the three months ended March 31, 2025. The decrease was substantially due to a lower taxable income.
Previous report
Secured Revolving Credit Facility – As of March 31, 2026 and December 31, 2025, we had no amounts outstanding under our $35.0 million Secured Revolving Credit Facility. On March 31, 2026, the Company terminated its secured revolving credit facility. The termination was voluntary and not due to covenant violations or lender action.
Previous report
Purchases of equity securities by the issuer
Previous report
The following table provides information about repurchases of our common stock during the three months ended March 31, 2026:
Previous report
(1) On February 17, 2025, the Board approved and authorized a new $100 million stock repurchase program (the “2025 Repurchase Plan”). This plan authorized the Company to purchase, from time to time, up to $100 million of our outstanding Common Stock through open market repurchases in compliance with Rule 10b-18 under the Exchange Act and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal requirements and other factors. Shares repurchased were retired. During the three months ended March 31, 2026, the Company completed open market repurchases under the 2025 Share Repurchase Plan of 113,849 shares for approximately $7.2 million, excluding excise tax. On December 11, 2025, the Company’s Board authorized a new share repurchase program of up to $150.0 million (the “2026 Repurchase Plan”), in addition to the remaining amounts under the previous repurchase plan. The new plan has no time deadline and will continue until otherwise modified or terminated by the Company’s Board any time in its sole discretion. Repurchases will be made from time to time in the open market, through block trades or in privately negotiated transactions based on market and business conditions, applicable legal requirements and other factors. All shares repurchased will be retired.
Reworded paragraphs (38)
Previous wording
The following discussion of our financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on February 25, 2026 and our condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
The following discussion of our financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K/A for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on May 11, 2026 and our condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Our key financial and operating metrics are home deliveries, home closings revenue, average sales price of homes delivered, and net new home orders, which refers to sales contracts executed reduced by the number of sales contracts canceled during the relevant period, and homebuilding gross margin. Our results for each key financial and operating metric, as compared to the same period in 2025, are provided below:
Current wording
Our key financial and operating metrics are home deliveries, home closings revenue, average sales price of homes delivered, and net new home orders, which refers to sales contracts executed reduced by the number of sales contracts canceled during the relevant period, homebuilding gross margin, and incentives on homes closed as a percentage of residential units revenue. Our results for each key financial and operating metric, as compared to the same period in 2025, are provided below:
Previous wording
Our home deliveries were substantially in line in the first quarter of 2026 year over year, while average sales prices decreased primarily as a result of elevated discounts and incentives. Homebuilding gross margins decreased from 32.1% to 28.9% for the three months ended March 31, 2026, primarily due to higher incentives and discounts.
Current wording
Our home deliveries were substantially in line in the second quarter of 2026 year over year, while average sales prices decreased primarily as a result of elevated discounts and incentives. Homebuilding gross margins decreased from 31.3% to 29.8% for the three months ended June 30, 2026, primarily due to higher incentives and product mix.
Previous wording
Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 7.7% for the three months ended March 31, 2026, compared to 6.1% for the three months ended March 31, 2025. Our cancellation rate remained in a historically low range under 10.0% since December 31, 2022.
Current wording
Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 7.8% for the three months ended June 30, 2026, compared to 9.9% for the three months ended June 30, 2025. Our cancellation rate has remained in a historically low range, under 10.0% since December 31, 2022.
Previous wording
For the three months ended March 31, 2026, residential units revenue decreased $33.7 million or 7.0% while cost of residential units decreased by $8.8 million, or 2.7%, compared to the same period in the previous year. Residential units gross margin declined by 310 bps to 29.0% for the three months ended March 31, 2026, from 32.1% for the three months ended March 31, 2025. The decrease in residential units gross margin is attributable to higher incentives and discounts.
Current wording
For the three months ended June 30, 2026, residential units revenue decreased $60.5 million or 11.4% while cost of residential units decreased by $34.7 million, or 9.5%, compared to the same period in the previous year. Residential units gross margin declined by 150 bps to 29.8% for the three months ended June 30, 2026, from 31.3% for the three months ended June 30, 2025. The decrease in residential units gross margin is attributable to higher incentives and discounts.
Previous wording
Selling, general and administrative expenses as a percentage of revenue increased by 0.6% for the three months ended March 31, 2026.
Current wording
Selling, general and administrative expenses as a percentage of revenue increased by 0.6% for the three months ended June 30, 2026, mainly due to lower revenue, partially offset by increased salaries and share-based compensation.
Previous wording
Selling, general and administrative expenses as a percentage of revenue for builder operations increased from 10.9% in the three months ended March 31, 2025 to 11.8% in the three months ended March 31, 2026 due to an increase in commission and salary expenses as a percentage of revenue. Builder operation expenditures include salary expenses, commissions, corporate allocations, and community costs such as advertising and marketing expense, rent, professional fees, and non-capitalized property taxes.
Current wording
Selling, general and administrative expenses as a percentage of revenue for builder operations increased 0.4% mainly due to the decline in residential units revenues. Builder operation expenditures include salary expenses, commissions, corporate allocations, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.
Previous wording
Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment increased approximately $2.2 million due to higher incentive compensation expenses during the three months ended March 31, 2026. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.
Current wording
Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment for the three months ended June 30, 2026 were $2.1 million, compared to $0.5 million for the three months ended June 30, 2025. The increase was due to higher share-based compensation during the three months ended June 30, 2026. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.
Previous wording
Operating as a captive business model primarily targeted to support our Builder operations, the business levels of our Financial Services operations are highly correlated to homebuilding, as the customers our homes continue to account for substantially all of its business. We believe that our mortgage capture rate, which represents loan originations from our Builder operations as a percentage of total loan opportunities from our Builder operations, excluding cash closings, is an important metric in evaluating the effectiveness of our captive financial services business model. The following tables present selected financial information for our Financial Services operations (in thousands):
Current wording
Operating as a captive business model primarily targeted to support our Builder operations, the business levels of our Financial Services operations are highly correlated to homebuilding, as the customers to our homes continue to account for substantially all of its business. We believe that our mortgage capture rate, which represents loan originations from our Builder operations as a percentage of total loan opportunities from our Builder operations, excluding cash closings, is an important metric in evaluating the effectiveness of our captive financial services business model. The following tables present selected financial information for our Financial Services operations (in thousands):
Previous wording
Equity in income of unconsolidated entities increased to $1.1 million, for the three months ended March 31, 2026, compared to $0.5 million for the three months ended March 31, 2025. See Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of Green Brick’s share in net earnings by unconsolidated entity.
Current wording
Equity in income of unconsolidated entities increased to $0.6 million, or 19.6%, for the three months ended June 30, 2026, compared to $0.5 million for the three months ended June 30, 2025. See Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of Green Brick’s share in net earnings by unconsolidated entity.
Previous wording
The following table presents the lots we owned or controlled, including lot option contracts, as of March 31, 2026 and December 31, 2025. Owned lots are those for which we hold title, and have yet to start vertical construction, while lots under contract are those for which we do not hold title, but have the contractual right to acquire.
Current wording
The following table presents the lots we owned or controlled, including lot option contracts, as of June 30, 2026 and December 31, 2025. Owned lots are those for which we hold title. Lots under contract are those for which we have the contractual right to acquire title but do not currently own.
Previous wording
(4) As of March 31, 2026 and December 31, 2025, 22.9% and 16.6% of the total lots under contract had refundable deposits.
Current wording
(4) As of June 30, 2026 and December 31, 2025, 53.3% and 16.6% of the total lots under contract had refundable deposits.
Previous wording
As of March 31, 2026 and December 31, 2025, we had $144.9 million and $154.6 million of unrestricted cash and cash equivalents, respectively. Our historical cash management strategy includes redeploying net cash from the sale of home inventory to acquire and develop land and lots that represent opportunities to generate desired margins and returns, and using cash to make additional investments in business acquisitions, joint ventures, or other strategic activities such as stock repurchases.
Current wording
As of June 30, 2026 and December 31, 2025, we had $131.6 million and $154.6 million of unrestricted cash and cash equivalents, respectively. In addition, as of June 30, 2026, we had $330.0 million of available capacity under our Unsecured Revolving Credit Facility, with no amounts outstanding. Combined with unrestricted cash and cash equivalents of $131.6 million, our total available liquidity was approximately $461.6 million. Our historical cash management strategy includes redeploying net cash from the sale of home inventory to acquire and develop land and lots that represent opportunities to generate desired margins and returns, and using cash to make additional investments in business acquisitions, joint ventures, share repurchases or other strategic activities.
Previous wording
Our principal uses of capital for the three months ended March 31, 2026 were home construction, land purchases, land development, repayments of lines of credit and senior notes, operating expenses, payment of routine liabilities and stock repurchases. Historically, we have used funds generated by operations and available borrowings to meet our short-term working capital requirements. We remain focused on generating positive margins in our homebuilding operations and acquiring desirable land positions in order to maintain a strong balance sheet and remain poised for continued growth.
Current wording
Our principal uses of capital for the six months ended June 30, 2026 were home construction, land purchases, land development, repayments of debt, operating expenses, share repurchases, and payment of routine liabilities. Historically, we have used funds generated by operations and available borrowings to meet our short-term working capital requirements. We remain focused on generating positive margins in our homebuilding operations and acquiring desirable land positions in order to maintain a strong balance sheet and remain poised for continued growth.
Previous wording
Cash flows for each of our communities depend on the community’s stage in the development cycle. Early stages of development or expansion require significant cash outlays for land acquisitions, entitlements and other approvals, roads, utilities, general landscaping and other amenities, and home construction. These costs are a component of our inventory and are not recognized in our statement of income until a home closes. In the later stages of community life cycle, cash inflows may significantly exceed earnings reported for financial statement purposes, as the cash outflows associated with home construction and land development previously occurred.
Current wording
Cash flows for each of our communities depend on the community’s stage in the development cycle. Early stages of development or expansion require significant cash outlays for land acquisitions, entitlements and other approvals, roads, utilities, general landscaping and other amenities, and home construction. These costs are a component of our inventory and are not recognized in our statement of income until a home closes. In the later stages of community life cycle, cash inflows may significantly exceed earnings reported for financial statement purposes, as the cash outflows associated with home construction and land development primarily occurred in prior periods.
Previous wording
Our homebuilding debt to total capitalization ratio, which is calculated as the sum of borrowings on lines of credit, the senior unsecured notes, and notes payable, net of debt issuance costs (“total debt”), divided by the total capitalization, which equals the sum of Green Brick Partners, Inc. stockholders’ equity and total debt, was approximately 11.5% as of March 31, 2026.
Current wording
Our homebuilding debt to total capitalization ratio, which is calculated as the sum of borrowings on lines of credit, the senior unsecured notes, and notes payable, net of debt issuance costs (“total debt”), divided by the total capitalization, which equals the sum of Green Brick Partners, Inc. stockholders’ equity and total debt, was approximately 11.2% as of June 30, 2026.
Previous wording
Additionally, as of March 31, 2026, our net debt to total capitalization ratio, which is a non-GAAP financial measure, remained low at 5.5%. It is our intent to prudently employ leverage to continue to invest in our land acquisition, development and homebuilding activities. We target a debt to total capitalization ratio of approximately 20%, which we expect will provide us with significant additional growth capital.
Current wording
Additionally, as of June 30, 2026, our net homebuilding debt to total capitalization ratio, which is a non-GAAP financial measure, remained low at 6.1%. It is our intent to prudently employ leverage to continue to invest in our land acquisition, development and homebuilding activities. We target a homebuilding debt to total capitalization ratio of up to approximately 20%, which we expect will provide us with significant additional growth capital.
Previous wording
In this Quarterly Report on Form 10-Q, we utilize a financial measure of net debt to total capitalization ratio that is a non-GAAP financial measure as defined by the SEC. Net debt to total capitalization is calculated as total debt less cash and cash equivalents, divided by the sum of total Green Brick Partners, Inc. stockholders’ equity and total debt less cash and cash equivalents. We present this measure because we believe it is useful to management and investors in evaluating the Company’s financing structure. We also believe this measure facilitates the comparison of our financing structure with other companies in our industry. Because this measure is not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), it may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
Current wording
In this Quarterly Report on Form 10-Q, we utilize a financial measure of net homebuilding debt to total capitalization ratio that is a non-GAAP financial measure as defined by the SEC. Net homebuilding debt to total capitalization is calculated as total homebuilding debt less cash and cash equivalents, divided by the sum of total Green Brick Partners, Inc. stockholders’ equity and total homebuilding debt less cash and cash equivalents. We present this measure because we believe it is useful to management and investors in evaluating the Company’s financing structure. We also believe this measure facilitates the comparison of our financing structure with other companies in our industry. Because this measure is not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), it may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
Previous wording
The closest GAAP financial measure to the net debt to total capitalization ratio is the debt to total capitalization ratio. The following table represents a reconciliation of the net debt to total capitalization ratio as of March 31, 2026 (dollars in thousands):
Current wording
The closest GAAP financial measure to the net homebuilding debt to total capitalization ratio is the debt to total capitalization ratio. The following table represents a reconciliation of the net homebuilding debt to total capitalization ratio as of June 30, 2026 (dollars in thousands):
Previous wording
(1)Homebuilding capitalization ratio excludes cash and debt related to our wholly owned mortgage company.
Current wording
(1) Homebuilding capitalization ratio excludes cash and debt related to our wholly owned mortgage company.
Previous wording
Our key sources of liquidity were funds generated by operations and funds provided by borrowings during the three months ended March 31, 2026.
Current wording
Our key sources of liquidity were funds generated by operations and borrowings during the six months ended June 30, 2026.
Previous wording
The following summarizes our primary sources and uses of cash during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025:
Current wording
The following summarizes our primary sources and uses of cash during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025:
Previous wording
•Operating activities. Net cash provided by operating activities for the three months ended March 31, 2026 was $56.3 million, compared to $68.7 million during the three months ended March 31, 2025. The net cash inflows for the three months ended March 31, 2026 were primarily driven by cash generated from business operations of $95.4 million and deferral of expense payments through a $11.2 million increase in accrued expenses, offset primarily by a $56.5 million increase in inventory.
Current wording
•Operating activities. Net cash provided by operating activities for the six months ended June 30, 2026, was $47.4 million, compared to $143.5 million during the six months ended June 30, 2025. The net cash inflows for the six months ended June 30, 2026, were generated by our business operations of $179.9 million, decrease in accounts receivable of $11.6 million partially offset by an increase of inventory of $154.0 million compared to $38.6 million in the prior year period. This increase reflects our continued investment in land acquisition and development to support future home deliveries.
Previous wording
•Investing activities. Net cash used in investing activities for the three months ended March 31, 2026 was $4.7 million, compared to $12.0 million for the three months ended March 31, 2025. The cash outflows for the three months ended March 31, 2026 were primarily used for investments in unconsolidated entities.
Current wording
•Investing activities. Net cash used in investing activities for the six months ended June 30, 2026 was $12.2 million, compared to $25.6 million during the six months ended June 30, 2025. Cash outflows for the six months ended June 30, 2026, were primarily related to other investments in unconsolidated entities.
Previous wording
•Financing activities. Net cash used by financing activities for the three months ended March 31, 2026 was $65.5 million, compared to $81.6 million during the three months ended March 31, 2025. The cash outflows were primarily related to repayments of the 2028 Notes of $25.0 million and net repayments of warehouse lines of credit of $21.5 million.
Current wording
•Financing activities. Net cash used in financing activities for the six months ended June 30, 2026 was $71.8 million, compared to $131.8 million during the six months ended June 30, 2025. The cash outflows were primarily related to share repurchases of $16.7 million and repayments of our senior unsecured notes of $25.0 million.
Previous wording
Unsecured Revolving Credit Facility –As of March 31, 2026 and December 31, 2025, we had no amounts outstanding under our Unsecured Revolving Credit Facility. On December 10, 2025, the Company entered into the Thirteenth Amendment to this Unsecured Revolving Credit Facility. The Unsecured Revolving Credit Facility was amended (i) to reduce the SOFR spread and base rate spread, (ii) to allow the Company to request a revolving credit advance using Daily SOFR (as defined in the Unsecured Revolving Credit Facility) and (iii) for other administrative changes. The total commitments remain at $330.0 million. The maturity of all commitments under the facility have been extended to December 14, 2028.
Current wording
Unsecured Revolving Credit Facility –On December 10, 2025, the Company entered into the Thirteenth Amendment to this Unsecured Revolving Credit Facility. The Unsecured Revolving Credit Facility was amended (i) to reduce the SOFR spread and base rate spread, (ii) to allow the Company to request a revolving credit advance using Daily SOFR (as defined in the Unsecured Revolving Credit Facility) and (iii) for other administrative changes. The total commitments remain at $330.0 million. The maturity of all commitments under the facility have been extended to December 14, 2028. As of June 30, 2026 and December 31, 2025, we had no amounts outstanding under our Revolving Credit Facility.
Previous wording
Senior Unsecured Notes -As of March 31, 2026, we had four series of senior unsecured notes outstanding that were each issued pursuant to a note purchase agreement. The aggregate amount of senior unsecured notes outstanding was $237.1 million as of March 31, 2026 compared to $262.0 million as of December 31, 2025, net of issuance costs.
Current wording
Senior Unsecured Notes -As of June 30, 2026, we had four series of senior unsecured notes outstanding that were each issued pursuant to a note purchase agreement. The aggregate principal amount of senior unsecured notes outstanding was $237.2 million as of June 30, 2026 compared to $262.0 million as of December 31, 2025, net of issuance costs.
Previous wording
•a minimum interest coverage (consolidated EBITDA to interest incurred) of no less than 2.0 to 1.0. As of March 31, 2026, our interest coverage on a last 12 months’ basis was 32.6 to 1.0;
Current wording
•a minimum interest coverage (consolidated EBITDA to interest incurred) of no less than 2.0 to 1.0. As of June 30, 2026, our interest coverage on a last 12 months’ basis was 33.13 to 1.0;
Previous wording
•a Consolidated Tangible Net Worth of no less than approximately $1,199.0 million. As of March 31, 2026, our Consolidated Tangible Net Worth was $1,915.5 million; and
Current wording
•a Consolidated Tangible Net Worth of no less than approximately $1,236.2 million. As of June 30, 2026, our Consolidated Tangible Net Worth was $1,974.7 million; and
Previous wording
•a maximum debt to total capitalization rolling average ratio of no more than 40.0%. As of March 31, 2026, we had a rolling average ratio of 13.3%.
Current wording
•a maximum debt to total capitalization rolling average ratio of no more than 40.0%. As of June 30, 2026, we had a rolling average ratio of 12.1%.
Previous wording
As of March 31, 2026, we believe that our cash on hand, capacity available under our lines of credit and cash flows from operations for the next twelve months will be sufficient to service our outstanding debt during the next twelve months and fund our operations. For additional information on our lines of credit, senior unsecured notes, and notes payable, refer to Note 5 to the condensed consolidated financial statements located in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current wording
As of June 30, 2026, we believe that our cash on hand, capacity available under our lines of credit and cash flows from operations for the next twelve months will be sufficient to (i) service our outstanding debt during the next twelve months and (ii) fund our operations. For additional information on our lines of credit, senior unsecured notes, and notes payable, refer to Note 5 to the condensed consolidated financial statements located in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
Under the Warehouse Facilities, banks purchase a participation interest in individual mortgage loans, with GRBK Mortgage providing the remainder of the principal of the mortgage, typically up to 2% depending on the loan product. The mortgage loans, with the servicing rights, are then sold, typically within 14 to 60 days, to a third party investor and the bank is repaid its participation interest plus interest and the remainder is remitted to GRBK Mortgage. If a third party investor has not purchased the mortgage loan within the anticipated timeframes then GRBK Mortgage is required to repurchase the mortgage loan for the full amount of the participation interest plus interest.
Current wording
Under the Warehouse Facilities, banks purchase a participation interest in individual mortgage loans, with GRBK Mortgage providing the remainder of the principal of the mortgage, typically up to 2% depending on the loan product. The mortgage loans, with the servicing rights, are then sold, typically within 30 days, to a third party investor and the bank is repaid its participation interest plus interest and the remainder is remitted to GRBK Mortgage. If a third party investor has not purchased the mortgage loan within the anticipated timeframes then GRBK Mortgage is required to repurchase the mortgage loan for the full amount of the participation interest plus interest.
Previous wording
As of March 31, 2026 and December 31, 2025, was had 2,000,000 Depositary Shares issued and outstanding, each representing 1/1000 of a share of our 5.75% Series A Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”). We will pay cumulative cash dividends on our Series A Preferred Stock, when and as declared by the Board, at the rate of 5.75% of the $25,000 liquidation preference per share. Dividends payable quarterly in arrears. During the three months ended March 31, 2026 and 2025, we paid dividends of $0.7 million on our Series A Preferred Stock. On April 20, 2026, the Board declared a quarterly cash dividend of $0.359 per depositary share on our Series A Preferred Stock. The dividend is payable on June 15, 2026 to stockholders of record as of June 1, 2026.
Current wording
As of June 30, 2026 and December 31, 2025 we had 2,000,000 Depositary Shares issued and outstanding, each representing 1/1000 of a share of our 5.75% Series A Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”). We will pay cumulative cash dividends on the Series A Preferred Stock, when and as declared by the Board, at the rate of 5.75% of the $25,000 liquidation preference per share. Dividends are payable quarterly in arrears. During the six months ended June 30, 2026, we paid dividends of $1.4 million on the Series A Preferred Stock. On July 23, 2026, the Board declared a quarterly cash dividend of $0.359 per depositary share on the Series A Preferred Stock. The dividend is payable on September 15, 2026 to stockholders of record as of September 1, 2026.
Previous wording
In the ordinary course of business, we enter into land purchase contracts to acquire lots for the construction of our homes in the future. We are subject to customary obligations associated with such contracts. These purchase contracts typically require an earnest money deposit, and the purchase of properties under these contracts is generally contingent upon satisfaction of certain requirements, including obtaining applicable property and development entitlements. As of March 31, 2026, the Company did not participate in any land banking arrangements.
Current wording
In the ordinary course of business, we enter into land purchase contracts to acquire lots for the construction of our homes in the future. We are subject to customary obligations associated with such contracts. These purchase contracts typically require an earnest money deposit, and the purchase of properties under these contracts is generally contingent upon satisfaction of certain requirements, including obtaining applicable property and development entitlements. As of June 30, 2026, the Company did not participate in any land banking arrangements, excluding joint ventures.
Previous wording
As of March 31, 2026, we had earnest money deposits of $12.6 million at risk associated with contracts to purchase 8,552 lots past feasibility studies with an aggregate purchase price of approximately $358.3 million.
Current wording
As of June 30, 2026, we had earnest money deposits of $12.0 million at risk associated with contracts to purchase raw land and finished lots representing 10,180 total lots past feasibility studies with an aggregate purchase price of approximately $450.7 million.
Previous wording
The homebuilding industry experiences seasonal fluctuations in quarterly operating results and capital requirements. We typically experience the highest new home order activity in spring and summer, although this activity is highly dependent on the number of active selling communities, timing of new community openings, interest rates and other market factors. Since it typically takes three to nine months to construct a new home, we normally deliver more homes in the second half of the year as spring and summer home orders are delivered. Because of this seasonality, home starts, construction costs and related cash outflows have historically been highest in the second and third quarters, and the majority of cash receipts from home deliveries typically occur during the second half of the year.
Current wording
The homebuilding industry experiences seasonal fluctuations in quarterly operating results and capital requirements. We typically experience the highest new home order activity in spring and summer, although this activity is highly dependent on the number of active selling communities, timing of new community openings, interest rates and other market factors. Since it typically takes four to seven months to construct a new home, we normally deliver more homes in the second half of the year as spring and summer home orders are delivered. Because of this seasonality, home starts, construction costs and related cash outflows have historically been highest in the second and third quarters, and the majority of cash receipts from home deliveries occur typically during the second half of the year.
Previous wording
Our critical accounting policies are described in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
Our critical accounting policies are described in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K/A for the year ended December 31, 2025.
Previous wording
See Note 1 in the Notes to the Condensed Consolidated Financial Statement included in Part I, Item 1 of this Quarterly Report on Form 10-Q for recent accounting pronouncements.
Current wording
See Note 1 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for recent accounting pronouncements.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report — wording carried from elsewhere
Residential Units Revenue and New Homes Delivered
Current report — wording carried from elsewhere
The table below represents residential units revenue and new homes delivered for the six months ended June 30, 2026 and 2025 (dollars in thousands):
Current report — wording carried from elsewhere
The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s lien contracts (dollars in thousands):
Current report — wording carried from elsewhere
Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 7.8% for the six months ended June 30, 2026, compared to 7.9% for the six months ended June 30, 2025. Our cancellation rate has remained in a historically low range under 10.0% since December 31, 2022.
Current report — wording carried from elsewhere
The table below represents the components of residential units gross margin (dollars in thousands):
Current report — wording carried from elsewhere
The table below represents the components of selling, general and administrative expenses (dollars in thousands):
Current report — wording carried from elsewhere
Selling, general and administrative expenses as a percentage of revenue for builder operations decreased to 10.8% for the six months ended June 30, 2026 from 10.9% in the prior year period mainly due to lower revenues. Builder operations expenditures include salary expenses, sales commissions, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.
Current report — wording carried from elsewhere
Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment for the six months ended June 30, 2026, were $3.4 million and income of $522.0 thousand for the six months ended June 30, 2025. The change was driven by increased salaries and incentive compensation. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.
Current report — wording carried from elsewhere
The following tables present selected financial information for our Financial Services operations (in thousands):
Current report — wording carried from elsewhere
Equity in Income of Unconsolidated Entities
Current report — wording carried from elsewhere
Equity in income of unconsolidated entities increased to $1.7 million, for the six months ended June 30, 2026, compared to $1.0 million for the six months ended June 30, 2025. See Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of Green Brick’s share in net earnings by unconsolidated entity.