Dream Finders Homes, Inc. (NYSE: DFH) has reported its financial results for the second quarter ended June 30, 2025. The company announced a 4% increase in homebuilding revenues to $1.1 billion in the second quarter of 2025 compared to the same period in 2024. Home closings also saw a significant uptick, increasing by 10% to 2,232 from 2,031, while net new orders surged 13% to 1,938 from 1,712.
However, it's worth noting that the homebuilding gross margin percentage decreased by 250 basis points to 16.5% in the second quarter of 2025 compared to 19.0% in the same period in 2024. The adjusted homebuilding gross margin also experienced a decline, dropping by 110 basis points to 25.9% from 27.0%.
The company's pre-tax income saw a decrease from $106 million in the second quarter of 2024 to $74 million in the second quarter of 2025. Furthermore, net income attributable to DFH dropped to $57 million, or $0.57 per basic share, compared to $81 million, or $0.83 per basic share in the same period in 2024.
On the positive side, financial services pre-tax income increased by 86% to $12 million from $7 million. Dream Finders Homes also revealed that they have a controlled lot pipeline of 63,180 as of June 30, 2025, compared to 54,698 as of December 31, 2024.
The company's liquidity stood at $433 million as of June 30, 2025, which includes cash and cash equivalents and availability under the revolving credit facility. Additionally, Dream Finders Homes reported a return on participating equity of 25.0%, down from 33.5%.
It's interesting to note that the company repurchased 705,404 class A common shares for $16 million during the three months ended June 30, 2025. This strategic move reflects the company's commitment to creating long-term value for its shareholders.
Looking ahead, Dream Finders Homes maintains its guidance of approximately 9,250 home closings for the full year 2025. This guidance includes the impact of the Liberty Communities and Green River Builders acquisitions.
Dream Finders Homes, based in Jacksonville, Florida, is a homebuilder that operates in the Southeast, Mid-Atlantic, and Midwest regions, including Florida, Texas, Tennessee, North Carolina, South Carolina, Georgia, Colorado, Arizona, and the Washington, D.C. metropolitan area. The company also provides mortgage financing, title agency, and underwriting services to homebuyers through its wholly owned subsidiaries.
As a result of these announcements, the company's shares have moved -3.23% on the market, and are now trading at a price of $26.39. If you want to know more, read the company's complete 8-K report here.
