Dream Finders Homes recently released its 10-Q report. Dream Finders Homes, Inc., through Dream Finders Homes LLC, builds and sells single-family homes in the United States, with operations organized into four segments: Southeast, Mid-Atlantic, Midwest and Financial Services. Its home offerings include entry-level, move-up, active adult and custom homes, and it also provides mortgage banking, title, escrow, closing and insurance-related services.
In management’s discussion, the company said it continues to use an asset-light lot acquisition strategy and is focused on high-growth markets, but it also pointed to affordability pressure as the main issue facing buyers, especially at entry-level price points. Dream Finders said elevated mortgage rates and broader uncertainty are forcing it to lean on targeted incentives, including mortgage rate buydowns, to support sales, a move that has reduced margins in the near term. The company said its longer-term focus remains on land-light growth, operational efficiency and product offerings aligned with current market conditions.
For the second quarter, Dream Finders reported homebuilding revenues of $1.01 billion, down 8% from $1.10 billion a year earlier. Home closings rose to 2,290 from 2,232, but the average sales price of homes closed fell 9% to $438,171 from $481,027. Net sales increased to 2,232 from 1,938, while the cancellation rate improved to 11.1% from 14.0%.
Homebuilding gross margin fell to $143.4 million from $181.7 million, and the margin rate declined to 14.2% from 16.5%. Adjusted homebuilding gross margin was $243.7 million, down from $285.2 million, with the adjusted margin rate slipping to 24.2% from 25.9%. Income before taxes from homebuilding operations dropped to $18.1 million from $61.1 million.
By segment, Southeast homebuilding revenues rose to $388 million from $368 million, with closings up to 889 from 842, but gross margin percentage fell to 14.2% from 17.9%. Mid-Atlantic revenue declined to $264 million from $275 million even as closings increased to 715 from 600; its gross margin percentage fell to 14.6% from 17.9%. Midwest revenue dropped to $355 million from $457 million, with closings down to 686 from 790 and gross margin percentage easing to 14.0% from 14.6%.
At June 30, 2026, Dream Finders had 353 active communities, up from 271 a year earlier. Backlog stood at 2,319 units worth $1.154 billion, compared with 2,513 units worth $1.201 billion a year earlier. Net homebuilding debt to net capitalization was 46.5%, up from 44.5%.
On a consolidated basis, Dream Finders posted net income attributable to the company of $27.7 million, down from $56.6 million a year earlier. Diluted EPS was $0.27, compared with $0.56. EBITDA came in at $100.4 million, down from $133.7 million, and EBITDA margin was 9.4%, compared with 11.6%.
For the first six months, homebuilding revenues were $1.89 billion, down from $2.06 billion a year earlier, while home closings increased to 4,333 from 4,180. Net income attributable to Dream Finders Homes was $41.0 million, compared with $111.5 million in the prior-year period. Today the company's shares have moved -13.42% to a price of $13.35. Check out the company's full 10-Q submission here.
