Dream Finders Homes Announces Third Quarter 2026 Results
Dream Finders Homes, Inc. (DFH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Dream Finders Homes Announces Third Quarter 2026 Results Record Third Quarter Closings of 1,967 Record Year to Date Closings of 6,127 Record Year to Date Net Sales of 6,352, Up 6% Jacksonville, FL. — October 29, 2026 — Dream Finders Homes, Inc. (the “Company”, “Dream
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue, margins, and net income, influencing short‑term price expectations.
Market read
Primary earnings disclosure for a mid‑cap homebuilder; impacts sector sentiment and may trigger short‑term price movement.
What to watch
Synergies from the recent Beazer acquisition may improve future earnings beyond the current quarter.
Record third-quarter closings of 1,967 and record year-to-date closings of 6,127, while homebuilding gross margin declined and Beazer acquisition costs reduced third-quarter earnings.
Homebuilding revenue and closings increased, but net sales declined, homebuilding gross margin contracted, SG&A rose on Beazer transaction costs, and net income attributable to DFH fell to $ 6,653 from $ 46,997.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Homebuilding revenues, three months ended September 30GAAP | $942.3M | – | 3% |
| Financial services revenues, three months ended September 30GAAP | $53.71M | – | – |
| Total revenues, three months ended September 30GAAP | $996.0M | – | – |
| Homebuilding cost of sales, three months ended September 30GAAP | $802.4M | – | – |
| Financial services expense, three months ended September 30GAAP | $46.26M | – | – |
| Selling, general and administrative expense, three months ended September 30GAAP | $144.3M | – | 32% |
| Selling, general and administrative expense excluding Beazer transaction costs, three months ended September 30other | $121M | – | – |
| Selling, general and administrative expense as a percentage of homebuilding revenues, three months ended September 30GAAP | 15.3 % | – | +340 bps |
| Selling, general and administrative expense as a percentage of homebuilding revenues excluding Beazer transaction costs, three months ended September 30other | 12.8% | – | – |
| Other income, net, three months ended September 30GAAP | $8.64M | – | – |
| Income before taxes, three months ended September 30GAAP | $13.16M | – | – |
| Income before taxes excluding Beazer acquisition costs, three months ended September 30other | $37M | – | – |
| Income tax expense, three months ended September 30GAAP | $6.01M | – | – |
| Net income, three months ended September 30GAAP | $7.15M | – | – |
| Net income attributable to Dream Finders Homes, Inc., three months ended September 30GAAP | $6.65M | – | – |
| Net income attributable to DFH excluding Beazer acquisition costs, three months ended September 30other | $27M | – | – |
| Basic (loss) earnings per share, three months ended September 30GAAP | $ (0.00) | – | – |
| Diluted (loss) earnings per share, three months ended September 30GAAP | $ (0.00) | – | – |
| Basic earnings per share excluding Beazer acquisition costs, three months ended September 30other | $0.22 per basic share | – | – |
| Home closings, three months ended September 30other | 1,967 | – | 3% |
| Average sales price of homes closed, three months ended September 30other | $ 459,148 | – | – |
| Net sales, three months ended September 30other | 1,712 | – | -15% |
| Cancellation rate, three months ended September 30other | 12.7 % | – | – |
| Homebuilding gross margin, three months ended September 30GAAP | $139.9M | – | – |
| Homebuilding gross margin percentage, three months ended September 30GAAP | 14.9 % | +70 bps | – |
| Adjusted homebuilding gross margin, three months ended September 30non-GAAP | $227.5M | – | – |
| Adjusted homebuilding gross margin percentage, three months ended September 30non-GAAP | 24.1 % | – | – |
| Active communities as of period endother | 365 | – | – |
| Backlog units as of September 30, 2026other | 2,064 | – | – |
| Backlog value as of September 30, 2026other | $1.1B | – | – |
| Backlog average sales price as of September 30, 2026other | $517,900 | – | – |
| Financial services pre-tax income, three months ended September 30other | $8M | – | – |
| Homebuilding revenues, nine months ended September 30GAAP | $2.79B | – | – |
| Financial services revenues, nine months ended September 30GAAP | $161.2M | – | – |
| Total revenues, nine months ended September 30GAAP | $2.95B | – | – |
| Income before taxes, nine months ended September 30GAAP | $68.81M | – | – |
| Net income attributable to Dream Finders Homes, Inc., nine months ended September 30GAAP | $47.63M | – | – |
| Diluted earnings per share, nine months ended September 30GAAP | $ 0.37 | – | – |
| Home closings, nine months ended September 30other | 6,127 | – | – |
| Net sales, nine months ended September 30other | 6,352 | – | 6% |
| Homebuilding gross margin percentage, nine months ended September 30GAAP | 14.5 % | – | – |
| Adjusted homebuilding gross margin percentage, nine months ended September 30non-GAAP | 24.2 % | – | – |
| Net homebuilding debt to net capitalization as of September 30, 2026non-GAAP | 48.1 % | – | – |
| Return on participating equityother | 6.6 % | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- NoteApproximately 9,250 home closings
Capital returns
- Repurchased 386,103 shares of Class A common stock for $6 million during the three months ended September 30, 2026.
- On September 14, 2026, redeemed all 150,000 outstanding shares of redeemable preferred stock for $154 million.
- Issued 225,000 shares of new redeemable preferred stock for net proceeds of $217 million.
What drove it
- Homebuilding revenue growth was primarily driven by increased home closings and strategic lot sales and, to a lesser extent, higher revenues from contracts to build homes on buyer-owned land.
- Lower average selling price of homes closed partially offset revenue growth, largely due to geographic and product mix changes.
- Sales incentives as a percentage of homebuilding revenues were lower by 56 basis points, or 7%, compared with the third quarter of 2025.
- Homebuilding gross margin was affected by higher land and financing costs, partially offset by direct cost reductions and cycle-time improvements.
- Other income included gains on equity securities of $5 million, primarily attributable to unrealized gains from stock price appreciation related to the pre-acquisition investment in Beazer.
Concerns
- Homebuilding gross margin percentage declined to 14.9 % from 17.5 %, and inventory impairment charges negatively impacted the third-quarter 2026 percentage by approximately 70 bps.
- Net sales declined 15% to 1,712 from 2,021, although net sales excluding built-for-rent activity increased 6%.
- SG&A increased 32% to $144 million, principally due to $23 million of Beazer transaction costs and higher forward commitment program costs from rising mortgage interest rates.
- The current quarter's net income was negatively affected by approximately $3 million from a higher effective tax rate, primarily because Beazer transaction costs incurred during the quarter are nondeductible for tax purposes.
- Management expects additional nonrecurring transaction and integration costs in the fourth quarter and anticipates recording deal abandonment charges in the fourth quarter.
What to watch
- Execution against approximately 9,250 home closings for full-year 2026.
- Fourth-quarter Beazer transaction, integration and anticipated deal abandonment charges.
- Progress toward the $100 million cost savings outlined for Beazer.
- Progress reducing leverage, which management identified as a key priority.
- Further homebuilding gross margin recovery following the sequential improvement of 70 bps in the third quarter.
Balance sheet and cash flow
- Cash and cash equivalents were $ 245,645 as of September 30, 2026, compared to $ 234,766 as of December 31, 2025.
- Total liquidity was $521 million as of September 30, 2026, comprised of cash and cash equivalents and availability under the revolving credit facility.
- Inventories were $ 2,515,613 as of September 30, 2026, compared to $ 2,025,662 as of December 31, 2025.
- Lot deposits were $ 490,166 as of September 30, 2026, compared to $ 545,253 as of December 31, 2025.
- Revolving credit facility and other borrowings were $ 1,237,706 as of September 30, 2026, compared to $ 822,296 as of December 31, 2025.
- Senior unsecured notes, net were $ 592,984 as of September 30, 2026, compared to $ 591,060 as of December 31, 2025.
- Mortgage warehouse facilities were $ 165,325 as of September 30, 2026, compared to $ 192,837 as of December 31, 2025.
- Total debt was $ 1,996,015 as of September 30, 2026, compared to $ 1,606,193 as of December 31, 2025.
- Net homebuilding debt was $ 1,561,651 as of September 30, 2026, compared to $ 1,154,294 as of December 31, 2025.
- Total Dream Finders Homes, Inc. stockholders’ equity was $ 1,432,002 as of September 30, 2026, compared to $ 1,424,575 as of December 31, 2025.
Analysis
Dream Finders delivered record third-quarter closings of 1,967 and record year-to-date closings of 6,127. Third-quarter homebuilding revenues increased 3% to $ 942,340, while total revenues were $ 996,049 compared with $ 969,804 in the prior-year quarter. Revenue growth reflected higher closings, strategic lot sales and higher revenues from buyer-owned-land contracts, but lower home pricing from geographic and product mix limited the outcome. Net sales declined 15% to 1,712 from 2,021, although the company said net sales excluding built-for-rent activity increased 6%.
Margins and earnings weakened materially. Homebuilding gross margin percentage declined to 14.9 % from 17.5 %, with higher land and financing costs and approximately 70 bps of inventory impairment charges outweighing direct cost reductions and cycle-time improvements. Adjusted homebuilding gross margin percentage was 24.1 % compared with 26.7 %. Management reported a 70 bps sequential improvement in homebuilding gross margin, but also stated that margins remain under pressure.
SG&A expense increased 32% to $ 144,259 and SG&A as a percentage of homebuilding revenues rose to 15.3 % from 11.9 %. The company attributed most of the increase to $23 million of Beazer transaction costs, with higher forward commitment program costs also contributing. Income before taxes declined to $ 13,157 from $ 60,750, while net income attributable to Dream Finders Homes, Inc. declined to $ 6,653 from $ 46,997. Excluding Beazer acquisition costs, the company reported pre-tax income of $37 million and net income attributable to DFH of $27 million, or $0.22 per basic share.
The balance sheet reflected increased leverage ahead of the completed Beazer acquisition. Total debt was $ 1,996,015 as of September 30, 2026, compared with $ 1,606,193 as of December 31, 2025, and net homebuilding debt to net capitalization was 48.1 % compared with 47.3 %. The company had $ 245,645 of cash and cash equivalents and reported total liquidity of $521 million. It also repurchased 386,103 Class A shares for $6 million and refinanced its redeemable preferred equity through the redemption of 150,000 shares for $154 million and the issuance of 225,000 new shares for net proceeds of $217 million.
Management maintained guidance for approximately 9,250 home closings in full-year 2026. The October 20 completion of the Beazer acquisition expands the company's geographic footprint and scale, but management expects additional nonrecurring transaction and integration costs in the fourth quarter. It also anticipates deal abandonment charges as it reviews the combined land portfolio, while targeting $100 million of Beazer cost savings and prioritizing leverage reduction.
Management, verbatim
Margins remain under pressure, and we continue to carefully balance sales pace and price.
Patrick Zalupski, Dream Finders Homes Founder, Co-Chairman and CEO
Since quarter end, we completed the Beazer acquisition.
Patrick Zalupski, Dream Finders Homes Founder, Co-Chairman and CEO
We reiterate our 2026 full-year guidance of approximately 9,250 home closings.
Patrick Zalupski, Dream Finders Homes Founder, Co-Chairman and CEO
Not in the filing
stated, not guessed- Operating cash flow
- Free cash flow
- Dividend amount or dividend policy
- Revenue guidance
- Gross margin guidance
- Operating expense guidance
- Tax-rate guidance
- Detailed fourth-quarter guidance
- Prior outlook for comparison
- Regional homebuilding revenue by Southeast, Mid-Atlantic and Midwest segments
- Third-quarter operating income
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
DFH announced Q3 2026 results via an SEC Form 8‑K, including operational metrics and a reaffirmation of full‑year guidance.
Ticker impact
DFH filed its Q3 2026 earnings, showing revenue up 3% to $942M and a per‑share loss, reaffirming full‑year guidance of ~9,250 home closings.
likely modest downside as investors digest lower profitability and guidance reaffirmation
New earnings numbers are the first public disclosure; margins fell and net income turned negative, which typically pressures the stock despite record closings.
Market effects
Homebuilding sector may see pressure from higher financing costs and margin compression.
U.S. housing market outlook slightly weakened by DFH's earnings.
Limited; primarily affects U.S. residential construction investors.
Counterpoint
Despite the loss, record home closings could support a short‑term bounce if investors focus on volume.
Key entities
- CompanyDream Finders Homes, Inc.
U.S. homebuilder reporting Q3 2026 results.
- CompanyBeazer
Acquired homebuilder whose integration costs affect DFH's quarter.
