Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 146

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 146
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 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.

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.

General and Administrative. General and administrative expenses for the six months ended June 30, 2025 were $60.6 million, a decrease of $1.4