Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 168

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part II, Item 7
Chunk 168
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Table of Contents

ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

For purposes of this Management’s Discussion and Analysis of Financial Condition and Results of Operation, references to “we,” “our,” “us” or similar terms refer to LGI Homes, Inc. and its subsidiaries. 

Business Overview

Our management team has been in the residential land development business since the mid-1990s. Since commencing home building operations in 2003, we have constructed and closed over 75,000 homes. 

We are engaged in the design, construction and sale of new homes in the following markets:

WestNorthwestCentralMidwestFloridaSoutheastMid-AtlanticPhoenix, AZSeattle, WAHouston, TXMinneapolis, MNTampa, FLAtlanta, GAWashington, D.C.Tucson, AZPortland, ORDallas Ft. Worth, TXOrlando, FLCharlotte, NCNorfolk, VAAlbuquerque, NMDenver, COSan Antonio, TXFort Myers, FLRaleigh, NCRichmond, VALas Vegas, NVAustin, TXJacksonville, FLWilmington, NCBaltimore, MDNorthern CAOklahoma City, OKFort Pierce, FLWinston-Salem, NCSouthern CADaytona Beach, FLColumbia, SCSalt Lake City, UTSarasota, FLGreenville, SCBirmingham, ALNashville, TN

Our results in the second quarter of 2025 were achieved against a challenging macroeconomic backdrop. Mortgage rates have remained persistently high, straining affordability and while the demand environment remains positive, muted consumer sentiment is impacting customers’ willingness to purchase new homes. Against this backdrop, we continued to offer buyers financial incentives in an effort to bridge the affordability gap and put homeownership within reach of as many customers as possible while preserving margins at our targeted level. During the six months ended June 30, 2025, we had 2,319 home closings, compared to 2,738 home closings during the six months ended June 30, 2024.

We sell homes under the LGI Homes and Terrata Homes brands. Our 146 active communities at June 30, 2025 included 16 Terrata Homes communities. At June 30, 2024, we had 128 active communities, including 17 Terrata Homes communities.

For additional discussion regarding our business and operations, see Item 7. Management's