Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 94

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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FR’s real property. The Loan Agreement includes certain restrictive covenants that may limit LGI Living SFR’s ability to, among other things, incur additional indebtedness or make certain investments. The Loan Agreement contains representations and warranties, affirmative covenants, and events of default, all of which the Company believes are customary for special purpose subsidiary real estate secured loan agreements. If an event of default exists under the Loan Agreement, the lender will be able to accelerate the maturity of the loan and exercise other rights and remedies.

One Big Beautiful Bill Act

On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform provisions affecting corporations. The OBBBA, among other changes, terminates the energy efficient homes tax credit for homes closing after June 30, 2026. However, none of these tax law changes are expected to have an impact on the consolidated financial statements beginning in the period in which the OBBBA was signed into law.

Key Results 

Key financial results as of and for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, were as follows:

•Home sales revenues decreased 19.8% to $483.5 million from $602.5 million.

•Homes closed decreased 20.1% to 1,323 homes from 1,655 homes.

•Average sales price per home closed increased 0.4% to $365,446 from $364,047. 

•Gross margin as a percentage of home sales revenues decreased to 22.9% from 25.0%. 

•Adjusted gross margin (non-GAAP) as a percentage of home sales revenues decreased to 25.5% from 27.0%. 

•Net income before income taxes decreased 45.3% to $42.0 million from $76.9 million.

•Net income decreased 46.2% to $31.5 million from $58.6 million.

•EBITDA (non-GAAP) as a percentage of home sales revenues decreased to 11.4% from 14.7%.

For reconciliations of the non-GAAP financial measures of adjusted gross margin and EBITDA to the most directly comparable GAAP financial measures, please see “—Non-GAAP Measures.”

Key financial results as of and for the six months ended June 30,