Company: LGIH
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001580670-25-000076
Chunk: 185

Company: LGI Homes, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part II, Item 7
Chunk 185
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 September 30,Nine Months Ended September 30,2025202420252024Home sales revenues$396,632 $651,854 $1,231,537 $1,645,202 Cost of sales311,520 488,362 962,104 1,239,425 Gross margin85,112 163,492 269,433 405,777 Capitalized interest charged to cost of sales11,004 12,954 31,107 30,187 Purchase accounting adjustments (1)999 1,157 2,850 3,134 Adjusted gross margin$97,115 $177,603 $303,390 $439,098 Gross margin % (2)21.5 %25.1 %21.9 %24.7 %Adjusted gross margin % (2) 24.5 %27.2 %24.6 %26.7 %

(1)Adjustments result from the application of purchase accounting for acquisitions and represent the amount of the fair value step-up adjustments included in cost of sales for real estate inventory sold after the acquisition dates. 

(2)Calculated as a percentage of home sales revenues.

EBITDA  

EBITDA is a non-GAAP financial measure used by management as a supplemental measure in evaluating operating performance. We define EBITDA as net income before (i) interest expense, (ii) income taxes, (iii) depreciation and amortization and (iv) capitalized interest charged to the cost of sales. Our management believes that the presentation of EBITDA provides useful information to investors regarding our results of operations because it assists both investors and management in analyzing and benchmarking the performance and value of our business. EBITDA provides an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization and items considered to be unusual or non-recurring. Accordingly, our management believes that this measure is useful for comparing general operating performance from period to period. Other companies may define this measure differently and, as a result, our measure of EBITDA may not be directly comparable to the measures of other companies. Although we use EBITDA as a financial measure to assess the performance of our business, the use of this measure is limited because it does not include certain material costs, such as interest and taxes, necessary to operate our business. EBITDA should be considered in