Company: LGIH
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001580670-25-000076
Chunk: 93

Company: LGI Homes, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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 core operations continued uninterrupted, we have identified certain areas where the shutdown may have implications for our business and financial reporting:

Government-Backed Mortgage Programs: LGI Homes serves a significant number of entry-level and first-time homebuyers who utilize federally backed mortgage programs, including FHA and VA loans. During the shutdown, we observed delays in loan processing and approvals, which may impact the timing of certain home closings and backlog conversion in future periods.  In addition to delays in FHA and VA loan processing, the government shutdown has impacted USDA loan 

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programs, which are a critical financing option for many of our entry-level buyers in rural and suburban markets.  The disruption in USDA loan approvals may result in delayed closings and increased cancellations. 

Economic Data Availability: The shutdown disrupted the release of key economic indicators, including employment and inflation data, which are typically used to inform our market outlook and strategic planning. As a result, our forward-looking statements and guidance may reflect increased uncertainty.

Affordable Housing and Development Approvals: For communities involving federal funding or oversight, including certain affordable housing initiatives, we may experience delays in approvals and contract processing. While these delays were not material to our results for the third quarter of 2025, extended disruptions could affect future development timelines and revenue recognition.

We continue to monitor the situation closely and will provide updates in future filings should the shutdown or its effects materially impact our operations, financial condition, or results of operations.

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Key Results 

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

•Home sales revenues decreased 39.2% to $396.6 million from $651.9 million.

•Homes closed decreased 39.4% to 1,065 homes from 1,757 homes.

•Average sales price per home closed increased 0.4% to $372,424 from $371,004. 

•Gross margin as a percentage of home sales revenues decreased to 21.5% from 25.1%. 

•Adjusted gross margin (non-GAAP) as a percentage of home sales revenues decreased to 24.5% from 27.2%. 

•Net income before income taxes decreased 70.9% to $26.7 million from $91.9 million.

•Net income decreased 71.7% to $19.7 million from $69.6 million.

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