Company: LGIH
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001580670-25-000076
Chunk: 83

Company: LGI Homes, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 83
---
 results as compared to the target performance metrics. The terms of the PSUs provide that the payouts will be capped at 100% of the target number of PSUs granted if absolute total stockholder return is negative during the performance period, regardless of EPS performance; this market condition applies for amounts recorded above target. The compensation expense associated with the PSU grants is determined using the derived grant date fair value, based on a third-party valuation analysis, and expensed over the applicable period. The PSUs vest upon the determination date for the actual results at the end of the three-year period and require that the recipients continue to be employed by us through the determination date. The PSUs can only be settled in shares of our common stock. The following table summarizes the activity of our PSUs for the nine months ended September 30, 2025:Nine Months Ended September 30,2025Target SharesWeighted Average Grant Date Fair ValueBeginning balance196,770 $111.38    Granted116,227 $75.09    Vested— $—    Forfeited(60,272)$118.80 Ending balance252,725 $92.92 At September 30, 2025, management estimates that the recipients will receive approximately 59.9% of the weighted average target number of PSUs outstanding at the end of the applicable three-year performance cycle based on projected performance compared to the target performance metrics.  PSUs granted in 2022 were forfeited based on actual results as compared to the target performance metrics.  We recognized $(0.4) million and $0.8 million of total stock-based compensation 

15

expense related to outstanding PSUs for the three months ended September 30, 2025 and 2024, respectively.  We recognized $1.2 million and $4.0 million of total stock-based compensation expense related to outstanding PSUs for the nine months ended September 30, 2025 and 2024, respectively. At September 30, 2025, we had unrecognized compensation cost of $7.5 million, based on the probable amount, related to unvested PSUs, which is expected to be recognized over a weighted average period of 2.0 years.  PSUs granted in 2024 and 2025 are excluded from the calculation of diluted EPS as they are subject to unsatisfied performance conditions.Employee Stock Purchase PlanOn April 24, 2025, our stockholders approved and authorized 500