# EDGAR Filing Document

**Accession Number:** 0001580670
**File Stem:** 0001580670-25-000067
**Filing Date:** 2025-9
**Character Count:** 6238
**Document Hash:** c49dedd975eaee75fb6d97b18d7e01e4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001580670-25-000067.hdr.sgml**: 20260122

**ACCESSION NUMBER**: 0001580670-25-000067

**CONFORMED SUBMISSION TYPE**: CORRESP

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20250905

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LGI Homes, Inc.
- **CENTRAL INDEX KEY:** 0001580670
- **STANDARD INDUSTRIAL CLASSIFICATION:** OPERATIVE BUILDERS [1531]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 463088013
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** CORRESP

**BUSINESS ADDRESS:**
- **STREET 1:** 1450 LAKE ROBBINS DRIVE, SUITE 430
- **CITY:** THE WOODLANDS
- **STATE:** TX
- **ZIP:** 77380
- **BUSINESS PHONE:** (281) 362-8998

**MAIL ADDRESS:**
- **STREET 1:** 1450 LAKE ROBBINS DRIVE, SUITE 430
- **CITY:** THE WOODLANDS
- **STATE:** TX
- **ZIP:** 77380

![lgilogoa02.jpg](lgilogoa02.jpg)

**LGI HOMES, INC.**

**1450 Lake Robbins Drive, Suite 430**

**The Woodlands, Texas 77380**

September 5, 2025

<u>BY EDGAR</u>

United States Securities and Exchange Commission

Division of Corporation Finance

Office of Real Estate & Construction

100 F Street, N.E.

Washington, D.C. 20549

Attention: Ameen Hamady

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shannon Menjivar

**Re: LGI Homes, Inc.**

&nbsp;&nbsp;&nbsp;&nbsp;**Form 10-K for the year ended December 31, 2024** 

&nbsp;&nbsp;&nbsp;&nbsp;**Filed on February 26, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Form 8-K filed on February 25, 2025**

**&nbsp;&nbsp;&nbsp;&nbsp;File No. 001-36126**

Ladies and Gentlemen:

Set forth below please find the responses of LGI Homes, Inc., a Delaware corporation (the "<u>Company</u>"), to comments received from the staff of the Division of Corporation Finance (the "<u>Staff</u>") of the Securities and Exchange Commission (the "<u>Commission</u>") by letter dated August 27, 2025 (the "<u>Comment Letter</u>"), with respect to the above referenced Form 10-K for the fiscal year ended December 31, 2024, and Form 8-K filed with the Commission on February 25, 2025. For your convenience, our responses correspond to the captions and numbering included in the Comment Letter and are prefaced by the text of the Staff's comments in italicized text.

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<u>Form 8-K filed on February 25, 2025</u>

<u>Balance Sheet Highlights, page 2</u>

1.*We note that you present, net debt to capitalization of 41.2%. Please reconcile net debt to the appropriate GAAP figure. In addition, ensure that you present for each applicable period a ratio calculated using the most directly comparable GAAP measures. See Item 10(e)(1)(i)(A) and (B) of Regulation S-K and Question 102.10 of the Compliance and Disclosure Interpretations on Non-GAAP Financial Measures.*

<u>Response</u>

&nbsp;&nbsp;&nbsp;&nbsp;We acknowledge the Staff's comment and will revise our disclosure in future filings to provide a reconciliation of net debt to the most directly comparable GAAP measure, total debt (notes payable), and net debt to capital ratio to the most directly comparable GAAP measure, debt to capital ratio. Additionally, for each period presented, we will include the comparable GAAP-based ratio to ensure alignment with Item 10(e)(1)(i)(A) and (B) of Regulation S-K and related Compliance and Disclosure Interpretations guidance.

An example of our revised disclosure format is as follows:

**Net Debt to Capital Ratio Reconciliation**

The following table reconciles net debt to capital ratio (a non-GAAP financial measure) to debt to capital ratio, which is the GAAP financial measure that our management believes to be most directly comparable (dollars in thousands):

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2024** | **2023** |
| Total debt (Notes payable) | $1481 | $1248 |
| Total equity | 2037 | 1856 |
| Total capital | 3518 | 3104 |
| Debt to capital ratio | 42.1% | 40.2% |
| Total debt (Notes payable) | 1481 | 1248 |
| &nbsp;&nbsp;Less: Cash and cash equivalents | 53 | 49 |
| Net debt | 1428 | 1199 |
| Total equity | 2037 | 1856 |
| Total net capital  | 3465 | 3055 |
| Net debt to capital ratio<sup>(1)</sup> | 41.2% | 39.2% |

---

(1) Net debt to capital ratio is calculated as net debt (which is total debt minus cash and cash equivalents) divided by net debt plus total equity.

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<u>Full Year 2025 Outlook, page 2</u>

(1)*We note that you disclose full year 2025 guidance for the non-GAAP measure, Adjusted Gross Margin percentage, without providing a reconciliation to the most directly related GAAP measure. In future filings, please include such reconciliation or, alternatively, provide a statement that the information could not be presented without unreasonable efforts under Item 10(e)(1)(i)(B) of Regulation S-K. Refer also to Questions 102.10 of the C&DIs for Non-GAAP Financial Measures.*

<u>Response</u>

&nbsp;&nbsp;&nbsp;&nbsp;We acknowledge the Staff's comment and will provide the following explanation in future filings.

*"Gross margin % of 23.2% - 24.2% adjusted for estimated capitalized interest and estimated purchase accounting of 2.25% - 2.75%, which results in an adjusted gross margin % of 25.5%. - 27.0%."*

\* \* \* \* \*

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If you have any questions with respect to the foregoing or if any additional supplemental information is required by the Staff, please contact Tim Taylor of Baker Botts L.L.P. at (713) 229-1184 or Charles Merdian, the Company's Chief Financial Officer and Treasurer, at (281) 362-8998, ex. 2535.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **LGI HOMES, INC.** | **LGI HOMES, INC.** |
| By: | /s/ Charles Merdian |
|  | Name: Charles Merdian |
|  | Title: Chief Financial Officer and Treasurer |

---

---

| | |
|:---|:---|
| cc: | Eric T. Lipar, LGI Homes, Inc. |
| | Scott Garber, LGI Homes, Inc. |
| | Lisa Marchino, LGI Homes, Inc. |
| | Timothy S. Taylor, Baker Botts L.L.P. |
| | Lakshmi Ramanathan, Baker Botts L.L.P. |

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