Document


Exhibit 99.3

Item 1. Financial Statements

BEAZER HOMES USA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


in thousands (except share and per share data)	June 30, 2026		September 30, 2025
ASSETS
Cash and cash equivalents	$	124,641	$	214,705
Restricted cash	3,418		3,866
Accounts receivable (net of allowance of $260 and $266, respectively)	96,621		78,145
Income tax receivable	2,309		—
Inventory	2,369,470		2,029,433
Deferred tax assets, net	166,191		142,647
Property and equipment, net	55,262		47,945
Operating lease right-of-use assets	29,572		34,987
Goodwill	11,376		11,376
Other assets	45,890		46,604
Total assets	$	2,904,750	$	2,609,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	177,337	$	143,481
Operating lease liabilities	26,345		27,762
Other liabilities	144,946		160,445
Total debt (net of debt issuance costs of $10,888 and $6,611, respectively)	1,409,132		1,029,114
Total liabilities	1,757,760		1,360,802
Stockholders’ equity:
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)	—		—
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 27,330,791 issued and outstanding and 29,762,293 issued and outstanding, respectively)	27		30
Paid-in capital	760,918		825,103
Retained earnings	386,045		423,773
Total stockholders’ equity	1,146,990		1,248,906
Total liabilities and stockholders’ equity	$	2,904,750	$	2,609,708

See accompanying notes to condensed consolidated financial statements.

BEAZER HOMES USA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands (except per share data)	2026		2025		2026		2025
Total revenue	$	516,306	$	545,367	$	1,289,643	$	1,579,659
Home construction and land sales expenses	447,863		462,448		1,131,631		1,338,136
Inventory impairments and abandonments	2,342		10,339		6,007		10,867
Gross profit	66,101		72,580		152,005		230,656
Commissions	17,156		18,615		42,562		53,511
General and administrative expenses	55,386		53,104		158,569		152,075
Depreciation and amortization	4,924		4,571		13,050		13,273
Operating (loss) income	(11,365)		(3,710)		(62,176)		11,797
Loss on extinguishment of debt, net	(668)		—		(668)		—
Other income, net	1,532		1,204		2,743		3,031
(Loss) income before income taxes	(10,501)		(2,506)		(60,101)		14,828
Benefit from income taxes	(6,274)		(2,182)		(22,373)		(756)
Net (loss) income	$	(4,227)	$	(324)	$	(37,728)	$	15,584
Weighted-average number of shares:
Basic	26,510		29,440		27,813		29,996
Diluted	26,510		29,440		27,813		30,238
(Loss) income per share:
Basic	$	(0.16)	$	(0.01)	$	(1.36)	$	0.52
Diluted	$	(0.16)	$	(0.01)	$	(1.36)	$	0.52

See accompanying notes to condensed consolidated financial statements.

BEAZER HOMES USA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)


	Three Months Ended June 30, 2026
	Common Stock			Paid-in Capital		Retained Earnings		Total
in thousands	Shares	Amount
Balance as of March 31, 2026	28,332	$	28	$	780,480	$	390,272	$	1,170,780
Net loss and comprehensive loss	—	—		—		(4,227)		(4,227)
Stock-based compensation expense	—	—		1,711		—		1,711
Shares issued under employee stock plans, net	4	—		—		—		—
Forfeiture and other settlements of restricted stock	(3)	—		—		—		—
Common stock redeemed for tax liability	(2)	—		(45)		—		(45)
Share repurchases	(1,000)	(1)		(21,228)		—		(21,229)
Balance as of June 30, 2026	27,331	$	27	$	760,918	$	386,045	$	1,146,990


	Nine Months Ended June 30, 2026
	Common Stock			Paid-in Capital		Retained Earnings		Total
in thousands	Shares	Amount
Balance as of September 30, 2025	29,762	$	30	$	825,103	$	423,773	$	1,248,906
Net loss and comprehensive loss	—	—		—		(37,728)		(37,728)
Stock-based compensation expense	—	—		5,141		—		5,141
Shares issued under employee stock plans, net	569	1		(1)		—		—
Forfeiture and other settlements of restricted stock	(10)	—		—		—		—
Common stock redeemed for tax liability	(117)	—		(2,537)		—		(2,537)
Share repurchases	(2,873)	(4)		(66,788)		—		(66,792)
Balance as of June 30, 2026	27,331	$	27	$	760,918	$	386,045	$	1,146,990


	Three Months Ended June 30, 2025
	Common Stock			Paid-in Capital		Retained Earnings		Total
in thousands	Shares	Amount
Balance as of March 31, 2025	30,303	$	30	$	833,944	$	394,093	$	1,228,067
Net loss and comprehensive loss	—	—		—		(324)		(324)
Stock-based compensation expense	—	—		1,817		—		1,817
Stock option exercises	—	—		1		—		1
Shares issued under employee stock plans, net	12	—		—		—		—
Forfeiture and other settlements of restricted stock	(2)	—		—		—		—
Common stock redeemed for tax liability	(1)	—		(15)		—		(15)
Share repurchases	(586)	—		(12,515)		—		(12,515)
Balance as of June 30, 2025	29,726	$	30	$	823,232	$	393,769	$	1,217,031


	Nine Months Ended June 30, 2025
	Common Stock			Paid-in Capital		Retained Earnings		Total
in thousands	Shares	Amount
Balance as of September 30, 2024	31,048	$	31	$	853,895	$	378,185	$	1,232,111
Net income and comprehensive income	—	—		—		15,584		15,584
Stock-based compensation expense	—	—		5,442		—		5,442
Stock option exercises	11	—		107		—		107
Shares issued under employee stock plans, net	286	—		—		—		—
Forfeiture and other settlements of restricted stock	(32)	—		—		—		—
Common stock redeemed for tax liability	(96)	—		(3,136)		—		(3,136)
Share repurchases	(1,491)	(1)		(33,076)		—		(33,077)
Balance as of June 30, 2025	29,726	$	30	$	823,232	$	393,769	$	1,217,031

See accompanying notes to condensed consolidated financial statements.

BEAZER HOMES USA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended
	June 30,
in thousands	2026		2025
Cash flows from operating activities:
Net (loss) income	$	(37,728)	$	15,584
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	13,050		13,273
Stock-based compensation expense	5,141		5,442
Inventory impairments and abandonments	6,007		10,867
Benefit from income taxes	(22,373)		(756)
Gain on disposal of fixed assets	(122)		(192)
Loss on extinguishment of debt, net	668		—
Changes in operating assets and liabilities:
Increase in accounts receivable	(18,476)		(10,701)
Increase in income tax receivable	(2,309)		(1,532)
Increase in inventory	(342,589)		(258,908)
Decrease (increase) in other assets	3,541		(4,377)
Increase in trade accounts payable	33,856		20,139
Decrease in other liabilities	(14,340)		(7,035)
Net cash used in operating activities	(375,674)		(218,196)
Cash flows from investing activities:
Capital expenditures	(20,367)		(21,027)
Proceeds from sale of fixed assets	122		192
Purchases of investment securities	(1,374)		(965)
Proceeds from maturities of investment securities	—		9,144
Net cash used in investing activities	(21,619)		(12,656)
Cash flows from financing activities:
Repayment of debt	(357,255)		—
Proceeds from issuance of debt	400,000		—
Repayment of borrowings from credit facility	(425,000)		(260,000)
Borrowings from credit facility	765,000		375,000
Debt issuance costs	(7,242)		(230)
Repurchase of common stock	(66,185)		(33,077)
Tax payments for stock-based compensation awards	(2,537)		(3,136)
Stock option exercises	—		107
Net cash provided by financing activities	306,781		78,664
Net decrease in cash, cash equivalents, and restricted cash	(90,512)		(152,188)
Cash, cash equivalents, and restricted cash at beginning of period	218,571		242,610
Cash, cash equivalents, and restricted cash at end of period	$	128,059	$	90,422

See accompanying notes to condensed consolidated financial statements.

BEAZER HOMES USA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1) Description of Business

Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” or the “Company”) is a nationally recognized homebuilder committed to building homes and communities designed to inspire sustainable and healthier living. Operating across 13 states in the West, East, and Southeast geographic regions of the United States, Beazer Homes offers a diverse portfolio of products tailored to meet the evolving needs of homebuyers that value a well-constructed and energy efficient home.

For an additional description of our business, refer to Item 1 within our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (2025 Annual Report).

(2) Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements do not include all of the information and disclosures required by GAAP for complete financial statements. As such, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2025 Annual Report. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. The results of the Company's consolidated operations presented herein for the three and nine months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonal variations in our operations and other factors.

Basis of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net (loss) income is equivalent to our comprehensive (loss) income, so we have not presented a separate statement of comprehensive (loss) income.

Our fiscal year 2026 began on October 1, 2025 and ends on September 30, 2026. Our fiscal year 2025 began on October 1, 2024 and ended on September 30, 2025.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates.

Share Repurchase Program

In April 2025, the Company's Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $100.0 million of its outstanding common stock. The repurchase program has no expiration date and repurchases may be conducted through open market purchases, 10b5-1 plans, accelerated share repurchases, or private transactions. The Company repurchased 1.0 million shares of its common stock for an aggregate $21.0 million (inclusive of commissions and exclusive of accrued excise tax) at an average price per share of $21.01 during the three months ended June 30, 2026. This brings the total repurchases for the nine months ended June 30, 2026 to 2.9 million shares of common stock for $66.2 million (inclusive of commissions and exclusive of accrued excise tax) at an average price per share of $23.04.

During the three months ended June 30, 2025, 586 thousand shares were repurchased for $12.5 million at an average price per share of $21.38 (inclusive of commissions and exclusive of accrued excise tax). During the nine months ended June 30, 2025, 1.5 million shares were repurchased for $33.1 million at an average price per share of $22.20 (inclusive of commissions and exclusive of accrued excise tax).

Since the authorization of the share repurchase program in April 2025, we have repurchase an aggregated 3.5 million shares of common stock for $78.7 million at an average price per share of $22.75. All shares have been retired upon repurchase. As of June 30, 2026, the remaining availability of the share repurchase program was $21.3 million.

Revenue Recognition

We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the process specified in Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers.

The following table presents our total revenue disaggregated by revenue stream for the periods presented:


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2026		2025		2026		2025
Homebuilding revenue	$	490,870	$	535,390	$	1,248,360	$	1,551,844
Land sales and other revenue	25,436		9,977		41,283		27,815
Total revenue(a)	$	516,306	$	545,367	$	1,289,643	$	1,579,659

(a) Please see Note 14 for total revenue disaggregated by reportable segment.

Homebuilding revenue

Homebuilding revenue is reported net of price concessions, including discounts on home prices, discounts on homebuilding options and option upgrades. Closing cost incentives, such as seller-paid financing or closing costs, including rate buydowns, are recognized as a cost of selling the home and are included in home construction expenses.

Homebuilding revenue is generally recognized when title to and possession of the home is transferred to the buyer on the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $21.3 million and $14.3 million as of June 30, 2026 and September 30, 2025, respectively. Of the customer deposits outstanding as of September 30, 2025, $1.1 million and $12.4 million were recognized in revenue during the three and nine months ended June 30, 2026, upon closing of the related homes.

Land sales and other revenue

Land sales revenue relates to land that does not fit within our homebuilding programs or strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized when closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed.

Recent Accounting Pronouncements

Income Taxes. In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 will be effective for our fiscal year ending September 30, 2026. Early adoption is permitted and the amendments in this update should be applied on a prospective basis. The Company is still evaluating the impact of the adoption of ASU 2023-09 and expects to include additional disclosures within the consolidated financial statements for the fiscal year ending September 30, 2026.

Income Statement Disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires disclosure of additional information about specific expense categories in the notes to the financial statements. ASU 2024-03 will be effective for our fiscal year ending September 30, 2028. Early adoption is permitted and the amendments in this update should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact that the adoption of ASU 2024-03 may have on our consolidated financial statements and disclosures.

Credit Losses. In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which allows entities to use the practical expedient to estimate expected credit losses. ASU 2025-05 will be effective for our fiscal year ending September 30, 2027, and interim reporting periods within this annual reporting period, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2025-05 may have on our consolidated financial statements and disclosures.

Internal-Use Software. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for the costs of internal-use software by removing all references to software development project stages so that the guidance is neutral to different software development methods. ASU 2025-06 will be effective for our fiscal year ending September 30, 2029, and interim reporting periods within this annual reporting period. Early adoption is permitted and the amendments in this update may be applied on a retrospective, modified transition, or prospective basis. The Company does not expect the adoption of ASU 2025-06 to have a material impact on our consolidated financial statements and disclosures.

(3) Supplemental Cash Flow Information

The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented:


	Nine Months Ended
	June 30,
in thousands	2026		2025
Supplemental disclosure of non-cash activity:
Increase in operating lease right-of-use assets(a)	$	3,834	$	1,493
Increase in operating lease liabilities(a)	$	3,834	$	1,493
Supplemental disclosure of cash activity:
Interest payments	$	74,167	$	67,645
Income tax payments	$	3,513	$	9,930
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	124,641	$	82,932
Restricted cash	3,418		7,490
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	128,059	$	90,422

(a) Represents leases renewed or additional leases that commenced during the nine months ended June 30, 2026 and 2025.

(4) Inventory

The components of our inventory are as follows as of June 30, 2026 and September 30, 2025:


in thousands	As of June 30, 2026		As of September 30, 2025
Homes under construction	$	934,394	$	692,327
Land under development	1,054,354		1,065,702
Land held for future development	19,489		19,489
Land held for sale	87,542		47,368
Capitalized interest	156,554		131,845
Model homes	92,321		72,702
Land not owned under option agreements	24,816		—
Total inventory	$	2,369,470	$	2,029,433

Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including costs of the underlying lot, direct construction costs and capitalized indirect costs. As of June 30, 2026, we had 2,532 homes under construction, including 1,403 speculative (spec) homes totaling $513.1 million (1,016 in-process spec homes totaling $339.6 million, and 387 finished spec homes totaling $173.5 million). As of September 30, 2025, we had 1,800 homes under construction, including 1,078 spec homes totaling $417.4 million (577 in-process spec homes totaling $201.8 million, and 501 finished spec homes totaling $215.6 million).

Land under development consists principally of land acquisition, land development and other common costs. These land-related costs are allocated to individual lots on a pro-rata basis, and the lot costs are transferred to homes under construction when home construction begins for the respective lots. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract.

Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred.

Land held for sale includes land and lots that do not fit within our homebuilding programs or strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2 to the consolidated financial statements within our 2025 Annual Report). These assets are recorded at the lower of the carrying value or fair value less cost to sell.

The amount of interest we are able to capitalize depends on our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and land under development but excludes land held for future development and land held for sale (see Note 5 for additional information on capitalized interest).

Land not owned under option agreements includes the remaining contractual purchase price for certain land and lot option agreements that we account for as financing arrangements pursuant to ASC Subtopic 470-40, Product Financing Arrangements, which occurs when we are economically compelled to exercise the option and purchase the land, even though the Company has no direct obligation to pay these future amounts. For these contracts, the remaining purchase price is recorded within land not owned under option agreements with a corresponding liability recorded within obligations related to land not owned under option agreements within other liabilities on our condensed consolidated balance sheet.

Total inventory by reportable segment and Corporate and unallocated is presented in the table below as of June 30, 2026 and September 30, 2025:


in thousands	Projects in Progress(a)		Land Held for Future Development		Land Held for Sale		Total Inventory
June 30, 2026
West	$	1,066,860	$	3,483	$	50,472	$	1,120,815
East	457,324		10,888		18,365		486,577
Southeast	490,081		5,118		18,705		513,904
Corporate and unallocated(b)	248,174		—		—		248,174
Total	$	2,262,439	$	19,489	$	87,542	$	2,369,470
September 30, 2025
West	$	944,601	$	3,483	$	29,052	$	977,136
East	387,954		10,888		16,086		414,928
Southeast	418,497		5,118		2,230		425,845
Corporate and unallocated(b)	211,524		—		—		211,524
Total	$	1,962,576	$	19,489	$	47,368	$	2,029,433

(a) Projects in progress include homes under construction, land under development, capitalized interest, model homes, and land not owned under option agreements categories from the preceding table.

(b) Projects in progress amount include capitalized interest and indirect costs that are maintained within Corporate and unallocated.

Inventory Impairments

Inventory assets are assessed for recoverability periodically in accordance with the policies described in Notes 2 and 4 to the consolidated financial statements within our 2025 Annual Report.

The following table presents, by reportable segment and Corporate and unallocated, our total impairment and abandonment charges for the periods presented:


	Three Months Ended June 30,				Nine Months Ended June 30,
in thousands	2026		2025		2026		2025
Projects in Progress:
West	$	—	$	2,236	$	1,174	$	2,236
Southeast	—		5,404		—		5,404
Corporate and unallocated(a)	—		1,002		121		1,002
Total impairment charges on projects in progress	—		8,642		1,295		8,642
Land Held for Sale:
West	1,028		845		1,073		845
East	1,015		—		1,893		—
Corporate and unallocated(a)	299		621		421		621
Total impairment charges on land held for sale	2,342		1,466		3,387		1,466
Abandonments:
West	—		—		1,304		528
East	—		—		21		—
Southeast	—		231		—		231
Total abandonments charges	—		231		1,325		759
Total impairment and abandonment charges	$	2,342	$	10,339	$	6,007	$	10,867

(a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within Corporate and unallocated.

Projects in Progress Impairments

Projects in progress inventory includes homes under construction and land under development grouped together as communities. Projects in progress are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable.

We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. If the aggregate undiscounted cash flows are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the carrying value exceeds the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value.

Valuation assumptions for communities tested for impairment are specific to each community. For projects in progress impaired during the periods presented, we determined the fair value of each community by discounting its estimated future cash flows at a rate commensurate with the risks associated with the underlying community. The discount rate used depends on (1) community specific factors such as product types, development stage and expected duration of the project, and competitive factors influencing the sales performance of the community, (2) local market factors such as employment levels, consumer confidence and existing supply of new and used homes for sale, and (3) other specific factors. The estimated future cash flows for each community were determined based on the expected pace of closings and average sales price less expected costs for land acquisition and land development, direct construction, overhead and interest. The assumptions used in the determination of fair value of projects in progress communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. Due to uncertainties in the estimation process, the significant volatility in market conditions, the long life cycles of many communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from our estimates.

No project in progress impairments were recognized during the three months ended June 30, 2026. During the nine months ended June 30, 2026, we recognized a $1.3 million projects in progress impairment charge in one community located in our Houston market, principally due to a reduction in price driven by the competitive market dynamics. During the three and nine months ended June 30, 2025, we recognized $8.6 million of projects in progress impairments.

The following table presents by reportable segment and Corporate and unallocated details of the impairment charges taken on projects in progress for the period presented:


$ in thousands	Results of Impairment Analysis
	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at Time of Impairment(b)
Nine Months Ended June 30, 2026
West	1	37	$	1,174	$	5,072
Corporate and unallocated(a)	—	—	$	121	$	525
Total	1	37	$	1,295	$	5,597

(a) Amount represents the capitalized interest and indirects balances that were impaired. Capitalized interest and indirects are maintained within Corporate and unallocated.

(b) Projects in progress assets are measured at fair value on a non-recurring basis when events and circumstances indicate that their carrying value is not recoverable. The fair value of projects in progress is determined using Level 3 unobservable inputs. Refer to Note 9 for further discussion of our fair value measurements and hierarchy levels.

The following table presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities impaired during the period presented:


$ in thousands
Unobservable Inputs						Nine Months Ended June 30, 2026
Average selling price						$375
Closings per community per month						1-3
Discount rate						14.0 %

Land Held for Sale Impairments

We evaluate the fair value less cost to sell of a land held for sale asset when indicators of impairment are present. Impairments on land held for sale generally represent write downs of these properties from their carrying values to estimated fair value less cost to sell based on executed sales contracts, current sales prices for comparable assets in the area, recent market analysis studies, appraisals, recent legitimate offers and listing prices of similar properties, as applicable. Absent an executed sales contract, our assumptions related to land sales prices are based on factors known to us at the time such estimates are made and require significant judgment because the real estate market is highly sensitive to changes in economic conditions, and our estimates of sale prices could differ significantly from actual results.

During the three months ended June 30, 2026, we recognized $2.3 million of land held for sale impairment charges related to four communities in our West and East segments. This brings the total for the nine months ended June 30, 2026 to $3.4 million of land held for sale impairment charges. Estimated fair value less selling cost for these impaired assets at the time of impairment was $34.0 million. The fair values of the impaired land held for sale assets were determined using Level 3 unobservable inputs. During the three and nine months ended June 30, 2025, we recognized $1.5 million of land held for sale impairments.

Abandonments

From time to time, we may determine to abandon lots or not exercise certain option agreements that are not projected to produce adequate results or no longer fit with our long-term strategic plan. Additionally, in certain limited instances, we are forced to abandon lots due to seller non-performance, permitting or other regulatory issues that do not allow us to build on those lots. If we intend to no longer pursue the purchase of property, we record an abandonment charge to earnings for the non-refundable deposit amount and any related capitalized costs in the period such decision is made.

No abandonment charges were recognized during the three months ended June 30, 2026. During the nine months ended June 30, 2026, we recognized $1.3 million of abandonment charges. During the three and nine months ended June 30, 2025, we recognized $0.2 million and $0.8 million of abandonment charges. As we grow our business in the years ahead, the dollar value of abandonment charges may also grow.

Lot Option Agreements

In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit or issuance of an irrevocable letter of credit or surety bond based on a percentage of the purchase price of the land for the right to acquire lots during a specified period at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit or surety bonds, and other non-refundable amounts incurred. If the Company cancels a lot option agreement, the cancellation would result in a write-off of the related deposits and pre-acquisition costs but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option agreements. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all.

The following table provides a summary of our interests in lot option agreements as of June 30, 2026 and September 30, 2025:


	As of June 30, 2026		As of September 30, 2025
in thousands
Deposits and non-refundable pre-acquisition costs incurred(a)	$	387,422	$	333,435
Remaining purchase price if lot option agreements are exercised	$	1,631,298	$	1,610,171

(a) Amount is included as a component of land under development and land not owned under option agreements within our inventory in the condensed consolidated balance sheets.

(5) Interest

Interest capitalized during the three and nine months ended June 30, 2026 and 2025 was based upon the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:


	Three Months Ended June 30,				Nine Months Ended June 30,
in thousands	2026		2025		2026		2025
Capitalized interest in inventory, beginning of period	$	147,786	$	134,292	$	131,845	$	124,182
Interest incurred	25,458		22,441		67,214		64,219
Capitalized interest impaired	(192)		(1,096)		(293)		(1,096)
Capitalized interest amortized to home construction and land sales expenses(a)	(16,498)		(17,878)		(42,212)		(49,546)
Capitalized interest in inventory, end of period	$	156,554	$	137,759	$	156,554	$	137,759

(a) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors.

(6) Borrowings

The Company's debt, net of unamortized debt issuance costs consisted of the following as of June 30, 2026 and September 30, 2025:


in thousands	Maturity Date	June 30, 2026		September 30, 2025
5.875% Senior Notes (2027 Notes)	October 2027	$	—	$	357,255
7.250% Senior Notes (2029 Notes)	October 2029	350,000		350,000
7.500% Senior Notes (2031 Notes)	March 2031	250,000		250,000
8.000% Senior Notes (2032 Notes)	January 2032	400,000		—
Unamortized debt issuance costs		(10,888)		(6,611)
Total Senior Notes, net		989,112		950,644
Junior Subordinated Notes (net of unamortized accretion of $20,753 and $22,303, respectively)	July 2036	80,020		78,470
Senior Unsecured Revolving Credit Facility	March 2030	340,000		—
Total debt, net		$	1,409,132	$	1,029,114

Senior Unsecured Revolving Credit Facility

The Senior Unsecured Revolving Credit Facility (Unsecured Facility) provides working capital and letter of credit capacity. In March 2026, the Company executed an amendment to increase its available borrowing capacity under the Unsecured Facility from $365.0 million to $525.0 million. The $525.0 million borrowing capacity includes a letter of credit facility of up to $100.0 million. The Company will have the right from time to time to request to increase the size of the commitments under the Unsecured Facility by up to $100.0 million for a maximum of $625.0 million. The Company also extended the termination date (Termination Date) from March 15, 2028 to March 13, 2030. The Company may borrow, repay, and reborrow amounts under the Unsecured Facility until the Termination Date.

Borrowings under the Unsecured Facility bear interest, at our option, at either (i) a secured overnight financing rate (SOFR) plus an applicable margin ranging from 2.15% to 2.90% per annum or (ii) an alternate base rate (ABR) plus an applicable margin ranging from 1.15% to 1.90% per annum. Commitment fees on the unused portion of the facility range from 0.25% to 0.40% per annum. The applicable margin and the commitment fees vary based on the Company's leverage ratio, as defined under the Unsecured Facility.

Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Unsecured Facility and are jointly and severally liable for obligations under the Unsecured Facility. For additional discussion of the Unsecured Facility, refer to Note 7 to the consolidated financial statements within our 2025 Annual Report.

As of June 30, 2026, we had $340.0 million in borrowings and $45.8 million in letters of credit outstanding under the Unsecured Facility, resulting in a remaining capacity of $139.2 million. The weighted-average interest rate on outstanding borrowings as of June 30, 2026 was 6.97%. The Unsecured Facility requires compliance with certain covenants, including affirmative covenants, negative covenants and financial covenants. As of June 30, 2026, the Company believes it was in compliance with all such covenants.

Senior Notes

The Company's senior notes (Senior Notes) are unsecured obligations that rank equally in right of payment with all existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness, and effectively subordinated to the Company's future secured indebtedness, to the extent of the value of the assets securing such indebtedness. Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes. Each guarantor subsidiary is a wholly owned subsidiary of Beazer Homes. The Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes.

The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and make certain investments. Compliance with the Senior Note covenants does not significantly impact the Company's operations. The Company believes it was in compliance with the covenants contained in the indentures of all of its Senior Notes as of June 30, 2026.

In June 2026, we issued and sold $400.0 million aggregate principal amount of the 2032 Notes at par (before underwriting and other issuance costs) through a private placement to qualified institutional buyers. Interest on the 2032 Notes is payable semiannually, beginning in January 2027. The 2032 Notes will mature in January 2032. The covenants related to the 2032 Notes are substantially consistent with our other Senior Notes.

During the three months ended June 30, 2026, we redeemed the remaining $357.3 million of our outstanding 2027 Notes using proceeds from the issuance of the 2032 Notes, resulting in a loss on extinguishment of debt of $0.7 million. The Company has terminated, cancelled, and discharged all of its obligations under the 2027 Notes as of June 30, 2026. No debt repurchases were made during the three and nine months ended June 30, 2025

For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes:

Senior Note Description

Issuance Date

Maturity Date

Redemption Terms

7.250% Senior Notes

September 2019

October 2029

Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.

7.500% Senior Notes

March 2024

March 2031

On or prior to March 15, 2027, we may redeem up to 35% of the aggregate principal amount of the 2031 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.500% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2031 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to March 15, 2027, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2027, callable at a redemption price equal to 103.750% of the principal amount; on or after March 15, 2028, callable at a redemption price equal to 101.875% of the principal amount; on or after March 15, 2029, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.

8.000% Senior Notes

June 2026

January 2032

On or prior to July 15, 2028, we may redeem up to 35% of the aggregate principal amount of the 2032 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 108.000% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2032 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to July 15, 2028, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after July 15, 2028, callable at a redemption price equal to 104.000% of the principal amount; on or after July 15, 2029, callable at a redemption price equal to 102.000% of the principal amount; on or after July 15, 2030, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.

Junior Subordinated Notes

The Company's unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036 and have an aggregate principal balance of $100.8 million as of June 30, 2026. The securities have a floating interest rate as defined in the Junior Subordinated Notes Indentures, which was a weighted-average of 6.38% as of June 30, 2026. The obligations relating to these notes are subordinated to the Unsecured Facility and the Senior Notes. In January 2010, the Company restructured $75.0 million of these notes (Restructured Notes) and recorded them at their then estimated fair value. Over the remaining life of the Restructured Notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of June 30, 2026, the unamortized accretion was $20.8 million and will be amortized over the remaining life of the Restructured Notes. The remaining $25.8 million of the Junior Subordinated Notes are subject to the terms of the original agreement, have a floating interest rate equal to a three-month SOFR plus 2.71% per annum, resetting quarterly, and are redeemable in whole or in part at par value. The material terms of the $75.0 million Restructured Notes are identical to the terms of the original agreement except that the floating interest rate is subject to a floor of 4.25% and a cap of 9.25%. In addition, beginning on June 1, 2012, the Company has the option to redeem the $75.0 million principal balance in whole or in part at 75% of par value, and beginning on June 1, 2022, the redemption price has increased by 1.785% annually. As of June 30, 2026, the Company believes it was in compliance with all covenants under the Junior Subordinated Notes.

(7) Operating Leases

The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Some of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expenses that do not depend on an index or rate.

We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date.

Operating lease expense is included as a component of general and administrative expenses in our condensed consolidated statements of operations. Sublease income and variable lease expenses are de minimis. The following table presents operating lease expense and cash payments on lease liabilities for the periods presented:


	Three Months Ended June 30,				Nine Months Ended June 30,
in thousands	2026		2025		2026		2025
Operating lease expense	$	3,428	$	1,172	$	10,272	$	3,481
Cash payments on lease liabilities	$	2,155	$	1,154	$	6,244	$	3,435

At June 30, 2026 and 2025, the weighted-average remaining lease term and discount rate were as follows:


	As of June 30,
	2026	2025
Weighted-average remaining lease term	5.2 years	6.2 years
Weighted-average discount rate	5.30%	6.43%

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of June 30, 2026:


Fiscal Years Ending September 30,
in thousands
2026(a)	$	2,409
2027	7,184
2028	5,492
2029	4,678
2030	3,864
Thereafter	7,986
Total lease payments(b)	31,613
Less: imputed interest	5,268
Total operating lease liabilities	$	26,345

(a) Remaining lease payments are for the period beginning July 1, 2026 through September 30, 2026.

(b) Lease payments exclude $3.5 million of legally binding minimum lease payments for office leases signed but not yet commenced. The related right-of-use asset and operating lease liability are not reflected on the Company's condensed consolidated balance sheet as of June 30, 2026.

(8) Contingencies

Beazer Homes and certain of its subsidiaries have been and continue to be named as defendants in various construction defect claims, complaints, and other legal actions. The Company is subject to the possibility of loss contingencies related to these alleged defects as well as others arising from its business. In determining loss contingencies, we consider the likelihood of loss and our ability to reasonably estimate the amount of such loss. An estimated loss is recorded in other liabilities on the condensed consolidated balance sheets when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated.

Warranty Reserves

We currently provide a limited warranty ranging from one to two years covering workmanship and materials per our defined quality standards. In addition, we provide a limited warranty for up to ten years covering certain defined structural element failures.

Warranty reserves are included in other liabilities within the consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed, which are a function of the number of home closings in the period, the selling prices of the homes closed and the rates of accrual per home estimated as a percentage of the selling price of the home. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the expected costs to remediate potential claims. Our review includes a quarterly analysis of the historical data and trends in warranty expense by division. An analysis by division allows us to consider market specific factors such as warranty experience, the number of home closings, the selling prices of homes, product mix, and other data in estimating warranty reserves. In addition, the analysis also contemplates the existence of any non-recurring or community-specific warranty-related matters that might not be included in historical data and trends that may need to be separately estimated based on management's judgment of the ultimate cost of repair for that specific issue. While estimated warranty liabilities are adjusted each reporting period based on the results of our quarterly analyses, we may not accurately predict actual warranty costs, which could lead to significant changes in the reserve.

Changes in warranty reserves are as follows for the periods presented:


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2026		2025		2026		2025
Balance at beginning of period	$	11,202	$	11,554	$	13,564	$	12,717
Warranty provision	2,494		1,521		5,994		4,766
Warranty expenditures	(1,535)		(2,162)		(7,397)		(6,570)
Balance at end of period	$	12,161	$	10,913	$	12,161	$	10,913

Our homebuilding work is performed by subcontractors who typically must agree to indemnify us with regard to their work and provide certificates of insurance demonstrating that they have met our insurance requirements and have named us as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors. In addition, we maintain third-party insurance policies that provide for the reimbursement of certain warranty costs incurred in the normal course of business, subject to applicable self-insured retentions. Amounts recorded for anticipated insurance and other third-party recoveries are reflected within the consolidated statements of operations as a reduction to home construction expense, if applicable. Anticipated recoveries not yet received from our insurer or other third-parties are recorded within accounts receivable on our consolidated balance sheets, if applicable.

We believe that our warranty and litigation accruals and third-party insurance are adequate to cover the ultimate resolution of our potential liabilities associated with known and anticipated warranty and construction-defect related claims and litigation. However, there can be no assurance that the terms and limitations of the limited warranty will be effective against claims made by homebuyers; that we will be able to renew our insurance coverage or renew it at reasonable rates; that we will not be liable for damages, the cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence, or building related claims; or that claims will not arise out of events or circumstances not covered by insurance and/or not subject to effective indemnification agreements with our subcontractors.

Litigation

In the normal course of business, we and certain of our subsidiaries are subject to various lawsuits and have been named as defendants in various claims, complaints, and other legal actions, most relating to construction defects, moisture intrusion, and product liability. Certain of the liabilities resulting from these actions are covered in whole or in part by insurance. We cannot predict or determine the timing or final outcome of these lawsuits or the effect that any adverse findings or determinations in pending lawsuits may have on us. In addition, an estimate of possible loss or range of loss, if any, cannot presently be made with respect to certain of these pending matters. An unfavorable determination in pending lawsuits could result in the payment by us of substantial monetary damages that may not be fully covered by insurance. Further, the legal costs associated with the lawsuits and the amount of time required to be spent by management and our Board of Directors on these matters, even if we are ultimately successful, could have a material adverse effect on our financial condition, results of operations, or cash flows.

We have an accrual of $12.3 million and $9.9 million in other liabilities on our condensed consolidated balance sheets related to litigation matters as of June 30, 2026 and September 30, 2025, respectively.

Surety Bonds and Letters of Credit

We had outstanding letters of credit, surety bonds, and surety-backed letters of credit of $45.8 million, $361.3 million, and $4.6 million, respectively, as of June 30, 2026, related principally to our obligations to local governments to construct roads and other improvements in various developments.

(9) Fair Value Measurements

As of the dates presented, we had assets on our condensed consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows:

•Level 1 – Quoted prices in active markets for identical assets or liabilities;

•Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and

•Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability.

Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recoverable. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. The fair value of assets deemed to be impaired is determined based upon the type of asset being evaluated. The fair value of our inventory assets, when required to be calculated, is further discussed within Note 4. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3.

Determining within which hierarchical level an asset or liability falls requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table presents the period-end balances of assets measured at fair value on a recurring basis for each hierarchy level:


in thousands	Level 1		Level 2		Level 3		Total
As of June 30, 2026
Deferred compensation plan assets(a)	$	6,764	$	—	$	—	$	6,764

As of September 30, 2025
Deferred compensation plan assets(a)	$	8,661	$	—	$	—	$	8,661

(a) Amount is included in other assets within the condensed consolidated balance sheets.

The fair value of cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, and amounts due under the Unsecured Facility (if outstanding) approximate their carrying amounts due to the short maturity of these assets and liabilities. When outstanding, obligations related to land not owned under option agreements approximate fair value.

The following table presents the carrying value and estimated fair value of certain other financial liabilities as of June 30, 2026 and September 30, 2025:


	As of June 30, 2026				As of September 30, 2025
in thousands	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities(a)
Senior Notes(b)	$	989,112	$	1,004,386	$	950,644	$	968,634
Junior Subordinated Notes(c)	80,020		80,020		78,470		78,470
Total financial liabilities	$	1,069,132	$	1,084,406	$	1,029,114	$	1,047,104

(a) Carrying amounts for financial liabilities are net of unamortized debt issuance costs or accretion.

(b) The estimated fair value of our publicly-held Senior Notes has been determined using quoted market rates (Level 2).

(c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange.

(10) Income Taxes

Income Tax Provision

Our income tax expense or benefit is not always directly correlated to the amount of pre-tax income or loss for the associated period due to a variety of factors, including, but not limited to, the impact of tax credits and permanent differences. Historically, the Company's income tax provision for quarterly interim periods was based on an estimated annual effective income tax rate, adjusted for the effect of discrete items arising in that quarter. For the three and nine months ended June 30, 2026, the Company utilized the discrete effective tax rate method, as allowed by ASC Subtopic 740- 270, Income Taxes—Interim Reporting, to calculate its interim income tax provision. The discrete method is applied when the use of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year-to-date period as if it were the annual period and determines the income tax expense or benefit on that basis. The Company believes that use of the discrete method is more appropriate than the estimated annual effective tax rate method because the significant impact of expected energy efficiency tax credits for the current fiscal year prevents the Company from reliably estimating its annual effective tax rate.

We recognized income tax benefit of $6.3 million and $22.4 million for the three and nine months ended June 30, 2026, compared to income tax benefit of $2.2 million and $0.8 million for the three and nine months ended June 30, 2025. Income tax benefit for the nine months ended June 30, 2026 was primarily driven by income tax benefit on loss from operations and energy efficiency tax credits generated from closings during the current fiscal year, partially offset by permanent differences and stock-based compensation activity in the period. Income tax benefit for the nine months ended June 30, 2025 was primarily driven by energy efficiency tax credits generated from expected closings during the current fiscal year and stock-based compensation activity in the period, partially offset by income tax expense on earnings from continuing operations and permanent differences.

Deferred Tax Assets and Liabilities

The Company continues to evaluate its deferred tax assets each period to determine if a valuation allowance is required based on whether it is more likely than not that some portion of these deferred tax assets will not be realized. As of June 30, 2026, management concluded that it is more likely than not that all of our federal and certain state deferred tax assets will be realized. As part of our analysis, we considered both positive and negative factors that impact profitability and whether those factors would lead to a change in the estimate of our deferred tax assets that may be realized in the future. At this time, our conclusions on the valuation allowance and Internal Revenue Code Section 382 and Section 383 limitations related to our deferred tax assets remain consistent with the determinations we made during the period ended September 30, 2025, and such conclusions are based on similar company specific and industry factors to those discussed in Note 12 to the consolidated financial statements within our 2025 Annual Report.

(11) Stock-Based Compensation

Stock-based compensation expense is included in general and administrative expenses in our condensed consolidated statements of operations. The following table presents a summary of stock-based compensation expense related to stock options and restricted stock awards for the periods presented:


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2026		2025		2026		2025
Stock-based compensation expense	$	1,711	$	1,817	$	5,141	$	5,442

Stock Options

Following is a summary of stock option activity for the nine months ended June 30, 2026:


	Nine Months Ended
	June 30, 2026
	Shares	Weighted Average Exercise Price
Outstanding at beginning of period	1,642	$	23.14
Granted	20,769	22.92
Outstanding at end of period	22,411	22.93
Exercisable at end of period	150	$	27.90

As of June 30, 2026 and September 30, 2025, total unrecognized compensation cost related to unvested stock options was $0.2 million and less than $0.1 million, respectively. The remaining cost as of June 30, 2026 is expected to be recognized over a weighted average period of 2.3 years.

Restricted Stock Awards

During the nine months ended June 30, 2026, the Company issued time-based and performance-based restricted stock awards. The time-based restricted shares granted to our non-employee directors vest on the first anniversary of the grant, while the time-based restricted shares granted to our executive officers and other employees generally vest ratably over three years from the date of grant. Performance-based restricted share awards vest subject to the achievement of performance and market conditions over a three-year performance period.

Following is a summary of restricted stock activity for the nine months ended June 30, 2026:


	Nine Months Ended June 30, 2026
	Performance-Based Restricted Shares	Time-Based Restricted Shares	Total Restricted Shares
Beginning of period	307,097	402,025	709,122
Granted	175,175	392,085	567,260
Vested	(140,035)	(225,317)	(365,352)
Forfeited(a)	(6,051)	(4,033)	(10,084)
End of period	336,186	564,760	900,946

(a) Each of our performance shares represent a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Human Capital Committee. We have no current plans to settle any additional performance-based restricted shares in the future in cash. During November 2025, 3,599 of the 143,634 performance-based shares issued under the fiscal 2023 performance-based award plan were forfeited by the holders of the awards based on the performance level achieved under the terms of the plan.

As of June 30, 2026 and September 30, 2025, total unrecognized compensation costs related to unvested restricted stock awards were $12.0 million and $9.1 million, respectively. The costs remaining as of June 30, 2026 are expected to be recognized over a weighted average period of 2.0 years.

(12) Earnings Per Share

Basic (loss) income per share is calculated by dividing net (loss) income by the weighted-average number of shares outstanding during the period. Diluted (loss) income per share adjusts the basic (loss) income per share for the effects of any potentially dilutive securities in periods in which the Company has net income and such effects are dilutive under the treasury stock method.

Following is a summary of the components of basic and diluted (loss) income per share for the periods presented:


	Three Months Ended June 30,				Nine Months Ended June 30,
in thousands (except per share data)	2026		2025		2026		2025
Numerator:
Net (loss) income	$	(4,227)	$	(324)	$	(37,728)	$	15,584
Denominator:
Basic weighted-average shares	26,510		29,440		27,813		29,996
Dilutive effect of restricted stock awards	—		—		—		240
Dilutive effect of stock options	—		—		—		2
Diluted weighted-average shares(a)	26,510		29,440		27,813		30,238
(Loss) income per share:
Basic	$	(0.16)	$	(0.01)	$	(1.36)	$	0.52
Diluted	$	(0.16)	$	(0.01)	$	(1.36)	$	0.52

(a) The following potentially dilutive shares were excluded from the calculation of diluted (loss) income per share as a result of their anti-dilutive effect. Due to the reported net loss for the three and nine months ended June 30, 2026 and the three months ended June 30, 2025, all common stock equivalents were excluded from the computation of diluted loss per share for that respective period because inclusion would have resulted in anti-dilution.


	Three Months Ended June 30,		Nine Months Ended June 30,
in thousands	2026	2025	2026	2025
Stock options	22	2	22	1
Time-based restricted stock	565	370	565	110
Performance-based restricted stock	336	307	336	2

(13) Other Liabilities

Other liabilities include the following as of June 30, 2026 and September 30, 2025:


in thousands	As of June 30, 2026		As of September 30, 2025
Accrued compensation and benefits	$	21,491	$	43,793
Customer deposits	21,309		14,260
Accrued interest	12,803		23,211
Warranty reserves	12,161		13,564
Litigation accruals	12,340		9,930
Income tax liabilities	—		32
Obligations related to land not owned under option agreements	13,980		—
Other	50,862		55,655
Total	$	144,946	$	160,445

(14) Segment Information

Per ASC Topic 280, Segment Reporting (ASC 280), an operating segment is defined as a component of an enterprise that engages in business activities from which it earns revenues and incurs expenses and has discrete financial information available that is reviewed regularly by the Company's chief operating decision maker (CODM) to evaluate performance, make operating decisions, and determine how to allocate resources. We have identified each homebuilding component as an operating segment because each homebuilding component is engaged in development, design, construction, marketing, and sale of homes as well as land and lot sales, and provides title examinations for our homebuyers in certain markets. In accordance with the aggregation criteria defined in ASC 280, we aggregate our homebuilding operating segments into reportable segments based on similar long-term economic characteristics and geographical proximity.

We currently operate in 13 states that are grouped into three reportable segments as follows:

West: Arizona, California, Nevada, and Texas

East: Delaware, Indiana, Maryland, Tennessee, and Virginia

Southeast: Florida, Georgia, North Carolina, and South Carolina

Our Corporate and unallocated component includes amortization of capitalized interest, capitalization and amortization of indirect costs, impairment of capitalized interest and capitalized indirect costs, expenses for various shared services functions that benefit all segments but are not allocated, including information technology, treasury, corporate finance, legal, branding and national marketing, and certain other amounts that are not allocated to our operating segments.

The Company's CODM is the Chief Executive Officer. The CODM is regularly provided with the operating results of individual operating segments which comprise our reportable segments. Segment performance is evaluated, and resources are allocated primarily based on segment operating income (loss), which also plays a central role in the Company's forecasting process. In addition, the CODM considers forecast-to-actual variances when determining the allocation of operating and capital resources across segments. The accounting policies of our segments are those described in Note 2 to the consolidated financial statements within our 2025 Annual Report.

The following tables provide financial information about our reportable segments and Corporate and unallocated component for the periods presented:


	Three Months Ended June 30, 2026
in thousands	West		East		Southeast		Reportable Segment Subtotal		Corporate and unallocated		Total
Revenue	$	287,324	$	121,533	$	107,449	$	516,306	$	—	$	516,306
Home construction and land sales expenses	242,113		104,043		86,254		432,410		15,453		447,863
Inventory impairments and abandonments	1,028		1,015		—		2,043		299		2,342
Commissions	9,919		3,223		4,014		17,156		—		17,156
Sales and marketing	9,106		3,275		2,982		15,363		5,031		20,394
Other general and administrative expenses	8,261		3,685		3,387		15,333		19,659		34,992
Depreciation and amortization	2,033		774		859		3,666		1,258		4,924
Operating income (loss)	$	14,864	$	5,518	$	9,953	$	30,335	$	(41,700)	$	(11,365)
Loss on extinguishment of debt, net											(668)
Other income, net											1,532
Loss before income taxes											$	(10,501)


	Nine Months Ended June 30, 2026
in thousands	West		East		Southeast		Reportable Segment Subtotal		Corporate and unallocated		Total
Revenue	$	747,684	$	312,117	$	229,842	$	1,289,643	$	—	$	1,289,643
Home construction and land sales expenses	636,002		266,615		188,784		1,091,401		40,230		1,131,631
Inventory impairments and abandonments	3,551		1,914		—		5,465		542		6,007
Commissions	25,966		8,342		8,254		42,562		—		42,562
Sales and marketing	26,665		9,647		7,713		44,025		14,239		58,264
Other general and administrative expenses	24,871		10,644		8,801		44,316		55,989		100,305
Depreciation and amortization	5,509		1,577		1,786		8,872		4,178		13,050
Operating income (loss)	$	25,120	$	13,378	$	14,504	$	53,002	$	(115,178)	$	(62,176)
Loss on extinguishment of debt, net											(668)
Other income, net											2,743
Loss before income taxes											$	(60,101)


	Three Months Ended June 30, 2025
in thousands	West		East		Southeast		Reportable Segment Subtotal		Corporate and unallocated		Total
Revenue	$	329,149	$	149,160	$	67,058	$	545,367	$	—	$	545,367
Home construction and land sales expenses	269,198		122,495		55,112		446,805		15,643		462,448
Inventory impairments and abandonments	3,081		—		5,635		8,716		1,623		10,339
Commissions	11,489		4,630		2,496		18,615		—		18,615
Sales and marketing	7,796		2,865		2,302		12,963		3,900		16,863
Other general and administrative expenses	8,031		4,064		3,647		15,742		20,499		36,241
Depreciation and amortization	2,152		633		427		3,212		1,359		4,571
Operating income (loss)	$	27,402	$	14,473	$	(2,561)	$	39,314	$	(43,024)	$	(3,710)
Other income, net											1,204
Loss before income taxes											$	(2,506)


	Nine Months Ended June 30, 2025
in thousands	West		East		Southeast		Reportable Segment Subtotal		Corporate and unallocated		Total
Revenue	$	1,001,921	$	379,898	$	197,840	$	1,579,659	$	—	$	1,579,659
Home construction and land sales expenses	814,996		318,595		164,541		1,298,132		40,004		1,338,136
Inventory impairments and abandonments	3,609		—		5,635		9,244		1,623		10,867
Commissions	34,596		11,823		7,092		53,511		—		53,511
Sales and marketing	22,936		8,267		6,218		37,421		10,482		47,903
Other general and administrative expenses	24,632		10,874		9,435		44,941		59,231		104,172
Depreciation and amortization	6,861		1,637		1,122		9,620		3,653		13,273
Operating income (loss)	$	94,291	$	28,702	$	3,797	$	126,790	$	(114,993)	$	11,797
Other income, net											3,031
Income before income taxes											$	14,828

The following table presents assets by segment as of June 30, 2026 and September 30, 2025:


in thousands	June 30, 2026		September 30, 2025
Assets
West	$	1,211,517	$	1,060,650
East	519,134		451,299
Southeast	547,375		461,110
Corporate and unallocated(a)	626,724		636,649
Total assets	$	2,904,750	$	2,609,708

(a) Total assets at Corporate and unallocated include cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments.

(15) Subsequent Events

Merger with Dream Finders Homes, Inc.

On August 6, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Dream Finders Homes, Inc. (“Dream Finders”) and Bulldogs Merger Sub, Inc., a wholly-owned subsidiary of Dream Finders (“Merger Sub”). Subject to the terms and conditions of the Merger Agreement, Dream Finders has agreed to acquire the Company in an all-cash transaction for $33.50 per share of the Company’s common stock. Pursuant to the Merger Agreement, Merger Sub will merge with and into the Company (the “Merger”) with the Company surviving the Merger as a wholly-owned subsidiary of Dream Finders. Upon the consummation of the Merger, the Company will cease to be a publicly traded company. The Company has agreed to various customary covenants and agreements, including, among others, agreements to conduct its business in the ordinary course during the period between the execution of the Merger Agreement and the effective time of the Merger. The Company does not believe these restrictions will prevent it from meeting its debt service obligations, ongoing costs of operations, working capital needs, or capital expenditure requirements. The transaction is currently expected to close during the fourth quarter of calendar 2026. Consummation of the Merger is subject to stockholder approval, regulatory approval and completion of other customary closing conditions.