UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 OR LGI HOMES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $483.5 million, a 19.8% year-over-year decrease driven by a 20.1% decline in home closings, slightly offset by a 0.4% increase in average sales price (ASP) to $365,446 [11][12] - Adjusted gross margin was 25.5%, up from 23.6% in the prior quarter, but down from 27% in the same period last year [12][13] - Pretax net income margin was 8.7%, with earnings per share at $1.36 [7][14] Business Line Data and Key Metrics Changes - The company closed 1,323 homes in Q2 2025, with a significant increase in wholesale closings, which accounted for 17.9% of total closings compared to 7.1% last year [11][12] - The cancellation rate increased to 32.7% from 22.2% in the same period last year, influenced by a slower sales pace [15][60] Market Data and Key Metrics Changes - The company ended Q2 with 146 active communities, a 14% increase year-over-year [7] - Top markets by closings per community included Atlanta (6.8), Nashville (5.4), Wilmington (5.3), Richmond (4.7), and Charlotte (4.5) [7] Company Strategy and Development Direction - The company remains focused on maintaining profitability through balanced financing incentives while raising prices in higher-performing communities [6] - There is a commitment to improving operating efficiency and optimizing advertising investments [6][12] - The company plans to moderate starts in the coming quarters to align with current sales trends [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for the housing market, driven by strong demographic trends and a structural shortage of homes [5][6] - The company is limiting guidance to Q3 2025 due to market uncertainties, expecting to close between 1,100 and 1,300 homes [21][22] - Management noted recent trends in June and July showed improvement in sales, attributed to a better rate environment and effective sales initiatives [20][29] Other Important Information - The company ended Q2 with $1.7 billion in debt, a debt to capital ratio of 45.8%, and total liquidity of $322.6 million [17][18] - The company repurchased 367,568 shares for $20.6 million during the quarter [18] Q&A Session Summary Question: What is the minimum absorption pace for maintaining gross margin? - Management indicated that they analyze absorption pace community by community and are currently incentivizing older inventory to improve sales pace [24][25] Question: What are the encouraging trends seen in late June and July? - Management noted that both a better rate environment and effective follow-up on digital leads contributed to improved sales trends [27][29] Question: How do you expect the share repurchase trend to continue? - Management stated that while share repurchases are on the table, the focus remains on reducing overall leverage [38] Question: What is the expected trend for finished lot sales moving forward? - Management indicated that finished lot sales are unpredictable and will be evaluated on a community-by-community basis [58] Question: What impacted the high cancellation rate in the current quarter? - Management explained that a large wholesale contract cancellation contributed to the elevated cancellation rate, which would have been more normalized without it [61] Question: How are incentives as a percentage of ASP trending compared to last year? - Management noted that incentives are slightly higher than last year, by about 50 to 100 basis points [64] Question: What is the outlook for community count for the rest of the year? - Management expects community count to increase in 2026, with a focus on timing and capital spending to open new communities [68]

Core Insights - LGI Homes reported quarterly earnings of $1.36 per share, exceeding the Zacks Consensus Estimate of $1.21 per share, but down from $2.48 per share a year ago [1] - The earnings surprise was +12.40%, while the previous quarter saw a significant miss with actual earnings of $0.46 compared to an expected $0.75, resulting in a surprise of -38.67% [2] - The company generated revenues of $483.49 million for the quarter, surpassing the Zacks Consensus Estimate by 1.14%, but down from $602.5 million year-over-year [3] Earnings Outlook - The future performance of LGI Homes' stock will largely depend on management's commentary during the earnings call and the sustainability of the recent price movements [4] - The stock has underperformed the market, losing about 38.9% year-to-date compared to the S&P 500's gain of 7.6% [4] - Current consensus EPS estimate for the upcoming quarter is $2.06 on revenues of $630.67 million, and for the current fiscal year, it is $5.83 on revenues of $2.16 billion [8] Industry Context - The Real Estate - Development industry, to which LGI Homes belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6] - The unfavorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 5 (Strong Sell) for LGI Homes, indicating expected underperformance in the near future [7]

EXHIBIT 99.1 LGI Homes, Inc. Reports Second Quarter 2025 Results THE WOODLANDS, Texas, August 5, 2025 (GLOBE NEWSWIRE) - LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results for the second quarter and the six months ended June 30, 2025. "We delivered solid results in the second quarter including profitability metrics at the high end of our prior guidance range," said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes. "In the second quarter, we delivered 1,323 homes at an average sale ...

Core Insights - LGI Homes, Inc. reported solid financial results for Q2 2025, achieving profitability metrics at the high end of prior guidance [1] - The company delivered 1,323 homes with an average sales price of $365,446, generating $483.5 million in revenue [2] - Despite resilient demand for homeownership, affordability challenges due to interest rates led to a decline in net orders [3] - The company has withdrawn its full-year 2025 guidance but provided a more cautious outlook for Q3 2025 [4] Financial Performance - Home sales revenues for Q2 2025 were $483.5 million, down from $602.5 million in Q2 2024 [20] - Gross margin increased to 22.9%, while adjusted gross margin rose to 25.5%, both reflecting a sequential increase of 190 basis points [2][20] - Net income for Q2 2025 was $31.5 million, translating to $1.36 basic and diluted EPS, compared to $58.6 million and $2.49 EPS in Q2 2024 [20] Market Conditions - The company experienced a sequential decline in net orders due to economic uncertainty and high interest rates, with net orders for the six months ending June 30, 2025, at 2,528, down from 3,541 in the previous year [30] - The cancellation rate increased to 24.2% in 2025 from 19.5% in 2024, indicating challenges in maintaining order volumes [30] - The ending backlog as of June 30, 2025, consisted of 808 homes valued at $322.5 million, significantly lower than the previous year's backlog of 1,393 homes valued at $553.6 million [30] Operational Highlights - The company repurchased 367,568 shares of common stock during Q2 2025 for a total of $20.6 million [2] - As of June 30, 2025, LGI Homes had 146 active selling communities and controlled a total of 64,756 lots [9] - The company aims to improve profit margins and earnings per share through cost-saving measures and operational efficiencies [2]

Core Insights - LGI Homes has launched a new townhome community named Rhyne Court in Gastonia, North Carolina, with prices starting at $249,900 and zero down payment options available [1][2] Company Overview - LGI Homes is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states, having closed over 75,000 homes since its inception in 2003 [7] - The company is recognized for its quality construction and exceptional customer service, earning accolades such as being named to Newsweek's list of the World's Most Trustworthy Companies [7] Community Features - Rhyne Court will consist of 130 townhomes with various floor plans, including options with double primary suites, 4-bedroom layouts, and homes featuring basements and garages [2][8] - The community offers low-maintenance living with exterior upkeep managed by the HOA, including lawn care and roof maintenance [3] Location Benefits - The community is conveniently located 30 minutes from Charlotte Douglas International Airport and near major employers like the Amazon Distribution Center [4] - Residents will have access to local attractions such as Crowders Mountain State Park and the Schiele Museum of Natural History [4] Sales and Promotions - A grand opening event is scheduled for August 2 and 3, 2025, where homebuyers can take advantage of discounts and save thousands on new homes [6] - The buying process is simplified with builder-paid closing costs and no down payment required, making it accessible for first-time buyers and families [5]

LGI Homes (LGIH) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the ...

Core Insights - LGI Homes, Inc. is launching its new community, Robindale, in Winston-Salem, with special discounts and incentives for the opening weekend on July 26, 2025 [1][2] Company Overview - LGI Homes is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states, having closed over 75,000 homes since its founding in 2003 [7] - The company has consistently delivered profitable financial results and has been recognized for its quality construction and customer service, including being named to Newsweek's list of the World's Most Trustworthy Companies [7] Community Features - Robindale is strategically located for easy commutes to downtown Winston-Salem, nearby employers, schools, parks, and shopping [2] - The community will offer single-family homes with three to four bedrooms and living spaces up to 2,000 square feet, featuring modern designs and high-quality finishes [3][4] - Each home includes the CompleteHome™ package, which consists of various modern upgrades at no additional cost [4] Home Offerings - The homes at Robindale include several floor plans, such as: - The Ashe: 1,388 square feet, three bedrooms, two bathrooms [8] - The Carolina: 1,700 square feet, three bedrooms, two-and-a-half bathrooms [8] - The Avery: 1,800 square feet, three bedrooms, two-and-a-half bathrooms [8] - The Durham: 1,548 square feet, three bedrooms, two-and-a-half bathrooms, exclusive to Robindale [8] - The Cary: 1,552 square feet, three bedrooms, two bathrooms [8] - The Camden: 2,002 square feet, four bedrooms, two-and-a-half bathrooms [8] Community Benefits - Residents will enjoy a peaceful environment while being close to cultural attractions and entertainment in downtown Winston-Salem [5] - The community offers move-in ready homes and builder-paid closing costs, presenting a valuable opportunity for homeownership in a growing area [5]

Core Insights - LGI Homes, Inc. is launching five new townhome floor plans at Cottonwood Greens, a community located in Fort Lupton, Colorado, with public introduction on July 26, 2025 [1][4] - The starting price for these new townhomes is set at $399,900, featuring innovative layouts and upgraded features [5] Group 1: Community Features - Cottonwood Greens is conveniently located near US-85 and Hwy 52, providing easy access to downtown Denver and local amenities such as parks and schools [2] - The community includes family-friendly amenities like walking trails, open green spaces, and multiple playgrounds [2] Group 2: Townhome Details - The new section will consist of 137 townhomes, increasing the total count of townhomes and single-family homes in the community to 547 [4] - The townhomes will include a CompleteHome™ package with upgrades such as stainless steel Whirlpool® appliances, granite countertops, and fully landscaped front yards at no extra cost [5] Group 3: Company Background - LGI Homes is recognized as a pioneer in the homebuilding industry, operating in 36 markets across 21 states and has closed over 75,000 homes since its founding in 2003 [7] - The company has consistently delivered profitable financial results and has received numerous awards for quality construction and customer service [7]

Core Insights - LGI Homes, Inc. is launching a new phase at Atherstone in Angier, North Carolina, with a Grand Opening scheduled for July 26, 2025, featuring six new floor plans and limited-time discounts [1][2] Company Overview - LGI Homes is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states, having closed over 75,000 homes since its founding in 2003 [8] - The company has consistently delivered profitable financial results and has been recognized for its quality construction and customer service, including being named to Newsweek's list of the World's Most Trustworthy Companies [8] New Development Details - The new section at Atherstone includes six spacious layouts with three to four bedrooms and over 2,000 square feet of living space, starting from the low-$300s [3] - Each home features oversized lots, two-car garages, and fully upgraded kitchens, with the CompleteHome™ package offering premier upgrades at no additional cost [5][3] Community Features - Atherstone is located three miles from US-401, combining small-town charm with big-city convenience, and includes amenities such as a children's playground, dog park, picnic area, and barbecue pits [6] Floor Plan Highlights - The new floor plans include: - Aaron: 3 bed / 2 bath / 1,172 sq. ft. [11] - Blanco: 3 bed / 2 bath / 1,316 sq. ft. [11] - Cary: 3 bed / 2 bath / 1,552 sq. ft. [11] - Birch: 3 bed / 2.5 bath / 1,742 sq. ft. [11] - Avery: 3 bed / 2.5 bath / 1,800 sq. ft. [11] - Camden: 4 bed / 2.5 bath / 2,002 sq. ft. [11]