Dream Finders Homes (DFH) Q1 2026 earnings summary

Executive summary

• Achieved 8,608 home closings in FY25 and 1,870 in 1Q26, with a 40% CAGR in closings since inception, and record net sales of 2,408 homes, up 19% year-over-year, despite challenging macroeconomic conditions and elevated mortgage rates.

• Recognized as 2025 National Builder of the Year, operating in 332 active communities across 10 states as of March 31, 2026.

• Revenues and profitability declined year-over-year due to lower average sales prices, increased use of sales incentives, and higher land and financing costs, despite growth in net sales and active communities.

• Maintains a land-light, capital-efficient model, focusing on operational efficiency and asset-light lot acquisition amid affordability challenges and elevated mortgage rates.

• Expanded through organic growth and strategic acquisitions, including recent entries into Atlanta, Charleston, Greenville, Nashville, and the acquisition of Alliant Title.

Financial highlights

• FY25 revenue was $4.37B, with $0.88B in 1Q26; FY24 revenue was $4.45B; homebuilding revenues fell 14% to $836.7M in 1Q26.

• Net income attributable to shareholders was $13M in 1Q26, down from $55M year-over-year; diluted EPS was $0.11 versus $0.54.

• Adjusted gross margin improved by 330bps since 1Q22, reaching 24.3% in 1Q26, but down from 27.8% year-over-year; homebuilding gross margin was 14.5%.

• Return on participating equity declined from 29.7% in 4Q24 to 12.0% in 1Q26.

• Inventory turnover was 1.7x in 1Q26, above industry average.

Outlook and guidance

• Expects approximately 9,250 home closings for full year 2026; guidance reiterated despite near-term market volatility.

• Backlog as of March 31, 2026, was 2,377 homes valued at $1.1B, down 15% in units and 20% in value year-over-year.

• Near-term performance expected to remain sensitive to mortgage rates and macroeconomic conditions, with continued use of incentives to support sales pace.