DREAM FINDERS HOMES, INC. 2025 FORM 10-K ANNUAL REPORT
DREAM FINDERS HOMES, INC. 2025 FORM 10-K ANNUAL REPORT
Dream Finders Homes, Inc. filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The company reported total revenues of $1.43 billion, a 12% increase from the prior year. Net income was $143.1 million, a 15% increase from the prior year. The company’s gross profit margin was 23.1%, and its operating margin was 10.1%. As of December 31, 2025, the company had cash and cash equivalents of $243.1 million and a debt-to-equity ratio of 0.43. The company’s market value was approximately $478.1 million as of June 30, 2025. The report also includes information on the company’s executive officers, directors, and corporate governance.
Share Buyback Program
In June 2023, Dream Finders Homes’ Board of Directors approved a share buyback program under which the company could repurchase up to $25 million of Class A common stock through June 30, 2026. This program was later increased to $50 million in the second quarter of 2025 and then further increased to $100 million through June 30, 2027 in the fourth quarter of 2025.
The company expects to execute any transactions under the share buyback program through a combination of Rule 10b5-1 trading plans and other compliant transactions. The actual timing, number, and value of shares repurchased will depend on factors like trading constraints, price, market conditions, and alternative investment opportunities. The program does not obligate the company to acquire any specific number of shares.
In the fourth quarter of 2025, the company repurchased 485,182 shares at an average price of $18.94 per share, totaling approximately $9.2 million in share buybacks.
Business Overview and Outlook
Dream Finders Homes designs, builds, and sells homes primarily in high-growth markets using an asset-light lot acquisition strategy. The company’s focus is on constructing and selling single-family homes across entry-level, first-time move-up, second-time move-up, and active adult markets, as well as homes under built-for-rent contracts.
The company also has financial services operations that offer mortgage banking solutions, title insurance, homeowners insurance, and other adjacent products. This allows Dream Finders to fully serve its homebuyers and capture ancillary business opportunities.
Homebuyers across Dream Finders’ markets continue to face significant affordability challenges, especially in entry-level price points. These challenges have been exacerbated by macroeconomic uncertainty, resulting in a decline in consumer confidence. In response, the company remains focused on providing competitive pricing through mortgage buydown commitments and other sales incentives.
While facing intense competition and macroeconomic headwinds in the short term, Dream Finders is committed to its land-light strategy, operational improvements, and building a high-quality, affordable product that meets customer needs and differentiates the company in its markets. The company’s long-term outlook remains positive, as it is optimistic about future housing demand given the undersupply of homes in the U.S.
Recent Developments
In the fourth quarter of 2025, Dream Finders entered into a strategic partnership to acquire the Sawgrass Marriott Golf Resort & Spa in Ponte Vedra Beach, Florida. This 66-acre parcel is adjacent to the renowned PLAYERS Stadium Course at TPC Sawgrass and provides opportunities to expand the company’s lot pipeline and support future growth and profitability.
Results of Consolidated Operations
The following table summarizes Dream Finders’ results of operations for the years ended December 31, 2025 and 2024:
| Metric | 2025 | 2024 |
|---|---|---|
| Income before taxes: Homebuilding | $241,575 | $399,783 |
| Income before taxes: Financial Services | $35,023 | $31,308 |
| Income before taxes: Other | $7,504 | $6,763 |
| Total Income before taxes | $284,102 | $437,854 |
| Income tax expense | $(66,698) | $(97,272) |
| Net income | $217,404 | $340,582 |
| Net income attributable to Dream Finders Homes Inc. | $217,197 | $335,341 |
| Basic EPS | $2.19 | $3.44 |
| Diluted EPS | $2.14 | $3.34 |
| EBITDA | $493,688 | $629,750 |
| EBITDA margin % | 11.4% | 14.2% |
| Return on participating equity | 15.3% | 29.7% |
Results of Homebuilding Operations
The following table sets forth Dream Finders’ results of homebuilding operations:
| Metric | 2025 | 2024 | Change | % Change |
|---|---|---|---|---|
| Homebuilding revenues | $4,145,347 | $4,397,877 | $(252,530) | (6)% |
| Homebuilding cost of sales | $3,423,354 | $3,591,483 | $(168,129) | (5)% |
| Selling, general and administrative expense | $483,628 | $394,548 | $89,080 | 23% |
| Income before taxes of homebuilding operations | $241,575 | $399,783 | $(158,208) | (40)% |
| Home closings | 8,608 | 8,583 | 25 | 0% |
| Average sales price of homes closed | $477,917 | $509,249 | $(31,332) | (6)% |
| Net sales | 7,747 | 6,727 | 1,020 | 15% |
| Cancellation rate | 13.5% | 16.6% | (3.1)% | (19)% |
| Homebuilding gross margin | $721,993 | $806,394 | $(84,401) | (10)% |
| Homebuilding gross margin % | 17.4% | 18.3% | (0.9)% | (5)% |
| Adjusted homebuilding gross margin | $1,098,694 | $1,186,019 | $(87,325) | (7)% |
| Adjusted homebuilding gross margin % | 26.5% | 27.0% | (0.5)% | (2)% |
| Selling, general and administrative expense % | 11.7% | 9.0% | 2.7% | 30% |
| Active communities as of period end | 313 | 242 | 71 | 29% |
| Backlog - units | 1,839 | 2,599 | (760) | (29)% |
| Backlog - value | $821,292 | $1,304,463 | $(483,171) | (37)% |
| Net homebuilding debt to net capitalization | 41.8% | 33.7% | 8.1% | 24% |
The decrease in homebuilding revenues was primarily due to a 6% lower consolidated average sales price of homes closed, largely due to increased use of sales incentives. This was partially offset by a slight increase in home closings.
The lower homebuilding gross margin was primarily attributable to the decreased average sales price, increased sales incentives, higher land and financing costs, and changes in geographical product mix, partially offset by direct cost reductions and cycle-time improvements.
Selling, general and administrative expense as a percentage of homebuilding revenues increased to 11.7% from 9.0%, primarily due to $105 million spent on forward mortgage commitment programs to allow homebuyers to access lower mortgage rates, as well as higher marketing, model home, and compensation costs.
The decrease in income before taxes of homebuilding operations was mainly due to the increases in SG&A and the reduction in average sales price and homebuilding gross margin, partially offset by the change in contingent consideration from expense to income.
Financial Services
Dream Finders’ Financial Services segment provides mortgage banking solutions, title insurance services, homeowners insurance, and other ancillary products. Key financial results include:
| Metric | 2025 | 2024 | Change | % Change |
|---|---|---|---|---|
| Mortgage revenues | $68,536 | $34,786 | $33,750 | 97% |
| Title and other services revenues | $108,965 | $17,189 | $91,776 | 534% |
| Total financial services revenues | $177,501 | $51,975 | $125,526 | 242% |
| Financial services income before taxes | $35,023 | $31,308 | $3,715 | 12% |
| Total originations (principal) | $2,277 million | $2,196 million | $81 million | 4% |
| Capture rate | 79.0% | 71.9% | 7% | 10% |
The increases in mortgage and title/other services revenues were primarily due to the consolidation of Jet HomeLoans and the acquisition of Alliant Title, respectively. Financial services income before taxes increased 12% year-over-year.
Non-GAAP Financial Measures
Dream Finders utilizes the following non-GAAP financial measures:
EBITDA: Defined as net income before interest, taxes, depreciation, and amortization. EBITDA was $493.7 million in 2025, down from $629.8 million in 2024, with an EBITDA margin of 11.4% and 14.2%, respectively.
Adjusted Homebuilding Gross Margin: Excludes the effects of capitalized interest, lot option fees, purchase accounting amortization, and commission expense. Adjusted homebuilding gross margin was 26.5% in 2025, down from 27.0% in 2024.
Net Homebuilding Debt to Net Capitalization: Calculated as net homebuilding debt (homebuilding debt less cash and cash equivalents) divided by net capitalization (net homebuilding debt plus total mezzanine equity and total equity). This ratio was 41.8% in 2025, up from 33.7% in 2024.
These non-GAAP measures provide supplemental information to evaluate the company’s operating performance and leverage.
Liquidity and Capital Resources
Dream Finders generates cash from home sales and financial services, which it reinvests to acquire and control land to support growth. The company finances operations through cash, a revolving credit facility, senior unsecured notes, and mortgage warehouse facilities.
As of December 31, 2025, the company had total liquidity of $899.3 million, consisting of $664.6 million available under its $1.5 billion revolving credit facility and $234.8 million in cash and cash equivalents.
In August 2025, Dream Finders amended its credit facility to increase the aggregate commitments to $1.5 billion and extend the maturity to August 2028 for $1.2 billion of the commitments. In September 2025, the company issued $300 million of 6.875% senior unsecured notes due 2030 to repay a portion of the credit facility.
The company’s lot deposits related to finished lot option contracts and land bank option contracts totaled $545 million as of December 31, 2025, up from $458 million a year earlier, as it continues to execute its asset-light lot acquisition strategy.
Dream Finders also has off-balance sheet arrangements, including surety bonds and letters of credit totaling $386 million as of December 31, 2025, to support its land option agreements and other performance obligations.
Overall, the company maintains a disciplined capital structure and liquidity position to support its growth initiatives and navigate market conditions. Management remains committed to evaluating options to strengthen the balance sheet and capital structure.
Outlook
Despite facing near-term challenges from macroeconomic uncertainty and affordability pressures, Dream Finders remains optimistic about the long-term outlook for housing demand given the undersupply of homes in the U.S. The company is focused on executing its land-light strategy, driving operational improvements, and providing a high-quality, affordable product that meets customer needs and differentiates it in the market. With a strong liquidity position and disciplined capital structure, Dream Finders is well-positioned to navigate the current environment and capitalize on future growth opportunities.