LGI Homes, Inc. (LGIH) FY2025 10-K Annual Report

Filed: Feb 20, 2026
Industrials
Operative BuildersSEC EDGAR

LGI Homes, Inc. (LGIH) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 20, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

LGI Homes, Inc. FY2025 10-K Analysis

Business Overview

  • Core business model: Residential home construction specializing in affordable housing
  • No new products, services, or segments introduced or emphasized this year
  • No strategic shifts or changed competitive positioning disclosed in this filing
  • Proxy statement to detail executive compensation, ownership, and related party transactions as per SEC Regulation 14A
  • Filing primarily incorporates multiple key disclosures by reference to 2026 proxy statement

Management Discussion & Analysis

  • Revenue $1.7B, down 22.6% YoY from $2.2B; home closings 4,685, down 22.3% from 6,028; ASP $364K, down 0.4% YoY
  • Gross margin 20.7% vs 24.2%; adjusted gross margin 24.0% vs 26.3%; EBITDA margin 8.7% vs 13.8%; net income $72.6M, down 63% YoY
  • Best segment Southeast: net income before tax $47.7M (48.4%), $472.2M revenue; worst segment Florida: net loss before tax $(6.5)M (-6.6%), $237.9M revenue
  • Net debt to capital 43.2% vs 41.2%; no capital expenditure or dividend/buyback details disclosed in excerpt
  • Management highlights affordability constraints and lower absorption rate as key challenges, increased wholesale channel sales; inventory impairment risk noted ($6.7M)

Risk Factors

  • Regulatory risk: FASB ASU 2023-09 effective after Dec 15, 2024, requires expanded income tax disclosures by jurisdiction for taxes >5% of total paid
  • Macroeconomic risk: $1.6B notes payable and borrowings under Credit Agreement exposed to Interest rate risk at SOFR +1.85% margin, with SOFR floor at 0.50%
  • Operational risk: Land banking financing arrangements expose company to repurchase land from land banker within less than a year, impacting cash flows
  • Competitive risk: Increasing home leasing operations via rental property transfers ($77.1M in 2025) may face disruption from alternative housing platforms or rental models
  • Financial risk: Concentrated debt maturity of $493.7M in 2028 and $733.9M in 2029 could pressure liquidity and refinancing capability

LGI Homes, Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$1.7B

-22.6% YoY

Net Income

$73M

-63.0% YoY

Operating Margin

4.7%

-495bp YoY

Net Margin

4.3%

-465bp YoY

ROE

3.5%

-616bp YoY

Total Assets

$3.9B

+4.5% YoY

EPS (Diluted)

$3.12

-62.4% YoY

Operating Cash Flow

-$140M

+2.6% YoY

Source: XBRL data from LGI Homes, Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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