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LGIH

LGI Homes, Inc.

LGIH

LGI Homes, Inc. • NASDAQ
$52.02 ▼ -1.25% (-0.66)
Market Cap $1.20 B
52w High $110.92
52w Low $39.70
Dividend Yield 0%
P/E 11.51
Volume 131.19K
Outstanding Shares 23.07M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $396.632M ▼ $64.627M ▼ $19.704M ▼ 4.968% ▼ $0.85 ▼ $27.879M ▼
Q2-2025 $483.485M ▲ $71M ▼ $31.533M ▲ 6.522% ▲ $1.36 ▲ $43.054M ▲
Q1-2025 $351.42M ▼ $73.544M ▼ $3.994M ▼ 1.137% ▼ $0.17 ▼ $1.03M ▼
Q4-2024 $557.396M ▼ $81.924M ▼ $50.87M ▼ 9.126% ▼ $2.16 ▼ $46.415M ▼
Q3-2024 $651.854M $83.187M $69.575M 10.673% $2.96 $92.682M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $61.979M ▲ $4.04B ▲ $1.96B ▲ $2.079B ▲
Q2-2025 $59.56M ▲ $4.006B ▲ $1.949B ▲ $2.057B ▲
Q1-2025 $57.6M ▲ $3.889B ▲ $1.846B ▲ $2.043B ▲
Q4-2024 $53.197M ▼ $3.759B ▼ $1.721B ▼ $2.037B ▲
Q3-2024 $60.903M $3.826B $1.829B $1.997B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $19.704M ▼ $-13.228M ▲ $12.234M ▲ $3.413M ▼ $2.419M ▲ $-13.267M ▲
Q2-2025 $31.533M ▲ $-86.373M ▲ $2.317M ▲ $86.016M ▼ $1.96M ▼ $-86.427M ▲
Q1-2025 $3.994M ▼ $-127.148M ▼ $-245K ▼ $131.796M ▲ $4.403M ▲ $-127.979M ▼
Q4-2024 $50.87M ▼ $57.008M ▲ $22.261M ▲ $-86.975M ▼ $-7.706M ▼ $56.401M ▲
Q3-2024 $69.575M $-17.764M $-3.713M $31.309M $9.832M $-17.828M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Retail
Retail
 $510.00M ▲$300.00M ▼$410.00M ▲$340.00M ▼
Wholesale
Wholesale
 $50.00M ▲$50.00M ▲$70.00M ▲$50.00M ▼

Five-Year Company Overview

Income Statement

Income Statement LGI Homes is still solidly profitable, but it is clearly past the peak it enjoyed during the housing surge a few years ago. Sales have stepped down from those boom levels, and profits per share have also come down meaningfully, though they remain healthy for a homebuilder. Margins are lower than at the height of the cycle, but the company is still earning a decent spread between what it builds for and what it sells for. The picture here is of a cyclical business that had an exceptional peak and is now operating at more normal, mid‑cycle levels rather than in crisis territory. Overall, the income statement shows: still profitable, but under pressure from affordability issues, higher interest rates, and a softer environment for first‑time buyers compared with the pandemic boom years.

Balance Sheet

Balance Sheet The balance sheet has grown a lot as LGI has added more land and homes in various stages of construction. Total assets are much larger than a few years ago, which reflects an expanded footprint and bigger inventory of lots and houses. Debt has also climbed steadily, and at a faster pace than in the past. Equity has grown as well, but leverage is clearly higher than it used to be. That means the business is more reliant on borrowed money to support its larger land and inventory position. Cash on hand is quite modest, which is normal for many builders that prefer to keep capital tied up in land and homes rather than sitting idle. The trade‑off is that in a sharp downturn, the company would lean more heavily on its credit lines and the housing market’s ability to absorb its inventory.

Cash Flow

Cash Flow Cash flow paints a more demanding picture than the income statement. Over the last several years, day‑to‑day operations have tended to use cash rather than generate it, mainly because LGI has been pouring money into land and building up communities. Free cash flow has generally been negative for the same reason: growth and land investment have outpaced cash coming in from closings. Traditional capital spending on equipment and facilities is minimal; almost all the cash use is in land and inventory. This pattern is typical for a growth‑oriented homebuilder, but it does mean the company is more dependent on external financing and on a cooperative housing market to turn that inventory back into cash. If sales slowed sharply, cash conversion would be an important risk to watch.

Competitive Edge

Competitive Edge LGI Homes focuses on a very specific customer: the entry‑level buyer, often a renter becoming a homeowner for the first time. This narrow focus, combined with its standardized floor plans and streamlined building process, gives it a cost and execution advantage in that niche. Its “LGI Way” — a tightly managed, repeatable approach to building and selling — and its all‑inclusive home packages help simplify decisions for buyers and keep operations efficient. The direct‑to‑consumer sales model, heavy emphasis on education, and in‑house mortgage partnerships deepen its connection with customers and can improve conversion of renters into owners. Against much larger national builders, LGI is smaller but more specialized. Its strengths are efficiency, affordability, and a sales engine tuned to first‑time buyers. Its vulnerabilities are tied to that same focus: high sensitivity to interest rates, wage pressures, and affordability, plus heavy exposure to regions where rents and home prices are most stretched.

Innovation and R&D

Innovation and R&D LGI’s “innovation” is less about flashy technology and more about process. The company has turned homebuilding into a repeatable system: limited floor plans, standardized materials, and bundled feature packages under its “CompleteHome” and “CompleteHome Plus” brands. This reduces complexity for both buyers and the construction teams. Technology inside the homes is practical rather than cutting edge: basic smart features, energy‑related upgrades, and good connectivity. The more meaningful innovation is in how it finds, educates, and converts renters — using a scripted, high‑touch sales process and integrated financing solutions. Looking ahead, the main opportunities are incremental: continuing to improve the completeness and appeal of the home packages, adding more smart‑home and energy‑efficient features, using data better to pick land and price points, and scaling newer segments like the luxury Terrata brand and wholesale sales to rental operators. There is little evidence of heavy formal R&D spend; the “R&D” here is operational experimentation and refinement rather than lab work or patents.

Summary

LGI Homes is a focused, efficient homebuilder that rode the housing boom very well and is now managing through a tougher affordability environment. Earnings have come down from peak levels but remain solid, supported by a disciplined, standardized business model aimed squarely at first‑time buyers. The company has expanded its asset base and land position, funded partly with higher debt, which increases both its growth potential and its financial risk if the market turns. Cash flow has been negative in recent years as it invested aggressively in communities, leaving it more reliant on continued sales and access to financing. Strategically, LGI’s key strengths are its process‑driven “LGI Way,” its renter‑to‑owner focus, its bundled home offerings, and its integrated sales and financing platform. Its main sensitivities are to interest rates, entry‑level affordability, and the need to keep turning inventory quickly. For observers, the big things to watch are: how well it manages leverage, how effectively it converts its enlarged land and home inventory into cash, and whether it can keep refining its model as market conditions and buyer preferences evolve.

NEWS

November 17, 2025 · 5:00 PM UTC

LGI Homes Announces New Community in the Bakersfield Market

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November 5, 2025 · 6:52 PM UTC

LGI Homes, Inc. Reports October 2025 Home Closings

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November 4, 2025 · 7:00 AM UTC

LGI Homes, Inc. Reports Third Quarter 2025 Results

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October 27, 2025 · 5:00 PM UTC

LGI Homes Extends “Make Your Move” National Sales Event Through November 2

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October 14, 2025 · 5:00 PM UTC

LGI Homes Debuts Four New Floor Plans at Oquirrh Mountain Ranch in Eagle Mountain, Utah

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