Dream Finders Homes Inc. (DFH) closed at $17.10 in the latest trading session, marking a -1.38% move from the prior day. This move lagged the S&P 500's daily loss of 0.74%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.76%. Shares of the homebuilder have depreciated by 10.34% over the course of the past month, underperforming the Construction sector's loss of 2.42%, and the S&P 500's gain of 0.79%.Market participants will be closely following the financial results ...

Core Insights - Dream Finders Homes, Inc. (DFH) has released its 2024 Annual Shareholder Letter authored by Patrick Zalupski, the Founder, CEO, and Chairman of the company [1] Company Overview - Dream Finders Homes is headquartered in Jacksonville, Florida, and was recognized as the 2025 National Builder of the Year by Builder magazine [2] - The company builds single-family homes across the Southeast, Mid-Atlantic, and Midwest regions, including states such as Florida, Texas, Tennessee, North Carolina, South Carolina, Georgia, Colorado, Arizona, and the Washington, D.C. metropolitan area [2] - As the Official Home Builder of the PGA TOUR and the Jacksonville Jaguars, Dream Finders Homes is committed to excellence in homebuilding and community service [2] - The company operates an asset-light homebuilding model, which contributes to its industry-leading growth and returns [2] - In addition to homebuilding, Dream Finders Homes provides mortgage financing, title agency, and underwriting services through its wholly owned subsidiaries [2]

We came across a bearish thesis on Dream Finders Homes, Inc. on Valueinvestorsclub.com by Woodrow. In this article, we will summarize the bulls’ thesis on DFH. Dream Finders Homes, Inc.'s share was trading at $18.67 as of December 17th. DFH’s trailing and forward P/E were 6.74 and 6.45 respectively according to Yahoo Finance. Copyright: alotofpeople / 123RF Stock Photo Dream Finders Homes (DFH) is a highly leveraged, growth-at-all-costs homebuilder that is now facing severe structural challenges. The com ...

We came across a bearish thesis on Dream Finders Homes, Inc. on Valueinvestorsclub.com by Woodrow. In this article, we will summarize the bulls’ thesis on DFH. Dream Finders Homes, Inc.'s share was trading at $18.67 as of December 17th. DFH’s trailing and forward P/E were 6.74 and 6.45 respectively according to Yahoo Finance. Copyright: alotofpeople / 123RF Stock Photo Dream Finders Homes (DFH) is a highly leveraged, growth-at-all-costs homebuilder that is now facing severe structural challenges. The com ...

Core Insights - The portfolio consists of approximately four dozen stocks, with the top 10 holdings representing about 44% of the total value [1][15] Group 1: Top Stock Holdings - SoFi has experienced a remarkable growth of about 400% from its cost basis, becoming the largest position in the portfolio due to its stellar growth and profitability [4] - MercadoLibre is recognized as the "Amazon of Latin America," with significant potential for growth in e-commerce and fintech sectors in its key markets [5] - General Motors is viewed as undervalued and overlooked, now ranking as the second-largest electric vehicle manufacturer in the U.S., with potential benefits from lower interest rates [6] - Realty Income is highlighted as a top dividend stock with a 5.7% yield and a strong track record of income growth, owning over 15,000 properties [6] - Pinterest is enhancing its e-commerce capabilities and utilizing AI for user experience improvements, showing impressive user growth despite facing international advertising challenges [8] - Berkshire Hathaway is noted for its diverse portfolio of over 60 subsidiaries and a stock portfolio exceeding $300 billion, maintaining strong cash reserves [9] - Dream Finders Homes is positioned to benefit from pent-up demand for entry-level homes, focusing on affordable markets and effective capital allocation [10] - Kinsale Capital Group specializes in specialty insurance products with a strong profitability track record, presenting a buying opportunity after a recent pullback [11] - Walt Disney is recognized for its profitable theme parks and valuable intellectual property, with significant profit potential in its streaming strategy [12] - Howard Hughes Holdings focuses on real estate development, creating value through master-planned communities and commercial property ownership [13] Group 2: Portfolio Composition and Strategy - The portfolio is heavily concentrated, with the top 10 stocks making up 44% of the total account value, reflecting high conviction in these investments [15] - The investor plans to diversify and build smaller stock and ETF positions using new deposits in 2026 [15] - The portfolio also includes substantial ETF holdings, particularly in Vanguard index funds, which would rank among the largest holdings if included [14]

Homebuilding Performance - Homebuilding revenues for Q3 2025 were $916.7 million, a decrease of $69.6 million or 7% compared to Q3 2024 [127]. - The average sales price (ASP) of homes closed decreased by 8% to $476,962 in Q3 2025 from $518,553 in Q3 2024 [131]. - Home closings increased by 1% to 1,915 in Q3 2025 compared to 1,889 in Q3 2024 [127]. - Homebuilding revenues for the nine months ended September 30, 2025, were $2,986.4 million, an increase of $122.6 million, or 4%, from $2,863.7 million for the same period in 2024 [141]. - Home closings increased by 497 homes, or 9%, totaling 6,072 for the nine months ended September 30, 2025, compared to 5,575 in 2024 [141]. - The average sales price (ASP) of homes closed decreased by $24,988, or 5%, to $485,216 for the nine months ended September 30, 2025 [141]. - The cancellation rate improved to 12.5% in Q3 2025 from 13.8% in Q3 2024, a reduction of 1.3% [127]. - The cancellation rate improved to 12.7% for the nine months ended September 30, 2025, down from 15.8% in 2024, representing a decrease of 3.1 percentage points [141]. Financial Performance - Net income attributable to Dream Finders Homes, Inc. for the nine months ended September 30, 2025, was $158.5 million, down from $206.1 million in the same period of 2024, representing a decline of 23% [123]. - The EBITDA margin for Q3 2025 was 11.0%, down from 13.2% in Q3 2024 [123]. - Selling, general and administrative expenses (SG&A) increased by $79.4 million, or 29%, to $357.3 million, representing 12.0% of homebuilding revenues for the nine months ended September 30, 2025 [149]. - Homebuilding gross margin percentage decreased to 17.7% for the nine months ended September 30, 2025, down 1.0 percentage points from 18.7% in 2024 [141]. Segment Performance - The Southeast segment reported homebuilding revenues of $317 million, an increase of 8% from $293 million in Q3 2024, driven by a 20% increase in home closings [134]. - The Mid-Atlantic segment experienced a 15% decline in homebuilding revenues to $242 million, attributed to a 9% decrease in ASP and lower home closings [135]. - The Midwest segment homebuilding revenues increased by $48 million, or 4%, to $1,239 million for the nine months ended September 30, 2025 [148]. - The Southeast segment homebuilding revenues increased by $78 million, or 9%, to $992 million for the nine months ended September 30, 2025 [146]. Backlog and Inventory - Backlog units as of September 30, 2025, decreased by 34% to 2,619 from 3,996 units in 2024 [130]. - The backlog of sold homes decreased to 2,619 homes valued at approximately $1.2 billion, down 34% in volume and 42% in value from 3,996 homes valued at approximately $2.0 billion as of September 30, 2024 [169]. - The backlog for the Southeast segment as of September 30, 2025, was 1,143 homes, a decrease of 502 from 1,645 homes as of September 30, 2024 [170]. - The Midwest segment backlog fell to 578 homes, a decrease of 664 from 1,242 homes as of September 30, 2024, primarily due to higher closings relative to net sales [172]. Cash and Liquidity - The company's cash and cash equivalents increased to $251.0 million as of September 30, 2025, compared to $204.9 million in 2024 [123]. - As of September 30, 2025, the company's cash and total liquidity were $624.7 million, down from $816.0 million as of December 31, 2024, reflecting a decrease of approximately 23.5% [199]. - The company reported net cash used in operating activities of $244.2 million for the nine months ended September 30, 2025, a significant improvement compared to $563.1 million for the same period in 2024, representing a reduction of 56.6% [205]. - Net cash provided by financing activities was $396.5 million for the nine months ended September 30, 2025, down from $445.0 million for the same period in 2024, a decrease of approximately 10.9% [207]. Debt and Financing - The net homebuilding debt to net capitalization ratio was 47.3% as of September 30, 2025, compared to 45.6% in 2024 [191]. - Total debt increased to $1,766,134 million as of September 30, 2025, from $1,456,088 million in 2024 [191]. - The company issued $300 million in senior unsecured notes with a 6.875% interest rate, due September 15, 2030, to repay a portion of the outstanding balance under the Credit Agreement [202]. - The company amended its Credit Agreement to increase aggregate commitments to $1.5 billion and extended the maturity date to August 21, 2028 [201]. Mortgage and Financial Services - Mortgage revenues for the three months ended September 30, 2025, were $16,306, a 1% increase from $16,079 in 2024 [176]. - Total financial services revenues surged to $53,133, marking a 163% increase from $20,168 in the same period of 2024 [176]. - Mortgage revenues increased by $32,770 million, or 204%, for the nine months ended September 30, 2025, compared to the same period in 2024 [177]. - Title and other services revenues rose by $64,793 million, or 637%, for the nine months ended September 30, 2025, compared to the same period in 2024 [177]. - Total financial services revenues reached $123,821 million, a 372% increase for the nine months ended September 30, 2025, compared to the same period in 2024 [177]. - The number of mortgage loans originated increased by 644, or 20%, totaling 3,926 loans for the nine months ended September 30, 2025 [177]. - The capture rate for mortgage originations improved to 78.3%, up 5% from 73.6% in the previous year [177]. - The acquisition of Alliant Title in April 2025 contributed $32 million to the increase in title and other services revenues for the three months ended September 30, 2025 [178]. Lot Deposits and Land Bank - Lot deposits for finished lot option and land bank option contracts increased to $551 million as of September 30, 2025, up from $458 million as of December 31, 2024 [154]. - As of September 30, 2025, the total controlled lots increased to 64,341, a rise of 18% from 54,698 as of December 31, 2024 [156]. - The number of active communities rose to 283, reflecting an increase of 48 communities or 20% compared to 235 active communities as of September 30, 2024 [158]. - The company plans to allocate additional liquidity to land bank deposits to mitigate risks associated with holding undeveloped land [198]. Interest Rate Risk - Jet HomeLoans is exposed to interest rate risk related to its lending activities, underwriting and originating mortgage loans sold through forward mortgage commitments [228]. - The loan portfolio of Jet HomeLoans is held for sale and is subject to forward sale commitments, with interest rate lock commitments used to hedge mortgage-related interest rate exposure [228].

Homebuilding Performance - Homebuilding revenues for Q3 2025 were $917 million, a decrease of 7% compared to $986 million in Q3 2024[3] - Home closings rose by 1% to 1,915 in Q3 2025, up from 1,889 in Q3 2024, also a company record[3] - Net new orders increased by 20% to 2,021 in Q3 2025 from 1,680 in Q3 2024, marking a record for the company[12] - Home closings totaled 1,915 in Q3 2025, slightly up from 1,889 in Q3 2024, indicating a 1.4% increase[24] - The average sales price of homes closed decreased to $476,962 in Q3 2025 from $518,553 in Q3 2024, a decline of 8.0%[24] Financial Performance - Total revenues for Q3 2025 were $969.8 million, a decrease of 3.5% from $1,006.4 million in Q3 2024[22] - Pre-tax income decreased to $61 million in Q3 2025 from $92 million in Q3 2024[3] - Financial services pre-tax income increased by 11% to $9 million in Q3 2025 from $8 million in Q3 2024[3] - Net income attributable to Dream Finders Homes, Inc. was $47.0 million in Q3 2025, compared to $70.7 million in Q3 2024, reflecting a decline of 33.9%[22] - Adjusted homebuilding gross margin for Q3 2025 was $245.1 million, down from $272.1 million in Q3 2024, a decrease of 9.9%[29] Liquidity and Debt - The company issued $300 million in senior unsecured notes at a rate of 6.875% to repay part of its revolving credit facility[3] - Total liquidity as of September 30, 2025, was $625 million, consisting of cash and cash equivalents and availability under the revolving credit facility[3] - Net homebuilding debt to net capitalization ratio increased to 47.3% as of September 30, 2025, compared to 45.6% as of September 30, 2024[33] Backlog and Guidance - The backlog as of September 30, 2025, included 2,619 homes valued at $1.2 billion, with an average sales price of $447,133[13] - The backlog as of September 30, 2025, was valued at $1.17 billion, down from $2.00 billion as of September 30, 2024[24] - The company revised its full-year 2025 guidance to approximately 8,500 home closings, down from a previous estimate of 9,250[16] Expenses and Cancellation Rate - Selling, general and administrative expenses increased by 8% to $110 million in Q3 2025, representing 11.9% of homebuilding revenues[10] - The cancellation rate improved to 12.5% in Q3 2025 from 13.8% in Q3 2024[24]

Core Viewpoint - Dream Finders Homes Inc. reported quarterly earnings of $0.47 per share, matching the Zacks Consensus Estimate, but down from $0.70 per share a year ago [1] - The company posted revenues of $969.8 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 14.96% and down from $1.01 billion year-over-year [2] Financial Performance - Earnings per share (EPS) for the latest quarter was $0.47, compared to $0.70 in the same quarter last year [1] - The company had a surprise of -13.85% in the previous quarter, with actual earnings of $0.56 against an expected $0.65 [1] - Revenues for the quarter were $969.8 million, missing estimates and down from $1.01 billion year-over-year [2] Market Performance - Dream Finders Homes shares have declined approximately 7.1% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.82 on revenues of $1.38 billion, and for the current fiscal year, it is $2.39 on revenues of $4.66 billion [7] - The outlook for the Building Products - Home Builders industry is currently in the bottom 20% of Zacks industries, which may negatively impact stock performance [8]

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Company Performance - Dream Finders Homes Inc. (DFH) closed at $23.36, reflecting a decrease of 2.91% from the previous day, underperforming compared to the S&P 500's loss of 0.63% [1] - Over the last month, DFH shares have decreased by 14.53%, contrasting with the Construction sector's loss of 0.63% and the S&P 500's gain of 0.92% [1] Upcoming Earnings - The company is expected to report an EPS of $0.47, which is a decline of 32.86% from the prior-year quarter [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, an increase of 13.26% from the year-ago period [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.39 per share and revenue of $4.66 billion, indicating changes of -28.44% and +4.63%, respectively, from the previous year [3] Analyst Forecasts - Recent revisions to analyst forecasts for DFH are important as they reflect changing near-term business trends, with positive changes indicating a favorable outlook on business health and profitability [4] Zacks Rank and Valuation - DFH currently holds a Zacks Rank of 5 (Strong Sell), with no changes in the Zacks Consensus EPS estimate over the past month [6] - The company is trading at a Forward P/E ratio of 10.07, which is a discount compared to the industry average Forward P/E of 11.74 [7] PEG Ratio - DFH has a PEG ratio of 6.54, compared to the average PEG ratio of 3.22 for the Building Products - Home Builders industry [8] Industry Context - The Building Products - Home Builders industry is part of the Construction sector and has a Zacks Industry Rank of 208, placing it in the bottom 16% of all industries [9]