[Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company achieved increased homebuilding revenues and closings, significant growth in financial services income, but experienced a decline in overall pre-tax income and EPS Second Quarter 2025 Key Financial and Operational Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :---------- | :---------- | :----- | | Homebuilding revenues | $1.1 billion | $1.05 billion | +4% | | Home closings | 2,232 | 2,031 | +10% | | Net new orders | 1,938 | 1,712 | +13% | | Homebuilding gross margin | 16.5% | 19.0% | -2.5 pp | | Adjusted homebuilding gross margin (non-GAAP) | 25.9% | 27.0% | -1.1 pp | | Pre-tax income | $74 million | $106 million | -30.2% | | Net income attributable to DFH | $57 million | $81 million | -29.7% | | Basic EPS | $0.57 | $0.83 | -31.3% | | Financial services pre-tax income | $12 million | $7 million | +86% | | Controlled lot pipeline (as of June 30, 2025 vs Dec 31, 2024) | 63,180 | 54,698 | +15.5% | | Total liquidity (as of June 30, 2025) | $433 million | N/A | N/A | | Return on participating equity | 25.0% | 33.5% | -8.5 pp | | Class A common shares repurchased | 705,404 | N/A | N/A | | Value of shares repurchased | $16 million | N/A | N/A | [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Patrick Zalupski noted **solid performance** with increased home closings and net sales despite market challenges, completed strategic acquisitions, and reaffirmed full-year 2025 guidance - CEO notes **solid performance** despite challenging environment (elevated interest rates, weakening consumer confidence), growing home closings by **10%** and net sales by **13%**[3](index=3&type=chunk) - Completed acquisitions of Alliant National Title Insurance Company, Inc. and Green River Builders, Inc. to enhance **vertical integration** and expand presence in the Atlanta region[4](index=4&type=chunk) - Reiterated full-year 2025 guidance of approximately **9,250 home closings** and repurchased over **700,000 shares** of common stock, demonstrating confidence in **long-term business strength**[5](index=5&type=chunk) [Strategic Acquisitions](index=2&type=section&id=Acquisitions) Dream Finders Homes completed two strategic acquisitions in Q2 2025: Alliant National Title Insurance Company, Inc. to expand financial services and **vertical integration**, and Green River Builders, Inc. to strengthen its presence in the greater Atlanta housing market [Alliant Title Acquisition](index=2&type=section&id=Alliant%20Title) On April 18, 2025, Dream Finders Homes acquired Alliant National Title Insurance Company, Inc., integrating its operations into the Financial Services segment to enhance **vertical integration** and expand financial services capabilities - Acquired Colorado-based title insurance underwriter, Alliant National Title Insurance Company, Inc. on April **18**, **2025**[6](index=6&type=chunk) - Operations included in the Financial Services segment, enhancing **vertical integration** and expanding financial services capabilities[4](index=4&type=chunk)[6](index=6&type=chunk) [Green River Builders Acquisition](index=2&type=section&id=Green%20River%20Builders) On May 2, 2025, the Company acquired the majority of homebuilding assets of Green River Builders, Inc., expanding its operations in the northern Atlanta, Georgia market, complementing previous acquisitions in the region - Acquired majority of homebuilding assets of Green River Builders, Inc. on May **2**, **2025**[7](index=7&type=chunk) - Expands operations in the greater Atlanta region, specifically northern Atlanta, complementing the Liberty Communities acquisition[4](index=4&type=chunk)[7](index=7&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) The company's performance is analyzed across its Homebuilding and Financial Services segments, detailing revenue, margin, and order trends [Homebuilding Segment](index=2&type=section&id=Homebuilding) The Homebuilding segment saw a **4%** increase in revenues and a **10%** rise in home closings, primarily driven by the Liberty Communities acquisition. However, average sales price decreased by **7%**, and gross margin declined due to increased incentives, higher costs, and product mix changes. SG&A expenses also rose significantly [Revenues and Closings](index=2&type=section&id=Homebuilding%20Revenues%20and%20Closings) Homebuilding revenues increased **4%** to **$1.1 billion**, with home closings up **10%** to **2,232**. The average sales price decreased **7%** to **$481,027**, partly due to lower ASP from the Liberty Communities acquisition and increased sales incentives Homebuilding Revenues and Closings (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--------------------- | :---------- | :---------- | :----- | | Homebuilding Revenues | $1.1 billion | $1.05 billion | +4% | | Home Closings | 2,232 | 2,031 | +10% | | Average Sales Price | $481,027 | $514,833 | -7% | - Growth in homebuilding revenues primarily due to increased home closings, largely attributable to the January **2025** Liberty Communities acquisition (**179** closings with ASP of **$355,550**)[8](index=8&type=chunk) - Increased use of sales incentives partially offset homebuilding revenue growth and contributed to lower ASP[8](index=8&type=chunk) [Gross Margin Analysis](index=2&type=section&id=Homebuilding%20Gross%20Margin%20Analysis) Homebuilding gross margin decreased by **250 basis points** to **16.5%** (**19.0%** in Q2 **2024**), primarily due to increased incentives, higher land and financing costs, and changes in product mix. Adjusted homebuilding gross margin also saw a slight decrease Homebuilding Gross Margin (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (bps) | | :-------------------------- | :------ | :------ | :----------- | | Homebuilding Gross Margin % | 16.5% | 19.0% | -250 bps | | Adjusted Homebuilding Gross Margin % | 25.9% | 27.0% | -110 bps | - Decrease in gross margin primarily resulted from increased incentives, higher land and financing costs, and changes in product mix[9](index=9&type=chunk) - Partially offset by direct cost reductions and continued cycle time improvements[9](index=9&type=chunk) [Selling, General & Administrative (SG&A) Expenses](index=3&type=section&id=Selling,%20General%20and%20Administrative%20Expense) SG&A expenses increased **39%** to **$135 million**, rising to **12.3%** of homebuilding revenues (from **9.2%** in Q2 **2024**). This increase was mainly due to costs from forward mortgage commitment programs, higher compensation, and other marketing/general expenses from recent acquisitions and organic expansion SG&A Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :---------- | :---------- | :----- | | SG&A Expense | $135 million | $97 million | +39% | | SG&A as % of Homebuilding Revenues | 12.3% | 9.2% | +310 bps | - Increases primarily attributable to costs of forward mortgage commitment programs, higher compensation, and other marketing/general expenses from recent acquisitions and organic expansion[11](index=11&type=chunk) [Net New Orders and Cancellation Rate](index=3&type=section&id=Net%20new%20orders) Net new orders increased **13%** to **1,938**, while the cancellation rate slightly rose to **14.0%**. The company attributes the increase in orders and low cancellation rate to successful sales incentives and the availability of quick, move-in-ready homes Net New Orders and Cancellation Rate (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :---------------- | :------ | :------ | :----- |\ | Net New Orders | 1,938 | 1,712 | +13% | | Cancellation Rate | 14.0% | 13.2% | +80 bps | - Increase in net new orders and low cancellation rate reflect successful sales incentives and availability of quick, move-in-ready homes[14](index=14&type=chunk) [Backlog](index=3&type=section&id=Second%20Quarter%202025%20Backlog) As of June **30**, **2025**, backlog decreased to **2,513 homes** valued at **$1.2 billion**, down from **2,802 homes** valued at **$1.4 billion** as of March **31**, **2025**. The average sales price in backlog also decreased to **$477,865** Backlog (June 30, 2025 vs March 31, 2025) | Metric | June 30, 2025 | March 31, 2025 | Change | | :-------------------- | :-------------- | :--------------- | :----- | | Backlog Homes | 2,513 | 2,802 | -10.3% | | Backlog Value | $1.2 billion | $1.4 billion | -14.3% | | ASP in Backlog | $477,865 | $494,987 | -3.5% | - Approximately **1,997 homes** in backlog expected to be delivered in **2025**, with **516** in **2026** and beyond[15](index=15&type=chunk) Backlog by Homebuilding Segment (June 30, 2025) | Segment | Units | Average Sales Price | | :---------- | :---- | :------------------ | | Southeast | 998 | $438,465 | | Mid-Atlantic | 812 | $399,863 | | Midwest | 703 | $623,893 | | **Total** | **2,513** | **$477,865** | [Financial Services Segment](index=3&type=section&id=Financial%20Services) Financial services revenues and income before taxes significantly increased by **$47 million** and **$6 million**, respectively, for Q2 **2025** compared to Q2 **2024**. This growth was primarily driven by the acquisition of Alliant Title and the consolidation of Jet HomeLoans, along with DF Title's expansion into Texas markets Financial Services Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 vs Q2 2024 Change | | :-------------------------- | :------------------------ | | Financial Services Revenues | +$47 million | | Financial Services Income Before Taxes | +$6 million | - Primary drivers for growth include the April **2025** acquisition of Alliant Title and July **2024** consolidation of Jet HomeLoans[17](index=17&type=chunk) - DF Title's expansion into Texas markets also contributed to increased revenues and income[17](index=17&type=chunk) [Full Year 2025 Outlook](index=3&type=section&id=Full%20Year%202025%20Outlook) Dream Finders Homes maintains its full-year **2025** guidance of approximately **9,250 home closings**, which includes contributions from the Liberty Communities and Green River Builders acquisitions - Maintains full-year **2025** guidance of approximately **9,250 home closings**[5](index=5&type=chunk)[18](index=18&type=chunk) - Guidance is inclusive of closings from Liberty Communities and Green River Builders acquisitions[18](index=18&type=chunk) [Company Overview](index=3&type=section&id=About%20Dream%20Finders%20Homes) Dream Finders Homes (NYSE: DFH) is a Jacksonville, Florida-based homebuilder operating across the Southeast, Mid-Atlantic, and Midwest regions. The company utilizes an **asset-light homebuilding model** and provides mortgage financing, title agency, and underwriting services through its subsidiaries - Headquartered in Jacksonville, Florida, building single-family homes across Southeast, Mid-Atlantic, and Midwest regions (e.g., Florida, Texas, Tennessee, North Carolina, South Carolina, Georgia, Colorado, Arizona, Washington, D.C. metropolitan area)[19](index=19&type=chunk) - Operates an **asset-light homebuilding model** to achieve **industry-leading growth and returns**[19](index=19&type=chunk) - Provides mortgage financing, title agency, and underwriting services through wholly-owned subsidiaries[19](index=19&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding future events, market conditions, operational results, acquisition benefits, and company strategies. These statements are based on current beliefs and assumptions and are subject to various risks and uncertainties detailed in the company's SEC filings. Dream Finders Homes disclaims any obligation to update these statements, except as required by law - Includes forward-looking statements on projected **2025** home closings, market conditions, future results, acquisition benefits, and strategies[20](index=20&type=chunk) - Statements are based on current beliefs and assumptions and are subject to risks and uncertainties discussed in SEC filings (**10-K**, **10-Q**)[20](index=20&type=chunk) - Company undertakes no obligation to update or revise forward-looking statements, except as required by applicable law[20](index=20&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets and statements of operations, highlighting key financial changes and performance metrics [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June **30**, **2025**, total assets increased to **$3.65 billion** from **$3.33 billion** at December **31**, **2024**, primarily driven by increases in inventories, lot deposits, and goodwill. Total liabilities also rose to **$2.14 billion** from **$1.91 billion**, mainly due to an increase in revolving credit facility and other borrowings Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------------------- | :-------------- | :----------- | :----- | | Total Assets | $3,650,054 | $3,328,651 | +9.66% | | Total Liabilities | $2,136,329 | $1,908,291 | +11.95% | | Total Equity | $1,335,686 | $1,250,409 | +6.82% | - Significant increases in Inventories (**$1.99B** from **$1.72B**) and Lot deposits (**$531M** from **$458M**) contributed to asset growth[22](index=22&type=chunk) - Revolving credit facility and other borrowings increased substantially to **$1.14B** from **$701M**[22](index=22&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 **2025**, total revenues increased **9%** to **$1.15 billion**, driven by growth in both homebuilding and financial services. However, net income attributable to DFH decreased **30%** to **$56.6 million**, or **$0.57** per basic share, compared to **$80.9 million**, or **$0.83** per basic share in Q2 **2024**, primarily due to higher costs of sales and increased SG&A expenses Consolidated Statements of Operations Summary (Q2 2025 vs Q2 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :---------- | :---------- | :----- | | Total Revenues | $1,150,505 | $1,055,747 | +9.0% | | Homebuilding Revenues | $1,099,580 | $1,052,236 | +4.5% | | Financial Services Revenues | $50,925 | $3,511 | +1349% | | Income Before Taxes | $74,064 | $106,008 | -30.1% | | Net Income Attributable to DFH | $56,580 | $80,943 | -30.1% | | Basic EPS | $0.57 | $0.83 | -31.3% | - Significant increase in financial services revenue due to acquisitions and expansion[17](index=17&type=chunk)[24](index=24&type=chunk) - Income before taxes and net income decreased due to higher homebuilding cost of sales and increased selling, general and administrative expense[9](index=9&type=chunk)[11](index=11&type=chunk)[24](index=24&type=chunk) [Other Financial and Operating Data](index=8&type=section&id=Other%20Financial%20and%20Operating%20Data) This section provides a detailed breakdown of key operational metrics for the homebuilding segment, including home closings, average sales price, net new orders, and financial ratios Key Operating Data (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Home Closings | 2,232 | 2,031 | +10% | | Average Sales Price of Homes Closed | $481,027 | $514,833 | -7% | | Net New Orders | 1,938 | 1,712 | +13% | | Cancellation Rate | 14.0% | 13.2% | +0.8 pp | | Homebuilding Gross Margin % | 16.5% | 19.0% | -2.5 pp | | Adjusted Homebuilding Gross Margin % | 25.9% | 27.0% | -1.1 pp | Key Operating Data (Six Months Ended June 30, 2025 vs 2024) | Metric | 6M 2025 | 6M 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Home Closings | 4,157 | 3,686 | +12.8% | | Average Sales Price of Homes Closed | $489,018 | $505,926 | -3.3% | | Net New Orders | 3,970 | 3,436 | +15.5% | | Cancellation Rate | 12.8% | 16.8% | -4.0 pp | | Homebuilding Gross Margin % | 17.8% | 18.4% | -0.6 pp | | Adjusted Homebuilding Gross Margin % | 26.8% | 26.7% | +0.1 pp | Key Ratios and Backlog (as of June 30) | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Active Communities | 271 | 222 | | Backlog - Units | 2,513 | 4,205 | | Backlog - Value (in thousands) | $1,200,875 | $2,123,618 | | Net Homebuilding Debt to Net Capitalization | 44.7% | 42.7% | | Return on Participating Equity | 25.0% | 33.5% | Home Closings by Segment (Q2 2025 vs Q2 2024) | Segment | Q2 2025 Units | Q2 2025 ASP | Q2 2024 Units | Q2 2024 ASP | | :---------- | :------------ | :------------ | :------------ | :------------ | | Southeast | 842 | $438,549 | 668 | $508,511 | | Mid-Atlantic | 600 | $444,571 | 610 | $433,941 | | Midwest | 790 | $553,989 | 753 | $585,971 | | **Total** | **2,232** | **$481,027** | **2,031** | **$514,833** | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures like adjusted homebuilding gross margin and net homebuilding debt to net capitalization with their GAAP equivalents [Adjusted Homebuilding Gross Margin](index=9&type=section&id=Adjusted%20Homebuilding%20Gross%20Margin) This section provides a reconciliation of adjusted homebuilding gross margin, a non-GAAP measure, to the GAAP homebuilding gross margin. Adjusted gross margin excludes capitalized interest, lot option fees, amortization from purchase accounting, and commission expense to offer a comparable view to other public homebuilders - Adjusted homebuilding gross margin is a non-GAAP measure used by management to evaluate operating performance, excluding capitalized interest, lot option fees, amortization, and commission expense[30](index=30&type=chunk)[32](index=32&type=chunk) Adjusted Homebuilding Gross Margin Reconciliation (Q2 2025 vs Q2 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | | :-------------------------------- | :---------- | :---------- | | Homebuilding gross margin | $181,709 | $199,399 | | Interest expense in homebuilding cost of sales | $56,197 | $41,662 | | Amortization in homebuilding cost of sales | $396 | $2,518 | | Commission expense | $46,860 | $40,992 | | **Adjusted homebuilding gross margin** | **$285,162** | **$284,571** | | Homebuilding gross margin % | 16.5% | 19.0% | | Adjusted homebuilding gross margin % | 25.9% | 27.0% | [Net Homebuilding Debt to Net Capitalization](index=11&type=section&id=Net%20Homebuilding%20Debt%20to%20Net%20Capitalization) This section reconciles net homebuilding debt to net capitalization, a non-GAAP measure, to total debt to total capitalization. This ratio is used by management to assess homebuilding segment performance, set compensation targets, and measure overall leverage, by excluding mortgage warehouse facilities and cash from debt - Net homebuilding debt to net capitalization is a non-GAAP measure used to assess homebuilding segment performance, set compensation targets, and measure overall leverage[35](index=35&type=chunk) - It excludes borrowings under mortgage warehouse facilities and other non-homebuilding borrowings, as well as cash and cash equivalents[35](index=35&type=chunk) Net Homebuilding Debt to Net Capitalization Reconciliation (as of June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :---------- | :---------- | | Total debt | $1,580,352 | $1,185,440 | | Total mezzanine equity | $178,039 | $169,951 | | Total equity | $1,335,686 | $1,051,581 | | **Total capitalization** | **$3,094,077** | **$2,406,972** | | **Total debt to total capitalization** | **51.1%** | **49.3%** | | Net homebuilding debt | $1,211,991 | $910,643 | | Net capitalization | $2,725,716 | $2,132,175 | | **Net homebuilding debt to net capitalization** | **44.5%** | **42.7%** | [Contacts](index=11&type=section&id=Contacts) This section provides contact information for investor relations

分组1 - Dream Finders Homes Inc. reported quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.65 per share, and down from $0.81 per share a year ago, representing an earnings surprise of -13.85% [1] - The company posted revenues of $1.15 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 13.18%, compared to year-ago revenues of $1.06 billion [2] - Dream Finders Homes shares have increased approximately 13.4% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.94 on revenues of $1.25 billion, and for the current fiscal year, it is $3.45 on revenues of $4.76 billion [7] - The Zacks Industry Rank for Building Products - Home Builders is currently in the bottom 14% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Core Insights - Dream Finders Homes Inc. (DFH) shares increased by 13% to $28.7 in the last trading session, with a trading volume higher than average, compared to a 5.7% gain over the past four weeks [1][2] Company Performance - The stock's rise was influenced by better-than-expected earnings and revenue results from industry peers D.R. Horton and PulteGroup, which boosted sentiment across the homebuilding sector [2] - Dream Finders Homes is expected to report quarterly earnings of $0.65 per share, reflecting a year-over-year decline of 19.8%, with revenues projected at $1.02 billion, down 3.7% from the previous year [3] - The consensus EPS estimate for Dream Finders Homes has remained unchanged over the last 30 days, indicating that the stock's price movement may not sustain without trends in earnings estimate revisions [4] Industry Context - Dream Finders Homes is part of the Zacks Building Products - Home Builders industry, where Toll Brothers (TOL) also operates, closing the last trading session up 8.5% at $126.59, with a 3.7% return over the past month [4] - Toll Brothers' consensus EPS estimate has also remained unchanged at $3.59, showing a slight year-over-year decline of 0.3% [5]

Group 1: Stock Performance - Dream Finders Homes Inc. (DFH) closed at $26.94, with a +1.09% change from the previous day, outperforming the S&P 500's gain of 0.32% [1] - Over the last month, DFH shares increased by 20.75%, significantly surpassing the Construction sector's gain of 4.6% and the S&P 500's gain of 4.51% [1] Group 2: Earnings Expectations - Analysts expect DFH to report earnings of $0.66 per share in the upcoming earnings report, reflecting a year-over-year decline of 18.52% [2] - The consensus estimate for quarterly revenue is projected at $1.02 billion, down 3.72% from the same period last year [2] Group 3: Fiscal Year Projections - For the entire fiscal year, earnings are projected at $3.23 per share, representing a decline of 3.29%, while revenue is expected to be $4.76 billion, indicating a growth of 7.03% from the prior year [3] Group 4: Analyst Estimates and Stock Prices - Recent changes to analyst estimates for DFH are correlated with near-term stock prices, with positive revisions indicating optimism about the business outlook [4][3] - The Zacks Rank system, which considers estimate changes, currently rates DFH at 3 (Hold) [5] Group 5: Valuation Metrics - DFH has a Forward P/E ratio of 8.26, which is lower than the industry average Forward P/E of 9.41 [6] - The company has a PEG ratio of 3.27, compared to the average PEG ratio of 2.23 in the Building Products - Home Builders industry [7] Group 6: Industry Context - The Building Products - Home Builders industry is part of the Construction sector and holds a Zacks Industry Rank of 177, placing it in the bottom 29% of over 250 industries [8] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Dream Finders Homes Inc. is experiencing a mixed performance in the market, with a recent decline in stock price despite a significant gain over the past month, and upcoming earnings expectations indicating a drop in EPS and revenue compared to the previous year [1][2]. Group 1: Stock Performance - Dream Finders Homes Inc. closed at $26.12, reflecting a -2.68% change from the previous day, underperforming against the S&P 500's gain of 0.83% [1]. - Over the past month, the stock has gained 21.67%, outperforming the Construction sector's gain of 7.94% and the S&P 500's gain of 4.99% [1]. Group 2: Earnings and Revenue Estimates - The upcoming EPS for Dream Finders Homes Inc. is projected at $0.66, representing an 18.52% decline compared to the same quarter last year [2]. - The revenue forecast is $1.02 billion, indicating a 3.72% decrease compared to the corresponding quarter of the prior year [2]. - For the entire year, earnings are expected to be $3.23 per share, with revenue projected at $4.76 billion, reflecting changes of -3.29% and +7.03% respectively compared to the previous year [3]. Group 3: Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Dream Finders Homes Inc. are important as they reflect short-term business trends, with positive revisions seen as a favorable sign for the business outlook [4]. - The Zacks Rank system, which assesses estimated changes, currently ranks Dream Finders Homes Inc. at 3 (Hold) [6]. Group 4: Valuation Metrics - Dream Finders Homes Inc. has a Forward P/E ratio of 8.32, which is lower than the industry average of 10.68, suggesting the company is trading at a discount [7]. - The company has a PEG ratio of 3.29, compared to the industry average PEG ratio of 2.27, indicating a higher valuation relative to projected earnings growth [8]. Group 5: Industry Context - The Building Products - Home Builders industry, to which Dream Finders Homes Inc. belongs, has a Zacks Industry Rank of 210, placing it in the bottom 15% of over 250 industries [8][9].

Company Performance - Dream Finders Homes Inc. (DFH) closed at $24.49, with a +1.16% increase from the previous day, outperforming the S&P 500's daily gain of 0.8% [1] - The stock has risen by 18.68% over the past month, significantly exceeding the Construction sector's gain of 2.22% and the S&P 500's gain of 5.12% [1] Upcoming Earnings - The company is expected to report an EPS of $0.66, reflecting an 18.52% decline compared to the same quarter last year [2] - Revenue is anticipated to be $1.02 billion, down 3.72% from the prior-year quarter [2] Full Year Projections - For the full year, earnings are projected at $3.23 per share and revenue at $4.76 billion, indicating changes of -3.29% and +7.03% respectively from the previous year [3] - Recent analyst estimate revisions are crucial as they reflect near-term business trends and can indicate analysts' confidence in the company's performance [3][4] Valuation Metrics - DFH is currently trading at a Forward P/E ratio of 7.51, which is below the industry average Forward P/E of 9.63 [6] - The PEG ratio for DFH stands at 2.97, compared to the average PEG ratio of 2.07 for the Building Products - Home Builders industry [6] Industry Context - The Building Products - Home Builders industry is part of the Construction sector and holds a Zacks Industry Rank of 230, placing it in the bottom 7% of over 250 industries [7] - The Zacks Industry Rank assesses the performance of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Overview - Dreams Finders Homes (NYSE: DFH) is a U.S. homebuilding company operating in nine states: Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia, Maryland, and Tennessee [1] Growth Performance - The company is experiencing growth that outpaces the industry and its competitors [1]

Core Viewpoint - The U.S. homebuilding industry is facing significant challenges due to high mortgage rates, rising construction costs, and a shortage of available lots, which is straining the outlook for the sector [1][4][5]. Industry Overview - The Zacks Building Products - Home Builders industry includes manufacturers of residential and commercial buildings, as well as companies providing financial services related to mortgages and title insurance [3]. - The industry is involved in constructing various types of housing, including single-family homes, townhouses, and multi-family rental properties [3]. Current Challenges - High mortgage rates, currently between 6% and 7%, along with soaring construction costs and a severe shortage of buildable lots, are significantly impacting the housing market [5]. - Economic uncertainties, including potential tariff hikes and a shortage of skilled labor, are exacerbating the challenges faced by homebuilders [5][6]. Growth Potential - Despite current hurdles, the industry is expected to grow due to anticipated Federal Reserve rate cuts, limited home supply, and strong demand for homeownership [2][8]. - Builders are adopting strategies such as mortgage buydown programs and a mix of speculative and build-to-order projects to meet diverse buyer needs [2][10]. Cost Management and Strategic Focus - Companies are focusing on cost control and efficiency in homebuilding to manage rising material prices and labor costs [11]. - There is a growing emphasis on entry-level homes and strategic acquisitions to enhance market share and profitability [11]. Technological Advancements - The adoption of technology, including generative AI and 3D printing, is seen as a key opportunity for improving efficiency and reducing costs in the homebuilding sector [12]. Market Performance - The Zacks Building Products - Home Builders industry has underperformed the S&P 500 Index, declining 19.1% over the past year compared to a 9.2% increase in the S&P 500 [17]. - The industry's current forward price-to-earnings ratio is 9.71, significantly lower than the S&P 500's 21.89, indicating potential undervaluation [20]. Company Highlights - **Dream Finders Homes (DFH)**: Focuses on affordable and customizable homes, utilizing a land-light approach to minimize financial risk. The company has seen an upward revision in 2025 earnings estimates to $3.23 per share [23][24]. - **Toll Brothers (TOL)**: A luxury homebuilder maintaining stable pricing and inventory management. The company has also experienced an upward revision in fiscal 2025 earnings estimates to $13.95 per share [27][28].

Core Viewpoint - Dream Finders Homes Inc. (DFH) has shown a 1.6% increase in stock price over the past four weeks, closing at $23.55, with a potential upside of 25.3% based on Wall Street analysts' mean price target of $29.50 [1] Price Targets and Analyst Estimates - The mean price target consists of three short-term estimates with a standard deviation of $4.44, indicating variability among analysts; the lowest estimate suggests a 10.4% increase to $26, while the highest predicts a 46.5% surge to $34.50 [2] - A low standard deviation among price targets indicates strong agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about DFH's earnings prospects, as evidenced by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [11] - The Zacks Consensus Estimate for the current year has risen by 0.9% over the past month, with one estimate increasing and no negative revisions [12] - DFH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside [13]

Group 1 - Dream Finders Homes Inc. (DFH) has outperformed the Construction sector with a year-to-date gain of approximately 5.4%, while the sector has returned an average of -2.1% [4] - DFH currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with the consensus estimate for full-year earnings moving 2.9% higher in the past quarter [3][4] - The company is part of the Building Products - Home Builders industry, which has seen an average loss of 12% this year, further highlighting DFH's relative strength [6] Group 2 - Granite Construction (GVA) is another stock in the Construction sector that has outperformed, with a year-to-date increase of 2.5% and a Zacks Rank of 2 (Buy) [5] - The Building Products - Heavy Construction industry, to which Granite Construction belongs, is currently ranked 3 and has gained 3.7% this year [6] - Investors are encouraged to monitor both Dream Finders Homes Inc. and Granite Construction for potential continued strong performance in the Construction sector [7]