Dream Finders Homes(US:DFH)2025-10-30 13:21Homebuilding 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]