Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2025 OR o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________to_________. Commission file number 001-39916 ___________________________________________ DREAM FINDERS HOMES, INC. (Exact name of regis ...

Homebuilding Performance - Homebuilding revenues for Q4 2025 were $1.2 billion, a decrease of 24% compared to Q4 2024[10] - Home closings in Q4 2025 totaled 2,536, down from 3,008 in Q4 2024[5] - Full year 2025 net sales were 7,747, up 15% from 6,727 in 2024[5] - Homebuilding revenues for the year ended December 31, 2025, were $4,145,347, reflecting a 6.1% increase from $4,397,877 in 2024[26] - The average sales price of homes closed in Q4 2025 was $460,442, down 9.2% from $507,477 in Q4 2024[28] - The number of home closings in Q4 2025 was 2,536, a decrease from 3,008 in Q4 2024[28] Financial Performance - The company reported a net income of $59 million, or $0.60 per basic share, down from $129 million, or $1.35 per basic share in Q4 2024[14] - Total revenues for the three months ended December 31, 2025, were $1,212,668, a decrease of 22.2% compared to $1,559,880 for the same period in 2024[26] - Earnings per share for Q4 2025 were $0.60, a decrease from $1.35 in Q4 2024[26] Backlog and Pipeline - The backlog as of December 31, 2025, included 1,839 homes valued at $0.8 billion, compared to 2,619 homes valued at $1.2 billion as of September 30, 2025[16] - The backlog as of December 31, 2025, was 1,839 units, with a total backlog value of $821,292, down from 2,599 units and $1,304,463 in 2024[28] - The controlled lot pipeline grew to 63,121 as of December 31, 2025, compared to 54,698 a year earlier[5] - The company expects approximately 9,250 home closings for the full year 2026[20] Gross Margin and Debt - Homebuilding gross margin for Q4 2025 was $192,976, representing a gross margin percentage of 16.7%, down from 17.7% in Q4 2024[28] - Adjusted homebuilding gross margin for Q4 2025 was $298,361, with an adjusted gross margin percentage of 25.7%, compared to 26.9% in Q4 2024[33] - Net homebuilding debt to net capitalization increased to 41.8% in 2025 from 33.7% in 2024[37] Cancellation and Financial Services - The cancellation rate for Q4 2025 was 15.9%, a decrease from 18.8% in Q4 2024[28] - Financial services revenues increased by 109% to $28 million in Q4 2025, primarily due to the acquisition of Alliant Title[18] - The company repurchased 1,832,865 Class A common shares for $41.8 million during the year ended December 31, 2025[5]

Core Viewpoint - The law firm Kahn Swick & Foti, LLC has initiated an investigation into Dream Finders Homes, Inc. regarding potential breaches of fiduciary duties by its officers and directors [1] Group 1 - The investigation focuses on whether Dream Finders' controlling stockholder and management violated state or federal laws [1] - Shareholders of Dream Finders Homes, Inc. are encouraged to contact KSF to discuss their legal rights without any obligation or cost [1]

Company Overview - Dream Finders Homes is a large-scale homebuilder that also provides insurance agency services and mortgage banking solutions across the U.S., focusing on single-family homes for first- and second-time home buyers [5] - The company reported a total revenue of $4.67 billion and a net income of $274.23 million for the trailing twelve months (TTM) [4] Recent Transactions - On January 21 and 22, 2026, 10% Owner William Radford Lovett II sold 71,742 shares of Dream Finders Homes, valued at approximately $1.4 million [1][2] - Post-transaction, Lovett holds 22,349 shares directly, valued at $432,453 based on the market close on January 22, 2026 [2] Financial Performance - Dream Finders Homes is projected to have one of its worst years in terms of profitability for fiscal year 2025, with a decline in earnings per share (EPS) for three consecutive quarters, marking the first such occurrence since FY 2021 [6] - The company's net income fell to $47 million in Q3 2025, the lowest since Q1 2022 [6] - The stock price has decreased approximately 27% in 2025, reflecting ongoing struggles in the homebuilding market [7] Market Challenges - The homebuilding industry is facing significant challenges, including limited inventory, constrained demand, worker shortages, and rising material costs [7] Management Concerns - CEO and Founder Patrick Zalupski's recent acquisition of the Tampa Bay Rays, where he is now a majority owner, raises concerns about his focus on Dream Finders Homes, although he has stated he remains committed to the company [9] - The recent sale of shares by Lovett exceeds his historical median sell transaction of 50,076 shares since December 2024, indicating a notable shift in trading activity [8]

Core Insights - The Tampa Bay Rays are exploring options for a new stadium to replace the aging Tropicana Field, which has been a challenge due to its location and low attendance [1][3][9] - Recent developments include a nonbinding agreement with Hillsborough College to build a multiuse facility on a 113-acre site, with plans for a roof to mitigate weather issues [4][5][10] - The new ownership group, led by Patrick Zalupski, aims to create a vibrant community space similar to Truist Park, but details on financial contributions and city support remain unclear [11][15] Group 1: Stadium Development - The Rays have been in discussions for a new stadium for years, with previous proposals failing due to various reasons, including Hurricane Milton's impact [3][6] - The team is currently negotiating with Tampa officials, with a six-month window for discussions as part of the agreement with Hillsborough College [5][11] - The proposed stadium's design and financial structure are still under wraps, with no public information on the ownership's financial commitments [10][11] Group 2: Attendance and Performance - The Rays have struggled with attendance, ranking 29th in MLB in 2025, with only 786,750 fans compared to 1,337,739 in 2024 [9] - The team played the entire 2025 season at Steinbrenner Field due to damage from Hurricane Milton, which affected their home games and attendance figures [6][9] Group 3: Ownership Changes - The Rays were sold to a new ownership group led by Patrick Zalupski, with an estimated net worth of $1.4 billion, and Ken Babby appointed as the new CEO [15][16] - The new ownership aims to revitalize the team's presence and community engagement in Tampa Bay [12][15]

Core Viewpoint - Dream Finders Homes Inc. is facing a significant projected earnings decline, with a 51.94% drop in EPS expected for the upcoming quarter compared to the previous year [2]. Company Performance - The company's stock closed at $19.23, reflecting a -1.79% change from the previous day, which is less severe than the S&P 500's loss of 2.06% [1]. - Over the past month, shares of Dream Finders Homes Inc. have increased by 10%, outperforming the Construction sector's gain of 7.13% and the S&P 500's increase of 1.63% [1]. Earnings Estimates - The Zacks Consensus Estimates forecast an annual EPS of $2.19, indicating a -34.43% change from the previous year, with revenue expected to remain unchanged at $0 million [2]. - Recent revisions to analyst estimates have shown a 11.35% decrease in the EPS estimate over the last 30 days, leading to a Zacks Rank of 5 (Strong Sell) for the company [5]. Valuation Metrics - Dream Finders Homes Inc. is currently trading at a Forward P/E ratio of 9.65, which is below the industry average Forward P/E of 12.2 [6]. - The company has a PEG ratio of 6.26, significantly higher than the average PEG ratio of 1.79 for the Building Products - Home Builders industry [7]. Industry Context - The Building Products - Home Builders industry is ranked 242 in the Zacks Industry Rank, placing it in the bottom 2% of over 250 industries [8].

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Company Overview - Dream Finders Homes Inc. (DFH) closed at $17.10, reflecting a -1.38% change from the previous day, underperforming the S&P 500's daily loss of 0.74% [1] - Over the past month, DFH shares have decreased by 10.34%, while the Construction sector lost 2.42% and the S&P 500 gained 0.79% [1] Financial Performance - The upcoming EPS for Dream Finders Homes Inc. is projected at $0.62, indicating a significant drop of 51.94% compared to the same quarter last year [2] - For the entire fiscal year, earnings are estimated at $2.19 per share, representing a decline of 34.43%, with revenue projected to remain unchanged at $0 million [2] Analyst Estimates - Changes in analyst estimates for Dream Finders Homes Inc. are crucial as they reflect short-term business dynamics, with positive revisions indicating confidence in performance and profit potential [3] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Dream Finders Homes Inc. at 3 (Hold) [5] - DFH has a Forward P/E ratio of 7.92, which is lower than the industry average Forward P/E of 11.37, and a PEG ratio of 5.14 compared to the industry average PEG ratio of 1.73 [6] Industry Context - The Building Products - Home Builders industry, part of the Construction sector, has a Zacks Industry Rank of 227, placing it in the bottom 9% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

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]

Core Thesis - Dream Finders Homes, Inc. (DFH) is facing significant structural challenges despite its previous growth and market rewards, with a bearish outlook emerging due to declining market conditions and operational risks [2]. Company Overview - DFH's share price was $18.67 as of December 17th, with trailing and forward P/E ratios of 6.74 and 6.45 respectively [1]. - The company has adopted a "land-light" strategy post-COVID, which initially drove growth but is now leading to issues such as overpriced land and oversupplied inventory [2]. Market Conditions - The housing market has slowed down, particularly in key markets like Texas and Florida, resulting in declining home prices and underperformance compared to the national average by 15.5% since 2022 [2]. - Average closing prices for DFH have decreased for three consecutive quarters, indicating a troubling trend in sales [2]. Operational Challenges - Poor site selection and construction quality have damaged DFH's brand reputation, leading to a preference among buyers for ready-to-move-in homes [2]. - The reliance on costly option contracts with related-party DF Capital Management has created conflicts of interest and margin compression [2]. Financial Performance - Free cash flow has been deeply negative, contrasting with reported positive earnings, highlighting a disconnect between profitability and cash generation [2]. - Insider selling, extravagant expenditures, and ongoing legal disputes further exacerbate financial concerns [2]. Valuation and Risks - Returns on equity are normalizing towards peer levels, and structural market headwinds suggest a potential sharp compression in DFH's valuation multiple [2]. - If the stock re-rates to peer price-to-tangible-book-value levels, a downside of 47-58% could be anticipated [2]. Hedge Fund Interest - DFH is not among the 30 most popular stocks among hedge funds, with 16 hedge fund portfolios holding DFH at the end of Q3, a slight increase from 15 in the previous quarter [2].