Core Points - Enlightify Inc. has been notified by the NYSE that its 30-trading-day average closing price per share is below $1.00, which is the minimum required for continued listing [1] - The company must notify the NYSE of its intent to cure the share price deficiency by September 11, 2025, and has six months to regain compliance [2] - The company's stock remains listed on the NYSE, and the notification does not impact its business operations or SEC reporting obligations [3] Company Overview - Enlightify Inc. produces and distributes humic acid-based compound fertilizers and other agricultural products through its subsidiaries, including Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. and Beijing Gufeng Chemical Products Co., Ltd. [4] - In 2023, the company began purchasing digital asset mining machines and established Antaeus Tech Inc. to mine bitcoins in Texas [4]

Financial Performance - Home closing revenue decreased by 5% to $1616 million in 2Q25 compared to $1694 million in 2Q24[29] - Home closing gross profit decreased by 22% to $341 million in 2Q25 compared to $440 million in 2Q24[29] - Home closing gross margin decreased by 480 bps to 211% in 2Q25 compared to 259% in 2Q24[29] - Diluted EPS decreased by 35% to $204 in 2Q25 compared to $315 in 2Q24[29] Sales and Community - Net sales orders increased by 3% year-over-year[15] - The company achieved a 2Q25 average absorption pace of 43[20] - Ending community count at June 30 2025 was 312 the highest in company history[20] Land and Inventory - Total lots controlled were 81912[36] - The company reduced land spend to $509 million[42] - 2Q25 specs per community translates to 5 months supply in line with the company's 4-6 months target[27] Capital Allocation - The company returned $76 million of cash to shareholders in 2Q25[35] - Land spend accounted for 87% of the $585 million total capital allocation spend[34]

Q2 2025 Financial Performance - Net revenues for Q2 2025 were $2.77 billion, a 14.4% decrease year-over-year [11, 24] - Gross margin for Q2 2025 was 33.5% [11, 29] - Non-U S GAAP operating margin decreased to 2 1% from 11 6% year-over-year [11] - Non-U S GAAP net income decreased to $57 million from $353 million year-over-year [11] H1 2025 Financial Performance - Net revenues decreased 21 1% year-over-year [11] - Non-U S GAAP net income was $120 million [11] Q3 2025 Outlook - The company expects net revenues of $3 17 billion, a 2 5% decrease year-over-year and a 14 6% increase quarter-over-quarter [11, 72] - Gross margin is expected to be about 33 5%, including approximately 340 bps of unused capacity charges [11, 73] - Net operating expenses are expected to be about $860 million [38] Segment Performance - Q2 2025 revenues for Analog products, MEMS and Sensors (AM&S) were $1 133 billion with an operating margin of 7 5% [41] - Q2 2025 revenues for Embedded Processing (EMP) were $847 million with an operating margin of 13 5% [41] - Q2 2025 revenues for Power and discrete products (P&D) were $447 million with an operating margin of -12 5% [42] - Q2 2025 revenues for RF & Optical Communications (RF&OC) were $336 million with an operating margin of 17 9% [42]

Financial Data and Key Metrics Changes - The company reported net new orders of 7,083 homes in Q2, down 7% year-over-year, reflecting a 13% decrease in overall absorption pace, partially offset by a 6% increase in average community count to 994 [13][14] - Home sale revenues for Q2 were $4.3 billion, down 4% from $4.4 billion in the prior year, driven by a 6% decrease in deliveries to 7,639 homes, although average sales price increased by 2% to $559,000 [15][16] - Gross margin for Q2 was reported at 27%, at the top end of guidance, influenced by a favorable mix of homes closed and higher incentives, which were 8.7% of gross sales price, up from 6.3% last year [19][20] Business Line Data and Key Metrics Changes - Closings in Q2 were 38% first-time buyers, 42% move-up buyers, and 20% active adult buyers, compared to 40%, 37%, and 23% respectively in the prior year [16] - The active adult business saw a 9% increase in orders, benefiting from new community openings, while first-time and move-up buyers were down 14% and 9% respectively [14][15] Market Data and Key Metrics Changes - Florida operations showed strength with net new orders increasing by 2% year-over-year, despite challenges in other regions like Texas and the West [6][28] - The company experienced varying demand conditions across markets, with positive demand in the Midwest and Southeast, while facing challenges in Dallas, Boston, and California [29][30] Company Strategy and Development Direction - The company is focusing on a diversified operating model to sustain performance amid challenging market conditions, particularly emphasizing its position in the active adult segment [5][6] - The strategy includes slowing land spend and reducing starts to align inventory with current sales rates, while maintaining a disciplined approach to pricing and incentives [11][19] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence remains uncertain, with buyers expressing concerns about affordability and economic conditions, impacting demand [9][10] - The company anticipates closing between 29,000 homes for the full year, refining its guidance based on backlog and absorption pace [18][19] Other Important Information - The company invested $1.3 billion in land acquisition and development in Q2, maintaining a strong land pipeline with approximately 250,000 lots under control [24][25] - The company continues to expect cash flow generation for 2025 to be approximately $1.4 billion, with a strong balance sheet reflected in a cash position of $1.3 billion and a debt-to-capital ratio of 11.4% [26][27] Q&A Session Summary Question: Did the improvement in demand seen in June carry into July? - Management observed positive consumer response in late June when rates dropped, but July showed mixed demand with both strong and weak days [36] Question: How did stick and brick costs trend in the quarter? - Stick and brick costs remained stable at $79 per square foot, consistent with the previous year [38] Question: Can you elaborate on the land options strategy? - The company prefers working with underlying land sellers for better price execution and risk mitigation, while also utilizing land bankers to increase optionality [42][44] Question: How does the company view the impact of potential Canadian tariffs on lumber? - Currently, 20% to 25% of lumber is sourced from Canada, and while tariffs could increase costs, the overall impact is not expected to be catastrophic [51][52] Question: What is the outlook for gross margins in the back half of the year? - Management reiterated guidance for gross margins in Q3 and Q4, citing a balance of higher incentives and lower tariff impacts [60][62] Question: How does the company plan to grow market share as demand strengthens? - The company is focused on leveraging its strong land pipeline and high-quality homes to capture market share, with a goal of long-term growth of 5% to 10% [71][72]

This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expec ...