Financial Data and Key Metrics Changes - The company reported a significant increase in revenue, nearly tripling compared to the previous quarter, largely due to increased operations at the first battery recycling plant [6][7] - For the fiscal year, revenue increased to approximately $4.3 million from about $0.3 million the previous year, indicating a substantial growth [7][21] - Cash balance increased to over $25 million as of September 15, 2025, attributed to increased trading volume and institutional ownership following the addition to the Russell 2000 and 3000 indices [8][20] Business Line Data and Key Metrics Changes - The battery recycling operations saw a 70% increase in throughput in a single quarter, reflecting operational improvements and increased headcount [9] - The primary claystone to lithium hydroxide business is progressing with the construction of a commercial scale facility, with ongoing efforts to secure long-term off-take agreements [18][21] Market Data and Key Metrics Changes - The company has experienced a significant increase in trading volume and institutional ownership since being added to the Russell indices, indicating a shift in investor interest [8][20] - The company is also engaging more with stationary grid battery systems, expanding its market reach beyond automotive batteries [12][13] Company Strategy and Development Direction - The company aims to create a closed-loop battery metal supply chain in North America, focusing on both recycling and primary mineral extraction [4][6] - Plans for a second battery recycling plant are underway, supported by a $144 million grant from the U.S. Department of Energy, indicating a commitment to scaling operations [11][12] - The company is also advancing its lithium hydroxide technologies and has been selected as a transparency priority project to streamline federal permitting processes [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of the battery industry and the need for both recycling and new mineral extraction to meet demand [5][6] - The company anticipates continued improvements in margins as operations scale and efficiencies are realized [7][21] Other Important Information - The company successfully closed out a project with the U.S. Advanced Battery Consortium, demonstrating the effectiveness of its recycling processes [10] - The company has received competitive tax credits and continues to secure government grants to support its operations [22] Q&A Session Summary Question: What are the expectations for revenue growth moving forward? - Management indicated that revenue growth is expected to continue as operations ramp up and new projects are initiated [21] Question: How is the company addressing the challenges in the battery recycling market? - The company is focusing on operational improvements and scaling its recycling plant to enhance throughput and efficiency [9][21] Question: What is the status of the second battery recycling plant? - The second plant is in the early stages of construction, with lessons learned from the first plant being applied to its development [12][21]

Financial Data and Key Metrics Changes - The company reported a significant increase in revenue, nearly tripling compared to the previous quarter, largely due to increased operations at the first battery recycling plant [6][7] - For the fiscal year, revenue increased to approximately $4.3 million from about $0.3 million the previous year, with a larger relative increase in revenue than in cash cost of goods sold, leading to improved margins [7][21] - Cash balance increased to over $25 million as of September 15, 2025, attributed to increased trading volume and institutional ownership following the company's addition to the Russell 2000 and 3000 indices [9][20] Business Line Data and Key Metrics Changes - The battery recycling business saw a 70% increase in throughput in a single quarter, reflecting operational improvements and increased headcount [10] - The company is also developing a second battery recycling plant, supported by a $144 million grant from the U.S. Department of Energy, indicating growth in both recycling and primary lithium hydroxide production [12][18] Market Data and Key Metrics Changes - The company has experienced a substantial increase in trading volume and institutional ownership since being added to the Russell indices, indicating a shift in investor interest [8][20] - The company is expanding its market reach by working with both automotive and stationary grid battery systems, diversifying its customer base [14] Company Strategy and Development Direction - The company aims to create a closed-loop battery metal supply chain in North America, focusing on both recycling and primary mineral extraction [5][6] - The strategic focus includes scaling operations at the existing recycling plant and developing a commercial-scale lithium hydroxide facility, with ongoing efforts to streamline federal permitting processes [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of the battery industry and the company's ability to meet increasing demand through improved operations and strategic partnerships [6][12] - The company highlighted the importance of domestic lithium manufacturing and recycling in supporting critical infrastructure, including data centers and supercomputers [15][16] Other Important Information - The company has successfully closed out several projects funded by government grants, demonstrating compliance with grant requirements and operational capabilities [11][17] - The company has received a letter of interest from the U.S. Export-Import Bank for a $900 million low-interest loan to support its lithium project, indicating strong governmental support [20] Q&A Session Summary Question: What are the expectations for revenue growth moving forward? - Management indicated that revenue growth is expected to continue as operations scale and new projects ramp up, with a focus on improving margins [21] Question: How is the company addressing the challenges in the battery recycling market? - The company is enhancing operational efficiencies and expanding its recycling capabilities to meet the growing demand for battery materials [6][10] Question: What is the status of the second battery recycling plant? - The second plant is under construction, supported by a significant grant, and is expected to leverage lessons learned from the first plant to optimize operations [12][18]

Financial Data and Key Metrics Changes - Revenue increased by 70% from $8.4 million in H1 2024 to $14.3 million in H1 2025, primarily due to the monetization of the ride-hailing service [18] - Adjusted EBITDA improved by $5.4 million from negative $11.3 million in H1 2024 to negative $6 million in H1 2025 [20] - Cost of revenues decreased by 25% from $9.9 million in H1 2024 to $7.4 million in H1 2025 [18][19] Business Line Data and Key Metrics Changes - Unique ride-hailing riders grew from 1.1 million to 2.3 million year-over-year in H1 2025, a 107% increase [11] - Registered ride-hailing drivers increased from 171,000 to 327,000, a 92% year-over-year growth [11] - Total rides increased from 13.7 million in H1 2024 to 19.2 million in H1 2025 [17] Market Data and Key Metrics Changes - The company expanded its operations into six new metropolitan areas, increasing its reach to 10 cities, covering approximately half of Türkiye's population [7][8] - The share of riders based outside Istanbul grew from 13% to 24% over the last year, indicating strong demand in new markets [36] Company Strategy and Development Direction - The company is focusing on ride-hailing as its primary strategic direction, with plans to capture a $3 billion annual revenue opportunity in the ride-hailing market [12] - Investments are being made in building organizational capabilities, including AI engineering and performance marketing, to enhance operational efficiency and market position [9][10] - The company aims to reach 3.3 million riders and 450,000 registered drivers by the end of 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management believes 2025 will be pivotal for scale and financial performance, with expectations to nearly double revenue from $18.7 million in 2024 to $34 million in 2025 [5][20] - The company is optimistic about the demand for ride-hailing services in Türkiye, especially in cities that have not previously experienced tech-based mobility solutions [34][35] Other Important Information - The company is the largest electric vehicle operator in Türkiye and the number one urban mobility app on both iOS and Android platforms [6] - The average App Store rating is 4.9 out of 5, reflecting positive user sentiment and engagement [10] Q&A Session Summary Question: What is the target level for two-wheeled electric vehicles deployed? - Management indicated that two-wheeled electric vehicles are integral to the service offering and will be reevaluated in summer 2026 based on customer needs and traffic to ride-hailing [22][23][24] Question: How is driver supply and AI engineering impacting the business? - There are no constraints in onboarding additional drivers, with driver supply increasing year-over-year. AI engineering is critical for optimizing pricing and enhancing rider and driver experiences [26][29] Question: What are the current take rates compared to global benchmarks? - Current take rates are in the high single digits, with significant upside potential for future increases [33] Question: How does the company balance growth and profitability? - The company is focused on growth while maintaining low take rates to capture market share, with plans to reassess the balance between fundraising and take rates in the future [42][64] Question: What is the strategy regarding the regulatory environment in Türkiye? - The company believes it is uniquely positioned to introduce and regulate new transportation services in Türkiye [48] Question: How does the company view its crypto treasury strategy? - The crypto strategy is designed to diversify non-operating cash, primarily held in USD, with a small fraction in Bitcoin as a store of value [50][51]

Financial Data and Key Metrics Changes - Revenue increased by 70% from $8.4 million in the first half of 2024 to $14.3 million in the first half of 2025, primarily due to the monetization of the ride-hailing service [18] - Adjusted EBITDA improved by $5.4 million from negative $11.3 million in the first half of 2024 to negative $6 million in the first half of 2025 [20] - Cost of revenues decreased by 25% from $9.9 million in the first half of 2024 to $7.4 million in the first half of 2025 [18][19] Business Line Data and Key Metrics Changes - Unique ride-hailing riders increased from 1.1 million to 2.3 million year-over-year in the first half of 2025, a growth of 107% [11] - Registered ride-hailing drivers grew by 92% year-over-year, from 171,000 to 327,000 [11] - Total rides increased from 13.7 million in the first half of 2024 to 19.2 million in the first half of 2025 [17] Market Data and Key Metrics Changes - The company expanded its operations into six additional metropolitan areas, bringing its total to ten cities, which represent approximately half of Türkiye's population and nearly two-thirds of its GDP [7][8] - The share of riders based outside of Istanbul grew from 13% to 24% over the last year, indicating strong demand in new markets [36] Company Strategy and Development Direction - The company is focusing on ride-hailing as its primary strategic direction, with plans to capture an estimated $3 billion annual revenue opportunity in the ride-hailing business [12] - Investments are being made in building organizational capabilities to support rapid growth in ride-hailing, including the introduction of new departments such as AI engineering and performance marketing [9][10] - The company aims to reach 3.3 million riders and 450,000 registered drivers by the end of 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management believes that 2025 will be a pivotal year for scale and financial performance, with strong revenue growth and significant improvement in adjusted EBITDA [4] - The company is optimistic about the demand for ride-hailing services in Türkiye, especially in secondary cities that have not previously experienced tech-based mobility solutions [34][35] - The management is confident in the operational advantages of local companies in the mobility market, which enhances their competitive position [7] Other Important Information - The company has served over 128.6 million rides to 6.4 million unique riders since its launch [6] - The average App Store rating is 4.9 out of 5, reflecting positive user sentiment [10] - The company has raised an additional convertible note financing of $23 million in April, which fully funds the growth of the business for the next 12 months [64] Q&A Session Summary Question: What is the target level for two-wheeled electric vehicles deployed? - Management believes two-wheeled electric vehicle operations are integral to their service offering and will reevaluate the fleet size in summer 2026 [23][24] Question: How is driver supply and AI engineering impacting the business? - There are no constraints in onboarding additional drivers, and the AI engineering team is critical for optimizing pricing and enhancing rider and driver experiences [26][29] Question: What are the current take rates compared to global benchmarks? - Current take rates are in the high single digits, with significant upside potential for future increases [33] Question: How does the company balance growth and profitability? - The company is focused on growth while maintaining low take rates to capture market share, with plans to optimize profitability as the market matures [42] Question: What is the regulatory environment for ride-hailing in Türkiye? - The company believes it is well-positioned to introduce and regulate new transportation services in Türkiye [48] Question: What is the strategy regarding crypto treasury? - The company is diversifying its non-operating cash into USD and Bitcoin as a store of value, while the majority remains in USD [51] Question: What are the unit economics for rider and driver incentives? - Rider and driver incentives are limited, with low acquisition costs due to the existing brand presence and user base [56]

Financial Data and Key Metrics Changes - Revenue increased by 70% from $8.4 million in the first half of 2024 to $14.3 million in the first half of 2025, primarily due to the monetization of the ride-hailing service [18] - Adjusted EBITDA improved by $5.4 million from -$11.3 million in the first half of 2024 to -$6 million in the first half of 2025 [20] - Cost of revenues decreased by 25% from $9.9 million in the first half of 2024 to $7.4 million in the first half of 2025 [18][19] Business Line Data and Key Metrics Changes - Unique ride-hailing riders grew from 1.1 million to 2.3 million year-over-year, a 107% increase [11] - Registered ride-hailing drivers increased from 171,000 to 327,000, a 92% increase [11] - Total rides increased from 13.7 million in the first half of 2024 to 19.2 million in the first half of 2025 [17] Market Data and Key Metrics Changes - The company expanded its operations to six additional metropolitan areas in 2025, bringing total operations to 10 cities, covering approximately half of Türkiye's population [7][8] - The share of riders based outside of Istanbul grew from 13% to 24% over the last year [36] Company Strategy and Development Direction - The company is focusing on ride-hailing as its primary business model, transitioning from two-wheeled electric vehicles to ride-hailing services [3][4] - A significant investment plan for 2025-2026 has been announced, aimed at expanding ride-hailing services and enhancing operational capabilities [7][20] - The introduction of a dynamic pricing model in January 2025 is expected to enhance efficiency and satisfaction for riders and drivers [3] Management's Comments on Operating Environment and Future Outlook - Management believes 2025 will be a pivotal year for scale and financial performance, with expectations to nearly double revenue from $18.7 million in 2024 to $34 million in 2025 [5][20] - The company anticipates capturing a $3 billion annual revenue opportunity in the ride-hailing business as it scales operations [12] Other Important Information - The company is the largest electric vehicle operator in Türkiye and the number one urban mobility app on both iOS and Android [6] - The average App Store rating is 4.9 out of 5, indicating strong user sentiment [10] Q&A Session Summary Question: What is the target level for two-wheeled electric vehicles deployed? - Management believes two-wheeled electric vehicle operations are integral to the service offering and will reevaluate the fleet size in summer 2026 [22][23] Question: How is driver supply and AI engineering impacting the business? - There are no constraints in onboarding additional drivers, with a year-over-year increase in driver signups [26][27] - AI engineering is critical for optimizing pricing and enhancing rider and driver experiences [29] Question: What are the current take rates compared to global benchmarks? - Current take rates are in the high single-digits, with significant upside potential for future increases [33] Question: How does the company view growth versus profitability? - The company is focused on growth while maintaining low take rates to capture market share, with plans to optimize profitability as the market matures [41][42] Question: What is the regulatory environment for ride-hailing in Türkiye? - The company believes it is well-positioned to introduce and regulate new transportation services in Türkiye [48] Question: How is the company approaching its crypto treasury strategy? - The strategy involves diversifying non-operating cash into USD and Bitcoin as a store of value, with the majority still held in USD [51]

Financial Data and Key Metrics Changes - Revenue increased by 70% from $8.4 million in H1 2024 to $14.3 million in H1 2025, primarily due to the monetization of the ride-hailing service [18][20] - Adjusted EBITDA improved from negative $11.3 million in H1 2024 to negative $6 million in H1 2025, indicating a significant reduction in operating losses [20] - Cost of revenues decreased by 25% from $9.9 million in H1 2024 to $7.4 million in H1 2025, reflecting efficiency measures [18][20] Business Line Data and Key Metrics Changes - Unique ride-hailing riders grew from 1.1 million to 2.3 million year-over-year, a 107% increase [10][17] - Registered ride-hailing drivers increased from 171,000 to 327,000, a 92% increase [10][17] - Average daily two-wheeled electric vehicles deployed decreased from 34.6 thousand to 24.8 thousand due to fleet decommissioning [18] Market Data and Key Metrics Changes - The company expanded its operations to six new metropolitan areas, increasing its reach to 10 cities, covering approximately half of Türkiye's population [6][7] - The share of riders based outside Istanbul grew from 13% to 24%, indicating strong demand in secondary markets [36][37] Company Strategy and Development Direction - The company is focusing on ride-hailing as its primary business model, transitioning from two-wheeled electric vehicles to capture the growing mobility market in Türkiye [3][4] - A significant investment plan for 2025-2026 aims to enhance operational capabilities and expand into new cities [6][21] - The introduction of AI engineering teams is expected to optimize pricing and improve rider and driver experiences [28][30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving nearly double revenue from $18.7 million in 2024 to $34 million in 2025, driven by ride-hailing growth [4][20] - The company anticipates capturing a $3 billion annual revenue opportunity in the ride-hailing market as it scales operations [11][13] - Management highlighted the importance of local market knowledge and operational advantages in competing against global players [6] Other Important Information - The company is the largest electric vehicle operator in Türkiye and the number one urban mobility app on both iOS and Android [5] - The app redesign has improved user engagement, with weekly and monthly active users increasing by 16% and 12%, respectively [9] Q&A Session Summary Question: What is the target level for two-wheeled electric vehicles? - Management indicated that two-wheeled electric vehicles are integral to the service offering and will be reevaluated in summer 2026 based on customer needs and traffic to ride-hailing [24][25] Question: How is driver supply being managed? - There are no constraints in onboarding additional drivers, with driver acquisition costs being recouped within a month of service [27] Question: What are the current take rates compared to global benchmarks? - Current take rates are in the high single digits, with significant upside potential for future increases [34] Question: How does the company view growth versus profitability? - The company is prioritizing growth while maintaining low take rates to capture market share, with plans to optimize profitability in the future [42][43] Question: What is the regulatory environment for ride-hailing in Türkiye? - The company believes it is well-positioned to introduce and regulate new transportation services in Türkiye [49] Question: How is the company approaching its crypto treasury strategy? - The strategy involves diversifying non-operating cash into USD and Bitcoin as a store of value, with the majority still held in USD [52]

Financial Data and Key Metrics Changes - The company reported a gross margin of 17.5%, which is lower than expected, and sales incentives rose to 14.3% [14][15] - The average sales price was $383,000, with a net margin of 9.2% and SGA at 8.2% [15][28] - The company ended the quarter with $1.4 billion in cash and total liquidity of $5.1 billion [29] Business Line Data and Key Metrics Changes - The company started approximately 21,500 homes, delivered about 21,500 homes, and sold just over 23,000 homes [14] - The financial services segment generated operating earnings of $177 million, primarily driven by the mortgage business [28] Market Data and Key Metrics Changes - The housing market remains challenging, with higher mortgage rates and diminished consumer confidence impacting demand [12][13] - There are early signs of increased customer interest as mortgage rates trend downward [9][12] Company Strategy and Development Direction - The company is focused on maintaining volume while adjusting to market conditions, emphasizing a production-first strategy [11][21] - The strategy includes leveraging technology to drive efficiencies and reduce costs, with a focus on cash flow and high returns on capital [17][21] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future market conditions if mortgage rates approach or fall below 6% [11][12] - The company is positioned to accommodate pent-up demand as market conditions improve [10][11] Other Important Information - The company has achieved cycle time reductions for 11 consecutive quarters, with the average cycle time for single-family homes down to 126 days [24] - The company is focused on a differentiated approach to land banking, allowing flexibility in adjusting land acquisition strategies [40][102] Q&A Session Summary Question: Clarification on strategy pivot - Management clarified that adjustments are being made in response to market conditions, not a change in strategy [36] Question: Land strategy adjustments - Management confirmed that land relationships allow for flexibility and adjustments in response to market conditions [40] Question: Duration of planned slowdown - Management indicated that the slowdown is not seen as permanent and is focused on maintaining volume [46] Question: Impact of mortgage rate changes on demand - Management noted that while there has been increased consumer engagement, the overall impact on sales remains to be seen [64] Question: Inventory turns and cash generation - Management emphasized ongoing efforts to improve inventory turns and cash generation, with a focus on total shareholder return [74] Question: Cancellations environment - Management reported that cancellation rates have remained consistent, with no significant impact from recent interest rate changes [95] Question: Contribution from Milrose - Approximately 25% of year-to-date deliveries have come from Milrose, positively impacting margins [99]

Financial Data and Key Metrics Changes - The company reported a gross margin of 17.5%, which is lower than expected due to increased sales incentives of 14.3% [7][13] - The average sales price was $383,000, contributing to a net margin of 9.2% [14] - The company ended the quarter with $1.4 billion in cash and total liquidity of $5.1 billion [28] Business Line Data and Key Metrics Changes - The company started approximately 21,500 homes, delivered about 21,500 homes, and sold just over 23,000 homes during the quarter [13] - Sales pace was 4.7 homes per community per month, with an average lead response time improved to 46 seconds [20][21] - Direct construction costs decreased by approximately 1% from the previous quarter and about 3% year-over-year, reaching the lowest level since Q3 2021 [23] Market Data and Key Metrics Changes - The housing market remains challenging, with mortgage interest rates fluctuating and consumer confidence affected by various uncertainties [11][12] - Demand for homes is high, but affordability issues continue to constrain this demand [12] - The company noted early signs of increased customer interest as mortgage rates began to trend downward towards the end of the quarter [8] Company Strategy and Development Direction - The company is focused on maintaining volume while adjusting to current market conditions, emphasizing a production-first strategy [10][22] - The strategy includes leveraging technology to drive efficiencies and reduce costs, with a focus on cash flow and high returns on capital [16][20] - The company aims to build a healthier housing market and position itself for strong cash flow and bottom-line growth in the future [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating that lower mortgage rates could lead to stronger demand [10][11] - The company plans to ease back delivery expectations to relieve pressure on sales and help establish a floor on margins [7][14] - Management acknowledged the need for a more affordable cost structure to meet market demands [38] Other Important Information - The company repurchased 4.1 million shares for $507 million and paid dividends totaling $129 million [29] - The multifamily business is expected to incur a loss of about $30 million as the company continues to strategically monetize assets [30] Q&A Session Summary Question: Inquiry about strategy pivot and incentives - Management clarified that the adjustments are not a change in strategy but a recalibration to market conditions, with no immediate changes to incentives [34][35] Question: Land strategy and flexibility - Management confirmed that they are not constrained by land relationships and can adjust takedown schedules as needed [37][38] Question: Duration of the planned slowdown - Management indicated that the slowdown is not seen as permanent and remains focused on maintaining volume [44][45] Question: Impact of mortgage rates on demand - Management noted that while there has been increased consumer engagement, the overall sales impact from lower rates has yet to be fully realized [61] Question: Inventory turns and cash generation - Management emphasized ongoing efforts to improve inventory turns and cash generation, with a focus on total shareholder return [70][72] Question: Cancellations environment - Management reported that cancellation rates have remained consistent from the second to the third quarter [87] Question: Contribution from Milrose - Approximately 25% of year-to-date deliveries have come from Milrose, positively impacting margins [92][93]

Financial Data and Key Metrics Changes - The company reported a gross margin of 17.5%, which is lower than expected due to increased sales incentives of 14.3% to maintain sales volume [7][13] - The average sales price decreased to $383,000, contributing to the margin decline [13] - SG&A expenses were at 8.2%, resulting in a net margin of 9.2% [14] Business Line Data and Key Metrics Changes - The company started and delivered approximately 21,500 homes, while selling just over 23,000 homes, exceeding sales expectations but falling short on deliveries [13] - The sales pace was 4.7 homes per community per month, aligning with the sales plan [20] - Direct construction costs decreased by approximately 1% from the previous quarter and about 3% year-over-year, reaching the lowest level since Q3 2021 [23] Market Data and Key Metrics Changes - The housing market remains challenging, with mortgage interest rates fluctuating and consumer confidence impacted by various uncertainties [11] - Demand is high, but affordability issues continue to constrain it, leading to a softening market [12] - The company noted early signs of increased customer interest as mortgage rates began to trend downward towards the end of the quarter [8][11] Company Strategy and Development Direction - The company is focused on maintaining volume while adjusting to current market conditions, emphasizing a pause to allow the market to catch up [7][10] - The strategy includes leveraging technology to drive efficiencies and reduce costs, aiming for a lower cost structure to enhance affordability [20][24] - The company plans to continue its asset-light land strategy, with a focus on maximizing efficiencies and driving down costs [24][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future market conditions if mortgage rates approach or fall below 6% [10][11] - The company is positioned for strong cash flow and bottom-line growth, despite current market challenges [16] - Management acknowledged the need for a differentiated approach to achieve affordability in homebuilding [38] Other Important Information - The company ended the quarter with $1.4 billion in cash and total liquidity of $5.1 billion, indicating a strong balance sheet [28] - The company repurchased 4.1 million shares for $507 million and paid dividends totaling $129 million [29] Q&A Session Summary Question: Inquiry about strategy pivot and incentives - Management clarified that the adjustments are not a change in strategy but a recalibration to market conditions, with no immediate changes to incentives [34][35] Question: Land strategy adjustments - Management confirmed that they are not constrained by land relationships and can adjust takedown schedules as needed [37][38] Question: Duration of the planned slowdown - Management indicated that the slowdown is not seen as permanent and remains focused on maintaining volume [44][45] Question: Impact of mortgage rates on demand - Management noted that while they have not seen significant sales impact yet, they expect increased interest if rates continue to decline [61] Question: Inventory turns and cash generation - Management emphasized ongoing efforts to improve inventory turns and cash generation, with a focus on total shareholder return [70][71] Question: Cancellations environment - Management reported that cancellation rates have remained consistent from the second to the third quarter [88] Question: Contribution of Millrose to deliveries - Management stated that approximately 25% of year-to-date deliveries have come from Millrose [93]

Financial Data and Key Metrics Changes - The company reported a gross margin of 17.5%, which is lower than expected due to increased sales incentives that rose to 14.3% [13][14] - The average sales price was $383,000, contributing to a net margin of 9.2% [14] - The company ended the quarter with $1.4 billion in cash and total liquidity of $5.1 billion [29] Business Line Data and Key Metrics Changes - The company started approximately 21,500 homes, delivered about 21,500 homes, and sold just over 23,000 homes during the third quarter [13] - Sales pace was 4.7 homes per community per month, aligning with the sales plan [21] - Direct construction costs decreased by approximately 1% from the second quarter and about 3% year-over-year, reaching the lowest construction cost since Q3 2021 [25] Market Data and Key Metrics Changes - The housing market remained challenging, with mortgage interest rates fluctuating and consumer confidence affected by various uncertainties [11] - Demand for homes remained high, but affordability issues constrained this demand [12] - The company noted that supply remains constrained in most markets due to years of underproduction [11] Company Strategy and Development Direction - The company plans to ease back delivery expectations to relieve pressure on sales and help establish a floor on margins [6] - The focus remains on maintaining volume while adjusting to market conditions, with an emphasis on affordability and cost structure [10][17] - The company is investing in technology solutions to drive efficiencies and improve its manufacturing model [16][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating that lower mortgage rates could lead to stronger demand [10][11] - The company is positioned to accommodate pent-up demand as market conditions improve [9][10] - Management acknowledged the need for a recalibration of strategies in response to current market realities [48] Other Important Information - The company concluded the quarter with improved metrics in its asset-light land strategy, with owned home sites decreasing to 0.1 years from 1.1 years a year ago [26] - The company repurchased 4.1 million shares for $507 million and paid dividends totaling $129 million [31] Q&A Session Summary Question: Inquiry about strategy pivot and incentives - Management clarified that the adjustments are not a change in strategy but a response to current market conditions, with no immediate changes to incentives [36][38] Question: Land strategy and flexibility - Management confirmed that they are not constrained by land relationships and can adjust takedown schedules as needed [41][43] Question: Duration of the planned slowdown - Management indicated that the slowdown is not seen as permanent and is focused on maintaining volume while adapting to market conditions [47][49] Question: Impact of mortgage rate changes on demand - Management noted that while there has been increased consumer engagement, the full impact of lower rates on demand remains to be seen [70] Question: Inventory turns and cash generation - Management emphasized the importance of inventory turns as a measure of efficiency and indicated that cash generation remains a priority [75][82] Question: Cancellations environment - Management reported that cancellation rates have remained consistent, with no significant impact from recent interest rate changes [110]