Dream Finders Homes, Inc. (DFH) Q2 2025 Earnings Summary

Executive Summary

Q2 2025 revenue was $1.1505B, up 9% year over year; diluted EPS was $0.56, down from $0.81 YoY, as gross margins compressed and SG&A rose with forward mortgage commitment program costs and acquisition-related growth .
Versus consensus, DFH delivered a revenue beat (consensus $1.0648B*) and an EPS miss (consensus $0.65*; actual $0.56), a mix likely to drive near-term debate on margin trajectory while validating demand resilience* .
Management maintained full-year 2025 guidance of approximately 9,250 home closings; backlog declined sequentially to 2,513 homes ($1.201B value) as cycle times improved and ASP moderated .
Strategic expansion continued: closed Alliant National Title (vertical integration) and Green River Builders (Atlanta footprint) in Q2, with financial services pretax income +86% YoY to $12M .

Note: Values with asterisks retrieved from S&P Global.

Demand indicators solid: net new orders +13% YoY to 1,938; home closings +10% YoY to 2,232, demonstrating healthy sales velocity despite affordability headwinds .
Financial services expansion: pretax income +86% YoY to $12M, supported by Alliant National Title acquisition and Jet HomeLoans consolidation .
Strategic M&A and capital allocation: closed Alliant National Title and Green River Builders; repurchased ~705K shares for $16M; CEO: “I am confident in our ability to drive meaningful growth organically and through acquisitions” .

Margin pressure: homebuilding gross margin fell 250 bps YoY to 16.5% (adjusted gross margin -110 bps to 25.9%) due to increased incentives, higher land/financing costs, and product mix changes .
Profitability down: income before taxes declined to $74.1M (from $106.0M) and net income to $56.6M (from $80.9M) YoY; diluted EPS $0.56 vs. $0.81, reflecting lower ASPs and higher SG&A .
Sequential backlog contraction: backlog units fell to 2,513 (from 2,802 in Q1), value to $1.201B, and ASP in backlog decreased to $477,865, indicating lower future price realization .

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$1.561	$0.990	$1.151
EPS (Diluted) ($USD)	$1.29	$0.54	$0.56
Homebuilding Gross Margin %	17.7%	19.2%	16.5%
Adjusted Homebuilding Gross Margin %	26.9%	27.8%	25.9%
SG&A ($USD Millions)	$116.8	$116.7	$134.7
Income Before Taxes ($USD Millions)	$168.6	$71.2	$74.1

Metric	Consensus	Actual	Outcome
Primary EPS ($USD)	$0.65*	$0.56	Miss
Revenue ($USD Billions)	$1.0648*	$1.1505	Beat
Primary EPS - # of Estimates	1*	—	—
Revenue - # of Estimates	2*	—	—

Note: Values with asterisks retrieved from S&P Global.

Segment	Units Q2 2024	Units Q2 2025	ASP Q2 2024	ASP Q2 2025
Southeast	668	842	$508,511	$438,549
Mid-Atlantic	610	600	$433,941	$444,571
Midwest	753	790	$585,971	$553,989
Total	2,031	2,232	$514,833	$481,027

KPI	Q1 2025	Q2 2025
Home Closings (units)	1,925	2,232
Net New Orders (units)	2,032	1,938
Cancellation Rate (%)	11.7%	14.0%
Backlog (units)	2,802	2,513
Backlog Value ($USD Millions)	$1,387	$1,201
ASP in Backlog ($USD)	$494,987	$477,865
Active Communities (period-end)	258	271
Return on Participating Equity (%)	28.5%	25.0%
Controlled Lot Pipeline (lots)	60,538	63,180
Total Liquidity ($USD Millions)	$677	$433

Metric	Period	Previous Guidance	Current Guidance	Change
Home Closings	FY 2025	~9,250 (Q1 2025)	~9,250 (Q2 2025)	Maintained

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Interest rates & affordability	Higher land/financing costs pressured margins	Forward mortgage commitment programs expanded to support buyers	Elevated rates straining affordability; continued use of incentives	Persistent headwind
Sales incentives	Seasonally elevated, offset revenue growth	Partially offset homebuilding revenue growth	Increased incentives reduced gross margin and ASP	Increasing
Product mix & ASP	ASP down 3% YoY in Q4	ASP up 1% YoY, mix shift to Midwest	ASP down 7% YoY; Liberty Communities lowered consolidated ASP	Mix shifting to lower ASP cohorts
Cycle times/direct cost	Direct cost reductions supported margins	Margin up 140 bps YoY on mix/cost reductions	Cycle time improvements partially offset cost/ mix pressures	Improving operationally
Financial services expansion	Jet HL consolidation boosted income	Title/mortgage platform expanding	Alliant National Title closed; pretax income +86% YoY	Expanding
M&A strategy	Announced Liberty & Alliant; highly accretive pipeline	Closed Liberty; announced Green River	Closed Green River Builders; continued Atlanta build-out	Active, targeted

“Dream Finders delivered another quarter of solid performance, with homebuilding revenues reaching $1.1 billion… while growing home closings by 10% and net sales by 13%.” — Patrick Zalupski, Chairman & CEO .
“The industry continues to be faced with challenges from elevated interest rates straining housing affordability and weakening consumer confidence.” .
“The acquisition of Alliant Title has enhanced vertical integration… Acquiring Green River Builders expands our presence in the greater Atlanta region… strengthening our position to capitalize on the largest housing market in the Southeast.” .
“We maintain a constructive outlook and are reiterating our full-year 2025 guidance of approximately 9,250 home closings.” .

Q2 2025 earnings call transcript was not available in the document catalog or via our transcript search; as a result, Q&A themes and clarifications cannot be included in this recap.

DFH beat revenue expectations and missed EPS: Revenue $1.1505B vs. $1.0648B* consensus; EPS $0.56 vs. $0.65* consensus .
Only 1 EPS estimate and 2 revenue estimates were recorded for Q2 2025, limiting breadth of consensus*.

Note: Values with asterisks retrieved from S&P Global.

Healthy demand but profitability compression: volume growth and net orders remain strong, yet gross margin and EPS declined due to incentives, mix, and financing costs .
Revenue resilience is intact: total revenue rose to $1.1505B YoY, and DFH outperformed revenue consensus, underscoring demand and delivery execution .
Financial services integration is a positive lever: Alliant National Title and Jet consolidation lifted pretax income; expect continued contribution as the platform scales .
Guidance steady at ~9,250 closings: supports medium-term visibility, though backlog declines and ASP moderation warrant monitoring for price/mix impacts .
Atlanta expansion via Liberty and Green River broadens Southeast footprint; expect near-term ASP dilution but longer-term growth from scaled coverage .
Watch SG&A and incentives: SG&A rose to $134.7M, partly from forward mortgage commitments; sustained discipline here is critical for EPS recovery .
Near-term stock narrative: mixed print (rev beat/EPS miss) shifts focus to margin recapture and integration benefits; catalysts include incentive normalization, cycle-time gains, and financial services contribution .