Overview

• U.S. homebuilder's Q1 adjusted EPS and net income missed analyst expectations

• Homebuilding revenue fell 14% yr/yr as lower prices and closings offset record net sales

• Company repurchased 1.1 mln shares for $18 mln in Q1

Outlook

• Dream Finders Homes maintains 2026 guidance of about 9,250 home closings

• Company says elevated mortgage rates and macroeconomic uncertainty continue to impact affordability

• Dream Finders Homes expects near-term conditions to remain dynamic

Result Drivers

• SALES INCENTIVES - Co said increased use of sales incentives drove lower average selling prices and contributed to revenue and margin declines

• FEWER HOME CLOSINGS - Lower home closings contributed to the decline in homebuilding revenue

• HIGHER LAND AND FINANCING COSTS - Increased land and financing costs further reduced homebuilding gross margin

Company press release: ID:nBw7b5SrLa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Homebuilding Revenue		$837 mln
Q1 EPS	Miss	$0.11	$0.20 (3 Analysts)
Q1 Net Income	Miss	$13 mln	$24.28 mln (3 Analysts)
Q1 Homebuilding Gross Margin		14.50%
Q1 Pretax Profit		$19 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "hold"

• Wall Street's median 12-month price target for Dream Finders Homes Inc is $21.00, about 48.4% above its April 29 closing price of $14.15

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.