Revenue growth has turned sharply negative with a 22.6% year-over-year decline in 2026Q1, while gross margins have eroded to 15.5% from a 21.8% peak in 2024Q1.
| Metric | TTM | Nov'25 | Nov'24 | Nov'23 | Nov'22 | Nov'21 | Nov'20 | Nov'19 | Nov'18 | Nov'17 | Nov'16 | Nov'15 | Nov'14 | Nov'13 | Nov'12 | Nov'11 | Nov'10 | Nov'09 | Nov'08 | Nov'07 | Nov'06 | Nov'05 | Nov'04 | Nov'03 | Nov'02 | Nov'01 | Nov'00 | Nov'99 | Nov'98 | Nov'97 | Nov'96 |
|---|
| Sales/Revenue | 5.92B | 6.24B | 6.93B | 6.41B | 6.9B | 5.72B | 4.18B | 4.55B | 4.55B | 4.37B | 3.59B | 3.03B | 2.4B | 2.1B | 1.56B | 1.32B | 1.58B | 1.82B | 3.03B | 6.42B | 9.38B | 8.15B | 7.05B | 5.85B | 4.94B | 4.5B | 3.87B | 3.82B | 2.4B | 1.84B | 1.75B |
| Revenue Growth % | -13.61% | -10.01% | 8.1% | -7.14% | 20.59% | 36.86% | -8.12% | 0.13% | 4.09% | 21.53% | 18.56% | 26.28% | 14.49% | 34.42% | 18.56% | -16.81% | -13.32% | -39.85% | -52.72% | -31.59% | 15.03% | 15.63% | 20.55% | 18.46% | 9.71% | 16.31% | 1.4% | 58.86% | 30.33% | 5.1% | 28.33% |
| Cost of Goods Sold | 4.87B | 5.06B | 5.46B | 5.04B | 5.22B | 4.47B | 3.38B | 3.71B | 3.75B | 3.65B | 3.04B | 2.54B | 1.99B | 1.74B | 1.34B | 1.16B | 1.31B | 1.75B | 3.31B | 6.83B | 7.67B | 5.98B | 5.33B | 4.48B | 3.89B | 3.61B | 3.08B | 3.01B | 1.93B | 1.5B | 1.42B |
| COGS % of Revenue | - | 81.22% | 78.75% | 78.56% | 75.6% | 78.16% | 80.81% | 81.56% | 82.42% | 83.55% | 84.71% | 83.87% | 82.85% | 82.98% | 85.57% | 88.22% | 82.91% | 95.89% | 109.26% | 106.46% | 81.79% | 73.27% | 75.52% | 76.56% | 78.77% | 80.26% | 79.62% | 78.9% | 80.39% | 81.29% | 81.11% |
| Gross Profit | 1.06B | 1.17B | 1.47B | 1.37B | 1.68B | 1.25B | 802.72M | 839.49M | 799.24M | 718.63M | 549.73M | 488.95M | 411.85M | 357M | 225.08M | 155.07M | 270.36M | 74.94M | -280.88M | -414.65M | 1.71B | 2.18B | 1.73B | 1.37B | 1.05B | 888.78M | 788.93M | 805.3M | 471.2M | 345M | 331.3M |
| Gross Margin % | 17.83% | 18.78% | 21.25% | 21.44% | 24.4% | 21.84% | 19.19% | 18.44% | 17.58% | 16.45% | 15.29% | 16.13% | 17.15% | 17.02% | 14.43% | 11.78% | 17.09% | 4.11% | -9.26% | -6.46% | 18.21% | 26.73% | 24.48% | 23.44% | 21.23% | 19.74% | 20.38% | 21.1% | 19.61% | 18.71% | 18.89% |
| Gross Profit Growth % | - | -20.44% | 7.12% | -18.4% | 34.71% | 55.79% | -4.38% | 5.04% | 11.22% | 30.72% | 12.43% | 18.72% | 15.36% | 58.61% | 45.14% | -42.64% | 260.77% | 126.68% | 32.26% | -124.27% | -21.63% | 26.21% | 25.9% | 30.79% | 17.99% | 12.66% | -2.03% | 70.9% | 36.58% | 4.14% | 29.67% |
| Operating Expenses | 624.94M | 646.18M | 686.85M | 632.09M | 629.64M | 589.22M | 486.25M | 508.11M | 453.52M | 435.23M | 397.33M | 350.33M | 295.88M | 264.92M | 245.34M | 258.15M | 289.52M | 306.27M | 505.52M | 909.85M | 1.1B | 979.38M | 954.5M | 808.64M | 595.73M | 536.46M | 517.48M | 512.7M | 332.6M | 248.7M | 239.4M |
| OpEx % of Revenue | - | 10.36% | 9.91% | 9.86% | 9.12% | 10.29% | 11.62% | 11.16% | 9.97% | 9.96% | 11.05% | 11.55% | 12.32% | 12.63% | 15.73% | 19.62% | 18.3% | 16.78% | 16.66% | 14.18% | 11.77% | 12.01% | 13.53% | 13.82% | 12.06% | 11.92% | 13.37% | 13.43% | 13.84% | 13.49% | 13.65% |
| Selling, General & Admin | 624.94M | 646.18M | 686.85M | 632.09M | 629.64M | 574.38M | 470.78M | 497.35M | 444.15M | 426.39M | 389.44M | 343M | 288.02M | 255.81M | 236.64M | 220.59M | 289.52M | 306.27M | 505.52M | 824.62M | 1.12B | 979.61M | 945.81M | 766.41M | 618.68M | 556.73M | 475.17M | 472.9M | 314.5M | 234.5M | 227.1M |
| SG&A % of Revenue | - | 10.36% | 9.91% | 9.86% | 9.12% | 10.03% | 11.25% | 10.92% | 9.77% | 9.76% | 10.83% | 11.31% | 12% | 12.2% | 15.17% | 16.76% | 18.3% | 16.78% | 16.66% | 12.85% | 11.98% | 12.01% | 13.41% | 13.1% | 12.53% | 12.37% | 12.28% | 12.39% | 13.09% | 12.72% | 12.95% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 14.85M | 15.47M | 10.76M | 9.36M | 8.83M | 7.89M | 7.33M | 7.86M | 9.11M | 8.69M | 37.56M | 0 | 0 | 0 | 85.23M | -19.22M | -230K | 8.69M | 42.22M | -22.95M | -20.26M | 42.31M | 39.8M | 18.1M | 14.2M | 12.3M |
| Operating Income | 431.1M | 525.25M | 785.62M | 742.53M | 1.06B | 661.34M | 316.47M | 331.38M | 345.72M | 283.4M | 152.4M | 138.62M | 115.97M | 92.08M | -20.26M | -103.07M | -19.16M | -231.34M | -786.39M | -1.32B | 603.85M | 1.2B | 772.33M | 562.9M | 452.92M | 352.32M | 271.44M | 292.6M | 138.6M | 96.3M | 91.9M |
| Operating Margin % | 7.28% | 8.42% | 11.34% | 11.58% | 15.28% | 11.55% | 7.57% | 7.28% | 7.6% | 6.49% | 4.24% | 4.57% | 4.83% | 4.39% | -1.3% | -7.83% | -1.21% | -12.68% | -25.92% | -20.64% | 6.44% | 14.72% | 10.95% | 9.62% | 9.17% | 7.83% | 7.01% | 7.67% | 5.77% | 5.22% | 5.24% |
| Operating Income Growth % | - | -33.14% | 5.8% | -29.62% | 59.53% | 108.97% | -4.5% | -4.15% | 21.99% | 85.96% | 9.94% | 19.53% | 25.94% | 554.6% | 80.35% | -437.85% | 91.72% | 70.58% | 40.63% | -319.34% | -49.68% | 55.39% | 37.21% | 24.28% | 28.55% | 29.79% | -7.23% | 111.11% | 43.93% | 4.79% | 52.91% |
| EBITDA | 469.71M | 562.55M | 822.89M | 778.95M | 1.09B | 689.98M | 344.87M | 358.54M | 348.25M | 286.19M | 156.04M | 142.03M | 118.39M | 93.94M | -18.63M | -101.04M | -15.88M | -226.1M | -777.08M | -1.31B | 624.38M | 1.22B | 796.2M | 586.18M | 472.25M | 397.46M | 313.75M | 332.4M | 156.7M | 110.5M | 104.2M |
| EBITDA Margin % | 7.93% | 9.02% | 11.87% | 12.15% | 15.75% | 12.05% | 8.24% | 7.88% | 7.66% | 6.55% | 4.34% | 4.68% | 4.93% | 4.48% | -1.19% | -7.68% | -1% | -12.39% | -25.61% | -20.37% | 6.66% | 14.95% | 11.29% | 10.02% | 9.56% | 8.83% | 8.11% | 8.71% | 6.52% | 5.99% | 5.94% |
| EBITDA Growth % | -39.69% | -31.64% | 5.64% | -28.36% | 57.59% | 100.07% | -3.81% | 2.95% | 21.68% | 83.41% | 9.86% | 19.97% | 26.02% | 604.14% | 81.56% | -536.49% | 92.98% | 70.9% | 40.56% | -309.36% | -48.79% | 53.13% | 35.83% | 24.13% | 18.82% | 26.68% | -5.61% | 112.13% | 41.81% | 6.05% | 53.01% |
| D&A (Non-Cash Add-back) | 38.6M | 37.3M | 37.27M | 36.41M | 32.32M | 28.64M | 28.4M | 27.16M | 2.53M | 2.79M | 3.64M | 3.41M | 2.42M | 1.86M | 1.62M | 2.03M | 3.29M | 5.24M | 9.32M | 17.27M | 20.53M | 19.1M | 23.86M | 23.28M | 19.33M | 45.14M | 42.31M | 39.8M | 18.1M | 14.2M | 12.3M |
| EBIT | 455.16M | 554.19M | 850.92M | 771.28M | 1.07B | 676.19M | 327.86M | 342.14M | 355.08M | 290.62M | 155.22M | 148.9M | 125.7M | 101.05M | -9.25M | -131.96M | -8.06M | -259.42M | -954.97M | -1.32B | 603.85M | 1.2B | 772.33M | 562.9M | 452.92M | 352.32M | 271.44M | 292.6M | 138.6M | 96.3M | 91.9M |
| Net Interest Income | 6.59M | 7.39M | 19.6M | 13.76M | 704K | 1.05M | 2.55M | 2.16M | 3.51M | 618K | -5.37M | -21.4M | -30.31M | -51.45M | -58.99M | -51.93M | -64.41M | -43.25M | 21.64M | 15.65M | -11.22M | -19.83M | -18.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 6.59M | 7.39M | 19.6M | 13.76M | 704K | 1.05M | 2.55M | 2.16M | 3.51M | 1.24M | 529K | 458K | 443K | 792K | 518K | 871K | 2.1M | 7.51M | 34.61M | 28.64M | 5.5M | 4.21M | 3.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 622K | 5.9M | 21.86M | 30.75M | 52.24M | 59.5M | 52.8M | 66.51M | 50.76M | 12.97M | 12.99M | 16.73M | 24.04M | 22.66M | 0 | 0 | 0 | 0 | 83.6M | 0 | 0 | 324.9M |
| Other Income/Expense | 24.05M | 28.94M | 65.3M | 28.74M | 17.04M | 34M | 47.57M | 16.8M | 22.24M | 6.59M | -3.09M | -11.58M | -21.02M | -53.72M | -58.8M | -78.09M | -57.2M | -79.85M | -181.54M | -136.27M | -32.01M | 1.4M | -57M | -9.44M | 16.33M | -27.8M | 26.21M | -65.7M | 8M | -5.3M | -187.6M |
| Pretax Income | 455.16M | 554.19M | 850.92M | 771.28M | 1.07B | 695.35M | 364.04M | 348.18M | 367.96M | 290M | 149.31M | 127.04M | 94.95M | 38.36M | -79.05M | -181.17M | -76.37M | -311.18M | -967.93M | -1.46B | 571.85M | 1.2B | 715.34M | 553.46M | 469.25M | 324.52M | 297.66M | 226.9M | 146.6M | 91M | -95.7M |
| Pretax Margin % | 7.69% | 8.89% | 12.28% | 12.03% | 15.53% | 12.15% | 8.7% | 7.65% | 8.09% | 6.64% | 4.15% | 4.19% | 3.95% | 1.83% | -5.07% | -13.77% | -4.83% | -17.05% | -31.9% | -22.77% | 6.1% | 14.73% | 10.14% | 9.46% | 9.5% | 7.21% | 7.69% | 5.94% | 6.1% | 4.94% | -5.46% |
| Income Tax | 102.5M | 125.4M | 195.9M | 181.1M | 255.4M | 130.6M | 67.8M | 79.4M | 197.6M | 109.4M | 43.7M | 42.4M | -823.4M | -1.6M | -20.1M | -2.4M | -7M | -209.4M | 8.2M | -46M | 178.9M | 447M | 241.3M | 182.7M | 154.9M | 110.3M | 87.7M | 79.4M | 51.3M | 32.8M | -34.5M |
| Effective Tax Rate % | 22.52% | 22.63% | 23.02% | 23.48% | 23.82% | 18.78% | 18.62% | 22.8% | 53.7% | 37.72% | 29.27% | 33.37% | -867.2% | -4.17% | 25.43% | 1.32% | 9.17% | 67.29% | -0.85% | 3.15% | 31.28% | 37.2% | 33.73% | 33.01% | 33.01% | 33.99% | 29.46% | 34.99% | 34.99% | 36.04% | 36.05% |
| Net Income | 352.66M | 428.79M | 655.02M | 590.18M | 816.67M | 564.75M | 296.24M | 268.77M | 170.37M | 180.59M | 105.61M | 84.64M | 918.35M | 39.96M | -58.95M | -178.77M | -69.37M | -101.78M | -976.13M | -929.41M | 482.35M | 823.71M | 474.04M | 370.76M | 314.35M | 214.22M | 209.96M | 147.5M | 95.3M | 58.2M | -61.2M |
| Net Margin % | 5.96% | 6.88% | 9.45% | 9.21% | 11.83% | 9.86% | 7.08% | 5.9% | 3.75% | 4.13% | 2.94% | 2.79% | 38.25% | 1.91% | -3.78% | -13.59% | -4.39% | -5.58% | -32.17% | -14.48% | 5.14% | 10.1% | 6.72% | 6.34% | 6.36% | 4.76% | 5.42% | 3.86% | 3.97% | 3.16% | -3.49% |
| Net Income Growth % | -43.66% | -34.54% | 10.99% | -27.73% | 44.61% | 90.64% | 10.22% | 57.76% | -5.66% | 70.99% | 24.78% | -90.78% | 2198% | 167.79% | 67.02% | -157.71% | 31.85% | 89.57% | -5.03% | -292.68% | -41.44% | 73.77% | 27.85% | 17.95% | 46.74% | 2.03% | 42.35% | 54.77% | 63.75% | 195.1% | -310.31% |
| Net Income (Continuing) | 352.66M | 428.79M | 655.02M | 590.18M | 816.67M | 564.75M | 296.24M | 268.77M | 170.37M | 180.59M | 105.61M | 84.64M | 918.35M | 39.96M | -58.95M | -178.77M | -69.37M | -101.78M | -976.13M | -1.41B | 392.95M | 754.53M | 474.04M | 370.76M | 314.35M | 214.22M | 209.96M | 147.5M | 95.3M | 58.2M | -61.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 485.36M | 89.4M | 69.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 188.36M | 144.95M | 127.04M | 89.23M | 74.27M | 63.66M | 246.62M | 199.2M | 198.4M | 1.9M | 900K |
| EPS (Diluted) | 5.53 | 6.15 | 8.45 | 7.03 | 9.09 | 6.01 | 3.13 | 2.85 | 1.69 | 1.84 | 1.10 | 0.82 | 9.25 | 0.44 | -0.76 | -2.32 | -0.90 | -1.33 | -12.59 | -12.04 | 5.82 | 9.53 | 5.70 | 4.40 | 3.57 | 2.75 | 2.62 | 1.54 | 1.16 | 0.75 | -0.77 |
| EPS Growth % | -36.83% | -27.22% | 20.2% | -22.66% | 51.25% | 92.01% | 9.82% | 68.64% | -8.15% | 67.27% | 34.15% | -91.14% | 2002.27% | 157.89% | 67.24% | -157.78% | 32.33% | 89.44% | -4.57% | -306.87% | -38.93% | 67.19% | 29.55% | 23.25% | 29.82% | 4.96% | 70.13% | 32.76% | 54.67% | 197.4% | -308.11% |
| EPS (Basic) | - | 6.31 | 8.70 | 7.25 | 9.35 | 6.22 | 3.26 | 3.04 | 1.72 | 2.10 | 1.23 | 0.92 | 10.29 | 0.48 | -0.76 | -2.32 | -0.90 | -1.33 | -12.59 | -12.04 | 6.12 | 10.29 | 6.14 | 4.71 | 3.79 | 2.86 | 2.69 | 1.58 | 1.20 | 0.75 | -0.77 |
| Diluted Shares Outstanding | 63.73M | 69.25M | 76.95M | 83.38M | 89.35M | 93.59M | 94.09M | 93.84M | 101.06M | 98.32M | 96.28M | 102.86M | 99.31M | 91.56M | 77.11M | 77.04M | 76.89M | 76.66M | 77.53M | 77.19M | 82.88M | 88.38M | 84.3M | 84.26M | 87.93M | 77.9M | 80.14M | 95.78M | 82.16M | 77.99M | 79.48M |
| Basic Shares Outstanding | 62.66M | 67.91M | 74.75M | 80.84M | 86.86M | 90.4M | 90.46M | 88M | 99.12M | 85.84M | 85.71M | 92.05M | 89.27M | 82.63M | 77.11M | 77.04M | 76.89M | 76.66M | 77.53M | 77.19M | 78.82M | 81.88M | 78.37M | 78.8M | 83.05M | 74.9M | 77.91M | 93.35M | 79.09M | 77.99M | 79.48M |
| Dividend Payout Ratio | - | 15.99% | 10.92% | 9.63% | 6.42% | 9.57% | 12.85% | 7.58% | 5.22% | 4.79% | 8.13% | 10.85% | 0.98% | 20.93% | - | - | - | - | - | - | 16.22% | 7.48% | 8.26% | 3.19% | 3.94% | 5.22% | 5.46% | 9.63% | 12.49% | 20.1% | - |
Margin erosion from incentives
As indicated by the most recent quarterly data, KBH experienced a significant 22.6% year-over-year revenue decline in 2026Q1, marking a sharp acceleration in top-line contraction that suggests the company's Built-to-Order model is struggling to maintain volume amidst persistent affordability pressures and elevated mortgage rates.
The consistent deceleration in revenue growth over the last four quarters highlights a weakening demand environment for personalized home builds. Investors should monitor whether this trend reflects a structural shift in buyer preference toward lower-cost, move-in-ready spec homes offered by larger competitors.
Based on the provided income statement, gross margins have deteriorated from a peak of 21.8% in 2024Q1 to 15.5% in 2026Q1, reflecting the increasing reliance on mortgage rate buy-downs and price concessions to sustain sales pace in a challenging interest rate environment.
The consistent erosion of gross margins suggests that the company's pricing power is being tested by the current macroeconomic climate. This trend warrants further investigation into whether the Design Studio model, while a differentiator, is becoming a cost burden that limits the company's ability to compete on price.
According to the latest financial disclosures, operating income plummeted to $36.4 million in 2026Q1, representing a sharp decline from the $234.4 million reported in 2024Q4, which indicates that the company is failing to scale its fixed overhead costs effectively during this period of revenue contraction.
The collapse in operating margins from 11.7% to 3.4% over the last six quarters suggests that the company's cost structure is not sufficiently variable to absorb significant volume drops. This lack of operating leverage may indicate that SG&A expenses are becoming increasingly sticky relative to the current revenue base.
Financial statements reveal that EPS growth has turned deeply negative, with a 65.1% year-over-year decline in 2026Q1, raising concerns that the current earnings trajectory may be unsustainable if the company continues to sacrifice margin to maintain its community absorption rates in key markets.
Short-sellers may focus on the widening gap between KBH's margin performance and that of more efficient, spec-heavy peers. The reliance on non-cash inventory adjustments and interest capitalization requires careful scrutiny to determine if the reported net income accurately reflects the underlying cash-generating capability of the business.
Quick answers to the most common questions about buying KBH stock.
For fiscal year 2025, KB Home (KBH) reported total revenue of $6.24B. This represents a 255.5% increase compared to $1.75B in 1996.
KB Home (KBH) is profitable, generating $428.8M in net income for the fiscal year ending 2025 with a net profit margin of 6.9%.
KB Home (KBH) reported an operating income of $525.3M, resulting in an operating profit margin of 8.4%. This margin reflects the operational efficiency of the business before interest and taxes.
KB Home (KBH) generated $1.17B in gross profit for the year, representing a gross profit margin of 18.8%. This demonstrates the company's core pricing power and production efficiency.