Revenue declined 27.3% year-over-year in 2026Q2, with gross margin falling to 15.6% from 21.8% in 2024Q1, reflecting persistent pricing pressure and cost inflation.
KB Home (KBH) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 5.5B | 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 % | -17.52% | -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 | 4.57B | 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 | 932.11M | 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 % | 16.93% | 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 | 603.78M | 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 | 603.78M | 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 | 328.33M | 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 % | 5.96% | 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 | 369.17M | 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 % | 6.71% | 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 % | -49.09% | -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) | 40.84M | 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 | 344.76M | 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 | 6.07M | 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 | 6.07M | 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 | 21.69M | 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 | 350.02M | 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 % | 6.36% | 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 | 77.9M | 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 % | 22.26% | 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 | 272.12M | 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 % | 4.94% | 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 % | -51.87% | -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) | 272.12M | 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) | 4.30 | 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 % | -45.56% | -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 | 63.22M | 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 | 62.21M | 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% | - |
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.
Key Metrics
Top Statement Risk
Persistent revenue and margin compression
Metrics are mathematically derived from official filings.
Revenue Slide Accelerates
KB Home's revenue contracted 27.3% year-over-year in 2026Q2, deepening from a 22.6% decline in the prior quarter, according to the latest income statement data.
The sequential deterioration in revenue growth from -22.6% to -27.3% indicates that demand headwinds are intensifying, not stabilizing. This trend is consistent with a broader industry slowdown, but KBH's decline is steeper than peers like DHI (-6.9%) and LEN (-3.5%), suggesting company-specific challenges beyond cyclical factors. The absolute revenue level of $1.1B in 2026Q2 is the lowest in the ten-quarter series, implying that the company has not yet found a bottom.
Gross Margin Erosion Persists
Gross margin fell to 15.6% in 2026Q2, down from 21.8% in 2024Q1, as reported in financial statements, reflecting pricing pressure and higher input costs.
The 620 basis point decline in gross margin over the observed period is stark, and KBH's current margin is now well below the peer average of approximately 22%. This suggests that KBH is either discounting more aggressively to move inventory or facing cost overruns that it cannot pass through to buyers. The sequential stability between 2026Q1 (15.5%) and 2026Q2 (15.6%) may indicate a temporary floor, but the structural gap versus peers warrants close monitoring.
Operating Leverage Reverses
Operating income fell to $32.0M in 2026Q2, a 76% drop from $134.8M a year earlier, while SG&A remained relatively sticky, per the income statement data.
SG&A as a percentage of revenue rose from roughly 10.9% in 2025Q2 to 12.9% in 2026Q2, indicating that fixed overhead is not scaling down with revenue. This negative operating leverage amplifies the impact of revenue declines on profitability. The operating margin of 2.9% in 2026Q2 is a fraction of the 11.0% achieved in 2024Q2, highlighting the company's inability to adjust its cost base quickly in a downturn.
Earnings Quality Deteriorates
Net income in 2026Q2 was $27.3M, down 71.3% year-over-year, with EPS of $0.43, while stock-based compensation was negligible, based on reported figures.
The sharp decline in net income is consistent with operational deterioration, but the absence of significant non-operating items suggests that the earnings quality is not being flattered by one-time gains. However, the effective tax rate appears to be roughly 15% in 2026Q2, which is lower than the statutory rate, potentially providing a modest boost to EPS. Investors should monitor whether tax benefits can persist as profitability weakens.
Cost Discipline Under Pressure
COGS as a percentage of revenue rose to 84.4% in 2026Q2 from 80.5% in 2025Q2, while SG&A grew to 12.9% of revenue, as per the income statement data.
The rising COGS ratio indicates that the company is unable to offset input cost inflation or is selling at lower prices. SG&A's relative increase suggests that selling and administrative expenses are not being cut proportionally, possibly due to investments in sales incentives or fixed branch costs. This dual pressure on both gross and operating margins implies that management's cost control measures have not yet been effective.
2024Q4 Marks the Turning Point
Revenue peaked at $2.0B in 2024Q4 with a 19.5% growth rate, but by 2025Q1 growth turned negative, signaling the onset of a sustained downturn, per the income statement data.
The inflection from positive to negative revenue growth occurred abruptly after 2024Q4, and the subsequent quarters show a consistent deceleration. This suggests that the company entered a cyclical downturn that has not yet bottomed. The lasting impact is a compressed margin structure, as the company has been unable to regain the profitability levels seen in 2024, indicating that the downturn may have permanently altered its earnings power.
What Could Invalidate the Base Case
Despite the severe downturn, KBH's gross margin stability in 2026Q1 and Q2 may signal a floor, but the persistent revenue decline and margin gap versus peers suggest the base case of continued weakness could be challenged if demand stabilizes.
Short-sellers might argue that KBH's revenue decline is not purely cyclical but reflects a loss of competitive position, given its steeper drop than peers. The gross margin, while low, has stabilized sequentially, which could indicate that pricing pressures are easing, but the operating margin compression due to sticky SG&A remains a concern. If the company can cut overhead more aggressively or if housing demand recovers, the current pessimistic outlook could be too negative, but the lack of evidence of such a turnaround makes the bear case compelling.