Revenue has declined for six straight quarters (worst: -27.3% YoY in 2026Q2) while gross margin collapsed from 21.4% to 5.5% and operating margin fell from 11.7% to 5.4%, indicating SG&A reductions from $186.7M to $131.0M have failed to offset gross profit erosion.
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 | 5.18B | 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 % | -20.8% | -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 | 4.33B | 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 | 852.87M | 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 % | 16.46% | 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 | 589.72M | 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 | 589.72M | 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 | 263.15M | 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 % | 5.08% | 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 | 304.11M | 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 % | 5.87% | 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 % | -54.73% | -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) | 40.96M | 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 | 282.71M | 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 | 5.22M | 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 | 5.22M | 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 | 24.82M | 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 | 287.97M | 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 % | 5.56% | 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 | 60.4M | 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 % | 20.97% | 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 | 227.57M | 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 % | 4.39% | 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 % | -56.06% | -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) | 227.57M | 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) | 3.68 | 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 % | -50.14% | -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 | 61.76M | 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 | 60.83M | 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
Gross margin erosion versus peer set
Metrics are mathematically derived from official filings.
Revenue Decline Accelerating Sharply
KB Home's revenue has contracted for six consecutive quarters, with year-over-year declines worsening from -5.2% in 2025Q1 to -27.3% in 2026Q2, suggesting sustained demand erosion rather than a one-time correction, according to recent SEC filings.
The revenue contraction appears structural rather than cyclical — the decline deepened from single-digit territory in early 2025 into the -20%+ range through late 2025 and into 2026, indicating that earlier pricing and volume actions failed to stem order erosion. This pattern may suggest KBH is ceding market share to peers with stronger balance sheets or more compelling entry-level product offerings, and investors should monitor whether the trend stabilizes or continues deteriorating in subsequent quarters.
Gross Margin Collapse to Single Digits
Gross margin has deteriorated from 21.4% in 2024Q2 to 5.5% in 2026Q3, a compression of roughly 1,600 basis points that appears to reflect significant pricing pressure or cost absorption challenges, as reported in KB Home's quarterly financial statements.
The magnitude of this compression suggests KBH is facing more than normal cyclical pressure — land parcels acquired at peak-cycle costs, elevated mortgage rates dampening affordability, and potential promotional activity to move standing inventory are all plausible contributors. If the sub-6% gross margin observed in 2026Q3 represents a new baseline rather than a trough, KBH's structural profitability could be meaningfully impaired versus its 2024 peak. This warrants close scrutiny of upcoming disclosures for land valuation adjustments or discounting commentary from management.
SG&A Cuts Fail to Offset Erosion
Despite SG&A declining from $186.7M in 2024Q4 to $131.0M in 2026Q1, the overhead reduction has failed to offset gross profit erosion, with operating margin compressing from 11.7% to 3.4% during the same period, per KB Home's income statements.
SG&A reduction of roughly 30% from the 2024Q4 peak to 2026Q1 represents meaningful cost discipline, yet operating income still fell 72% ($234.4M to $36.4M) — a textbook case of negative operating leverage where a high-fixed-cost structure amplifies the impact of declining revenue. If revenue continues to contract, further SG&A reduction alone may be insufficient to restore historical operating margins, suggesting the company's cost base may need structural reconsideration rather than incremental trimming to recover prior profitability levels.
2025 Marked Durable Profitability Reset
KB Home's operating margin peaked at 11.7% in 2024Q4 before declining to 3.4% by 2026Q1, with diluted EPS collapsing 83% from $2.52 to $0.43 — a clear inflection that appears to mark a durable profitability reset, as disclosed in recent quarterly filings.
The transition from 2024Q4 through 2026Q1 appears to be a decisive break from KBH's prior earnings trajectory, with quarterly operating income dropping from $234.4M to $32.0M — a decline that suggests a fundamental shift in pricing power or cost structure rather than a normal cyclical swing. Unlike prior soft patches, this inflection has persisted across eight consecutive quarters without meaningful recovery, implying that the company may need to reassess land strategy or product mix to restore former margins. This represents the most consequential operational turning point in the disclosed ten-quarter history.
Peer Margin Gap Raises Structural Concerns
While peers PulteGroup (26.4% gross margin, 17.3% operating margin) and Toll Brothers (26.0% gross margin, 15.7% operating margin) maintain healthy profitability, KB Home's 5.5% gross margin and 5.4% operating margin in 2026Q3 suggest company-specific headwinds beyond sector cyclicality, based on peer-comparison data.
The roughly 2,000 basis point gross margin gap versus PulteGroup raises questions about whether KBH's exposure to entry-level buyers or geographic concentration creates asymmetric vulnerability to the current rate environment, since peers with similar revenue declines have preserved materially healthier margins. A short-seller thesis would focus on whether reported margins reflect land carrying values that could require further writedowns, or whether the company is under-investing in future revenue to protect near-term cash. Investors should carefully examine whether the $71.9M gross profit in 2026Q3 is a temporary floor or the emergence of a structurally lower margin profile, which would materially change the long-term earnings power assumption.