Revenue rebounded 32.3% YoY to $66.3M in 2026Q2, with gross margin expanding to 49.5% and net margin hitting 35.4%, though TTM revenue is still down 10.7%.
Legacy Housing Corporation (LEGH) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 179.45M | 164.57M | 184.19M | 189.14M | 257.01M | 197.51M | 176.72M | 168.96M | 161.88M | 128.74M | 110.55M |
| Revenue Growth % | -2.62% | -10.65% | -2.62% | -26.41% | 30.13% | 11.76% | 4.6% | 4.37% | 25.74% | 16.46% | - |
| Cost of Goods Sold | 90.73M | 86.55M | 90.07M | 99.69M | 150.11M | 114.05M | 109.72M | 104.9M | 107.23M | 82.5M | 77.33M |
| COGS % of Revenue | - | 52.59% | 48.9% | 52.71% | 58.41% | 57.74% | 62.09% | 62.09% | 66.24% | 64.08% | 69.95% |
| Gross Profit | 88.72M | 78.02M | 94.12M | 89.45M | 106.9M | 83.46M | 67M | 64.05M | 54.65M | 46.24M | 33.22M |
| Gross Margin % | 49.44% | 47.41% | 51.1% | 47.29% | 41.59% | 42.26% | 37.91% | 37.91% | 33.76% | 35.92% | 30.05% |
| Gross Profit Growth % | - | -17.11% | 5.22% | -16.32% | 28.09% | 24.56% | 4.6% | 17.21% | 18.18% | 39.2% | - |
| Operating Expenses | 29.87M | 29.61M | 30.51M | 24.86M | 28.88M | 24.54M | 19.4M | 26.21M | 21.85M | 18.14M | 14.79M |
| OpEx % of Revenue | - | 17.99% | 16.56% | 13.15% | 11.24% | 12.43% | 10.98% | 15.51% | 13.5% | 14.09% | 13.38% |
| Selling, General & Admin | 29.21M | 29.61M | 23.22M | 24.86M | 28.88M | 24.54M | 19.4M | 26.21M | 21.85M | 18.14M | 14.79M |
| SG&A % of Revenue | - | 17.99% | 12.61% | 13.15% | 11.24% | 12.43% | 10.98% | 15.51% | 13.5% | 14.09% | 13.38% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 463K | 0 | 7.29M | 0 | 0 | 0 | 0 | 0 | 162K | 149K | 102K |
| Operating Income | 58.84M | 48.41M | 63.61M | 64.59M | 78.02M | 58.92M | 47.6M | 37.84M | 32.8M | 28.09M | 18.43M |
| Operating Margin % | 32.79% | 29.41% | 34.53% | 34.15% | 30.36% | 29.83% | 26.93% | 22.4% | 20.26% | 21.82% | 16.67% |
| Operating Income Growth % | - | -23.9% | -1.51% | -17.22% | 32.42% | 23.78% | 25.78% | 15.37% | 16.75% | 52.48% | - |
| EBITDA | 60.52M | 50.26M | 65.52M | 66.31M | 79.8M | 60.5M | 48.81M | 38.85M | 33.64M | 28.75M | 19M |
| EBITDA Margin % | 33.72% | 30.54% | 35.57% | 35.06% | 31.05% | 30.63% | 27.62% | 23% | 20.78% | 22.33% | 17.19% |
| EBITDA Growth % | -1.06% | -23.28% | -1.2% | -16.9% | 31.89% | 23.96% | 25.62% | 15.51% | 17.01% | 51.29% | - |
| D&A (Non-Cash Add-back) | 1.67M | 1.86M | 1.91M | 1.73M | 1.78M | 1.59M | 1.21M | 1.01M | 838K | 652K | 576K |
| EBIT | 60.54M | 51.59M | 76.73M | 69.67M | 82.52M | 61.51M | 49.88M | 38.29M | 33.15M | 28.52M | 18.74M |
| Net Interest Income | 657K | 1.37M | 1.95M | 2.09M | 2.57M | 1.21M | -138K | -402K | -2.32M | -1.77M | -1.03M |
| Interest Income | 721K | 1.4M | 2.63M | 3.02M | 2.94M | 2.1M | 915K | 300K | 190K | 272K | 214K |
| Interest Expense | 64K | 28K | 689K | 930K | 375K | 887K | 1.05M | 702K | 2.51M | 2.04M | 1.24M |
| Other Income/Expense | 1.69M | 3.16M | 12.43M | 4.15M | 4.13M | 1.71M | 1.23M | -250K | -2.15M | -1.62M | -928K |
| Pretax Income | 60.53M | 51.57M | 76.04M | 68.74M | 82.15M | 60.63M | 48.82M | 37.59M | 30.64M | 26.47M | 17.5M |
| Pretax Margin % | 33.73% | 31.33% | 41.28% | 36.34% | 31.96% | 30.7% | 27.63% | 22.25% | 18.93% | 20.56% | 15.83% |
| Income Tax | 9.29M | 9.76M | 14.4M | 14.28M | 14.38M | 10.76M | 10.83M | 8.75M | 9.13M | 124K | 158K |
| Effective Tax Rate % | 15.34% | 18.92% | 18.93% | 20.77% | 17.5% | 17.74% | 22.18% | 23.27% | 29.8% | 0.47% | 0.9% |
| Net Income | 51.25M | 41.81M | 61.64M | 54.46M | 67.77M | 49.87M | 37.99M | 28.84M | 21.51M | 26.35M | 17.34M |
| Net Margin % | 28.56% | 25.41% | 33.47% | 28.79% | 26.37% | 25.25% | 21.5% | 17.07% | 13.29% | 20.47% | 15.68% |
| Net Income Growth % | -7.3% | -32.17% | 13.19% | -19.64% | 35.9% | 31.26% | 31.73% | 34.08% | -18.35% | 51.96% | - |
| Net Income (Continuing) | 51.25M | 41.81M | 61.64M | 54.46M | 67.77M | 49.87M | 37.99M | 28.84M | 21.51M | 26.35M | 17.34M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.15 | 1.74 | 2.48 | 2.17 | 2.74 | 2.05 | 1.57 | 1.18 | 1.07 | 1.10 | 0.56 |
| EPS Growth % | -4.89% | -29.84% | 14.29% | -20.8% | 33.66% | 30.57% | 33.05% | 10.28% | -2.73% | 96.43% | - |
| EPS (Basic) | - | 1.74 | 2.55 | 2.23 | 2.78 | 2.06 | 1.57 | 1.18 | 1.07 | 1.10 | 0.56 |
| Diluted Shares Outstanding | 23.81M | 23.98M | 24.81M | 25.07M | 24.74M | 24.28M | 24.24M | 24.44M | 20.2M | 24M | 20M |
| Basic Shares Outstanding | 23.78M | 23.98M | 24.22M | 24.39M | 24.36M | 24.2M | 24.23M | 24.38M | 20.2M | 24M | 20M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 67.06% | 39.82% |
Quick answers to the most common questions about buying LEGH stock.
For fiscal year 2025, Legacy Housing Corporation (LEGH) reported total revenue of $164.6M. This represents a 48.9% increase compared to $110.5M in 2016.
Legacy Housing Corporation (LEGH) is profitable, generating $41.8M in net income for the fiscal year ending 2025 with a net profit margin of 25.4%.
Legacy Housing Corporation (LEGH) reported an operating income of $48.4M, resulting in an operating profit margin of 29.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Legacy Housing Corporation (LEGH) generated $78.0M in gross profit for the year, representing a gross profit margin of 47.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue volatility and credit risk
Metrics are mathematically derived from official filings.
Revenue Rebound Masks Underlying Volatility
LEGH's revenue surged 32.3% YoY in 2026Q2 to $66.3M, but this follows a 10.7% TTM decline, indicating a highly erratic demand pattern. According to the latest quarterly report, the rebound may reflect timing of deliveries rather than sustained growth.
The 32.3% YoY growth in 2026Q2 is a sharp reversal from the -29.4% decline in 2025Q4, suggesting that the company's revenue is subject to lumpy order flow and potentially volatile wholesale demand. While the recent quarter shows strength, the overall TTM trend remains negative, implying that the underlying demand environment is still soft. Investors should monitor whether this rebound is sustainable or a one-off spike driven by dealer restocking.
Blended Margins Hiding Financing Strength
Gross margin expanded to 49.5% in 2026Q2, up from 47.0% a year earlier, but this figure blends manufacturing with high-margin interest income. As reported in financial statements, the 47.4% average gross margin is structurally elevated versus peers like SKY at 26.4%.
The elevated gross margin is a direct result of LEGH's captive financing operations, which carry minimal direct costs. However, the margin is sensitive to sales mix: a shift toward third-party retail sales or higher loan loss provisions could compress it. The recent improvement in gross margin suggests that the financing arm is contributing disproportionately, but this also means that any deterioration in credit quality would directly hit profitability.
Operating Leverage Amplifies Revenue Swings
Operating margin swung from 24.0% in 2025Q3 to 39.9% in 2026Q2, demonstrating high operating leverage. Based on the income statement data, SG&A remained relatively stable, so revenue changes directly impact operating income.
With SG&A averaging around $6-7M per quarter, the company's fixed cost base is modest, allowing operating income to scale rapidly with revenue. The 2026Q2 operating margin of 39.9% is exceptional, but it also means that a downturn in revenue could compress margins quickly, as seen in 2025Q3 when revenue fell to $40.5M and operating margin dropped to 24.0%. This leverage cuts both ways, making earnings highly sensitive to top-line trends.
Net Income Quality Supported by Financing
Net margin reached 35.4% in 2026Q2, far above the peer average of ~8%, driven by interest income from the loan portfolio. According to the latest financials, EPS grew 65% YoY, but this is partly due to a low base and may not be repeatable.
The high net margin is a hallmark of LEGH's 'bank with a factory' model, where interest income from consumer loans carries minimal operating costs. However, the quality of earnings is contingent on loan performance; any rise in delinquencies would require higher provisions, directly reducing net income. The negative SBC in 2026Q2 is unusual and may indicate a reversal of prior stock-based compensation, but it is not a recurring driver of profitability.
Cost Structure Reflects Hybrid Model
COGS as a percentage of revenue fell to 50.5% in 2026Q2, down from 53.0% in 2025Q2, indicating improved manufacturing efficiency. As per the income statement, SG&A remained flat at ~$6.9M, showing disciplined overhead control.
The cost structure is bifurcated: manufacturing COGS is variable and sensitive to commodity prices, while the financing arm has minimal direct costs. The recent improvement in gross margin suggests that either input costs are normalizing or the sales mix is shifting toward higher-margin financing. SG&A discipline is evident, with expenses staying in the $5-9M range despite revenue fluctuations, which supports operating leverage. However, any spike in lumber or steel prices could erode manufacturing margins, as seen in 2025Q3 when gross margin fell to 41.8%.
2026Q2 Marks a Potential Turning Point
The 2026Q2 quarter stands out as a clear inflection, with revenue jumping to $66.3M and net margin hitting 35.4%, the highest in the series. Based on the reported data, this quarter reversed a multi-quarter decline and may signal a new growth phase.
After four consecutive quarters of YoY revenue declines, 2026Q2 delivered 32.3% growth, suggesting that demand may be stabilizing or that the company has successfully pivoted its sales strategy. The operating margin of 39.9% is the highest in the ten-quarter window, indicating that the company is benefiting from both revenue growth and cost control. However, it is unclear whether this inflection is sustainable or a one-time event, given the volatility in prior quarters. Investors should watch for confirmation in subsequent quarters before concluding that the downturn has ended.
Revenue Volatility and Credit Risk Threaten Stability
Despite strong margins, LEGH's revenue has swung from -29.4% to +32.3% YoY within three quarters, highlighting extreme volatility. As reported in the income statement, the TTM revenue is still down 10.7%, and the loan book's credit quality remains a key risk.
Short-sellers would argue that the recent revenue surge is not evidence of a durable recovery, given the erratic pattern and the lack of forward guidance. The company's reliance on captive financing exposes it to credit risk; if the low-to-moderate income demographic faces inflation pressures, delinquencies could rise, impairing the high-margin interest income. Additionally, the zero-debt balance sheet, while conservative, may indicate that management is not aggressively pursuing growth, potentially capping upside. The absence of guidance in the latest earnings event adds uncertainty, making it difficult to assess the sustainability of the current momentum.