Operating income has deteriorated to a negative $582.0K in 2026Q1, reflecting the company's inability to scale fixed costs against a 9.0% year-over-year revenue decline.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 1.67B | 1.71B | 2.2B | 2.36B | 2.3B | 3.05B | 2.37B | 1.84B | 1.5B | 1.26B | 838.32M | 630.24M | 383.27M | 162.8M | 76.22M | 50.46M |
| Revenue Growth % | -22.62% | -22.57% | -6.61% | 2.35% | -24.45% | 28.81% | 28.82% | 22.19% | 19.59% | 50.06% | 33.02% | 64.44% | 135.43% | 113.58% | 51.06% | - |
| Cost of Goods Sold | 1.33B | 1.35B | 1.67B | 1.82B | 1.66B | 2.23B | 1.76B | 1.4B | 1.12B | 937.54M | 616.71M | 463.3M | 280.48M | 121.33M | 54.53M | 36.7M |
| COGS % of Revenue | - | 79.27% | 75.79% | 77.01% | 71.94% | 73.18% | 74.53% | 76.25% | 74.75% | 74.53% | 73.56% | 73.51% | 73.18% | 74.53% | 71.54% | 72.74% |
| Gross Profit | 339.76M | 353.55M | 533.29M | 542.19M | 646.6M | 818.03M | 603.1M | 436.48M | 379.92M | 320.42M | 221.61M | 166.93M | 102.79M | 41.47M | 21.69M | 13.76M |
| Gross Margin % | 20.3% | 20.73% | 24.21% | 22.99% | 28.06% | 26.82% | 25.47% | 23.75% | 25.25% | 25.47% | 26.44% | 26.49% | 26.82% | 25.47% | 28.46% | 27.26% |
| Gross Profit Growth % | - | -33.7% | -1.64% | -16.15% | -20.96% | 35.64% | 38.17% | 14.89% | 18.57% | 44.59% | 32.76% | 62.41% | 147.86% | 91.19% | 57.67% | - |
| Operating Expenses | 260.74M | 273.77M | 321.14M | 308.93M | 256.49M | 270.34M | 238.39M | 208.94M | 179.81M | 150.62M | 110.14M | 87.26M | 60.42M | 29.37M | 13.37M | 10.01M |
| OpEx % of Revenue | - | 16.05% | 14.58% | 13.1% | 11.13% | 8.86% | 10.07% | 11.37% | 11.95% | 11.97% | 13.14% | 13.85% | 15.76% | 18.04% | 17.54% | 19.84% |
| Selling, General & Admin | 260.24M | 273.77M | 321.14M | 308.93M | 256.49M | 270.34M | 238.39M | 208.94M | 179.81M | 150.62M | 110.14M | 87.26M | 60.42M | 29.37M | 13.37M | 10.01M |
| SG&A % of Revenue | - | 16.05% | 14.58% | 13.1% | 11.13% | 8.86% | 10.07% | 11.37% | 11.95% | 11.97% | 13.14% | 13.85% | 15.76% | 18.04% | 17.54% | 19.84% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 999 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 606K | 0 | 24K | 0 | 0 |
| Operating Income | 79.03M | 79.78M | 212.15M | 233.25M | 390.11M | 547.7M | 364.71M | 227.54M | 200.11M | 169.8M | 111.47M | 79.67M | 42.37M | 16.38M | 9.85M | 4.46M |
| Operating Margin % | 4.72% | 4.68% | 9.63% | 9.89% | 16.93% | 17.96% | 15.4% | 12.38% | 13.3% | 13.5% | 13.3% | 12.64% | 11.06% | 10.06% | 12.92% | 8.84% |
| Operating Income Growth % | - | -62.4% | -9.05% | -40.21% | -28.77% | 50.17% | 60.29% | 13.71% | 17.85% | 52.33% | 39.91% | 88.04% | 158.61% | 66.32% | 120.79% | - |
| EBITDA | 82.49M | 84.1M | 215.25M | 235.66M | 391.68M | 548.85M | 365.42M | 228.18M | 200.82M | 170.59M | 112.56M | 80.56M | 43.2M | 16.68M | 10.04M | 4.54M |
| EBITDA Margin % | 4.93% | 4.93% | 9.77% | 9.99% | 17% | 17.99% | 15.43% | 12.41% | 13.35% | 13.56% | 13.43% | 12.78% | 11.27% | 10.24% | 13.17% | 9% |
| EBITDA Growth % | -58.1% | -60.93% | -8.66% | -39.83% | -28.64% | 50.2% | 60.14% | 13.62% | 17.72% | 51.56% | 39.73% | 86.49% | 159.04% | 66.15% | 120.99% | - |
| D&A (Non-Cash Add-back) | 3.46M | 4.32M | 3.11M | 2.41M | 1.58M | 1.15M | 710K | 643K | 711K | 791K | 1.09M | 883K | 825K | 291.61K | 185.12K | 79.75K |
| EBIT | 92.18M | 98.49M | 258.91M | 233.25M | 390.11M | 547.7M | 369.58M | 230.86M | 201.52M | 170.05M | 111.96M | 81.81M | 45.99M | 22.85M | 10.02M | 4.67M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -51K | -1K | -28.15K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 234 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 51K | 51K | 1.23K | 28.15K |
| Other Income/Expense | 18.06M | 18.71M | 46.77M | 28.5M | 28.01M | -4.92M | 3.14M | 4.29M | -1.01M | 1.6M | 2.2M | 606K | 708K | 6.42M | 1.7M | 890.28K |
| Pretax Income | 97.08M | 98.49M | 258.91M | 261.75M | 418.12M | 542.77M | 367.85M | 231.83M | 199.1M | 171.4M | 113.67M | 80.28M | 43.08M | 22.8M | 10.02M | 4.64M |
| Pretax Margin % | 5.8% | 5.77% | 11.75% | 11.1% | 18.14% | 17.79% | 15.53% | 12.61% | 13.23% | 13.63% | 13.56% | 12.74% | 11.24% | 14.01% | 13.15% | 9.19% |
| Income Tax | 26.36M | 25.93M | 62.84M | 62.53M | 91.55M | 113.13M | 43.95M | 53.22M | 43.81M | 58.1M | 38.64M | 27.45M | 14.87M | 1.07M | 154.54K | 124.89K |
| Effective Tax Rate % | 27.16% | 26.33% | 24.27% | 23.89% | 21.9% | 20.84% | 11.95% | 22.96% | 22.01% | 33.89% | 33.99% | 34.19% | 34.51% | 4.67% | 1.54% | 2.69% |
| Net Income | 70.72M | 72.55M | 196.07M | 199.23M | 326.57M | 429.64M | 323.89M | 178.61M | 155.29M | 113.31M | 75.03M | 52.83M | 28.21M | 22.33M | 9.71M | 3.35M |
| Net Margin % | 4.22% | 4.25% | 8.9% | 8.45% | 14.17% | 14.09% | 13.68% | 9.72% | 10.32% | 9.01% | 8.95% | 8.38% | 7.36% | 13.71% | 12.73% | 6.64% |
| Net Income Growth % | -61.36% | -63% | -1.58% | -38.99% | -23.99% | 32.65% | 81.34% | 15.02% | 37.05% | 51.01% | 42.02% | 87.27% | 26.35% | 130.05% | 189.67% | - |
| Net Income (Continuing) | 70.72M | 72.55M | 196.07M | 199.23M | 326.57M | 429.64M | 323.89M | 178.61M | 155.29M | 113.31M | 75.03M | 52.83M | 28.21M | 21.74M | 9.87M | 4.51M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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 | 1.64M |
| EPS (Diluted) | 3.05 | 3.12 | 8.30 | 8.42 | 13.76 | 17.25 | 12.76 | 7.02 | 6.24 | 4.73 | 3.41 | 2.44 | 1.33 | 1.08 | 1.30 | 0.45 |
| EPS Growth % | -60.65% | -62.41% | -1.43% | -38.81% | -20.23% | 35.19% | 81.77% | 12.5% | 31.92% | 38.71% | 39.75% | 83.46% | 23.15% | -16.92% | 188.89% | - |
| EPS (Basic) | - | 3.13 | 8.33 | 8.48 | 13.90 | 17.46 | 12.89 | 7.70 | 6.24 | 5.24 | 3.61 | 2.65 | 1.37 | 1.08 | 1.30 | 0.45 |
| Diluted Shares Outstanding | 23.22M | 23.25M | 23.61M | 23.65M | 23.73M | 24.91M | 25.38M | 25.43M | 24.89M | 23.93M | 22.02M | 21.74M | 21.2M | 20.76M | 7.48M | 7.48M |
| Basic Shares Outstanding | 23.15M | 23.19M | 23.53M | 23.51M | 23.49M | 24.61M | 25.14M | 23.19M | 24.89M | 21.6M | 20.8M | 19.94M | 20.67M | 20.76M | 7.48M | 7.48M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | 40.81% | 42.61% | 172.22% |
High interest rate sensitivity
As reported in recent financial filings, LGIH has experienced a sustained period of top-line decline, culminating in a 9.0% year-over-year revenue contraction in 2026Q1, which underscores the significant challenges the company faces in maintaining its high-velocity absorption model within the current macroeconomic environment.
The consistent revenue decay across the last several quarters suggests that the company's entry-level buyer base is increasingly sidelined by affordability constraints. Investors should monitor whether this trend reflects a structural shift in demand or merely a temporary pause in the company's ability to convert renters into homeowners.
Based on the provided income statement data, gross margins have compressed from a peak of 25.1% in 2024Q3 to 18.7% in 2026Q1, indicating that the company is likely utilizing aggressive sales incentives to sustain volume in a difficult interest rate environment.
This margin degradation suggests that the company's 'no-options' production model may be losing its cost-efficiency advantage as input costs remain elevated. The inability to maintain historical gross margin levels implies that the company's pricing power is currently insufficient to offset the rising cost of mortgage rate buy-downs.
According to the quarterly income statements, operating income has deteriorated sharply, reaching a negative $582.0K in 2026Q1, which demonstrates that the company's fixed cost structure is not scaling effectively as revenue continues to decline across its core housing segments.
The failure to maintain positive operating margins suggests that SG&A expenses are becoming increasingly burdensome relative to the shrinking revenue base. This lack of operating leverage warrants further investigation into management's ability to rationalize overhead costs in the face of prolonged demand weakness.
Data from the most recent periods suggests that LGIH's reliance on speculative inventory may be a double-edged sword, as the company reported a net income of only $2.2M in 2026Q1, raising questions about the long-term viability of its high-velocity, entry-level focused strategy.
Short-sellers may focus on the potential for inventory overhang to force further price concessions, which would likely lead to additional earnings volatility. The current financial performance appears to challenge the narrative that the company's proprietary lead-generation funnel can consistently outperform broader market trends during cyclical downturns.
Quick answers to the most common questions about buying LGIH stock.
For fiscal year 2025, LGI Homes, Inc. (LGIH) reported total revenue of $1.71B. This represents a 3280.2% increase compared to $50.5M in 2011.
LGI Homes, Inc. (LGIH) is profitable, generating $72.6M in net income for the fiscal year ending 2025 with a net profit margin of 4.3%.
LGI Homes, Inc. (LGIH) reported an operating income of $79.8M, resulting in an operating profit margin of 4.7%. This margin reflects the operational efficiency of the business before interest and taxes.
LGI Homes, Inc. (LGIH) generated $353.5M in gross profit for the year, representing a gross profit margin of 20.7%. This demonstrates the company's core pricing power and production efficiency.