Revenue and margins have deteriorated steadily, with operating margin falling from 16.8% in 2024Q2 to 6.4% in 2026Q3 while SG&A held near $128M to $164M per quarter.
Meritage Homes Corporation (MTH) annual income statement — 30-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 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 5.2B | 5.86B | 6.4B | 6.14B | 6.29B | 5.14B | 4.5B | 3.67B | 3.53B | 3.24B | 3.04B | 2.58B | 2.18B | 1.82B | 1.19B | 861.24M | 941.66M | 970.31M | 1.52B | 2.34B | 3.46B | 3B | 2.04B | 1.47B | 1.12B | 744.17M | 520.47M | 341.79M | 255.98M | 149.63M | 2.2M |
| Revenue Growth % | -13.98% | -8.4% | 4.18% | -2.45% | 22.38% | 14.22% | 22.75% | 3.92% | 8.87% | 6.55% | 17.92% | 18.34% | 19.72% | 52.43% | 38.69% | -8.54% | -2.95% | -36.29% | -35.01% | -32.29% | 15.33% | 47.11% | 38.68% | 31.36% | 50.48% | 42.98% | 52.28% | 33.52% | 71.08% | 6701.34% | -38.89% |
| Cost of Goods Sold | 4.23B | 4.69B | 4.8B | 4.62B | 4.49B | 3.7B | 3.5B | 2.96B | 2.87B | 2.65B | 2.48B | 2.06B | 1.71B | 1.41B | 964M | 720.14M | 773.96M | 966.26M | 1.56B | 2.33B | 2.75B | 2.29B | 1.63B | 1.27B | 970.21M | 628M | 444.33M | 296.53M | 218.7M | 124.59M | 0 |
| COGS % of Revenue | - | 80.04% | 75.01% | 75.25% | 71.35% | 72.04% | 77.76% | 80.71% | 81.3% | 81.63% | 81.69% | 80.05% | 78.32% | 77.3% | 80.71% | 83.62% | 82.19% | 99.58% | 102.42% | 99.44% | 79.41% | 76.44% | 79.98% | 86.43% | 86.64% | 84.39% | 85.37% | 86.76% | 85.44% | 83.27% | - |
| Gross Profit | 962.38M | 1.15B | 1.6B | 1.52B | 1.8B | 1.44B | 1B | 707.49M | 659.9M | 595.25M | 556.91M | 514.58M | 472.5M | 413.37M | 230.45M | 141.11M | 167.7M | 4.05M | -36.91M | 13.05M | 712.63M | 706.99M | 408.47M | 199.61M | 149.6M | 116.17M | 76.14M | 45.26M | 37.28M | 25.04M | 2.2M |
| Gross Margin % | 18.51% | 19.69% | 24.99% | 24.75% | 28.65% | 27.96% | 22.24% | 19.29% | 18.7% | 18.37% | 18.31% | 19.95% | 21.68% | 22.7% | 19.29% | 16.38% | 17.81% | 0.42% | -2.42% | 0.56% | 20.59% | 23.56% | 20.02% | 13.57% | 13.36% | 15.61% | 14.63% | 13.24% | 14.56% | 16.73% | 100% |
| Gross Profit Growth % | - | -27.82% | 5.22% | -15.75% | 25.43% | 43.61% | 41.47% | 7.21% | 10.86% | 6.88% | 8.23% | 8.91% | 14.3% | 79.37% | 63.32% | -15.85% | 4039.62% | 110.97% | -382.96% | -98.17% | 0.8% | 73.08% | 104.63% | 33.43% | 28.78% | 52.58% | 68.24% | 21.38% | 48.92% | 1037.99% | -38.89% |
| Operating Expenses | 551.6M | 616.17M | 639.92M | 616.63M | 516.25M | 466.85M | 446.92M | 392.82M | 380.38M | 345.69M | 338.89M | 301.27M | 261.34M | 218.23M | 177.36M | 139.1M | 136.58M | 141.83M | 205.09M | 302.63M | 380.82M | 285.09M | 195.78M | 53.93M | 41.5M | 35.72M | 21.21M | 15.1M | 10.63M | 15.11M | 1.7M |
| OpEx % of Revenue | - | 10.52% | 10.01% | 10.05% | 8.2% | 9.08% | 9.93% | 10.71% | 10.78% | 10.67% | 11.14% | 11.68% | 11.99% | 11.99% | 14.85% | 16.15% | 14.5% | 14.62% | 13.47% | 12.91% | 11% | 9.5% | 9.6% | 3.67% | 3.71% | 4.8% | 4.08% | 4.42% | 4.15% | 10.1% | 77.27% |
| Selling, General & Admin | 472.13M | 211.76M | 639.92M | 616.63M | 516.25M | 466.85M | 446.92M | 392.82M | 380.38M | 345.69M | 338.89M | 301.27M | 261.34M | 218.23M | 163.02M | 139.1M | 136.58M | 141.83M | 205.09M | 302.63M | 380.82M | 285.09M | 195.78M | 53.93M | 41.5M | 35.72M | 21.21M | 15.1M | 10.63M | 15.11M | 0 |
| SG&A % of Revenue | - | 3.62% | 10.01% | 10.05% | 8.2% | 9.08% | 9.93% | 10.71% | 10.78% | 10.67% | 11.14% | 11.68% | 11.99% | 11.99% | 13.65% | 16.15% | 14.5% | 14.62% | 13.47% | 12.91% | 11% | 9.5% | 9.6% | 3.67% | 3.71% | 4.8% | 4.08% | 4.42% | 4.15% | 10.1% | - |
| 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 | 1000K | 404.4M | 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 | 1.7M |
| Operating Income | 410.78M | 537.48M | 958.35M | 902.39M | 1.29B | 970.58M | 553.98M | 314.67M | 279.52M | 249.57M | 218.02M | 213.31M | 211.16M | 195.15M | 67.44M | 2.01M | 31.11M | -133.77M | -242.01M | -289.58M | 331.81M | 421.9M | 212.69M | 145.68M | 108.11M | 80.45M | 54.92M | 30.16M | 26.65M | 9.93M | 500K |
| Operating Margin % | 7.9% | 9.18% | 14.99% | 14.7% | 20.45% | 18.88% | 12.31% | 8.58% | 7.92% | 7.7% | 7.17% | 8.27% | 9.69% | 10.72% | 5.65% | 0.23% | 3.3% | -13.79% | -15.89% | -12.36% | 9.59% | 14.06% | 10.43% | 9.9% | 9.65% | 10.81% | 10.55% | 8.82% | 10.41% | 6.64% | 22.73% |
| Operating Income Growth % | - | -43.92% | 6.2% | -29.87% | 32.57% | 75.2% | 76.05% | 12.58% | 12% | 14.47% | 2.21% | 1.02% | 8.2% | 189.38% | 3251.69% | -93.53% | 123.26% | 44.73% | 16.43% | -187.27% | -21.35% | 98.37% | 45.99% | 34.76% | 34.38% | 46.48% | 82.13% | 13.15% | 168.4% | 1885.91% | -75% |
| EBITDA | 434.44M | 562.76M | 984.3M | 927.72M | 1.31B | 996.82M | 585.03M | 342.6M | 306.49M | 266.27M | 234M | 227.55M | 222.77M | 205.08M | 75.63M | 9.19M | 39.09M | -124.92M | -226.34M | -271.76M | 355.54M | 439.1M | 225.92M | 154.22M | 114.89M | 86.19M | 58.33M | 32.69M | 28.29M | 10.36M | 500K |
| EBITDA Margin % | 8.36% | 9.61% | 15.39% | 15.11% | 20.84% | 19.39% | 13% | 9.34% | 8.69% | 8.22% | 7.69% | 8.82% | 10.22% | 11.26% | 6.33% | 1.07% | 4.15% | -12.87% | -14.86% | -11.6% | 10.27% | 14.63% | 11.07% | 10.48% | 10.26% | 11.58% | 11.21% | 9.56% | 11.05% | 6.92% | 22.73% |
| EBITDA Growth % | -36.65% | -42.83% | 6.1% | -29.26% | 31.56% | 70.39% | 70.76% | 11.78% | 15.1% | 13.79% | 2.83% | 2.15% | 8.63% | 171.16% | 722.98% | -76.49% | 131.29% | 44.81% | 16.71% | -176.44% | -19.03% | 94.36% | 46.49% | 34.23% | 33.29% | 47.77% | 78.46% | 15.54% | 173.01% | 1972.33% | -75% |
| D&A (Non-Cash Add-back) | 23.66M | 25.29M | 25.96M | 25.33M | 24.75M | 26.25M | 31.05M | 27.92M | 26.97M | 16.7M | 15.98M | 14.24M | 11.61M | 9.93M | 8.2M | 7.18M | 7.97M | 8.84M | 15.67M | 17.82M | 23.73M | 17.21M | 13.23M | 8.54M | 6.78M | 5.74M | 3.41M | 2.53M | 1.64M | 432.08K | 0 |
| EBIT | 438.63M | 584.6M | 1B | 949.43M | 1.29B | 955.15M | 553.98M | 314.67M | 279.52M | 249.57M | 218.02M | 213.31M | 211.16M | 195.15M | 67.44M | 10.02M | 36.21M | -118.27M | -252.31M | -289.58M | 331.81M | 421.9M | 212.69M | 145.68M | 108.11M | 80.45M | 54.92M | 30.16M | 27M | 9.93M | 500K |
| Net Interest Income | -4.13M | 0 | 0 | 0 | -41K | -318K | -2.18M | -8.37M | -785K | -3.85M | -5.17M | -15.96M | -5.16M | -15.09M | -24.24M | -30.4M | -33.72M | -36.53M | -23.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 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 |
| Interest Expense | 4.13M | 0 | 0 | 0 | 41K | 318K | 2.18M | 8.37M | 785K | 3.85M | 5.17M | 15.96M | 5.16M | 15.09M | 24.24M | 30.4M | 33.72M | 36.53M | 23.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -29.75M | 47.12M | 44.52M | 47.04M | 2.67M | -15.74M | -20.41M | -11.73M | 3.73M | -2.05M | 41K | -23.85M | -2.74M | -17.47M | -38.58M | -22.39M | -28.63M | -20.71M | -37.4M | -166.9M | -183.5M | -5.67M | 12.07M | -87.13M | 5.43M | 2.88M | 1.84M | 2.06M | 3.85M | 5.27M | -500K |
| Pretax Income | 381.04M | 584.6M | 1B | 949.43M | 1.29B | 954.83M | 533.57M | 302.94M | 283.25M | 247.52M | 218.06M | 189.46M | 208.42M | 177.67M | 28.85M | -20.38M | 2.48M | -154.8M | -275.97M | -456.48M | 364.01M | 416.23M | 224.76M | 151.46M | 113.54M | 83.34M | 56.76M | 32.21M | 30.5M | 15.2M | 0 |
| Pretax Margin % | 7.33% | 9.98% | 15.68% | 15.47% | 20.49% | 18.57% | 11.85% | 8.26% | 8.03% | 7.64% | 7.17% | 7.35% | 9.56% | 9.76% | 2.42% | -2.37% | 0.26% | -15.95% | -18.12% | -19.48% | 10.52% | 13.87% | 11.02% | 10.3% | 10.14% | 11.2% | 10.91% | 9.43% | 11.91% | 10.16% | - |
| Income Tax | 83.28M | 131.59M | 216.68M | 210.68M | 297.13M | 217.39M | 110.09M | 53.28M | 55.92M | 104.26M | 68.52M | 60.73M | 66.18M | 53.21M | -76.31M | 730K | -4.67M | -88.34M | 15.97M | -167.63M | 138.66M | 160.56M | 85.79M | 57.05M | 43.61M | 32.44M | 21M | 13.27M | 6.5M | 961.92K | -200K |
| Effective Tax Rate % | 21.86% | 22.51% | 21.61% | 22.19% | 23.05% | 22.77% | 20.63% | 17.59% | 19.74% | 42.12% | 31.42% | 32.05% | 31.75% | 29.95% | -264.47% | -3.58% | -187.84% | 57.07% | -5.79% | 36.72% | 38.09% | 38.58% | 38.17% | 37.67% | 38.41% | 38.93% | 37% | 41.19% | 21.3% | 6.33% | - |
| Net Income | 297.75M | 453.01M | 786.19M | 738.75M | 992.19M | 737.44M | 423.48M | 249.66M | 227.33M | 143.25M | 149.54M | 128.74M | 142.24M | 124.46M | 105.16M | -21.11M | 7.15M | -66.46M | -291.94M | -288.85M | 225.35M | 255.66M | 138.97M | 94.41M | 69.94M | 50.66M | 35.76M | 18.95M | 24M | 14.24M | 200K |
| Net Margin % | 5.73% | 7.73% | 12.29% | 12.04% | 15.77% | 14.34% | 9.41% | 6.81% | 6.44% | 4.42% | 4.92% | 4.99% | 6.53% | 6.84% | 8.8% | -2.45% | 0.76% | -6.85% | -19.17% | -12.33% | 6.51% | 8.52% | 6.81% | 6.42% | 6.25% | 6.81% | 6.87% | 5.54% | 9.38% | 9.52% | 9.09% |
| Net Income Growth % | -45.03% | -42.38% | 6.42% | -25.54% | 34.54% | 74.14% | 69.62% | 9.82% | 58.69% | -4.2% | 16.16% | -9.49% | 14.28% | 18.35% | 598.26% | -395.19% | 110.76% | 77.24% | -1.07% | -228.18% | -11.86% | 83.97% | 47.2% | 34.99% | 38.05% | 41.66% | 88.76% | -21.07% | 68.59% | 7018.72% | -81.82% |
| Net Income (Continuing) | 297.75M | 453.01M | 786.19M | 738.75M | 992.19M | 737.44M | 423.48M | 249.66M | 227.33M | 143.25M | 149.54M | 128.74M | 142.24M | 124.46M | 105.16M | -21.11M | 7.15M | -66.46M | -291.94M | -288.85M | 225.35M | 255.66M | 138.97M | 94.41M | 69.94M | 50.89M | 35.76M | 18.95M | 24M | 14.24M | 300K |
| Discontinued Operations | 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 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 0 | 0 | 0 | 0 | 0 | 110.92K | 0 | 0 |
| EPS (Diluted) | 4.57 | 6.40 | 10.72 | 9.97 | 13.37 | 9.65 | 5.50 | 3.21 | 2.79 | 1.71 | 1.78 | 1.55 | 1.73 | 1.63 | 1.50 | -0.33 | 0.11 | -1.06 | -4.98 | -5.51 | 4.16 | 4.44 | 2.52 | 1.71 | 1.33 | 1.08 | 0.79 | 0.40 | 0.49 | 0.34 | 0.01 |
| EPS Growth % | -40.78% | -40.3% | 7.52% | -25.43% | 38.55% | 75.45% | 71.34% | 15.05% | 63.64% | -3.94% | 14.89% | -10.69% | 6.46% | 8.33% | 561.54% | -395.45% | 110.38% | 78.69% | 9.63% | -232.33% | -6.31% | 76.54% | 47.08% | 28.57% | 23.72% | 36.94% | 98.73% | -19.39% | 46.27% | - | -63.64% |
| EPS (Basic) | - | 6.40 | 10.85 | 10.09 | 13.52 | 9.81 | 5.62 | 3.28 | 2.84 | 1.78 | 1.87 | 1.63 | 1.83 | 1.73 | 1.55 | -0.33 | 0.11 | -1.06 | -4.98 | -5.51 | 4.26 | 4.74 | 2.67 | 1.81 | 1.41 | 1.20 | 0.87 | 0.44 | 0.57 | 0.37 | 0.01 |
| Diluted Shares Outstanding | 65.13M | 70.82M | 73.33M | 74.14M | 74.2M | 76.47M | 76.97M | 77.78M | 81.46M | 84.46M | 85.17M | 84.33M | 83.23M | 77.6M | 70.34M | 64.76M | 64.64M | 62.7M | 58.66M | 52.45M | 54.2M | 57.57M | 55.22M | 55.21M | 52.68M | 47.12M | 45.7M | 48.27M | 48.99M | 42.46M | 40M |
| Basic Shares Outstanding | 64.7M | 70.82M | 72.48M | 73.24M | 73.39M | 75.22M | 75.44M | 76.2M | 80.21M | 80.57M | 79.95M | 79.19M | 78.03M | 72.21M | 68.11M | 64.76M | 64.12M | 62.7M | 58.66M | 52.45M | 52.9M | 53.95M | 52.13M | 52.16M | 49.6M | 42.39M | 41.34M | 43.3M | 42.58M | 38.91M | 40M |
| Dividend Payout Ratio | - | 26.73% | 13.81% | 5.35% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 1.36% | 150% |
Quick answers to the most common questions about buying MTH stock.
For fiscal year 2025, Meritage Homes Corporation (MTH) reported total revenue of $5.86B. This represents a 266156.2% increase compared to $2.2M in 1996.
Meritage Homes Corporation (MTH) is profitable, generating $453.0M in net income for the fiscal year ending 2025 with a net profit margin of 7.7%.
Meritage Homes Corporation (MTH) reported an operating income of $537.5M, resulting in an operating profit margin of 9.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Meritage Homes Corporation (MTH) generated $1.15B in gross profit for the year, representing a gross profit margin of 19.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Entry-level demand rate sensitivity
Metrics are mathematically derived from official filings.
Top Line Contraction Accelerating Through 2026
Based on reported quarterly figures, Meritage's revenue fell 18.0% year over year in 2026Q3 to $1.2B, deepening from the 9.9% decline in 2026Q2 and signaling sustained demand softness rather than a timing artifact.
The progression from roughly -4% in mid-2025 to -18% in the latest quarter suggests the spec-heavy model is absorbing weaker buyer traffic faster than it can adjust community openings. Investors should monitor whether backlog conversion stabilizes, since a continued decline would point to share loss or a deliberate volume reduction rather than a seasonal dip.
Gross Margin Compressed Toward Seventeen Percent
As reported in financial statements, Meritage's gross margin slid from 26.1% in 2024Q2 to 17.4% in 2026Q3, a decline of nearly nine percentage points that reflects incentive burden rather than cost inflation alone.
The steady erosion across the ten-quarter window suggests the company has been funding sales through mortgage rate buy-downs and incentives that are netted against revenue, which compresses reported margin. Relative to peers such as PulteGroup at 26.4% and D.R. Horton at 23.7%, Meritage's gross margin now sits well below the group, implying limited pricing power in the entry-level segment.
Operating Deleverage as Overhead Holds Firm
Based on Meritage's reported figures, operating margin fell from 16.8% in 2024Q2 to 6.4% in 2026Q3 while SG&A stayed near $128M to $164M per quarter, indicating fixed overhead absorbing a shrinking gross profit base.
Because operating income has fallen far faster than gross profit, overhead is not scaling down with volume, which is the classic signature of negative operating leverage. The 2026Q2 operating margin of 12.5% appears to be an outlier against a weakening trend, so it may reflect order timing rather than durable cost control.
EPS Decline Outpaces Operating Earnings Decline
According to reported quarterly data, diluted EPS fell 25.2% year over year in 2026Q3 to $1.04, while the 2026Q2 EPS of $1.37 beat consensus but sits 32.8% below its prior-year level.
The steady gap between net income and operating income, combined with stock-based compensation that remains modest at roughly $5M per quarter, suggests the earnings decline is driven by core operations rather than accounting noise. The recent EPS beat appears to rest on timing and one-off items, which warrants caution before extrapolating it into a recovery.
Bear Case Centers on Margin Floor Uncertainty
The strongest challenge to the bull case is that Meritage's gross margin may keep compressing below 17% if rate buy-downs persist, a scenario the reported 2026Q3 figure of 17.4% suggests is already close.
Short-sellers would likely argue that the 0.36% debt-to-equity ratio and cash position do not offset an income statement in structural decline, since low leverage cannot protect margins that are being absorbed by incentives. Investors should monitor whether management's lowered guidance reflects a new, lower margin baseline rather than a temporary spring-season softness.