Revenue contraction of 29.6% in 2026Q1 combined with gross margin compression to 18.7% indicates that the firm is struggling to maintain profitability amidst weakening housing demand.
| 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 | 3.25B | 3.47B | 4.49B | 3.72B | 4.35B | 3.98B | 3.26B | 3.08B | 3.26B | 2.81B | 2.41B | 2.4B | 1.7B | 257.95M | 78.55M | 19.33M |
| Revenue Growth % | -24.29% | -22.75% | 20.93% | -14.56% | 9.2% | 22.14% | 5.76% | -5.51% | 16.1% | 16.84% | 0.17% | 40.94% | 560.43% | 228.4% | 306.38% | - |
| Cost of Goods Sold | 2.58B | 2.71B | 3.44B | 2.87B | 3.18B | 2.97B | 2.54B | 2.48B | 2.57B | 2.19B | 1.86B | 1.85B | 1.36B | 202.87M | 64.61M | 17.73M |
| COGS % of Revenue | - | 78.04% | 76.55% | 77.27% | 73.17% | 74.67% | 77.79% | 80.32% | 78.66% | 77.97% | 77.2% | 76.92% | 79.71% | 78.65% | 82.26% | 91.72% |
| Gross Profit | 668.47M | 762.07M | 1.05B | 844.55M | 1.17B | 1.01B | 724.2M | 606.74M | 696.12M | 618.97M | 548.41M | 554.15M | 345.73M | 55.08M | 13.94M | 1.6M |
| Gross Margin % | 20.56% | 21.96% | 23.45% | 22.73% | 26.83% | 25.33% | 22.21% | 19.68% | 21.34% | 22.03% | 22.8% | 23.08% | 20.29% | 21.35% | 17.74% | 8.28% |
| Gross Profit Growth % | - | -27.67% | 24.75% | -27.62% | 15.7% | 39.26% | 19.36% | -12.84% | 12.46% | 12.87% | -1.03% | 60.28% | 527.67% | 295.19% | 771.13% | - |
| Operating Expenses | 415.69M | 423.85M | 472.56M | 402.38M | 387.51M | 377.48M | 348.01M | 351.77M | 341.76M | 273.71M | 250.84M | 233.18M | 185.44M | 25.54M | 11.41M | 6.17M |
| OpEx % of Revenue | - | 12.21% | 10.52% | 10.83% | 8.91% | 9.48% | 10.67% | 11.41% | 10.47% | 9.74% | 10.43% | 9.71% | 10.88% | 9.9% | 14.52% | 31.94% |
| Selling, General & Admin | 414.08M | 423.85M | 472.56M | 402.38M | 387.51M | 377.48M | 348.01M | 351.77M | 341.76M | 273.71M | 250.84M | 233.18M | 185.44M | 25.54M | 11.41M | 6.17M |
| SG&A % of Revenue | - | 12.21% | 10.52% | 10.83% | 8.91% | 9.48% | 10.67% | 11.41% | 10.47% | 9.74% | 10.43% | 9.71% | 10.88% | 9.9% | 14.52% | 31.94% |
| 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 | 1.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 252.78M | 338.21M | 581.02M | 442.17M | 779.29M | 631.03M | 376.19M | 254.97M | 354.36M | 345.26M | 297.57M | 320.97M | 160.29M | 29.54M | 2.53M | -4.57M |
| Operating Margin % | 7.78% | 9.74% | 12.93% | 11.9% | 17.92% | 15.85% | 11.54% | 8.27% | 10.86% | 12.29% | 12.37% | 13.37% | 9.41% | 11.45% | 3.22% | -23.66% |
| Operating Income Growth % | - | -41.79% | 31.4% | -43.26% | 23.5% | 67.74% | 47.54% | -28.05% | 2.64% | 16.03% | -7.29% | 100.24% | 442.65% | 1067.51% | 155.32% | - |
| EBITDA | 283.28M | 368.48M | 612.04M | 469.02M | 807.3M | 663.45M | 405.69M | 283.36M | 383.46M | 348.76M | 300.66M | 329.24M | 171.71M | 30.4M | 2.96M | -3.81M |
| EBITDA Margin % | 8.71% | 10.62% | 13.62% | 12.62% | 18.57% | 16.66% | 12.44% | 9.19% | 11.75% | 12.41% | 12.5% | 13.71% | 10.08% | 11.79% | 3.77% | -19.74% |
| EBITDA Growth % | -50.59% | -39.79% | 30.49% | -41.9% | 21.68% | 63.54% | 43.17% | -26.1% | 9.95% | 16% | -8.68% | 91.74% | 464.77% | 926.82% | 177.61% | - |
| D&A (Non-Cash Add-back) | 30.5M | 30.27M | 31.02M | 26.85M | 28.01M | 32.42M | 29.5M | 28.4M | 29.1M | 3.5M | 3.09M | 8.27M | 11.42M | 866K | 431K | 758K |
| EBIT | 245.24M | 333.78M | 616.87M | 467.36M | 773.21M | 625.66M | 373.38M | 271.09M | 362.06M | 339.82M | 302.23M | 319.26M | 130.69M | 25.75M | 2.51M | -4.59M |
| Net Interest Income | 0 | 0 | 0 | 0 | 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 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.38M | -4.43M | 35.84M | 25.19M | -6.08M | -5.37M | -2.81M | 16.12M | 7.71M | -5.44M | 4.65M | -1.71M | -32.33M | -3.79M | -24K | -20K |
| Pretax Income | 254.16M | 333.78M | 616.87M | 467.36M | 773.21M | 625.66M | 373.38M | 271.09M | 362.06M | 339.82M | 302.23M | 319.26M | 127.96M | 25.75M | 2.51M | -4.59M |
| Pretax Margin % | 7.82% | 9.62% | 13.73% | 12.58% | 17.78% | 15.71% | 11.45% | 8.79% | 11.1% | 12.09% | 12.57% | 13.3% | 7.51% | 9.98% | 3.19% | -23.76% |
| Income Tax | 70.37M | 92.78M | 158.9M | 118.16M | 190.8M | 156.4M | 91.17M | 63.9M | 90.55M | 152.27M | 106.09M | 112.08M | 43.77M | 10.38M | 0 | 0 |
| Effective Tax Rate % | 27.69% | 27.8% | 25.76% | 25.28% | 24.68% | 25% | 24.42% | 23.57% | 25.01% | 44.81% | 35.1% | 35.11% | 34.2% | 40.3% | 0% | 0% |
| Net Income | 183.83M | 240.9M | 458.03M | 343.7M | 576.06M | 469.27M | 282.21M | 207.19M | 269.91M | 187.19M | 195.17M | 205.46M | 84.2M | 15.37M | 2.51M | -4.59M |
| Net Margin % | 5.65% | 6.94% | 10.19% | 9.25% | 13.25% | 11.78% | 8.66% | 6.72% | 8.27% | 6.66% | 8.11% | 8.56% | 4.94% | 5.96% | 3.19% | -23.76% |
| Net Income Growth % | -56.54% | -47.41% | 33.26% | -40.34% | 22.76% | 66.28% | 36.21% | -23.24% | 44.19% | -4.09% | -5.01% | 144.02% | 447.66% | 513.49% | 154.56% | - |
| Net Income (Continuing) | 183.79M | 240.99M | 457.97M | 349.19M | 582.41M | 469.27M | 282.21M | 207.19M | 271.51M | 187.55M | 196.13M | 207.18M | 84.2M | -151.29M | 2.51M | -4.59M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.84M | 0 | 0 |
| Minority Interest | 119K | 95K | 12K | 2.68M | 4.14M | 12K | 12K | 12K | 13K | 605K | 19.06M | 21.78M | 18.3M | 28.42M | 39.95M | 0 |
| EPS (Diluted) | 2.16 | 2.72 | 4.83 | 3.45 | 5.54 | 4.12 | 2.17 | 1.47 | 1.81 | 1.21 | 1.21 | 1.27 | 0.58 | 0.50 | 1.95 | -0.15 |
| EPS Growth % | -53.33% | -43.69% | 40% | -37.73% | 34.47% | 89.86% | 47.62% | -18.78% | 49.59% | 0% | -4.72% | 118.97% | 16% | -74.36% | 1400% | - |
| EPS (Basic) | - | 2.74 | 4.87 | 3.48 | 5.60 | 4.16 | 2.18 | 1.47 | 1.82 | 1.21 | 1.21 | 1.27 | 0.58 | 0.50 | 1.95 | -0.15 |
| Diluted Shares Outstanding | 85.18M | 86M | 94.91M | 99.7M | 104M | 113.81M | 129.95M | 141.39M | 149M | 155.09M | 161.38M | 162.32M | 145.53M | 30.8M | 31.6M | 31.6M |
| Basic Shares Outstanding | 84.8M | 85.29M | 93.99M | 98.68M | 102.9M | 112.84M | 129.37M | 140.85M | 148.18M | 154.13M | 160.86M | 161.69M | 145.04M | 30.78M | 31.6M | 31.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 10.22% | - | - | - |
Cyclical Revenue Contraction
As reported in recent financial filings, TPH experienced a significant revenue decline of 29.6% in 2026Q1, marking a continuation of the negative growth trajectory that has seen top-line figures drop from $1.3B in 2024Q4 to $521.4M in the most recent quarter, signaling substantial demand headwinds.
The consistent quarter-over-quarter revenue decay suggests that the company is struggling to maintain closing velocity in its core Western markets. Investors should monitor whether this contraction reflects a strategic choice to preserve land value or an inability to compete effectively in a high-interest-rate environment.
Based on the provided income statement data, gross margins have compressed from a peak of 24.1% in 2025Q1 to 18.7% in 2026Q1, indicating that the company is likely utilizing aggressive pricing incentives or facing elevated input costs that are eroding the profitability of its homebuilding operations.
The erosion of gross margin suggests that the premium positioning of the company's product is not immune to the broader affordability crisis impacting move-up buyers. This trend warrants further investigation into whether the company is sacrificing profitability to clear inventory or if construction cost inflation is outpacing pricing power.
According to the latest quarterly results, operating income plummeted to $5.6M in 2026Q1 from $169.4M in 2024Q4, demonstrating that the company's fixed cost structure is failing to scale efficiently as revenue declines, leading to a sharp contraction in operating margins to just 1.1%.
The collapse in operating income relative to gross profit highlights the difficulty of rightsizing SG&A expenses during a period of rapid top-line decay. This suggests that the company's current operating model may be overly sensitive to volume fluctuations, potentially necessitating a more aggressive cost-reduction strategy.
While the company maintains a conservative balance sheet, the 88.6% year-over-year decline in EPS for 2026Q1, as shown in the financial data, raises concerns regarding the sustainability of current earnings levels if the downward trend in home closings and margin compression persists throughout the fiscal year.
Short-sellers would likely focus on the rapid deterioration of net income, which fell to $6.8M in 2026Q1, as a sign that the company's earnings power is significantly more fragile than its low debt levels might imply. The market may be underestimating the risk of further impairment if the current housing cycle remains depressed.
Quick answers to the most common questions about buying TPH stock.
For fiscal year 2025, Tri Pointe Homes, Inc. (TPH) reported total revenue of $3.47B. This represents a 17855.9% increase compared to $19.3M in 2011.
Tri Pointe Homes, Inc. (TPH) is profitable, generating $240.9M in net income for the fiscal year ending 2025 with a net profit margin of 6.9%.
Tri Pointe Homes, Inc. (TPH) reported an operating income of $338.2M, resulting in an operating profit margin of 9.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Tri Pointe Homes, Inc. (TPH) generated $762.1M in gross profit for the year, representing a gross profit margin of 22.0%. This demonstrates the company's core pricing power and production efficiency.