Good afternoon, and welcome to Green Brick Partners earnings call for the second quarter ended June 30th, 2026. Following today's remarks, we will hold a Q&A session. As a reminder, this call is being recorded and will be available for playback. In addition, a presentation will accompany today's webcast, which is available on the company's investor relations website at investors.greenbrickpartners.com. On the call today is Jim Brickman, co-founder and chief executive officer, Jed Dolson, president and chief operating officer, and myself, Jeff Cox, chief financial officer. Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2026 and beyond. In yesterday's press release, the company detailed material risks that may cause its future results to differ from its expectations. The company's statements are as of today, July 30, 2026, and the company has no obligation to update any forward-looking statement it may make. Our comments today also include non-GAAP financial metrics. The reconciliation of these metrics and the other information required by Regulation G can be found in the earnings release that the company issued yesterday and in the aforementioned presentation. With that, I will turn the call over to Jim.

Thank you, Jeff. Before I talk about second quarter results, I wanted to speak to the press release that was issued this morning announcing the promotion of Jed Dolson to co-CEO to take place this October. One of the most important responsibilities of a co-founder and CEO is attracting, developing, and retaining outstanding leaders. One of the greatest joys I have is recognizing talented people and sharing the credit for Greenbrick's success. At Greenbrick, we use the acronym HOME to describe the values we expect from all employees. Honest, objective, mature, and efficient. Our current president, Jed Dolson, has been with us since before we became a public company and has been a primary driver of our success. Jed has consistently demonstrated the leadership, judgment, and values that have helped shape Greenbrick into the company it is today. It is my profound pleasure to announce that effective October 15th, Jed will join me as co-CEO. Jed, thank you for your partnership, leadership, and commitment to Greenbrick. Congratulations on this well-deserved promotion. I am confident that Jed will help drive Greenbrick's continued growth and will contribute to even greater success in the years ahead. Now turning to the second quarter, I am very pleased with the strong second quarter results achieved by the Greenbrick team, even as affordability pressures and economic uncertainty continue to weigh on buyers. Interest rates remained elevated in the second quarter with concerns about employment growth and the cost of living dampening consumer competence. Despite these challenges, we achieved a 19% increase in net new orders year over year. Our average selling community count grew 6% year over year to 108, and our monthly sales pace increased 10% year over year to 3.3. The growth in orders was driven primarily by Trophy Signature Homes as we continued to see strong demand for affordable homes targeting the first-time buyer, particularly in the DFW market, where Trophy is now the third-largest builder by volume. Sales for each month for the quarter were higher than in the same month in 2025. With this sales velocity, we were still able to attain home building gross margins of 29.8%, the highest reported among our home building peers. Net income attributed to Greenbrick for the second quarter was $74 million, or $1.70 per diluted share on total revenues of $494 million. We delivered 1,047 homes during the quarter, including our first deliveries in a Riviera Pines community in Houston. We believe our investment-grade balance sheet and low financial leverage provide us with the flexibility to navigate and take advantage of evolving market conditions and seize on opportunities when prudent. At the end of Q2, our home-building debt-to-total capital ratio was 11.2%, and our net home-building debt-to-total capital ratio was 6.1%, among the lowest of our home-building peers. We grew book values 16% year-over-year to $44.82. We remain highly disciplined in how we control and purchase land, which remains the primary driver of our industry-leading margins. One of the primary differentiators for many of our peers is that we do not engage in high-interest-cost land banking relationships that can distort a builder's economic leverage and risk, and that can give a land banker indirect control over a builder's lot purchase timing. At the end of the second quarter, 76% of our approximately 52,000 lots are owned. We currently have 3,300 lots owned or under contract and four joint ventures with other homebuilders or landowners. These joint ventures account for 6% of our total lots owned and under contract and only 3% of our total assets. These joint venture arrangements are evaluated with the same underwriting criteria as our other land investments to ensure that we remain focused on attractive risk-adjusted returns and approving shareholder value. We have always believed that a self-development-focused strategy provides us with better control in determining the pace of land and lot deliveries and higher margins and returns. We generated operating cash flows of $117 million over the last 12 months, while continuing to invest significantly in land acquisition and development to position us for future growth. We also returned $39 million to shareholders through stock repurchases. Even with our land-heavy balance sheet and macroeconomic headwinds, our return on assets for the second quarter was 11.8%, while the medium return on assets of our home-building peers was 4.7%. Our return on equity for the quarter was 16%, as our returns remain among the very best of our public home-building peers. Our disciplined return-focused approach and our experienced team of operators position us well for value creation. Greenbrick Mortgage continues to grow rapidly, with funded loans up 257% year-over-year and 43% sequentially. 65% of Greenbrick Mortgage loans in the second quarter were two first-time homebuyers. Second quarter revenues in our financial services segment increased to $12 million compared to $6.3 million in the second quarter of 2025. And pre-tax income from our financial services segment increased year over year by 91% in Q2 to $5.7 million. One of our most important growth drivers remains Trophy Signature Homes. Trophy continues to strengthen its position in DFW while building momentum in Houston and Austin. Trophy's ability to deliver affordably priced homes supported by an efficient land and construction platform provides us with a runway for growth over the next few years. This expansion allows us to continue serving the critical first-time and first-move-up buyer segments while further diversifying our revenue base and strengthening our presence in key Texas markets. Our strategy is built around disciplined capital allocation, local market expertise, operational excellence, and a long-term focus on returns. Our builders manage each community with discipline and diligence to ensure pace, price, and inventory levels meet our buyers' demand and maximize returns for our shareholders. Although current market conditions remain challenging, those principles continue to guide our decision-making, generating sustainable returns and position us to capitalize on opportunities as they emerge. While near-term housing conditions present headwinds for the entire industry, we are encouraged by the resilience of demand in many of our communities and by the strength of our operating platform and land and lot positions in high-demand markets. Our focus remains on change, growing book value, generating attractive returns, and prudently investing capital where we see the greatest long-term opportunity. With this approach and our underlying financial strength, we also believe we remain able to pivot and adjust to market conditions as they evolve. With that, I now turn it over to Jeff to provide more detail regarding our financial results.

Thank you, Jim. Net income attributable to Greenbrick for the second quarter decreased 9.5% year-over-year to $74 million, and diluted earnings per share decrease 8% year-over-year, $2.70 per share. We delivered 1,047 homes during the quarter and generated home closings revenue of $472 million, resulting in an average sales price of $450,000. While deliveries were essentially unchanged from the same period last year, home closings revenue declined 11.4% due primarily to a higher mix of deliveries from our Trophy Signature Homes brand. Notably, 55% of our Q2 closings were sold during the quarter, driven largely by the growth of Trophy. Discounts and incentives as a percentage of home closings revenue increased year-over-year by 180 basis points to 8.8% from 7%. As a result, our home building growth margins decreased to 150 basis points year over year, but increased 90 basis points sequentially to 29.8%. During the quarter, we reduced our warranty reserve by $2.7 million, which improved gross margins by 60 basis points for the quarter. Our actual warranty spend was less than expected due to a continued focus on improving construction quality and maintaining a stable base of quality trade partners. Net new home orders during the quarter were 1,079, up 19% year-over-year. Order growth was driven by both higher community count and improved sales pace. Average active selling communities of 108 were up 6% year-over-year, and our sales pace of the second quarter increased by 10% to 3.3 per month compared to 3 per month in the previous year. Backlog at the end of the quarter was 681 units, with backlog revenue of $387 million, a 24% decrease year-over-year. Trophy Signature Homes continued to gain backlog share in the quarter, representing 44% of our backlog units compared to 26% in Q2 of 2025. As a result of the increased mix of trophy orders in our backlog, along with continued elevated discounts and incentives across all of our brands, the average sales price of our backlog decreased 18% to $569,000. Due to strong sales in the quarter, we started 1,133 new homes, an increase of 19% year-over-year and 16% sequentially. Units under construction at the end of the quarter were 2,205, flat year-over-year, and up 4.1% sequentially as we increased starts to align with our sales pace. We ended the quarter with 410 completed specs, an average of 3.8 per community. We will continue to monitor market conditions and seasonal trends and align our starts with our sales pace to appropriately manage our investment in spec inventory. Our goal is to maintain approximately one to two months of supply of completed specs in our communities. Our SG&A expenses declined 5% year-over-year during the quarter. However, as a percentage of residential units revenue, SG&A increased 60 basis points to 11.3%, primarily due to lower home closings revenue. We repurchased approximately 143,000 shares of our common stock for $9.4 million during the quarter. With $151 million remaining in authorized share repurchases, we will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders. At June 30th, we had total liquidity of $462 million, including cash of $132 million, with no outstanding borrowings on our $330 million unsecured revolving credit facility. Total debt, excluding our warehouse facilities, was $252 million, with $75 million of senior notes maturing in the next 12 months. Our low home building debt to capital of 11.2% and net home building debt to capital of 6.1% remain among the lowest of public home builders. We believe we are well-positioned to weather the challenging market conditions and ongoing volatility, to opportunistically deploy capital to maximize shareholder returns, and to accelerate growth as the housing market improves. With that, I will now turn it over to Jeff.

Thank you, Jeff. Before discussing our operational results, I want to take a moment to express my sincere appreciation to our board for the confidence reflected in my upcoming appointment as co-CEO. I would also specifically like to thank Jim for the opportunity to join Greenbrick and for the mentorship, partnership, and guidance provided by him over the past several years. Greenbrick's success is built on the strength and commitment of an exceptional team and a disciplined long-term vision. I am honored to work alongside Jim and the entire Greenbrick team as we continue to build on this strong foundation and create lasting value for our shareholders, homebuyers, and employees in the years to come. We continue to see a challenging sales environment within all our consumer segments, but we are encouraged by the positive response we have seen from first-time homebuyers who are most impacted by the affordability challenges. Our team responded well to these conditions as evidenced by our strong second quarter sales volume and low cancellation rate of 7.8 percent during the quarter, which continued to be one of the lowest cancellation rates among our public home building peers. We believe it demonstrates the quality of our product, desirability of our communities, and creditworthiness of our buyers. Rate buy-downs remain the necessary tool to drive traffic and sales, especially with the first-time homebuyers and quick move-in homes. We helped address the affordability challenges faced by many consumers by providing our homebuyers with price concessions, interest rate buy-downs, and closing cost incentives. Incentives were 9.1% on net new orders during the quarter, an increase of 120 basis points year-over-year, although a decrease of 20 basis points from the prior quarter. We remained focused on maximizing community-level returns by balancing pace, pricing, product mix, and inventory levels. The strength of our margins provides flexibility, but pricing decisions remain grounded in expected returns. We are also excited about the progress of our wholly owned mortgage company. During the second quarter, Greenbrick Mortgage closed and funded 521 loans. The average FICO score for the quarter was 736, and the average debt-to-income ratio was 40%, consistent with the previous quarter. Our capture rate was 66% for the quarter. We are focused on increasing our capture rate in our Texas communities, and we continue to expect to roll out Greenbrick Mortgage to the Providence Group, our Atlanta builder, in the latter part of 2026. Our mortgage team continues to focus on maturing the platform with new technology initiatives to improve efficiency and enhance customer service. As Greenbrick Mortgage continues to expand its service, we anticipate by year-end its capture rate will exceed 70%, which should generate additional revenue as we increase the number of loans funded through our mortgage company. We continue to reduce our average construction cycle times, which are down 29 days from a year ago, to 124 days. Trophy cycle time in Dallas-Fort Worth was 84 days compared to 103 days a year ago, the lowest in their history and a testament to the efficiency and quality of our construction teams and trade partner base. While we continue to monitor potential impacts from recently announced Canadian tariffs and other trade actions, we have not experienced a material impact on our construction costs to date. We continue to invest our land book to position ourselves for future growth. Year-to-date, our investments in land, lots, and development total $363 million, including $197 million for land development, excluding reimbursements, and $166 million for land and lot acquisition. For 2026, we expect land and lot acquisitions of approximately $400 million and land development outflows of approximately $450 million, excluding reimbursements. We believe our superior land position provides the competitive advantage that will be the foundation for strong growth in future years. Approximately $40,000 more lots are owned with approximately $12,000 under contract. Approximately 80% of our total lots owned and under contract are allocated to Trophy Signature Homes, excluding approximately 30,000 lots expected in future phases within our long-term master plan communities. Our lot supply is approximately five years. With approximately 52,000 lots owned and under contract, we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near and intermediate term. With that, I will turn it over to Jim for closing remarks.

Thank you, Jed. In closing, we remain confident in our long-term outlook and our ability to deliver excellent operational and financial results. Our land strategy, diversified product portfolio, and strong balance sheet continue to differentiate Greenbrick from our peers and support attractive returns for our shareholders over the longer term. Like the rest of our industry, we continue to navigate a challenging environment. But I am hopeful that the market is starting to find more stable footing and normalization. I believe that 2026 will be a year that we lay a foundation so we can execute our strategy and accelerate our growth in the coming years. With all of these challenges, I would like to recognize our team for their disciplined execution and resilience successfully navigating this market. Our results would not be possible without their focus, leadership, and commitment. This concludes our prepared remarks, and I'll now open the line for questions.

Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question, simply press star 1 again. For today's event, we kindly request everyone to please limit yourself to one question and one follow-up only. If you find yourself having additional questions, you may rejoin the queue. Thank you. And your first question comes from the line of Rohit Seth with D. Riley Securities. Your line is now open.

Hey, thanks for taking my questions. Hey, Jeff, in prior quarters, you broke out the ASD and margin moved between an 8x10 and Trophy. And Ghost Marge was up about 90 bits sequentially, and if you can give us the puts and takes on that improvement.

Hey, Seth, this is Jeff. You know, as far as average sales pace goes between the brands, Trophy did a tremendous job of executing this last quarter. Our average, as you know, was 3.3 during the quarter. sales per month. And Trophy was about double that. So they were just over six, in particular in the DSW market. We're still getting some traction in Houston having had our first deliveries there this quarter. And Austin is really starting to find its traction as well. So we're really encouraged by what we're seeing with Trophy there. As far as the margin goes, I would say Trophy is right in line with the company average. They pretty much kind of defined our average at this point. Collectively, across the three markets where we offer trophy, they made up 60% of our deliveries. And so, they're really just kind of the driving force behind margins.

Okay. And then on the capture rate, you're rolling out the financial services. It looks like in the Qs, the capture rate is about 66%. You want to get to 70% to 80%. Is that all coming through the Providence Group, or is Texas fully penetrated? Just let me call it there.

Yeah, we were still in the process of rolling the mortgage company out to the rest of our Texas markets. Our plan is to still enter Atlanta here by the end of the year, and we're tracking with that. But we're encouraged by the capture rate that we've got, we do think that there's some opportunity to improve it, especially as we enter into some of these newer markets. The thing that's really helped us out in particular is really just the builder forward commitments that we've been able to offer there to help buy the rates down, especially with Trophy and our first time home buyer product. And I think that'll continue to hold here as long as rates continue to be elevated.

Okay. And if I could speak to the last one, you know, rates have moved up here in July. Can you provide us some color on how traffic has responded so far?

Yeah, I can take this. This is Jim Brickman. It's spotty, and it's really surprising to be candid with you. Florida, our Vero Beach market, is usually in the doldrums this type of time of year, And we really had a great month of sales in July there. On the other side of the coin, Atlanta, which has usually been pretty steady month to month, quarter to quarter relative to our other markets, has been very slow in July. And so I think the best word is spotty. And we're watching it closely. But overall, we're still seeing that there's, particularly in the Trophy brand, that there is tremendous buyer demand as long as we can provide a favorable pricing and product.

Your next question comes from the line of Ryan Gilbert with BTIG. Your line is now open.

Hi. Thanks, guys. And, Jed, congrats on the promotion. Very well deserved. First questions on homes under construction. It looked like it was flat year-over-year despite a pretty nice pickup in absorption of pace in the quarter. So I'm wondering if you guys could just talk about, you know, what you would need to see in the market to move homes under construction higher, accelerate start pace even more than what you saw in the quarter.

Yeah, this is Jed. You know, Jeff mentioned, I believe I mentioned as well in my comments that cycle times have come down. So we feel like we're keeping, you know, it's not taking long to build these houses. So we're keeping the inventory levels, especially the finished inventory levels, where we want them.

Okay, got it. And then second question on gross margin, up 80 bits sequentially. but it sounds like your incentives were down 130 BIP sequentially, and maybe there was some warranty benefit in the quarter as well. So I'm hoping you could talk about some of the, you know, the offsets, you know, that led to the 80 BIP improvement in gross margin relative to, you know, what you were able to do in incentives. Was it direct costs, land cost inflation, any color would be helpful?

Yeah, I would say the biggest driver in gross, you know, Everybody wants to look at gross margin like it's static. Well, if you overlay what the interest rate was that quarter or that month and then what the buy-downs were, that's not static. And so on FHA, we began the year around 6%, and we're at 6.4-ish today. So that's a much bigger buy-down cost for us. As far as just general, you know, sticks and bricks, we continue to see sticks and bricks come down, labor come down in cost, with the exception of lumber, which has risen this year.

On the lot cost, land cost question, one of the things that we're, I think, going to get tailwinds from, particularly relative to our peers, is that our land and lot cost is pretty flat. It might go up slightly. There's two reasons for that. One is we don't land bank. We don't have a high cost of capital being capitalized or borrowed into our land and lot costs. And the other is that just the way that we underwrite our larger land development deals, we assume our undeveloped lot cost doesn't inflate even on some communities that are 8- and 10-year large communities. So, hopefully, in the future, we could still see some margin lift because low amount of capitalized interest and our lot cost basis is very favorable going forward.

Got it. Makes sense. Thanks, guys.

Your next question comes from the line of Alex Rigel with Texas Capital. Your line is now open.

Thank you. Good morning and nice quarter, gentlemen. could you speak to average selling prices 450 sort of the new norm or directionally should we expect that number to kick up or kick down directionally it's going to kick down this is Jim because again trophy is growing much faster than all of our other businesses pretty much our other businesses are not growing they're they're flat and And Trophy's growing quite rapidly, and Trophy's average sales price in many of the new communities that we're opening is $325,000-ish. So if you're having a lot of $325,000 homes and you're at $459,000, that number's going to go down.

And I'll just add on, this is Jeff. You know, to Jim's point, as we continue to grow Trophy, especially in these newer markets like Austin and Houston, there is a bigger difference in average sales price in those markets as you compare it to DFW. So mix will certainly be a large impact going forward.

And then any comments on community growth in the second half of the year?

Nothing specific, but we guided last time that we believe community count will continue to increase towards the end of this year. And we haven't had any reason to believe it will be any different at this point.

Thank you very much.

Your next question comes from the line of Jay McCandless with Citizens Bank. Your line is now open.

Good morning, everyone. Jed, congrats from me as well. Several of your peers on their conference calls have recently talked about underwriting for first move up, maybe second move up land coming in more favorably than entry-level lots at this point. Are you guys seeing the same thing for some of the new deals you're looking at? And if not, maybe just talk about why entry-level land is still penciling well versus where it has historically.

Yeah, this is Jim. Really, it's a tale of two cities. I think you're seeing D-location land and C-location land actually depreciating. land is still in high demand because it produces higher margins. It's more expensive and we don't see that stopping really. We would rather pay up for an A location land than buy a C location land that we think we're getting a really good deal on. Our competitors feel the same way but I think our real strategic advantage versus some of our peers is that we have the ability to the title which takes a lot of work and put larger more complicated land deals together and these deals you know can be longer like communities land bankers don't go after this asset class because they like three-year deals and really that's kind of our sweet sweet spot they're complicated they have a lot of moving parts from entitlement to land development the land planning requires a lot more work and up front capital and really those deals we're going to continue to pursue one of the things i find really curious is i listened to all of our peers call and with the exception of one national nationally known well-recognized premier higher-end builder very few builders ever talk about creating communities that people want to live and our focus is on and creating affordable, master-planned communities where people want to live today and tomorrow. And you just don't hear that very much. And we are not hesitant at all to spending $8 million on upgraded amenity center, pools, landscaping in a community. And really, a lot of our peers are reluctant to do that because they can't amortize those front-end costs over a great number of lots. So we're going to continue to grow our affordable master plan communities, and I think it's really going to help Jeff, as my co-CEO, really grow the business.

Thank you for that. The second question I had, you know, you were talking about trophy and entry-level demand being very strong, But with several of your peers trying to flex more into move-up housing and to-be-builts, is there an opportunity for some of this land you already have, either in-house or under contract for Trophy, to maybe pivot some of that to take advantage of what seems to be a little bit better demand in some markets for move-up and to-be-built homes?

Yeah, we are doing that in our larger communities. and one of the advantages we have is that we can bifurcate the market and a deal right now that we've been working on for a very long time and center living homes may do one acre product. Southgate homes may do $800,000 product. Trophy signature homes may do $400,000 product. So we are going to address all these markets and fortunately we can do it with all of our existing brands. that have really a good reputation in our markets.

That's great. And then if I could just on Atlanta, and I think this is the second quarter in a row where you talked about Atlanta maybe being a little softer. Is that a function of H-1B buyers or what's going on there? And what do you think? How do you get that turned around in Atlanta?

Yeah, I think this is Jed. I think it's twofold. I think there's definitely some cultural buyer headwinds there because of the visa issues. And then in Atlanta, we don't provide entry-level housing. So our ASP in Atlanta is right around $700,000. And so we're not luxury, but we're not entry-level either. We're in a second-time move-up. And so that market has been...

And then I guess the last one I had with rates moving up for most of July, Have you all been able to hold? I think you said the incentive rate was about nine and change on orders for this quarter. Is it still trending that way in July? And if rates continue to move higher from there, do you think it's going to have to flex up?

I'll answer it this way. I don't think the buyer, because rates go up, I don't think the buyer is going to say, okay, I'll go up a quarter rate, quarter point on what I think my buy-down rate should be. They're going to hold us, and so it's going to be like a, you know, the costly, you know, borne by us.

That sounds great. Thanks for taking my question.

Again, if you would like to ask a question, press star 1 on your telephone keypad. There are no further questions. I will now turn the conference back over to Jim Brickman, CEO, for closing remarks.

Thank you for attending our call. If anybody wants additional information, our team is available to talk to you at any time. And even better, we hope you come to Dallas, Atlanta, or any of our markets and see what we're doing because I think you'll be able to tell the difference.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.