GRBK 10-Q
Green Brick Partners, Inc. (GRBK)
10-Q
2026-07-29
For: 2026-06-30
View Original
Added on
July 29, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended June 30, 2026
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from — to —
Commission file number: 001-33530
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (IRS Employer Identification Number) | |||||||||||||||||||
| , | ||||||||||||||||||||
| (Address of principal executive offices, including Zip Code) | (Registrant’s telephone number, including area code) | |||||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
The number of shares of the Registrant’s common stock outstanding as of July 23, 2026 was 43,010,696 .
TABLE OF CONTENTS
| Item 1. | |||||||||||
| Item 2. | |||||||||||
| Item 4. | |||||||||||
| Item 2. | |||||||||||
| Item 5. | |||||||||||
| Item 6. | |||||||||||
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GREEN BRICK PARTNERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) (Unaudited)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash | |||||||||||
| Receivables | |||||||||||
| Real estate inventory: | |||||||||||
| Inventory owned | |||||||||||
| Consolidated inventory related to VIE | |||||||||||
| Total inventory | |||||||||||
Mortgage loans held for sale | |||||||||||
| Investments in unconsolidated entities | |||||||||||
| Right-of-use assets - operating leases | |||||||||||
| Property and equipment, net | |||||||||||
| Earnest money deposits | |||||||||||
| Deferred income tax assets, net | |||||||||||
| Intangible assets, net | |||||||||||
| Goodwill | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued expenses | |||||||||||
| Customer and builder deposits | |||||||||||
| Lease liabilities - operating leases | |||||||||||
| Borrowings on lines of credit, net | ( | ( | |||||||||
| Senior unsecured notes, net | |||||||||||
Warehouse lines of credit | |||||||||||
| Notes payable | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies | |||||||||||
| Redeemable noncontrolling interest in equity of consolidated subsidiary | |||||||||||
| Equity: | |||||||||||
| Green Brick Partners, Inc. stockholders’ equity | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Total Green Brick Partners, Inc. stockholders’ equity | |||||||||||
| Noncontrolling interests | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
1
GREEN BRICK PARTNERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Residential units revenue | $ | $ | $ | $ | ||||||||||||||||||||||
| Land and lots revenue | ||||||||||||||||||||||||||
Financial services revenue | ||||||||||||||||||||||||||
| Total revenues | ||||||||||||||||||||||||||
Homebuilding cost of revenues | ||||||||||||||||||||||||||
| Cost of residential units | ||||||||||||||||||||||||||
| Cost of land and lots | ||||||||||||||||||||||||||
| Financial services expenses | ( | ( | ( | ( | ||||||||||||||||||||||
| Selling, general and administrative expenses | ( | ( | ( | ( | ||||||||||||||||||||||
| Equity in income of unconsolidated entities | ||||||||||||||||||||||||||
| Other income (loss), net | ( | ( | ||||||||||||||||||||||||
| Income before income taxes | ||||||||||||||||||||||||||
| Income tax expense | ||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | ||||||||||||||||||||||||||
| Net income attributable to Green Brick Partners, Inc. | $ | $ | $ | $ | ||||||||||||||||||||||
| Net income attributable to Green Brick Partners, Inc. per common share: | ||||||||||||||||||||||||||
| Basic | $ | $ | $ | $ | ||||||||||||||||||||||
| Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
| Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share: | ||||||||||||||||||||||||||
| Basic | ||||||||||||||||||||||||||
| Diluted | ||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
2
GREEN BRICK PARTNERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(In thousands, except share data)
(Unaudited)
For the three months ended June 30, 2026 and 2025:
| Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Total GRBK Stockholders’ Equity | Non controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2026 | $ | $ | — | $ | — | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock from equity incentive plan, net of forfeitures | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Withholdings from share-based compensation awards | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Stock repurchases | — | — | — | — | ( | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Retirement of treasury shares | ( | ( | — | — | 143,026 | 9,400 | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of redeemable noncontrolling interest | — | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2026 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Total GRBK Stockholders’ Equity | Non controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2025 | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock from equity incentive plan, net of forfeitures | — | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Withholdings from share-based compensation awards | ( | ( | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Stock repurchases | — | — | — | — | ( | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock retirement | ( | ( | — | — | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of redeemable noncontrolling interest | — | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Distributions | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
GREEN BRICK PARTNERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(In thousands, except share data)
(Unaudited)
For the six months ended June 30, 2026 and 2025:
| Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Total GRBK Stockholders’ Equity | Non controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock from equity incentive plan, net of forfeitures | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Withholdings from share-based compensation awards | ( | — | — | — | — | ( | — | ( | — | (1,799) | ||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Stock repurchases | — | — | — | ( | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Retirement of treasury shares | ( | ( | — | — | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of redeemable noncontrolling interest | — | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Distributions | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2026 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Total GRBK Stockholders’ Equity | Non controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2024 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock from equity incentive plan, net of forfeitures | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Withholdings from vesting of restricted stock awards | ( | ( | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Stock repurchases | — | — | — | — | ( | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Retirement of treasury shares | ( | ( | — | — | ( | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of redeemable noncontrolling interest | — | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Distributions | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
GREEN BRICK PARTNERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization expense | |||||||||||
| Loss (gain) on disposal of property and equipment, net | ( | ||||||||||
| Share-based compensation expense | |||||||||||
| Equity in income of unconsolidated entities | ( | ( | |||||||||
| Allowances for option deposits and pre-acquisition costs | |||||||||||
Distributions from unconsolidated entities | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Decrease (increase) in receivables | ( | ||||||||||
| Increase in inventory | ( | ( | |||||||||
| Decrease (increase) in earnest money deposits | ( | ||||||||||
Decrease in mortgage loans held for sale | |||||||||||
| (Increase) decrease in other assets | ( | ||||||||||
| Increase in accounts payable | |||||||||||
| Decrease in accrued expenses | ( | ( | |||||||||
| Increase in customer and builder deposits | |||||||||||
| Net cash provided by operating activities | |||||||||||
| Cash flows from investing activities: | |||||||||||
| Investments in unconsolidated entities | ( | ( | |||||||||
Purchases of property and equipment | ( | ( | |||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Cash flows from financing activities: | |||||||||||
| Borrowings from lines of credit | |||||||||||
| Repayments of lines of credit | ( | ( | |||||||||
| Repayments of senior unsecured notes | ( | ( | |||||||||
| Net (repayments) borrowings of warehouse lines of credit | ( | ||||||||||
| Payments of debt issuance costs | ( | ( | |||||||||
| Payments of withholding tax on vesting of restricted stock awards | ( | ( | |||||||||
| Repurchases of common stock | ( | ( | |||||||||
| Dividends paid | ( | ( | |||||||||
| Distributions to redeemable noncontrolling interest | ( | ( | |||||||||
| Distributions to noncontrolling interests | ( | ( | |||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Net decrease in cash and cash equivalents and restricted cash | ( | ( | |||||||||
| Cash and cash equivalents and restricted cash, beginning of period | |||||||||||
| Cash and cash equivalents and restricted cash, end of period | $ | $ | |||||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid for income taxes, net of refunds | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
GREEN BRICK PARTNERS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”), but do not include all of the information and footnotes required for complete financial statements. The condensed consolidated balance sheet as of December 31, 2025 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2025. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments of a normal, recurring nature necessary to fairly state our financial position, results of operations and cash flows. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2025.
Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2026 or subsequent periods due to seasonal variations and other factors.
Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements include the accounts of Green Brick Partners, Inc., its controlled subsidiaries, (together, the “Company”, “we”, “our” or “Green Brick”) and variable interest entities (“VIEs”) in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary.
All intercompany balances and transactions have been eliminated in consolidation.
The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses, if any, is included in the condensed consolidated statements of income.
Reclassifications
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
For a complete set of the Company’s significant accounting policies, refer to Note 1 of the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2025.
Recent Accounting Pronouncements
Changes to U.S. GAAP are established by the FASB in the form of Accounting Standard Updates (“ASUs”) to the FASB ASC. We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2026, with early adoption permitted.
6
The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its consolidated financial statements.
2. INVENTORY
A summary of inventory is as follows (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| Homes completed or under construction | $ | $ | |||||||||
| Land and lots - developed and under development | |||||||||||
Land held for future development(1) | |||||||||||
| Land held for sale | |||||||||||
| Total inventory | $ | $ | |||||||||
(1)Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors. All applicable carrying costs, including property taxes, are expensed as incurred.
As of June 30, 2026, the Company reviewed the performance and outlook for all of its communities and land inventory for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. For the three months ended June 30, 2026, the Company did not record an impairment charge. For the six months ended June 30, 2026, the Company recorded a $0.9 million impairment charge to reduce the carrying value of inventory to fair value, which was recognized during the three months ended March 31, 2026. This impairment charge was included in cost of residential units in our consolidated statements of income.
For the three and six months ended June 30, 2025, the Company did not record an impairment adjustment to reduce the carrying value of communities or land inventory to fair value.
A summary of interest costs incurred, capitalized and expensed is as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Interest capitalized at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
| Interest incurred | |||||||||||||||||||||||
| Interest charged to cost of revenues | ( | ( | ( | ( | |||||||||||||||||||
| Interest capitalized at end of period | $ | $ | $ | $ | |||||||||||||||||||
| Capitalized interest as a percentage of inventory | % | % | |||||||||||||||||||||
7
3. INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES
Unconsolidated Entities
A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):
| June 30, 2026 | December 31, 2025 | |||||||||||||
Rainwater Crossing Single-Family, LLC(1) | $ | $ | ||||||||||||
| GBTM Sendera, LLC | ||||||||||||||
| EJB River Holdings, LLC | ||||||||||||||
| TMGB Magnolia Ridge, LLC | ||||||||||||||
| Total investment in unconsolidated entities | $ | $ | ||||||||||||
(1) Decrease is due to $23.6 million in distributions as of June 30, 2026.
As of June 30, 2026 and December 31, 2025, the Company’s maximum exposure to loss from its investments in unconsolidated entities was $119.5 million and $140.2 million, respectively. The Company’s maximum exposure to loss was limited to its investments in the unconsolidated entities, except with regard to the Company’s remaining commitment to fund capital in Rainwater Crossing Single-Family, LLC (“Rainwater Crossing”) of $9.2 million and $9.6 million as of June 30, 2026 and December 31, 2025, respectively. In addition, the Company has a completion guarantee up to $22.5 million on a revolving loan to fund the development activities of TMGB Magnolia Ridge, LLC.
A summary of the unaudited condensed financial information of the unconsolidated entities as of June 30, 2026 and December 31, 2025 that are accounted for by the equity method is as follows (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| Assets: | |||||||||||
| Cash | $ | $ | |||||||||
| Accounts receivable | |||||||||||
| Bonds and notes receivable | |||||||||||
| Inventory | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities: | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued expenses and other liabilities | |||||||||||
| Notes payable | |||||||||||
| Total liabilities | |||||||||||
| Owners’ equity: | |||||||||||
Green Brick(1) | |||||||||||
| Others | |||||||||||
| Total owners’ equity | |||||||||||
| Total liabilities and owners’ equity | $ | $ | |||||||||
(1) A $3.5 million basis difference exists between the Company’s Rainwater Crossing capital balance and its investment in the joint venture due to profit recognized by the joint venture on lots taken down by Green Brick homebuilders. The Company will recognize this profit ratably through equity in income of unconsolidated entities when these lots are closed.
8
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Net earnings of unconsolidated entities | $ | $ | $ | $ | |||||||||||||||||||
| Company’s share in net earnings of unconsolidated entities | $ | $ | $ | $ | |||||||||||||||||||
Consolidated Entities
4. ACCRUED EXPENSES
A summary of the Company’s accrued expenses is as follows (in thousands):
| June 30, 2026 | December 31, 2025 | |||||||||||||
| Federal income tax payable | $ | $ | ||||||||||||
Real estate development reserve to complete(1) | ||||||||||||||
| Accrued compensation | ||||||||||||||
| Accrued property tax payable | ||||||||||||||
| Warranty reserve | ||||||||||||||
| Self-insurance reserve | ||||||||||||||
| Other accrued expenses | ||||||||||||||
| Total accrued expenses | $ | $ | ||||||||||||
(1)Our real estate development reserve to complete consists of budgeted costs to complete the development of our communities.
Warranties
Warranty accruals are included within accrued expenses on the condensed consolidated balance sheets. Warranty activity during the three and six months ended June 30, 2026 and 2025 consisted of the following (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Warranty accrual, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
| Warranties issued | |||||||||||||||||||||||
| Changes in liability for existing warranties | ( | ( | ( | ( | |||||||||||||||||||
| Payments made | ( | ( | ( | ( | |||||||||||||||||||
| Warranty accrual, end of period | $ | $ | $ | $ | |||||||||||||||||||
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5. DEBT
Lines of Credit
Borrowings on lines of credit outstanding, net of debt issuance costs, as of June 30, 2026 and December 31, 2025 consisted of the following (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| Secured Revolving Credit Facility | $ | $ | |||||||||
| Unsecured Revolving Credit Facility | |||||||||||
| Warehouse Facilities | |||||||||||
| Debt issuance costs, net of amortization | ( | ( | |||||||||
| Total borrowings on lines of credit, net | $ | $ | |||||||||
Secured Revolving Credit Facility
The Company was party to a revolving credit facility (the “Secured Revolving Credit Facility”) with Inwood National Bank, which provided for an aggregate commitment of $35.0 million. On March 31, 2026, the Company terminated its secured revolving credit facility. The termination was voluntary and not due to covenant violations or lender action.
Unsecured Revolving Credit Facility
The Company is party to a credit agreement, providing for a senior, unsecured revolving credit facility (the “Unsecured Revolving Credit Facility”). On December 10, 2025, the Company entered into the Thirteenth Amendment to this credit agreement. The Unsecured Revolving Credit Facility was amended (i) to reduce the SOFR spread and base rate spread, (ii) to allow the Company to request a revolving credit advance using Daily SOFR (as defined in the Unsecured Revolving Credit Facility) and (iii) for other administrative changes. The total commitments remain at $330.0 million. The maturity of all commitments under the facility were extended to December 14, 2028.
The Unsecured Revolving Credit Facility is guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries.
Warehouse Facilities
GRBK Mortgage, a wholly owned subsidiary of the Company, is party to warehouse facilities to fund its origination of mortgage loans (the “Warehouse Facilities”) as follows (in thousands):
| Outstanding Balance As of | ||||||||||||||||||||
| Maturity Date | Maximum Aggregate Commitment | June 30, 2026 | December 31, 2025 | |||||||||||||||||
| $ | $ | $ | ||||||||||||||||||
| $ | $ | $ | ||||||||||||||||||
The Company’s borrowings and repayments on the warehouse lines of credit are directly related to the origination and sale of mortgage loans held for sale. As such, the gross activity in the warehouse lines of credit during the period substantially reconciles to the net change in mortgage loans held for sale, as reflected in the condensed consolidated statements of cash flows and discussed in Note 11, “Mortgage Loans Held for Sale.”
The Warehouse Facilities provide for an aggregate uncommitted amount of $140.0 million. The Warehouse Facilities are (i) secured by the underlying mortgage loans and bear interest at a variable rate based on SOFR plus a margin ranging from 1.4% to 2% and (ii) guaranteed by Green Brick. The facilities are subject to annual renewal and contain customary covenants and conditions regarding minimum net worth, leverage, profitability and liquidity. The Company was in compliance with the financial covenants under the Warehouse Facilities as of June 30, 2026.
Under the Warehouse Facilities, banks purchase a participation interest in individual mortgage loans, with GRBK Mortgage providing the remainder of the principal of the mortgage, typically up to 2% depending on the loan product. The
10
mortgage loans, with the servicing rights, are then sold, typically within 30 days, to a third party investor and the bank is repaid its participation interest plus interest and the remainder is remitted to GRBK Mortgage. If a third party investor has not purchased the mortgage loan within the anticipated timeframes then GRBK Mortgage is required to repurchase the mortgage loan for the full amount of the participation interest plus interest.
Senior Unsecured Notes
Senior unsecured notes, net of debt issuance costs, as of June 30, 2026 and December 31, 2025 consisted of the following (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| 4.00% senior unsecured notes due in 2026 (“2026 Notes”) | $ | $ | |||||||||
| 3.35% senior unsecured notes due in 2027 (“2027 Notes”) | |||||||||||
| 3.25% senior unsecured notes due in 2028 (“2028 Notes”) | |||||||||||
| 3.25% senior unsecured notes due in 2029 (“2029 Notes”) | |||||||||||
| Debt issuance costs, net of amortization | ( | ( | |||||||||
| Total senior unsecured notes, net | $ | $ | |||||||||
The senior unsecured notes are guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries. Optional prepayment of each of the senior unsecured notes is allowed with a payment of a “make-whole” penalty which fluctuates depending on market interest rates. Interest is payable quarterly in arrears.
2026 Notes
The remaining principal on the 2026 Notes of $50.0 million is due on August 8, 2026.
2027 Notes
The aggregate principal amount of the 2027 Notes is due on August 26, 2027.
2028 Notes
Principal on the 2028 Notes is due in increments of $25.0 million annually on February 25 in each of 2027, and 2028.
2029 Notes
Principal on the 2029 Notes of $30.0 million is due on December 28, 2028 and the remaining principal amount of $70.0 million is due on December 28, 2029.
Our debt instruments require us to maintain specific financial covenants, each of which we were in compliance with as of June 30, 2026.
6. REDEEMABLE NONCONTROLLING INTEREST
The Company has a noncontrolling interest attributable to the 20 % minority interest in GRBK GHO Homes, LLC (“GRBK GHO”) owned by our Florida-based partner that is included as redeemable noncontrolling interest in equity of the consolidated subsidiary in the Company’s condensed consolidated financial statements.
The Company entered into a put/call agreement (“Put/Call Agreement”) with respect to the equity interest in the joint venture held by the minority partner. The Put/Call Agreement provides that the 20% ownership interest in GRBK GHO held by the minority partner would be subject to put and purchase options. On July 7, 2026, the Company and the minority partner amended the operating agreement of GRBK GHO to change the start of the put and purchase options from April 2027 to April 2030. The exercise price would be based on the financial results of GRBK GHO for the completed quarters prior to exercise of the option and commencing with the second quarter of 2021. If the minority partner does not exercise the put option, we have the option, but not the obligation, to buy the 20% interest in GRBK GHO from our partner.
Refer to Note 2 in the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2025 for additional information.
11
The following tables show the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the three and six months ended June 30, 2026 and 2025 (in thousands):
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Redeemable noncontrolling interest, beginning of period | $ | $ | |||||||||
| Net income attributable to redeemable noncontrolling interest partner | |||||||||||
| Distributions of income to redeemable noncontrolling interest partner | ( | ( | |||||||||
| Change in fair value of redeemable noncontrolling interest | |||||||||||
| Redeemable noncontrolling interest, end of period | $ | $ | |||||||||
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Redeemable noncontrolling interest, beginning of period | $ | $ | |||||||||
| Net income attributable to redeemable noncontrolling interest partner | |||||||||||
| Distributions of income to redeemable noncontrolling interest partner | ( | ( | |||||||||
| Change in fair value of redeemable noncontrolling interest | |||||||||||
| Redeemable noncontrolling interest, end of period | $ | $ | |||||||||
7. STOCKHOLDERS’ EQUITY
Share Repurchase Plan
On February 17, 2025, the Company’s Board of Directors (the “Board”) approved and authorized a $100.0 million stock repurchase program (the “2025 Repurchase Plan”), replacing the prior plan authorized on April 27, 2023, which had a remaining authorization of $55.9 million. On December 11, 2025, the Board authorized an additional $150.0 million of repurchases under the Repurchase Plan. The Repurchase Plan authorizes the Company to purchase, from time to time, our outstanding common stock through open market repurchases in compliance with Rule 10b-18 under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal requirements and other factors. Shares repurchased will be retired. The Repurchase Plan has no time deadline and will continue until otherwise modified or terminated by the Board.
During the three and six months ended June 30, 2025, the Company completed open market repurchases under the Share Repurchase Plan of 744,857 and 1,027,678 shares for approximately $43.4 million and $60.1 million, excluding excise tax. These shares were subsequently retired.
During the three and six months ended June 30, 2026, the Company completed open market repurchases under the Share Repurchase Plan of 143,026 and 256,875 shares, respectively for approximately $9.3 million and $16.5 million, excluding excise tax. As of June 30, 2026, the remaining dollar value of shares that may be repurchased under the Repurchase Plan was $150.6 million, excluding excise tax. As of June 30, 2026, all repurchased shares were retired.
12
Preferred Stock
The table below presents a summary of the perpetual preferred stock outstanding at June 30, 2026 and December 31, 2025.
| Series | Description | Initial date of issuance | Total Shares Outstanding(1) | Liquidation Preference per Share (in dollars) | Carrying Value (in thousands) | Per Annum Dividend Rate | Redemption Period | |||||||||||||||||||||||||||||||||||||
Series A(1) | 5.75% Cumulative Perpetual | December 2021 | $ | $ | % | n/a | ||||||||||||||||||||||||||||||||||||||
(1) Ownership is held in the form of Depositary Shares, each representing a 1/1,000th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.
Dividends
Dividends paid on our Series A preferred stock were $0.7 million and $1.4 million for each of the three and six months ended June 30, 2026 and 2025.
8. SHARE-BASED COMPENSATION
On June 11, 2024, the 2024 Omnibus Incentive Plan was approved by the stockholders of the Company. As of June 11, 2024, no further awards may be made under the Company’s 2014 Omnibus Equity Incentive Plan. The Company’s 2024 Omnibus Equity Incentive Plan is administered by the Board and allows for the grant of stock awards (“SAs”), restricted stock awards (“RSAs”), performance restricted stock units (“PRSUs”), restricted stock units (“RSUs”), stock options and other stock based awards.
Share-Based Award Activity
During the six months ended June 30, 2026, the Company granted SAs and RSUs to executive officers, RSAs to non-employee members of the Board, and PRSUs to executive officers and employees. The SAs granted to the executive officers were 100 % vested and non-forfeitable on the grant date. Non-vested stock awards are generally granted with a one-year vesting for non-employee directors, three-year cliff vesting for employee PRSUs, and various vesting schedules for executive officer PRSUs. The fair value of all share awards were recorded as share-based compensation expense on the grant date and over the vesting period, respectively. The Company withheld 24,860 shares of common stock from executive officers and employees at a total cost of $1.8 million, to satisfy statutory minimum tax requirements upon vesting of the awards.
A summary of share-based awards activity during the six months ended June 30, 2026 is as follows:
| Number of Shares (in thousands) | Weighted Average Grant Date Fair Value per Share | ||||||||||
| Unvested, December 31, 2025 | $ | ||||||||||
| Granted | $ | ||||||||||
| Vested | ( | $ | |||||||||
| Forfeited | ( | $ | |||||||||
| Unvested, June 30, 2026 | $ | ||||||||||
Share-Based Compensation Expense
Share-based compensation expense was $2.1 million and $1.4 million for the three months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026 and 2025, share-based compensation expense was $6.2 million and $9.5 million, respectively.
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9. REVENUE RECOGNITION
Revenue recognition
Home Sales Revenue
Home sale revenue is generally recognized when title to and possession of the home are transferred to the buyer, and our performance obligation to deliver the home is generally satisfied at the home closing date. All seller-paid closing cost incentives, including interest rate buydowns, are recorded as a reduction to residential units revenue.
Land and Lots Revenue
Occasionally, the Company sells developed and undeveloped land parcels. If the land parcel is developed prior to the sale of the land, the revenue is recognized at closing since we deliver a single performance obligation in the form of a developed parcel. We also recognize revenue at closing on undeveloped land parcel sales as there are no other obligations beyond delivering the undeveloped land.
Financial Services Revenue
Loan origination fees net of any lender-paid incentives, brokered loan revenue, and discount points are recognized upon loan origination. Expected gains and losses from the sale of residential mortgage loans are included in the measurement of interest rate lock commitments (“IRLCs”) that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of IRLCs and residential mortgage loans available-for-sale are reflected in Financial Services revenues as they occur. Interest income is accrued from the date a mortgage loan is originated until the loan is sold.
Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Insurance agency commissions relate to commissions on home and other insurance policies placed with third-party carriers through various agency channels. Our performance obligations for policy renewal commissions are considered satisfied upon issuance of the initial policy.
Contract Balances
Opening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| Customer and builder deposits | $ | $ | |||||||||
The opening balance of customer and builder deposits was $25.7 million as of January 1, 2026, and the closing balance was $26.4 million as of June 30, 2026, as presented in the table above. The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customers’ payments of deposits and the Company’s delivery of the home, impacted slightly by cancellations of contracts.
The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three and six months ended June 30, 2026 and 2025 are as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Type of Customer | |||||||||||||||||||||||
| Homebuyers | $ | $ | $ | $ | |||||||||||||||||||
| Homebuilders and Multi-Family Developers | |||||||||||||||||||||||
| Total deposits recognized as revenue | $ | $ | $ | $ | |||||||||||||||||||
Transaction Price Allocated to the Remaining Performance Obligations
The aggregate amount allocated to the remaining performance obligations on our land sale and lot option contracts is $7.5 million. The Company will recognize the remaining revenue when and if the lots are taken down, or upon closing for the sale of a land parcel, all of which is expected to occur in the remainder of 2026.
14
The timing of lot takedowns is contingent upon a number of factors, including customer and business needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules.
Disaggregation of Revenue
The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three and six months ended June 30, 2026 and 2025 (in thousands):
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | ||||||||||||||||||||||
| Residential units revenue | Land and lots revenue | Residential units revenue | Land and lots revenue | ||||||||||||||||||||
| Primary Geographical Market | |||||||||||||||||||||||
| Central | $ | $ | $ | $ | |||||||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
| Type of Customer | |||||||||||||||||||||||
| Homebuyers | $ | $ | $ | $ | |||||||||||||||||||
| Homebuilders and Multi-family Developers | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
| Product Type | |||||||||||||||||||||||
| Residential units | $ | $ | $ | $ | |||||||||||||||||||
| Land and lots | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
| Timing of Revenue Recognition | |||||||||||||||||||||||
| Transferred at a point in time | $ | $ | $ | $ | |||||||||||||||||||
Transferred over time(1) | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | ||||||||||||||||||||||
| Residential units revenue | Land and lots revenue | Residential units revenue | Land and lots revenue | ||||||||||||||||||||
| Primary Geographical Market | |||||||||||||||||||||||
| Central | $ | $ | $ | $ | |||||||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
| Type of Customer | |||||||||||||||||||||||
| Homebuyers | $ | $ | $ | $ | |||||||||||||||||||
| Homebuilders and Multi-family Developers | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
15
| Product Type | |||||||||||||||||||||||
| Residential units | $ | $ | $ | $ | |||||||||||||||||||
| Land and lots | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
| Timing of Revenue Recognition | |||||||||||||||||||||||
| Transferred at a point in time | $ | $ | $ | $ | |||||||||||||||||||
Transferred over time(1) | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
(1) Revenue recognized over time represents revenue from mechanic’s lien contracts.
10. SEGMENT INFORMATION
The Company has four reportable segments - Builder operations Central, Builder operations Southeast, Financial Services and Land Development. Builder operations Central represents operations by our builders in Texas, whereas Builder operations Southeast represents operations by our builders in Georgia and Florida.
Commencing on January 1, 2026, the Company began reporting its Financial Services operations as a separate reportable segment. Previously, the results of Financial Services were included within the Corporate, Other and Unallocated segment. This change was made to better reflect the growth and significance of the Financial Services operations and to provide enhanced transparency to investors. Prior period segment information has been recast to conform to the current period presentation, where applicable.
The Financial Services segment includes mortgage banking, title, and insurance agency operations. The Financial Services segment operates generally in the same markets as the Builder operations segments.
The Land Development segment acquires land for the development of residential lots that are transferred to our controlled builders or sold to third party homebuilders. The operations of the Company’s builders and land development were aggregated in three reportable segments based on similar economic characteristics, including geography, housing products, class of homebuyer, regulatory environments, and methods used to construct and sell homes.
Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Financial information related to the Company’s reportable segments is as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenues: (1) | |||||||||||||||||||||||
| Builder operations | |||||||||||||||||||||||
| Central | $ | $ | $ | $ | |||||||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total builder operations | |||||||||||||||||||||||
| Land development | |||||||||||||||||||||||
Financial services | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
| Gross profit: | |||||||||||||||||||||||
| Builder operations | |||||||||||||||||||||||
| Central | $ | $ | $ | $ | |||||||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total builder operations | |||||||||||||||||||||||
16
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Land development | |||||||||||||||||||||||
Corporate, other and unallocated (2) | ( | ( | ( | ( | |||||||||||||||||||
| Total gross profit | $ | $ | $ | $ | |||||||||||||||||||
| Segment selling, general, and administrative expenses: | |||||||||||||||||||||||
| Commissions | |||||||||||||||||||||||
| Builder operations | |||||||||||||||||||||||
| Central | $ | $ | $ | $ | |||||||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total builder operations | |||||||||||||||||||||||
Financial services | |||||||||||||||||||||||
| Total commissions | $ | $ | $ | $ | |||||||||||||||||||
| Salaries | |||||||||||||||||||||||
| Builder operations | |||||||||||||||||||||||
| Central | $ | $ | $ | $ | |||||||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total builder operations | |||||||||||||||||||||||
Financial services | |||||||||||||||||||||||
| Corporate, other and unallocated | |||||||||||||||||||||||
| Total salaries | $ | $ | $ | $ | |||||||||||||||||||
| Interest expense (income): | |||||||||||||||||||||||
| Builder operations | |||||||||||||||||||||||
| Central | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total builder operations | |||||||||||||||||||||||
| Corporate, other and unallocated | ( | ( | ( | ( | |||||||||||||||||||
| Total interest expense, net | $ | $ | $ | $ | |||||||||||||||||||
| Other selling, general and administrative expenses | |||||||||||||||||||||||
| Builder operations | |||||||||||||||||||||||
| Central | $ | $ | $ | $ | |||||||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total builder operations | |||||||||||||||||||||||
| Land development | ( | ( | |||||||||||||||||||||
Financial services | |||||||||||||||||||||||
| Corporate, other and unallocated | ( | ( | ( | ||||||||||||||||||||
| Total other expenses | $ | $ | $ | $ | |||||||||||||||||||
| Total selling, general and administrative expenses | |||||||||||||||||||||||
| Builder operations | |||||||||||||||||||||||
| Central | $ | $ | $ | $ | |||||||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total builder operations | |||||||||||||||||||||||
17
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Land development | ( | ( | |||||||||||||||||||||
Financial services | |||||||||||||||||||||||
| Corporate, other and unallocated | ( | ||||||||||||||||||||||
| Total segment expenses | $ | $ | $ | $ | |||||||||||||||||||
| Income (loss) before income taxes: | |||||||||||||||||||||||
| Central | $ | $ | $ | $ | |||||||||||||||||||
| Southeast | |||||||||||||||||||||||
| Total builder operations | |||||||||||||||||||||||
| Land development | |||||||||||||||||||||||
Financial services | |||||||||||||||||||||||
Corporate, other and unallocated (3) | ( | ( | ( | ( | |||||||||||||||||||
| Income before income taxes | $ | $ | $ | $ | |||||||||||||||||||
| June 30, 2026 | December 31, 2025 | ||||||||||
| Inventory: | |||||||||||
| Builder operations | |||||||||||
| Central | $ | $ | |||||||||
| Southeast | |||||||||||
| Total builder operations | |||||||||||
| Land development | |||||||||||
| Corporate, other and unallocated | |||||||||||
| Total inventory | $ | $ | |||||||||
Goodwill: | |||||||||||
| Builder operations - Southeast | $ | $ | |||||||||
(1)The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the condensed consolidated statements of income in periods when our builders have revenues from land or lot closings. Land or lot closings revenue was $9.6 million and $17.1 million for the three and six months ended June 30, 2026, respectively. Land and lots closings revenue were $2.0 million and $4.3 million for the three and six months ended June 30, 2025, respectively.
(2)Corporate, other and unallocated gross loss is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments.
(3)Corporate, other and unallocated inventory consists of capitalized overhead and interest related to work in process and land under development.
11. MORTGAGE LOANS HELD FOR SALE
The majority of the loans originated by our wholly owned subsidiary, GRBK Mortgage, are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. The Company typically sells the servicing rights when the loans are sold. As of June 30, 2026 and December 31, 2025, loans held for sale had an aggregate fair value of $34.8 million and $49.1 million, respectively, and an aggregate outstanding principal balance of $35.0 million and $48.0 million, respectively. Changes in fair value are substantially offset by changes in fair value of the corresponding derivative instruments. Net gains from the sale of mortgage loans were $6.3 million and $8.5 million for the three and six months ended June 30, 2026, respectively, and $0.3 million for the three and six months ended June 30, 2025, respectively, and were included in financial services revenue.
18
Hedging Activities
The Company is party to Interest rate lock commitments (IRLCs) with customers resulting from its mortgage origination operations. The volume of the Company’s derivative activity is driven primarily by the level of mortgage origination activity during the period. The Company uses hedging instruments to mitigate its exposure to interest rate market risk using forward contracts on mortgage-backed securities (FLSCs), which are commitments to either purchase or sell a specified financial instrument at a specific future date for a specified price. Forward contracts on mortgage-backed securities are the main derivative financial instruments we use to minimize market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. The Company accounts for derivative instruments as free-standing derivative instruments and does not designate any for hedge accounting.
The notional amounts and fair values of derivative financial instruments not designated as hedging instruments are as follows:
| June 30, 2026 | ||||||||||||||||||||
| Fair value | ||||||||||||||||||||
| Derivative assets | Derivative liabilities | Notional amount(1) | ||||||||||||||||||
| IRLCs | $ | $ | $ | |||||||||||||||||
| FLSCs | ( | |||||||||||||||||||
| Total | $ | $ | ( | |||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
| Fair value | ||||||||||||||||||||
| Derivative assets | Derivative liabilities | Notional amount | ||||||||||||||||||
| IRLCs | $ | $ | $ | |||||||||||||||||
| FLSCs | ( | |||||||||||||||||||
| Total | $ | $ | ( | |||||||||||||||||
(1)Notional amount has been adjusted for pullthrough rate of 94.1% and 88% as of June 30, 2026 and December 31, 2025, respectively.
12. INCOME TAXES
The Company’s income tax expense for the three and six months ended June 30, 2026 was $20.7 million and $39.1 million, respectively, compared to $23.0 million and $45.2 million in the prior year periods. The effective tax rate was 20.8 % and 21.3 % for the three and six months ended June 30, 2026, respectively, compared to 20.4 % and 20.7 % in the comparable prior year periods. The change in the effective tax rate relates primarily to tax benefits from investment tax credits, a decrease in the non-controlled earnings benefit and an increase in permanently non-deductible expenses in comparison to pre-tax book income.
On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (“OBBBA”) into law, which is considered the enactment date under U.S. GAAP. Key corporate tax provisions include the restoration of 100% bonus depreciation, immediate expensing for domestic research and experimental expenditures, changes to Section 163(j) interest limitations, amendments to energy credits, and expanded 162(m) aggregation requirements. In accordance with ASC 740, the effects of the new tax law have been recognized in the period of enactment. The Company does not expect the impact of the OBBBA to have a material effect on the Company’s consolidated financial statements.
13. EARNINGS PER SHARE
The Company’s RSAs have the right to receive forfeitable dividends on an equal basis with common stock, however, its PRSUs do not participate in dividends with common stock. As such, PRSUs are not considered participating securities and are excluded from the calculation of net income per share using the two-class method.
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Basic earnings per common share is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of RSAs and PRSUs during each period. Net income applicable to common stockholders is net income adjusted for preferred stock dividends including dividends declared and cumulative dividends related to the current dividend period that have not been declared as of period end. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options, RSAs, RSUs and PRSUs.
The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income attributable to Green Brick Partners, Inc. | $ | $ | $ | $ | |||||||||||||||||||
| Preferred dividends | ( | ( | ( | ( | |||||||||||||||||||
| Net income applicable to common stockholders | |||||||||||||||||||||||
Weighted-average number of common shares outstanding - basic | |||||||||||||||||||||||
| Basic net income attributable to Green Brick Partners, Inc. per common share | $ | $ | $ | $ | |||||||||||||||||||
| Weighted-average number of common shares outstanding - basic | |||||||||||||||||||||||
| Dilutive effect of stock options and restricted stock awards | |||||||||||||||||||||||
| Weighted-average number of common shares outstanding - diluted | |||||||||||||||||||||||
| Diluted net income attributable to Green Brick Partners, Inc. per common share | $ | $ | $ | $ | |||||||||||||||||||
Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material.
14. FAIR VALUE MEASUREMENTS
Fair Value of Financial Instruments
The Company’s financial instruments, none of which are held for trading purposes, include cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, customer and builder deposits, borrowings on lines of credit, senior unsecured notes, and notes payable.
Assets and liabilities measured and disclosed at fair value are as follows (in thousands):
| Fair Value Hierarchy | June 30, 2026 | December 31, 2025 | ||||||||||||||||||
| Measured at fair value on a recurring basis | ||||||||||||||||||||
| Mortgage loans held for sale | Level 2 | $ | $ | |||||||||||||||||
| Forward sales contracts | Level 2 | ( | ( | |||||||||||||||||
| Interest rate lock commitments | Level 3 | |||||||||||||||||||
| Disclosed at fair value | ||||||||||||||||||||
| Senior unsecured notes | Level 2 | $ | $ | |||||||||||||||||
Level 1
Per the fair value hierarchy, level 1 financial instruments include: cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, and customer and builder deposits due to their short-
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term nature. The Company estimates that, due to the short-term nature of the underlying financial instruments or the proximity of the underlying transaction to the applicable reporting date, the fair value of level 1 financial instruments does not differ materially from the aggregate carrying values recorded in the condensed consolidated financial statements as of June 30, 2026 and December 31, 2025.
Level 2
Level 2 financial instruments include borrowings on lines of credit, senior unsecured notes, and notes payable. Due to the short-term nature and floating interest rate terms, the carrying amounts of borrowings on lines of credit are deemed to approximate fair value.
The fair value of forward sales contracts to investors considers the market price movement of the same type of security between the trade date and the balance sheet date. The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value. Mortgage loans held for sale are recorded at fair value when funded, and thereafter are carried at fair value, net of deferred origination costs, until sold.
Level 3
The Company’s interest rate lock commitments are derivative instruments that are recorded at fair value based on valuation models that use the market price for similar loans sold in the secondary market. The IRLCs are then subject to an estimated loan funding probability, or “pullthrough rate”. If the contract converts to a loan, the implied value, which is solely based upon interest rate changes, is incorporated in the basis of the fair value of the loan. If the IRLC does not convert to a loan, the basis is reduced to zero as the contract has no continuing value. Given the significant and unobservable nature of the pullthrough rate assumption, IRLC fair value measurements are classified as Level 3.
There were no transfers between the levels of the fair value hierarchy for any of our financial instruments during the three and six months ended June 30, 2026 and 2025.
15. RELATED PARTY TRANSACTIONS
During the three and six months ended June 30, 2026 and 2025, the Company had the following related party transactions in the normal course of business.
Corporate Officers
Trevor Brickman, the son of Green Brick’s Chief Executive Officer, is the President of CLH20, LLC (“Centre Living”). Green Brick’s ownership interest in Centre Living is 90 % and Trevor Brickman’s ownership interest is 10 %. Green Brick has 90 % voting control over the operations of Centre Living. As such, 100% of Centre Living’s operations are included within our condensed consolidated financial statements.
GRBK GHO
GRBK GHO leases office space from entities affiliated with the president of GRBK GHO. During the three and six months ended June 30, 2026 and 2025, GRBK GHO incurred de minimis and $0.1 million rent expense, respectively, under such lease agreements. As of June 30, 2026 and December 31, 2025, there were no amounts due to the affiliated entities related to such lease agreements.
16. COMMITMENTS AND CONTINGENCIES
Letters of Credit and Performance Bonds
During the ordinary course of business, certain regulatory agencies and municipalities require the Company to post letters of credit or performance bonds related to development projects. As of June 30, 2026 and December 31, 2025, letters of credit and performance bonds outstanding were $0.2 million, respectively. The Company does not believe that it is likely that any material claims will be made under a letter of credit or performance bond in the foreseeable future.
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Operating Leases
The Company has leases associated with office and design center space in Georgia, Texas, and Florida that, at the commencement date, have a lease term of more than 12 months and are classified as operating leases. The exercise of any extension options available in such operating lease contracts is not reasonably certain.
Operating lease cost of $0.5 million and $1.0 million for the three and six months ended June 30, 2026, and $0.4 million and $0.8 million for the three and six months ended June 30, 2025, is included in selling, general and administrative expenses in the condensed consolidated statements of income. Cash paid for amounts included in the measurement of operating lease liabilities was $0.5 million and $1.1 million for the three and six months ended June 30, 2026, respectively, and $0.4 million and $0.8 million in the prior year periods.
As of June 30, 2026, the weighted-average remaining lease term and the weighted-average discount rate used in calculating the Company’s lease liabilities were 4.6 years and 7.5 %, respectively.
The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the condensed consolidated balance sheet as of June 30, 2026 are presented below (in thousands):
| Remainder of 2026 | $ | ||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| Thereafter | |||||
| Total future lease payments | |||||
| Less: Interest | |||||
| Present value of lease liabilities | $ | ||||
Legal Matters
Lawsuits, claims and proceedings may be instituted or asserted against us in the normal course of business. The Company is also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, title company regulations, employment practices and environmental protection. As a result, the Company may be subject to periodic examinations or inquiry by agencies administering these laws and regulations.
The Company records an accrual for legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. The Company accrues for these matters based on facts and circumstances specific to each matter and revises these estimates when necessary.
In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, the Company generally cannot predict their ultimate resolution, related timing or eventual loss. If evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, the Company will disclose their nature with an estimate of the possible range of losses or a statement that such loss is not reasonably estimable. We believe that the disposition of legal claims and related contingencies will not have a material adverse effect on our results of operations and liquidity or on our financial condition.
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FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts and typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will” or other words of similar meaning. Forward-looking statements in this Quarterly Report include statements concerning, (a) our balance sheet strategies, operational strength and margin performance; (b) our operational goals and strategies and their anticipated benefits; (c) our expectations for our financial services segment (d) our intentions to deploy leverage to facilitate investments in our land acquisition, development and homebuilding activities; (e) the sufficiency of our capital resources and liquidity to support our business strategy and to service our debt; (f) sales of our finished lots; (g) our target debt to total capitalization ratio and its expected benefits; (h) our expectations regarding the timing of lots being taken down and the recognition of revenue; (i) our expectations regarding future cash needs; (j) our expectations regarding the disposition of legal claims and/or claims under a letter of credit or performance bond; (k) seasonal factors and the impact of seasonality in future quarters and (l) beliefs regarding the impact of accounting standards and legal claims and related contingencies. These forward-looking statements reflect our current views about future events and involve estimates and assumptions which may be affected by risks and uncertainties in our business, as well as other external factors, which could cause future results to materially differ from those expressed or implied in any forward-looking statement. These risks include, but are not limited to: (1) general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; (2) changes in macroeconomic conditions, including increasing interest rates and inflation that could adversely impact demand for new homes or the ability of potential buyers to qualify; (3) shortages, delays or increased costs of raw materials and increased demand for materials, or increases in other operating costs, including costs related to labor, real estate taxes and insurance, which in each case exceed our ability to increase prices; (4) significant periods of inflation or deflation; (5) a shortage of labor; (6) an inability to acquire land in our markets at anticipated prices or difficulty in obtaining land-use entitlements; (7) our inability to successfully execute our strategies, including the successful development of our communities within expected time frames and the growth and expansion of our Trophy Signature Homes brand; (8) a failure to recruit, retain or develop highly skilled and competent employees; (9) the geographic concentration of our operations; (10) government regulation risks; (11) adverse changes in the availability or volatility of mortgage financing; (12) severe weather events or natural disasters; (13) difficulty in obtaining sufficient capital to fund our growth; (14) our ability to meet our debt service obligations; (15) a decline in the value of our inventories and resulting write-downs of the carrying value of our real estate assets; (16) our ability to adequately self-insure; and (17) changes in accounting standards that adversely affect our reported earnings or financial condition.
Please see “Risk Factors” located in Part I, Item 1A in our Annual Report on Form 10-K/A for the year ended December 31, 2025 for a further discussion of these and other risks and uncertainties which could affect our future results. We undertake no obligation to revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events, except to the extent we are legally required to disclose certain matters in SEC filings or otherwise.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion of our financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K/A for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on May 11, 2026 and our condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.
Overview and Outlook
Our key financial and operating metrics are home deliveries, home closings revenue, average sales price of homes delivered, and net new home orders, which refers to sales contracts executed reduced by the number of sales contracts canceled during the relevant period, homebuilding gross margin, and incentives on homes closed as a percentage of residential units revenue. Our results for each key financial and operating metric, as compared to the same period in 2025, are provided below:
| Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | |||||||||||||
| Home deliveries | Increased by 0.5% | Increased by 0.2% | ||||||||||||
| Home closings revenue | Decreased by 11.5% | Decreased by 9.4% | ||||||||||||
| Average sales price of homes delivered | Decreased by 11.9% | Decreased by 9.5% | ||||||||||||
| Net new home orders | Increased by 18.8% | Increased by 5.1% | ||||||||||||
| Homebuilding gross margin percentage | Decreased by 1.5% | Decreased by 2.3% | ||||||||||||
| Incentives on homes closed as a percentage of residential units revenue | Increased by 2.3% | Increased by 3.5% | ||||||||||||
Our home deliveries were substantially in line in the second quarter of 2026 year over year, while average sales prices decreased primarily as a result of elevated discounts and incentives. Homebuilding gross margins decreased from 31.3% to 29.8% for the three months ended June 30, 2026, primarily due to higher incentives and product mix.
Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025
Residential Units Revenue and New Homes Delivered
The table below represents residential units revenue and new homes delivered for the three months ended June 30, 2026 and 2025 (dollars in thousands):
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | % | |||||||||||||||||||||||
| Home closings revenue | $ | 471,455 | $ | 532,525 | $ | (61,070) | (11.5) | % | ||||||||||||||||||
| Mechanic’s lien contracts revenue | 541 | — | 541 | 100% | ||||||||||||||||||||||
| Residential units revenue | $ | 471,996 | $ | 532,525 | $ | (60,529) | (11.4) | % | ||||||||||||||||||
| New homes delivered | 1,047 | 1,042 | 5 | 0.5 | % | |||||||||||||||||||||
| Average sales price of homes delivered | $ | 450.3 | $ | 511.1 | $ | (60.8) | (11.9) | % | ||||||||||||||||||
Residential units revenue decreased 11.4% and new homes delivered were substantially in line with the prior year period. The 11.9% decrease in the average sales price of homes delivered during the three months ended June 30, 2026, is due to increased incentives and product mix.
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New Home Orders and Backlog
The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s lien contracts (dollars in thousands):
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | % | |||||||||||||||||||||||
| Net new home orders | 1,079 | 908 | 171 | 18.8 | % | |||||||||||||||||||||
| Revenue from net new home orders | $ | 488,627 | $ | 454,900 | $ | 33,727 | 7.4 | % | ||||||||||||||||||
| Average selling price of net new home orders | $ | 452.9 | $ | 501.0 | $ | (48.1) | (9.6) | % | ||||||||||||||||||
| Cancellation rate | 7.8 | % | 9.9 | % | (2.1) | % | (21.2) | % | ||||||||||||||||||
| Absorption rate per average active selling community per quarter | 10.0 | 8.9 | 1.1 | 12.4 | % | |||||||||||||||||||||
| Average active selling communities | 108 | 102 | 6 | 5.9 | % | |||||||||||||||||||||
| Active selling communities at end of period | 106 | 102 | 4 | 3.9 | % | |||||||||||||||||||||
| Backlog revenue | $ | 387,376 | $ | 507,137 | $ | (119,761) | (23.6) | % | ||||||||||||||||||
| Backlog units | 681 | 730 | (49) | (6.7) | % | |||||||||||||||||||||
| Average sales price of backlog | $ | 568.8 | $ | 694.7 | $ | (125.9) | (18.1) | % | ||||||||||||||||||
Net new home orders increased 18.8% to 1,079 for the three months ended June 30, 2026, compared to 908 for the three months ended June 30, 2025, while average active selling communities increased by 5.9% to 108 communities. Revenue from net new home orders increased $33.7 million, or 7.4%, to $488.6 million, partially offset by a 9.6% decrease in the average selling price of net new home orders to $452.9 thousand, driven primarily by a higher mix of orders from Trophy Signature Homes, which operates at a lower price point relative to our other builders and targets first-time homebuyers. The 12.4% increase in the absorption rate per average active selling community, from 8.9 to 10.0 net new home orders per community per quarter was driven by higher levels of net new home orders from Trophy Signature Homes and a lower cancellation rate.
Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 7.8% for the three months ended June 30, 2026, compared to 9.9% for the three months ended June 30, 2025. Our cancellation rate has remained in a historically low range, under 10.0% since December 31, 2022.
Backlog units refer to homes under sales contracts that have not yet closed at the end of the respective period, and absorption rate refers to the rate at which net new home orders are contracted per average active selling community during the respective period. Sales contracts may be canceled prior to closing for a number of reasons, including the inability of the homebuyer to obtain suitable mortgage financing. Accordingly, backlog may not be indicative of our future revenue.
Backlog revenue decreased by 23.6% to $387.4 million as of June 30, 2026, compared to $507.1 million as of June 30, 2025, driven by a 6.7% decrease in backlog units to 681 homes and a 18.1% decrease in the average sales price of backlog to $568.8 thousand, reflecting higher sales from Trophy Signature Homes in addition to higher incentives and discounts offered to sustain orders.
Residential Units Gross Margin
The table below represents the components of residential units gross margin (dollars in thousands):
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Residential units revenue | $ | 471,996 | 100.0 | % | $ | 532,525 | 100.0 | % | ||||||||||||||||||
| Cost of residential units | 331,418 | 70.2 | % | 366,072 | 68.7 | % | ||||||||||||||||||||
| Residential units gross margin | $ | 140,578 | 29.8 | % | $ | 166,453 | 31.3 | % | ||||||||||||||||||
For the three months ended June 30, 2026, residential units revenue decreased $60.5 million or 11.4% while cost of residential units decreased by $34.7 million, or 9.5%, compared to the same period in the previous year. Residential units gross margin declined by 150 bps to 29.8% for the three months ended June 30, 2026, from 31.3% for the three months ended June 30, 2025. The decrease in residential units gross margin is attributable to higher incentives and discounts.
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Selling, General and Administrative Expenses
The table below represents the components of selling, general and administrative expenses (dollars in thousands):
| Three Months Ended June 30, | As Percentage of Segment Revenue | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Builder operations | $ | 52,299 | $ | 56,724 | 11.1 | % | 10.7 | % | ||||||||||||||||||
| Corporate, other and unallocated expense | 2,134 | 475 | 0.5 | % | 0.1 | % | ||||||||||||||||||||
| Net builder operations | 54,433 | 57,199 | 11.5 | % | 10.7 | % | ||||||||||||||||||||
| Land development | (37) | 238 | ||||||||||||||||||||||||
| Total selling, general and administrative expenses | $ | 54,396 | $ | 57,437 | 11.3 | % | 10.7 | % | ||||||||||||||||||
Selling, general and administrative expenses as a percentage of revenue increased by 0.6% for the three months ended June 30, 2026, mainly due to lower revenue, partially offset by increased salaries and share-based compensation.
Builder Operations
Selling, general and administrative expenses as a percentage of revenue for builder operations increased 0.4% mainly due to the decline in residential units revenues. Builder operation expenditures include salary expenses, commissions, corporate allocations, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.
Corporate, Other and Unallocated
Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment for the three months ended June 30, 2026 were $2.1 million, compared to $0.5 million for the three months ended June 30, 2025. The increase was due to higher share-based compensation during the three months ended June 30, 2026. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.
Financial Services
Commencing on January 1, 2026, we began reporting on our Financial Services Operations, which were previously reported within the Corporate segment, as a separate financial services segment. Our Financial Services operations include mortgage banking, title, and insurance agency operations through our wholly owned subsidiaries. The majority of the loans originated by our wholly owned subsidiary, GRBK Mortgage, are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. We also sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning loans and related servicing rights for only a short period of time.
Operating as a captive business model primarily targeted to support our Builder operations, the business levels of our Financial Services operations are highly correlated to homebuilding, as the customers to our homes continue to account for substantially all of its business. We believe that our mortgage capture rate, which represents loan originations from our Builder operations as a percentage of total loan opportunities from our Builder operations, excluding cash closings, is an important metric in evaluating the effectiveness of our captive financial services business model. The following tables present selected financial information for our Financial Services operations (in thousands):
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | % | |||||||||||||||||||||||
| Financial services revenues | $ | 12,243 | $ | 6,315 | 5,928 | 93.9 | % | |||||||||||||||||||
Financial services expenses(1) | (6,604) | (3,351) | (3,253) | 97.1 | % | |||||||||||||||||||||
| Income before income taxes | $ | 5,639 | $ | 2,964 | 2,675 | 90.2% | ||||||||||||||||||||
| Total loans funded: | ||||||||||||||||||||||||||
| Loans | 521 | 146 | 375 | 256.8% | ||||||||||||||||||||||
| Principal | $ | 196,531 | $ | 31,374 | 165,157 | 526.4% | ||||||||||||||||||||
(1) Includes selling, general and administrative expenses and other income and expenses related to Financial services.
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| Three Months Ended June 30, | ||||||||||||||
| Supplemental data: | 2026 | 2025 | ||||||||||||
| Capture rate | 66 | % | 53.1 | % | ||||||||||
| Average FICO score | 736 | 745 | ||||||||||||
| Funded origination breakdown: | ||||||||||||||
| Government (FHA, VA, USDA) | 50 | % | 45 | % | ||||||||||
| Other agency | — | % | — | % | ||||||||||
| Total agency | 50 | % | 45 | % | ||||||||||
| Non-agency | 50 | % | 55 | % | ||||||||||
| Total funded originations | 100 | % | 100 | % | ||||||||||
Financial services revenues increased $5.9 million, or 93.9%, to $12.2 million for the three months ended June 30, 2026, compared to $6.3 million for the three months ended June 30, 2025. The increase was primarily driven by mortgage revenues, which grew from $1.9 million to $7.9 million, as total loans funded increased 256.8% to 521 loans with total origination principal of $196.5 million, compared to 146 loans and $31.4 million in the prior year period. Our mortgage capture rate increased to 66% from 53.1%, reflecting growth in our captive mortgage business. Financial services expenses increased $3.3 million, or 97.1%, primarily due to higher costs associated with increased mortgage origination volume. As a result, income before income taxes increased $2.7 million, or 90.2%, to $5.6 million.
Equity in Income of Unconsolidated Entities
Equity in income of unconsolidated entities increased to $0.6 million, or 19.6%, for the three months ended June 30, 2026, compared to $0.5 million for the three months ended June 30, 2025. See Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of Green Brick’s share in net earnings by unconsolidated entity.
Other Income, Net
Other income (loss), net, was $2.3 million for the three months ended June 30, 2026, compared to $(1.2) million for the three months ended June 30, 2025. The change was driven by a decrease in pursuit costs during the three months ended June 30, 2026.
Income Tax Expense
Income tax expense was $20.7 million for the three months ended June 30, 2026 compared to $23.0 million for the three months ended June 30, 2025. The decrease in income tax expense is mainly due to lower taxable income for the three months ended June 30, 2026. See Note 12 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion on the Company’s income tax expense for the three months ended June 30, 2026.
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Residential Units Revenue and New Homes Delivered
The table below represents residential units revenue and new homes delivered for the six months ended June 30, 2026 and 2025 (dollars in thousands):
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | % | |||||||||||||||||||||||
| Home closings revenue | $ | 919,461 | $ | 1,014,674 | $ | (95,213) | (9.4) | % | ||||||||||||||||||
| Mechanic’s lien contracts revenue | 1,022 | — | 1,022 | 100.0 | % | |||||||||||||||||||||
| Residential units revenue | $ | 920,483 | $ | 1,014,674 | $ | (94,191) | (9.3) | % | ||||||||||||||||||
| New homes delivered | 1,955 | 1,952 | 3 | 0.2 | % | |||||||||||||||||||||
| Average sales price of homes delivered | $ | 470.3 | $ | 519.8 | $ | (49.5) | (9.5) | % | ||||||||||||||||||
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The $94.2 million or 9.3% decrease in residential units revenue was driven by the 9.5% decrease in the average sales price of homes delivered for the six months ended June 30, 2026. The 9.5% decrease in the average sales price of homes delivered for the six months ended June 30, 2026, was attributable to product mix, higher incentives and discounts.
New Home Orders
The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s lien contracts (dollars in thousands):
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | % | |||||||||||||||||||||||
| Net new home orders | 2,116 | 2,014 | 102 | 5.1 | % | |||||||||||||||||||||
| Revenue from net new home orders | $ | 970,168 | $ | 1,032,529 | $ | (62,361) | (6.0) | % | ||||||||||||||||||
| Average selling price of net new home orders | $ | 458.5 | $ | 512.7 | $ | (54.2) | (10.6) | % | ||||||||||||||||||
| Cancellation rate | 7.8 | % | 7.9 | % | (0.1) | % | (1.3) | % | ||||||||||||||||||
| Absorption rate per average active selling community per quarter | 10.0 | 9.7 | 0.3 | 3.1 | % | |||||||||||||||||||||
| Average active selling communities | 106 | 104 | 2 | 1.9 | % | |||||||||||||||||||||
| Active selling communities at end of period | 106 | 102 | 4 | 3.9 | % | |||||||||||||||||||||
Net new home orders increased 5.1% over the prior year period mainly due to a 1.9% increase in average selling communities. In addition, the absorption rate per average active selling community per quarter increased 3.1% to 10.0 net new home orders per community, compared to 9.7 for the six months ended June 30, 2025, primarily driven by increased absorption by Trophy Signature Homes.
Revenue from net new home orders decreased 6.0% to $970.2 million for the six months ended June 30, 2026, compared to $1,032.5 million for the six months ended June 30, 2025, primarily due to a 10.6% decrease in the average selling price of net new home orders to $458.5 thousand, reflecting higher sales from Trophy Signature Homes, our first-time homebuyer or entry-level builder, in addition to increased incentives and discounts offered to sustain sales pace.
Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 7.8% for the six months ended June 30, 2026, compared to 7.9% for the six months ended June 30, 2025. Our cancellation rate has remained in a historically low range under 10.0% since December 31, 2022.
Residential Units Gross Margin
The table below represents the components of residential units gross margin (dollars in thousands):
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Residential units revenue | $ | 920,483 | 100.0 | % | $ | 1,014,674 | 100.0 | % | ||||||||||||||||||
| Cost of residential units | 650,034 | 70.6 | % | 693,525 | 68.3 | % | ||||||||||||||||||||
| Residential units gross margin | $ | 270,449 | 29.4 | % | $ | 321,149 | 31.7 | % | ||||||||||||||||||
Residential units revenue decreased $94.2 million or 9.3% during the six months ended June 30, 2026, due to a decrease in the average sales price of homes delivered arising from a higher proportion of sales from Trophy Signature Homes and incentives. Cost of residential units for the six months ended June 30, 2026, decreased by $43.5 million, or 6.3%, compared to the six months ended June 30, 2025. This resulted in a decrease in residential units gross margin for the six months ended June 30, 2026, of 230 bps to 29.4%, from 31.7% for the six months ended June 30, 2025 mainly due to higher incentives and discounts.
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Land and Lots Revenue
The table below represents lots closed and land and lots revenue (dollars in thousands):
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | % | |||||||||||||||||||||||
| Lots revenue | $ | 7,500 | $ | 4,342 | $ | 3,158 | 72.7 | % | ||||||||||||||||||
| Land revenue | 9,600 | — | 9,600 | 100.0% | ||||||||||||||||||||||
| Land and lots revenue | $ | 17,100 | $ | 4,342 | $ | 12,758 | 293.8 | % | ||||||||||||||||||
| Lots closed | 75 | 42 | 33 | 78.6 | % | |||||||||||||||||||||
| Average sales price of lots closed | $ | 100.0 | $ | 103.4 | $ | (3.4) | (3.3) | % | ||||||||||||||||||
From time to time we may opportunistically sell finished lots to other homebuilders. Lots revenue increased by $3.2 million during the six months ended June 30, 2026. Land revenue represents the sale of one tract of land intended for multifamily development during the six months ended June 30, 2026.
Selling, General and Administrative Expenses
The table below represents the components of selling, general and administrative expenses (dollars in thousands):
| Six Months Ended June 30, | As Percentage of Segment Revenue | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Builder operations | $ | 103,924 | $ | 110,141 | 10.8 | % | 10.9 | % | ||||||||||||||||||
| Corporate, other and unallocated expense | 3,357 | (522) | 0.4 | % | (0.1) | % | ||||||||||||||||||||
| Net builder operations | 107,281 | 109,619 | 11.7 | % | 10.8 | % | ||||||||||||||||||||
| Land development | (292) | 385 | (1.7) | % | 8.9 | % | ||||||||||||||||||||
| Total selling, general and administrative expenses | $ | 106,989 | $ | 110,004 | 11.4 | % | 10.8 | % | ||||||||||||||||||
Selling, general and administrative expenses as a percentage of homebuilding revenue increased by 0.6% for the six months ended June 30, 2026, the increase is mainly due to lower revenues and increased salaries and share-based compensation.
Builder Operations
Selling, general and administrative expenses as a percentage of revenue for builder operations decreased to 10.8% for the six months ended June 30, 2026 from 10.9% in the prior year period mainly due to lower revenues. Builder operations expenditures include salary expenses, sales commissions, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.
Corporate, Other and Unallocated
Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment for the six months ended June 30, 2026, were $3.4 million and income of $522.0 thousand for the six months ended June 30, 2025. The change was driven by increased salaries and incentive compensation. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.
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Financial Services
The following tables present selected financial information for our Financial Services operations (in thousands):
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | % | |||||||||||||||||||||||
| Total financial services revenues | $ | 21,915 | $ | 11,182 | 10,733 | 96.0 | % | |||||||||||||||||||
Financial services expenses(1) | (11,955) | (6,409) | (5,546) | 86.5 | % | |||||||||||||||||||||
| Income before income taxes | $ | 9,960 | $ | 4,773 | 5,187 | 108.7 | % | |||||||||||||||||||
| Total loans funded: | ||||||||||||||||||||||||||
| Loans | 886 | 251 | 635 | 253.0% | ||||||||||||||||||||||
| Principal | $ | 346,886 | $ | 108,901 | 237,985 | 218.5% | ||||||||||||||||||||
(1) Includes selling, general and administrative expenses and other income and expenses related to Financial services.
| Six Months Ended June 30, | ||||||||||||||
| Supplemental data: | 2026 | 2025 | ||||||||||||
| Capture rate | 66 | % | 58.5 | % | ||||||||||
| Average FICO score | 739 | 743 | ||||||||||||
| Funded origination breakdown: | ||||||||||||||
| Government (FHA, VA, USDA) | 46 | % | 39 | % | ||||||||||
| Other agency | — | % | — | % | ||||||||||
| Total agency | 46 | % | 39 | % | ||||||||||
| Non-agency | 54 | % | 61 | % | ||||||||||
| Total funded originations | 100 | % | 100 | % | ||||||||||
Financial services revenues increased $10.7 million, or 96.0%, to $21.9 million for the six months ended June 30, 2026, compared to $11.2 million for the prior year period. The increase was primarily driven by mortgage revenues, which grew from $3.2 million to $13.5 million, reflecting an increase in total loans funded to 886 loans with a total origination principal of $346.9 million from 251 loans and $108.9 million in the prior year period, and an improvement in our mortgage capture rate to 66% from 58.5%.
Financial services expenses increased $5.5 million, or 86.5%, to $12.0 million, driven by higher costs associated with increased mortgage origination volume. As a result, income before income taxes increased $5.2 million, or 108.7%, to $10.0 million for the six months ended June 30, 2026.
Equity in Income of Unconsolidated Entities
Equity in income of unconsolidated entities increased to $1.7 million, for the six months ended June 30, 2026, compared to $1.0 million for the six months ended June 30, 2025. See Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of Green Brick’s share in net earnings by unconsolidated entity.
Other Income, Net
Other income (loss), net, increased to $2.0 million for the six months ended June 30, 2026, compared to $(0.5) million for the six months ended June 30, 2025.
Income Tax Expense
Income tax expense was $39.1 million for the six months ended June 30, 2026 compared to $45.2 million for the six months ended June 30, 2025. The decrease was primarily due to lower taxable income. See Note 12 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion on the Company’s income tax expense for the six months ended June 30, 2026.
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Lots Owned and Under Contract
The following table presents the lots we owned or controlled, including lot option contracts, as of June 30, 2026 and December 31, 2025. Owned lots are those for which we hold title. Lots under contract are those for which we have the contractual right to acquire title but do not currently own.
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
Central(1) | Southeast(2) | Total | Central(1) | Southeast(2) | Total | ||||||||||||||||||||||||||||||
| Lots owned | |||||||||||||||||||||||||||||||||||
| Finished lots | 4,212 | 1,220 | 5,432 | 4,518 | 663 | 5,181 | |||||||||||||||||||||||||||||
| Lots in communities under development | 29,277 | 1,079 | 30,356 | 26,339 | 1,703 | 28,042 | |||||||||||||||||||||||||||||
Land held for future development(3) | 3,800 | — | 3,800 | 3,800 | — | 3,800 | |||||||||||||||||||||||||||||
| Total lots owned | 37,289 | 2,299 | 39,588 | 34,657 | 2,366 | 37,023 | |||||||||||||||||||||||||||||
Lots under contract | |||||||||||||||||||||||||||||||||||
| Lots and land under option contracts | 8,143 | 1,438 | 9,581 | 8,297 | 955 | 9,252 | |||||||||||||||||||||||||||||
| Lots under option through unconsolidated development joint ventures | 3,009 | 44 | 3,053 | 2,488 | 65 | 2,553 | |||||||||||||||||||||||||||||
Total lots under contract(4) | 11,152 | 1,482 | 12,634 | 10,785 | 1,020 | 11,805 | |||||||||||||||||||||||||||||
Total lots owned and under contract(5) | 48,441 | 3,781 | 52,222 | 45,442 | 3,386 | 48,828 | |||||||||||||||||||||||||||||
| Percentage of lots owned | 77.0 | % | 60.8 | % | 75.8 | % | 76.3 | % | 69.9 | % | 75.8 | % | |||||||||||||||||||||||
(1) The Texas market.
(2) The Georgia and Florida markets.
(3) Land held for future development consist of raw land parcels where development activities have been postponed due to market conditions or other factors.
(4) As of June 30, 2026 and December 31, 2025, 53.3% and 16.6% of the total lots under contract had refundable deposits.
(5) Total lots excludes lots with homes under construction.
Liquidity and Capital Resources Overview
As of June 30, 2026 and December 31, 2025, we had $131.6 million and $154.6 million of unrestricted cash and cash equivalents, respectively. In addition, as of June 30, 2026, we had $330.0 million of available capacity under our Unsecured Revolving Credit Facility, with no amounts outstanding. Combined with unrestricted cash and cash equivalents of $131.6 million, our total available liquidity was approximately $461.6 million. Our historical cash management strategy includes redeploying net cash from the sale of home inventory to acquire and develop land and lots that represent opportunities to generate desired margins and returns, and using cash to make additional investments in business acquisitions, joint ventures, share repurchases or other strategic activities.
Our principal uses of capital for the six months ended June 30, 2026 were home construction, land purchases, land development, repayments of debt, operating expenses, share repurchases, and payment of routine liabilities. Historically, we have used funds generated by operations and available borrowings to meet our short-term working capital requirements. We remain focused on generating positive margins in our homebuilding operations and acquiring desirable land positions in order to maintain a strong balance sheet and remain poised for continued growth.
Cash flows for each of our communities depend on the community’s stage in the development cycle. Early stages of development or expansion require significant cash outlays for land acquisitions, entitlements and other approvals, roads, utilities, general landscaping and other amenities, and home construction. These costs are a component of our inventory and are not recognized in our statement of income until a home closes. In the later stages of community life cycle, cash inflows may significantly exceed earnings reported for financial statement purposes, as the cash outflows associated with home construction and land development primarily occurred in prior periods.
Our homebuilding debt to total capitalization ratio, which is calculated as the sum of borrowings on lines of credit, the senior unsecured notes, and notes payable, net of debt issuance costs (“total debt”), divided by the total capitalization, which equals the sum of Green Brick Partners, Inc. stockholders’ equity and total debt, was approximately 11.2% as of June 30, 2026.
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Additionally, as of June 30, 2026, our net homebuilding debt to total capitalization ratio, which is a non-GAAP financial measure, remained low at 6.1%. It is our intent to prudently employ leverage to continue to invest in our land acquisition, development and homebuilding activities. We target a homebuilding debt to total capitalization ratio of up to approximately 20%, which we expect will provide us with significant additional growth capital.
Reconciliation of a Non-GAAP Financial Measure
In this Quarterly Report on Form 10-Q, we utilize a financial measure of net homebuilding debt to total capitalization ratio that is a non-GAAP financial measure as defined by the SEC. Net homebuilding debt to total capitalization is calculated as total homebuilding debt less cash and cash equivalents, divided by the sum of total Green Brick Partners, Inc. stockholders’ equity and total homebuilding debt less cash and cash equivalents. We present this measure because we believe it is useful to management and investors in evaluating the Company’s financing structure. We also believe this measure facilitates the comparison of our financing structure with other companies in our industry. Because this measure is not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), it may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
The closest GAAP financial measure to the net homebuilding debt to total capitalization ratio is the debt to total capitalization ratio. The following table represents a reconciliation of the net homebuilding debt to total capitalization ratio as of June 30, 2026 (dollars in thousands):
| Total capitalization | Homebuilding capitalization(1) | ||||||||||||||||||||||||||||||||||
| Gross | Cash and cash equivalents | Net | Gross | Cash and cash equivalents | Net | ||||||||||||||||||||||||||||||
| Total debt, net of debt issuance costs | $ | 284,015 | $ | (131,642) | $ | 152,373 | $ | 249,383 | $ | (121,583) | $ | 127,800 | |||||||||||||||||||||||
| Total Green Brick Partners, Inc. stockholders’ equity | 1,975,496 | — | 1,975,496 | 1,975,496 | — | 1,975,496 | |||||||||||||||||||||||||||||
| Total capitalization | $ | 2,259,511 | $ | (131,642) | $ | 2,127,869 | $ | 2,224,879 | $ | (121,583) | $ | 2,103,296 | |||||||||||||||||||||||
| Debt to total capitalization ratio | 12.6 | % | 11.2 | % | |||||||||||||||||||||||||||||||
| Net debt to total capitalization ratio | 7.2 | % | 6.1 | % | |||||||||||||||||||||||||||||||
(1) Homebuilding capitalization ratio excludes cash and debt related to our wholly owned mortgage company.
Key Sources of Liquidity
Our key sources of liquidity were funds generated by operations and borrowings during the six months ended June 30, 2026.
Cash Flows
The following summarizes our primary sources and uses of cash during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025:
•Operating activities. Net cash provided by operating activities for the six months ended June 30, 2026, was $47.4 million, compared to $143.5 million during the six months ended June 30, 2025. The net cash inflows for the six months ended June 30, 2026, were generated by our business operations of $179.9 million, decrease in accounts receivable of $11.6 million partially offset by an increase of inventory of $154.0 million compared to $38.6 million in the prior year period. This increase reflects our continued investment in land acquisition and development to support future home deliveries.
•Investing activities. Net cash used in investing activities for the six months ended June 30, 2026 was $12.2 million, compared to $25.6 million during the six months ended June 30, 2025. Cash outflows for the six months ended June 30, 2026, were primarily related to other investments in unconsolidated entities.
•Financing activities. Net cash used in financing activities for the six months ended June 30, 2026 was $71.8 million, compared to $131.8 million during the six months ended June 30, 2025. The cash outflows were primarily related to share repurchases of $16.7 million and repayments of our senior unsecured notes of $25.0 million.
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Debt Instruments
Unsecured Revolving Credit Facility – On December 10, 2025, the Company entered into the Thirteenth Amendment to this Unsecured Revolving Credit Facility. The Unsecured Revolving Credit Facility was amended (i) to reduce the SOFR spread and base rate spread, (ii) to allow the Company to request a revolving credit advance using Daily SOFR (as defined in the Unsecured Revolving Credit Facility) and (iii) for other administrative changes. The total commitments remain at $330.0 million. The maturity of all commitments under the facility have been extended to December 14, 2028. As of June 30, 2026 and December 31, 2025, we had no amounts outstanding under our Revolving Credit Facility.
Senior Unsecured Notes - As of June 30, 2026, we had four series of senior unsecured notes outstanding that were each issued pursuant to a note purchase agreement. The aggregate principal amount of senior unsecured notes outstanding was $237.2 million as of June 30, 2026 compared to $262.0 million as of December 31, 2025, net of issuance costs.
•In August 2019, we issued $75.0 million of senior unsecured notes (the “2026 Notes”). Interest accrues at an annual rate of 4.0% and is payable quarterly. The final principal payment of $50.0 million is due on August 8, 2026.
•In August 2020, we issued $37.5 million of senior unsecured notes (the “2027 Notes”). Interest accrues at an annual rate of 3.35% and is payable quarterly. Principal on the 2027 Notes is due on August 26, 2027.
•In February 2021, we issued $125.0 million of senior unsecured notes (the “2028 Notes”). Interest accrues at an annual rate of 3.25% and is payable quarterly. The remaining principal on the 2028 Notes is due in increments of $25.0 million annually on February 25 in each of 2027 and 2028.
•In December 2021, we issued $100.0 million of senior unsecured notes (the “2029 Notes”). Interest accrues at an annual rate of 3.25% and is payable quarterly. A required principal prepayment of $30.0 million is due on December 28, 2028. The remaining unpaid principal balance is due on December 28, 2029.
The senior unsecured notes allow optional prepayment of a “make-whole” premium that fluctuates depending on market interest rates. Interest is payable quarterly in arrears.
Our debt instruments require us to maintain specific financial covenants, each of which we were in compliance with as of June 30, 2026. Specifically, under the most restrictive covenants, we are required to maintain the following:
•a minimum interest coverage (consolidated EBITDA to interest incurred) of no less than 2.0 to 1.0. As of June 30, 2026, our interest coverage on a last 12 months’ basis was 33.13 to 1.0;
•a Consolidated Tangible Net Worth of no less than approximately $1,236.2 million. As of June 30, 2026, our Consolidated Tangible Net Worth was $1,974.7 million; and
•a maximum debt to total capitalization rolling average ratio of no more than 40.0%. As of June 30, 2026, we had a rolling average ratio of 12.1%.
As of June 30, 2026, we believe that our cash on hand, capacity available under our lines of credit and cash flows from operations for the next twelve months will be sufficient to (i) service our outstanding debt during the next twelve months and (ii) fund our operations. For additional information on our lines of credit, senior unsecured notes, and notes payable, refer to Note 5 to the condensed consolidated financial statements located in Part I, Item 1 of this Quarterly Report on Form 10-Q.
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Warehouse Facilities
GRBK Mortgage, LLC, a wholly owned subsidiary of the Company, is party to warehouse facilities to fund its origination of mortgage loans (the “Warehouse Facilities”) as follows (in thousands):
| Outstanding Balance As of | ||||||||||||||||||||
| Maturity Date | Maximum Aggregate Commitment | June 30, 2026 | December 31, 2025 | |||||||||||||||||
January 29, 2027 | $ | 40,000 | $ | — | $ | 16,828 | ||||||||||||||
| January 31, 2027 | 60,000 | 31,002 | — | |||||||||||||||||
| December 15, 2027 | 40,000 | 3,630 | 29,570 | |||||||||||||||||
| $ | 140,000 | $ | 34,632 | $ | 46,398 | |||||||||||||||
Our borrowings and repayments on the warehouse lines of credit are directly related to the origination and sale of mortgage loans held for sale. As such, the gross activity in the warehouse lines of credit during the period substantially reconciles to the net change in mortgage loans held for sale, as reflected in the condensed consolidated statements of cash flows and discussed in Note 11 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
The Warehouse Facilities provide for an aggregate uncommitted amount of $140.0 million. The Warehouse Facilities are (i) secured by the underlying mortgage loans and bear interest at a variable rate based on SOFR plus a margin ranging from 1.4% to 2% and (ii) guaranteed by Green Brick. The facilities are subject to annual renewal and contain customary covenants and conditions regarding minimum net worth, leverage, profitability and liquidity. The Company was in compliance with the financial covenants under the Warehouse Facilities as of June 30, 2026.
Under the Warehouse Facilities, banks purchase a participation interest in individual mortgage loans, with GRBK Mortgage providing the remainder of the principal of the mortgage, typically up to 2% depending on the loan product. The mortgage loans, with the servicing rights, are then sold, typically within 30 days, to a third party investor and the bank is repaid its participation interest plus interest and the remainder is remitted to GRBK Mortgage. If a third party investor has not purchased the mortgage loan within the anticipated timeframes then GRBK Mortgage is required to repurchase the mortgage loan for the full amount of the participation interest plus interest.
Preferred Equity
As of June 30, 2026 and December 31, 2025 we had 2,000,000 Depositary Shares issued and outstanding, each representing 1/1000 of a share of our 5.75% Series A Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”). We will pay cumulative cash dividends on the Series A Preferred Stock, when and as declared by the Board, at the rate of 5.75% of the $25,000 liquidation preference per share. Dividends are payable quarterly in arrears. During the six months ended June 30, 2026, we paid dividends of $1.4 million on the Series A Preferred Stock. On July 23, 2026, the Board declared a quarterly cash dividend of $0.359 per depositary share on the Series A Preferred Stock. The dividend is payable on September 15, 2026 to stockholders of record as of September 1, 2026.
Registration Statements
In September 2023, we filed with the SEC an automatic shelf registration statement on Form S-3 which enables us to issue shares of common stock, preferred stock or debt securities either separately or represented by warrants, or depositary shares as well as units that include any of these securities. Under the rules governing shelf registration statements, we will file a prospectus supplement and advise the SEC of the amount and type of securities each time we issue securities under this registration statement. We have not issued any securities under this registration statement through the date of this filing.
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Off-Balance Sheet Arrangements and Contractual Obligations
Land and Lot Option Contracts
In the ordinary course of business, we enter into land purchase contracts to acquire lots for the construction of our homes in the future. We are subject to customary obligations associated with such contracts. These purchase contracts typically require an earnest money deposit, and the purchase of properties under these contracts is generally contingent upon satisfaction of certain requirements, including obtaining applicable property and development entitlements. As of June 30, 2026, the Company did not participate in any land banking arrangements, excluding joint ventures.
We also utilize option contracts with lot sellers as a method of acquiring lots in staged takedowns, which are the schedules that dictate when lots must be purchased to help manage the financial and market risk associated with land holdings, and to reduce the use of funds from our corporate financing sources. Lot option contracts generally require us to pay a non-refundable deposit for the right to acquire lots over a specified period of time at pre-determined prices that typically include escalations in lot prices over time.
Our utilization of lot option contracts is dependent on, among other things, the availability of land sellers willing to enter into these arrangements, the availability of capital to finance the development of optioned lots, general housing market conditions and local market dynamics. Options may be more difficult to procure from land sellers in strong housing markets and are more prevalent in certain geographic regions.
We generally have the right, at our discretion, to terminate our obligations under both purchase contracts and option contracts by forfeiting the earnest money deposit with no further financial responsibility to the seller.
As of June 30, 2026, we had earnest money deposits of $12.0 million at risk associated with contracts to purchase raw land and finished lots representing 10,180 total lots past feasibility studies with an aggregate purchase price of approximately $450.7 million.
Seasonality
The homebuilding industry experiences seasonal fluctuations in quarterly operating results and capital requirements. We typically experience the highest new home order activity in spring and summer, although this activity is highly dependent on the number of active selling communities, timing of new community openings, interest rates and other market factors. Since it typically takes four to seven months to construct a new home, we normally deliver more homes in the second half of the year as spring and summer home orders are delivered. Because of this seasonality, home starts, construction costs and related cash outflows have historically been highest in the second and third quarters, and the majority of cash receipts from home deliveries occur typically during the second half of the year.
Critical Accounting Policies
Our critical accounting policies are described in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K/A for the year ended December 31, 2025.
Recent Accounting Pronouncements
See Note 1 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for recent accounting pronouncements.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our principal executive officer ( “CEO”) and principal financial officer (“CFO”), we conducted an evaluation of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of June 30, 2026 in providing reasonable assurance that information required to be disclosed in the reports we file, furnish, submit or otherwise provide to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that
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information required to be disclosed in reports filed by us under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, in such a manner as to allow timely decisions regarding the required disclosures.
Changes in Internal Control over Financial Reporting
During the three months ended June 30, 2026, there were no changes in our internal controls that have materially affected or are reasonably likely to have a material effect on our internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Purchases of equity securities by the issuer
The following table provides information about repurchases of our common stock during the three months ended June 30, 2026:
| Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs (1) | ||||||||||||||||||||||
| April 1 - April 30, 2026 | 7,639 | $ | 64.42 | 7,639 | $ | 159,395,000 | ||||||||||||||||||||
| May 1 - May 31, 2026 | 131,774 | 65.02 | 131,774 | 150,828,000 | ||||||||||||||||||||||
| June 1 - June 30, 2026 | 3,613 | 67.77 | 3,613 | 150,583,000 | ||||||||||||||||||||||
| Total | 143,026 | 143,026 | ||||||||||||||||||||||||
(1) On February 17, 2025, the Board approved and authorized a stock repurchase program (the “Repurchase Plan”). The original authorization approved $100 million of purchases under the Repurchase Plan. On December 11, 2025, the Company’s Board authorized an additional $150 million of repurchases under the Repurchase Plan. During the three months ended June 30, 2026, the Company completed open market repurchases under the Repurchase Plan of 143,026 shares for approximately $9.3 million, excluding excise tax. As of June 30, 2026, there remained $150.6 million available for repurchases under the Repurchase Plan. The Repurchase Plan has no time deadline and will continue until otherwise modified or terminated by the Company’s board of directors any time in its sole discretion. Repurchases will be made from time to time in the open market, through block trades or in privately negotiated transactions based on market and business conditions, applicable legal requirements and other factors. All shares repurchased will be retired.
ITEM 5. OTHER INFORMATION
Insider trading arrangements and policies
During the three months ended June 30, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
ITEM 6. EXHIBITS
| Number | Description | |||||||
| 31.1* | ||||||||
| 31.2* | ||||||||
| 32.1* | ||||||||
| 32.2* | ||||||||
| 101.INS** | XBRL Instance Document. The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
36
| Number | Description | |||||||
| 101.SCH** | XBRL Taxonomy Extension Schema Document. | |||||||
| 101.CAL** | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
| 101.DEF** | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
| 101.LAB** | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
| 101.PRE** | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
| 104** | Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101). | |||||||
* Filed with this Form 10-Q.
** Submitted electronically herewith.
37
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
GREEN BRICK PARTNERS, INC. | |||||
| /s/ James R. Brickman | |||||
| By: James R. Brickman | |||||
| Its: Chief Executive Officer | |||||
| /s/ Jeffery D. Cox | |||||
| By: Jeffery D. Cox | |||||
| Its: Chief Financial Officer | |||||
Date: July 29, 2026
38
Exhibit 31.1
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, James R. Brickman, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Green Brick Partners, Inc. for the period ended June 30, 2026;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: July 29, 2026
| By: | /s/ James R. Brickman | ||||
| Name: | James R. Brickman | ||||
| Title: | Chief Executive Officer | ||||
Exhibit 31.2
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Jeffery D. Cox, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Green Brick Partners, Inc. for the period ended June 30, 2026;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: July 29, 2026
| By: | /s/ Jeffery D. Cox | ||||
| Name: | Jeffery D. Cox | ||||
| Title: | Chief Financial Officer | ||||
Exhibit 32.1
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Quarterly Report of Green Brick Partners, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James R. Brickman, Chief Executive Officer of the Company, certify to my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:
1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: July 29, 2026
| By: | /s/ James R. Brickman | ||||
| Name: | James R. Brickman | ||||
| Title: | Chief Executive Officer | ||||
Exhibit 32.2
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Quarterly Report of Green Brick Partners, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffery D. Cox, Interim Chief Financial Officer of the Company, certify to my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:
1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: July 29, 2026
| By: | /s/ Jeffery D. Cox | ||||
| Name: | Jeffery D. Cox | ||||
| Title: | Chief Financial Officer | ||||