Dream Finders Homes Reports Fourth Quarter and Full Year 2025 Results
Dream Finders Homes, Inc. (NYSE: DFH) announced its financial results for the fourth quarter and full year ended December 31, 2025. The company highlighted both challenges and achievements amid a complex housing market.
Fourth Quarter 2025 Highlights
Homebuilding revenues for Q4 2025 were $1.2 billion, down from $1.5 billion in Q4 2024. The decrease was driven by fewer home closings, which totaled 2,536 compared to 3,008 in the prior year, as well as lower average selling prices (ASP) influenced by sales incentives and geographic product mix changes. Net sales increased 9% to 1,756 from 1,611.
Homebuilding gross margin decreased to 16.7% from 17.7%, and adjusted homebuilding gross margin (non-GAAP) fell to 25.7% from 26.9%. Pre-tax income declined to $78 million from $169 million, while net income attributable to DFH was $59 million, or $0.60 per basic share, compared to $129 million, or $1.35 per share, in Q4 2024. Financial services pre-tax income was $8 million versus $11 million in the prior year.
Full Year 2025 Highlights
For the full year, homebuilding revenues totaled $4.1 billion, slightly lower than $4.4 billion in 2024. Total home closings reached 8,608, a record for the company, compared to 8,583 the previous year. Net sales rose 15% to 7,747 from 6,727.
Homebuilding gross margin was 17.4%, down from 18.3%, and adjusted homebuilding gross margin (non-GAAP) was 26.5% compared to 27.0%. Pre-tax income decreased to $284 million from $438 million, while net income attributable to DFH was $217 million, or $2.19 per share, compared to $335 million, or $3.44 per share. Financial services pre-tax income increased 12% to $35 million from $31 million.
The controlled lot pipeline grew to 63,121 lots from 54,698. Dream Finders also issued $300 million in 6.875% senior unsecured notes to repay a portion of its revolving credit facility. Total liquidity at year-end 2025 was $899 million, comprised of cash, cash equivalents, and credit availability. Return on participating equity declined to 15.3% from 29.7%. The company repurchased 1,832,865 Class A shares for $41.8 million during 2025.
CEO Commentary
Patrick Zalupski, Chairman and CEO, noted that 2025 was challenging for the industry but emphasized the company’s ability to set records in annual closings and net sales. He highlighted the company’s commitment to affordable housing, noting over $100 million spent on mortgage buy-down programs and tailored sales incentives.
Zalupski also shared excitement about a strategic partnership to acquire the Sawgrass Marriott Golf Resort & Spa in Ponte Vedra Beach, Florida. The 66-acre property near the PLAYERS Stadium Course at TPC Sawgrass will expand the company’s lot pipeline and support future growth, while benefiting the local community through job creation and tourism.
Despite industry difficulties, Zalupski emphasized DFH’s resilience and the team’s ability to execute effectively, with a focus on scaling the business and delivering long-term shareholder returns. For 2026, the company expects approximately 9,250 home closings.
Homebuilding Segment Overview
In Q4 2025, homebuilding revenues were $1.2 billion, a 24% decline from the prior year, due to lower closings and ASP declines. The Liberty Communities acquisition in January 2025 contributed 273 home closings with an ASP of $315,784.
Gross margin percentage declined to 16.7%, driven by higher sales incentives, land costs, and product mix changes. Adjusted gross margin (non-GAAP) was 25.7%, down from 26.9% in Q4 2024.
SG&A expenses increased 7% to $124 million due to forward mortgage commitment programs and increased community counts, partially offset by lower compensation costs. SG&A as a percentage of revenues rose to 10.7% from 7.6% in Q4 2024.
Net sales increased 9% to 1,756, while the cancellation rate improved to 15.9% from 18.8%, reflecting effective sales incentives and the availability of affordable homes.
Q4 2025 Backlog
As of December 31, 2025, DFH had a backlog of 1,839 homes valued at $0.8 billion, compared to 2,619 homes valued at $1.2 billion as of September 30, 2025. The ASP in backlog was $446,597. Most homes in the backlog, approximately 1,767, are expected to deliver in 2026, with 72 homes expected in 2027 and beyond.
Backlog by segment:
- Southeast: 833 homes, ASP $412,422
- Mid-Atlantic: 631 homes, ASP $367,559
- Midwest: 375 homes, ASP $655,505
- Total: 1,839 homes, ASP $446,597
Financial Services
Financial services revenues increased 109% in Q4 2025 due to the acquisition of Alliant Title. Income before taxes declined 30% due to lower home closings. Full-year revenues and income before taxes grew 242% and 12%, respectively, reflecting the Alliant Title acquisition and consolidation of Jet HomeLoans.
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