Green Brick Partners, Inc. — Call Transcript 2026

Hello, and welcome to the Green Brick Partners, Inc. first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. I would now like to turn the conference over to Jeff Cox, Chief Financial Officer. Please go ahead. Good afternoon and welcome to Green Brick Partners earnings call for the first quarter ended March 31st, 2026. Following today's remarks, we will hold a Q&A session. As a reminder, this call is being recorded and will be available for playback. In addition, a presentation will accompany today's webcast, which is available on the company's investor relations website at investors.greenbrickpartners.com. On the call today is Jim Brickman, Co-founder and Chief Executive Officer, Jed Dolson, President and Chief Operating Officer, and myself, Jeff Cox, Chief Financial Officer. Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2026 and beyond. In yesterday's press release, the company detailed material risks that may cause its future results to differ from its expectations. The company's statements are as of today, April 30th, 2026, and the company has no obligation to update any forward-looking statement it may make. The comments also include non-GAAP financial metrics. The reconciliation of these metrics and the other information required by Regulation G can be found in the earnings release that the company issued yesterday and in the aforementioned presentation. With that, I'll turn the call over to Jim. Thank you, Jeff. I'm pleased to announce our first quarter results, particularly given that we achieved these results against a backdrop of ongoing and persistent affordability challenges faced by many consumers in the housing market. As well as increasing uncertainty and volatility for consumers caused by domestic and global events and trends ranging from increasing gas prices to job concerns in this new AI era. Despite these challenges, our team's effort and disciplined approach led to another excellent quarter for our business and our shareholders. Net income attributable to Green Brick for the first quarter was $61 million or $1.39 per diluted share on total revenues of $465 million. We delivered 908 homes in the quarter, only two less than in Q1 2025, and we had 1,037 net new orders. We achieved this despite, as we mentioned on our last call, losing about seven selling days in January due to inclement weather in DFW., our largest market. Orders increased sequentially each month of the quarter, with March sales outpacing the same period in 2025. This was more in line with a normal spring selling season. We believe our investment-grade balance sheet and low financial leverage provide us with the flexibility to navigate and takes advantage of evolving market conditions. At the end of Q1, our home building debt to total capital ratio decreased to 11.5%, and our net home building debt to total capital ratio decreased to 5.5%, among the lowest of our public home building peers. We also have $475 million in available liquidity. Our industry-leading home building gross margins of 28.9% give us the flexibility to profitably adjust the pricing of our homes to respond to market conditions. We believe the foundation of our industry-leading gross margin starts with our commitment to owning and developing land. We remain highly disciplined in how we control and purchase land. One of the primary differentiators from many of our peers is that we do not engage in off-balance sheet, high interest cost land banking arrangements that can distort a builder's economic leverage and risk, and that can give a land banker indirect control over a builder's lot purchase timing. At the end of the first quarter, 77% of our approximately 49,000 lots are owned. We have 3,400 lots owned or under contract and four joint ventures with other home builders or landowners. These joint ventures account for 7% of our total lots owned and controlled and only 2.9% of our total assets. These joint ventures are evaluated with the same underwriting criteria as our other land investments to ensure that we remain focused on attractive risk-adjusted returns and protect shareholder value. As many of you who follow our company know, this disciplined approach to land acquisition and development is not a new philosophy for our company. We have always believed that a self-development focused strategy provides us with better capital efficiency and returns, allowing us to make higher margins, lower cost, and enhance inventory control so that we can better determine the pace of land and lot deliveries. We generated strong operating cash flows of $56 million for the quarter. In the last 12 months, we generated $201 million in operating cash flows and returned $74 million to shareholders through repurchases. Even with our land-heavy balance sheet and macroeconomic headwinds, we delivered strong returns during the quarter of 9.6% return on assets and 13.1% return on equity, among the very best of public home building peers. Our disciplined returns-focused approach and our experienced team of operators position us well for future value creation. This quarter, we began reporting on financial service operations as a separate segment due to the strong growth of our wholly owned mortgage company. Green Brick Mortgage was founded in 2024 and funded its first loan in the first quarter of 2025. During 2025, Green Brick Mortgage grew rapidly, and by the end of Q1 2026, was serving all of our Texas communities. For the first quarter, revenues for Green Brick Mortgage increased from $1.3 million to $5.6 million year-over-year as the number of funded loans increased by almost 250%. Pre-tax income from our financial services segment increased year-over-year by 139% in Q1 to $4.3 million. While the macroeconomic landscape presents short-term headwinds for the entire industry, we believe the core strengths that have driven Green Brick's success over the past decade will enable us to continue to navigate any challenges with confidence and flexibility. As always, we will focus on maintaining operational excellence centered on our disciplined approach to land acquisition and development to position us for future growth and ensuring we continue to build out our team of experienced, dedicated employees who drive our growth and provide a quality home and buyer experience for our customers. We believe we are well-positioned to sustain our peer-leading return metrics and provide long-term value to our shareholders. We remain focused on growing our business, particularly our Trophy brand. Trophy's continued growth in DFW and Austin, combined with our first community opening in Houston, Q1, presents significant opportunities for sustained growth for the next few years. This expansion allows us to continue serving the critical first time and first move up buyer segments while further diversifying our revenue base and strengthening our presence in key Texas markets. With that, I'll now turn it over to Jeff to provide more detail regarding our financial results. Thank you, Jim. I want to take a few minutes to address the Form 8-Ks that were filed yesterday in which we concluded that certain closing cost incentives offered to our buyers had been previously incorrectly classified as cost of residential units rather than as a reduction of the transaction price. After evaluating these issues under ASC 606, we determined that we will restate our previously issued audited consolidated statements of income for the years ended December 31st, 2023, 2024, and 2025 included in the annual report on Form 10-K and the unaudited condensed consolidated statements of income for the quarters ended in 2025 and 2024 to reflect the reclassification of closing cost incentives as a reduction in revenue rather than as a cost of residential units. This reclassification of closing cost incentives will not impact any prior periods reported gross profits, operating income, net income, earnings per share, cash flow, debt covenant compliance, shareholders' equity, or the strong underlying economics of the company's operations and business. The impact will be a reduction in home sales revenues and associated average sales prices and an improvement to our gross margins. We are currently in the process of completing the restatement of our prior period financial statements and expect to file an amended annual report on Form 10-K. However, our comments today reflect these changes for prior periods referenced. We have also filed an 8-K that sets forth our preliminary assessments of the impact of this reclassification for the years ended December 31st, 2023, 2024, and 2025, as well as each of the quarters in 2025 and 2024. Our first quarter 2026 results are not affected by the pending restatement. Net income attributable to Green Brick for the first quarter decreased 18.8% year-over-year to $61 million, and diluted earnings per share decreased 16.8% year-over-year to $1.39 per share. SG&A as a percentage of residential unit revenue for the first quarter was 11.7%, an increase of 80 basis points year-over-year, driven primarily by mix and higher discounts and incentives. Given the challenging economic conditions and oversupply of housing inventories in our markets, discounts and incentives increased year-over-year as a percentage of home closing revenue to 10.1% from 6.8%. Our average sales price of $493,000 was down 4.1% sequentially and down 6.9% year-over-year. Home closings revenue of $448 million on 908 deliveries declined 7.1% compared to the same period last year. Our homebuilding gross margins decreased 320 basis points year-over-year and 140 basis points sequentially to 28.9%. 63% of our Q1 closings were sold during the quarter, driven largely by our Trophy Signature Homes brand. We started 979 new homes, an increase of 13% year-over-year and 11% sequentially due to increasing buyer demand in the quarter. Units under construction at the end of the quarter were 2,119, down 7.7% year-over-year, but were up 3.5% sequentially as we increased starts in Q1 to better match our sales pace. We ended the quarter with 419 completed specs, an average of 4.1 per community, a reduction of 13% from Q4. We will continue to monitor market conditions and seasonal trends and align our starts with our sales pace to appropriately manage our investment in spec inventory. Our goal is to maintain approximately 1.5 months of supply of completed specs in our communities. Primarily due to adverse weather in January, we saw a 7.1% decline in traffic year-over-year during the quarter. Net new homeowners during the first quarter were 1,037, down 6.2% year-over-year. Average active selling communities of 103 were down 1% year-over-year. As a result, our sales pace for the first quarter decreased slightly to 3.4 per month compared to 3.5 per month in the previous year. As noted in our prior call, we still expect community count to increase in the second half of the year. Our backlog at the end of the first quarter was 649 units with backlog revenue of $381 million, a 35% decrease year-over-year. We experienced a significant shift because Trophy Signature Homes represented 40% of our backlog units compared to 27% in Q1 of 2025. As a result of the increased mix of Trophy orders in our backlog, along with continued elevated discounts and incentives across all of our brands, backlog ASP decreased 13% to $587,000. In Q1, we repurchased 114,000 shares of our common stock for approximately $7 million with $160 million remaining in authorized share repurchases. We will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders. During Q1, we terminated our secured revolving credit facility, and as of quarter end, we had no outstanding borrowings on our $330 million unsecured revolving credit facility. At the end of the quarter, we maintained a robust cash position of $145 million and total liquidity of $475 million. We believe we are well positioned to weather the challenging market conditions and ongoing volatility to opportunistically deploy capital to maximize shareholder returns and to accelerate growth as the housing market improves. With that, I'll now turn it over to Jed. Thank you, Jeff. We continue to see a challenging sales environment within all our consumer segments, but we are encouraged by the positive response we have seen from first-time homebuyers who are most impacted by affordability challenges and a weakening job market. Our team responded well to these conditions as evidenced by our relatively strong first quarter sales volume and low cancellation rate of 7.7% during the quarter, which continues to be one of the lowest cancellation rates in the public home building industry. We believe it demonstrates the creditworthiness of our buyers, quality of our product, and desirability of our communities. Rate buydowns remained a necessary tool to drive traffic and sales, especially with first-time homebuyers and quick move-in homes. We helped address the affordability challenges faced by many consumers by providing our homebuyers with price concessions, interest rate buydowns, and closing cost incentives. Incentives for net new orders during the quarter were 9.9%, an increase of 320 basis points year-over-year, although a decrease of 30 basis points from the prior quarter. With our superior infill and infill-adjacent communities and industry-leading gross margins, we believe we're strategically positioned to adjust pricing as needed to meet market demand and maintain our sales pace. While we recognize the importance of preserving our margins, we also recognize that our industry-leading margins provide us with significant pricing flexibility to compete effectively in a volatile market and drive sales pace when appropriate. We are also excited about the progress of our wholly owned mortgage company. During the first quarter, Green Brick Mortgage closed and funded over 360 loans. The average FICO score was 742, and the average debt-to-income ratio was just under 40%, consistent with the previous quarter. We completed the rollout of Green Brick Mortgage to all of our Texas communities in the quarter, and we expect to roll out Green Brick Mortgage to The Providence Group, our Atlanta builder, in the latter part of 2026. As Green Brick Mortgage continues to expand its service to most of our communities, we anticipate that by year-end, its capture rate will range from 70%-80%, which should generate additional revenue as we increase the number of loans funded through our mortgage company. We continue to reduce our construction cycle times, which were down 25 days from a year ago to under 130 days. Trophy's average cycle time in Dallas-Fort Worth was under 90 days, the lowest in their history, and a testament to the efficiency and quality of our construction teams and trade partner base. Labor availability remains relatively stable across all our markets, we are monitoring potential cost increases related to the rise in oil prices. We remain engaged with our trade partners to monitor potential cost pressures and will adjust as necessary. As part of our efforts to position ourselves for future growth, during the quarter, we invested approximately $89 million in land and lot acquisitions and $78 million in land development, excluding reimbursements. For 2026, we expect land and lot acquisitions of approximately $400 million and land development outflows of approximately $420 million, excluding reimbursements. We believe our superior land position provides a competitive advantage that will be the foundation for strong growth in subsequent years. Approximately 38,000 of our lots are owned with approximately 11,000 lots under option contracts. Approximately 75% of our total lots owned and under contract are allocated to Trophy Signature Homes. Excluding approximately 25,000 lots in long-term master plan communities, our lot supply is approximately six years. With approximately 49,000 lots owned and under contract, we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near and intermediate term. With that, I'll turn it over to Jim for closing remarks. Thank you, Jed. In closing, we remain confident in our long-term outlook and our ability to continue to deliver excellent operational and financial results. Our land strategy, diversified product portfolio, and strong balance sheet continue to differentiate Green Brick from our peers and support attractive returns for our shareholders over the long term. Like the rest of our industry, we continue to navigate a challenging environment, but I am hopeful that the market is starting to find a more stable footing and normalization. I believe that 2026 will be a year that we lay a foundation so that we can execute our strategy and accelerate our growth in the coming years. With all of these challenges, I would like to recognize our team for their disciplined execution and resilience successfully navigating this market. Our results would not be possible without their focus, leadership, and commitment. This concludes our prepared remarks, and we will now open the line for questions. Thank you. Thank you. If you would like to ask a question, please press star one on your telephone keypad. We ask that you limit yourself to one question and one follow-up, and rejoin the queue if needed. Your first question comes from Ryan Gilbert of BTIG. Your line is open. Hey, thanks, guys. Definitely encouraging to hear that, you know, I guess, demand improved throughout the quarter. Can you give us an update on how things are looking so far in April in terms of traffic and maybe sales pace? Yeah. Jed, why don't you take that? Yeah. I would say April's looking very similar to March. We're still in a strong spring season. Okay. Got it. Just, you know, around your commentary around the challenging sales environment that you're still seeing, you know, consumer response to the incentives that you're offering. I'm just curious, you know, Jim or maybe Jed, if you could, maybe expand on, I guess how long you think this can last or if you expect a weakening labor market to pressure first-time homebuyers. It doesn't seem like that's been the case so far, you know, just kind of looking ahead, what you're thinking. Yeah. This is Jim. Well, we're seeing strong demand. It's very elastic demand, meaning that the buyers are very educated and a small movement in pricing can really accelerate sales velocity. Really one of the things we're very encouraged about because our pre-tax margins are so high, they're running around 17% or just under, that we have tremendous flexibility if we need to get a buyer that wants a slight discount in the home, even from current levels. Pretty much we're not seeing that happening right now. We think that things may have bottomed, but if you can predict interest rates, I'll tell you what our margins are gonna look like because they're highly correlated right now, and we're not getting a lot of relief from the interest rate front. Jed, do you have anything you want to add to that? I would just say, you know, the past week, you know, the past week has been rough on the mortgage rates and, you know, just a little change in mortgage rates can cause a 1% decline in gross margin for us. Okay. Got it. Thank you, guys. Your next question comes from Jay McCanless with Citizens Bank. Your line is open. Hey, good afternoon, everyone. First question I had, what are you seeing in the land market right now? Land prices still continuing to go up or are you seeing some areas where maybe you're getting a little bit of a break or maybe land inflation slowing down a little bit? That's a good question, Jay. What we're seeing is on C-minus and D-location lots, builders are wanting to peddle those. Obviously, the only buyer are other builders, and if a builder wants to peddle a lot in a C-minus or D-location, he wants to do it because he's not making margin, so it's really not attractive to another builder to buy, and it's not distressed enough to have us get interested. That's what's taking place really in the perimeter locations or the further out perimeter locations. Interestingly, conversely, high margin land in the more infill or employment-centric locations is still in high demand. One of the things we're very excited about, we bought a large tract yesterday that we had been working on for how long, Jed, two years? Two years. You know, it was complicated, had a lot of moving parts. We're really excited about it because we have the balance sheet to take this down, other people don't. We have the management team to do the entitlement, sewer, water, and all of the other challenges that come with a large master plan property. We feel really good about that because it's a barrier to entry. All these land light guys just couldn't pull that kind of transaction off. That's good to hear. Speaking of infill versus trophy and some of your higher-end brands versus trophy, I guess who, which performed better during the quarter? Was it move-up? Was it entry-level? What were you seeing in terms of demand between the different buyer segments? It was spotty, I think is the best way to define it. Trophy was a star. We found that, and Jed can elaborate on that there is a very large pool of buyers sub-$350,000, and Trophy can meet that price point and still make really nice margins. Florida did good. Atlanta slowed down in its market, that we were surprised 'cause Atlanta was traditionally very strong even in the infill markets. Jed, what do you want to add to that? Yeah. I would just say that. You know, luxury continued to do well for us in that for us, that's homes priced in the $900,000 And up range. We saw, you know, spottiness in, say, the $500,000-$800,000 range, where we had some good months, some bad months depending on what sub-market. We're really encouraged in Dallas that in March and April we really hit good numbers with that buyer, which is typically a cultural buyer. We're encouraged about that. To, you know, kind of sum it all up, I'd say it's, we feel really good about luxury, and we feel really good about entry-level, and the stuff in the middle is more challenging. Yeah, Jay. Some of the stuff in the middle that Jed was talking about, this $500,000-$800,000 price point, one of the reasons why we think it's so much slower are our immigration policies. Many of those homes are sold to physicians, higher income people, and the current administration is making it uncertain for those people, and it's impacting housing as a result. That's great color, Jim. Thank you. Any concerns or issues with other builders maybe having built a little too much at that price point and having to be more aggressive on the discounting there? I think it's, in some markets, I think it's fairly isolated. Jed and I were talking about it this morning that, it can affect some markets. Generally, I don't, I'm not worried about it. Again, one of the reasons I'm not worried about it is because if we're making a 17% pre-tax margin and we're competing against a builder that's making a 3% pre-tax margin, down the street that's land light, those guys have given about all they can give, and we're just kind of waiting and seeing what happens. Okay. Okay, great. Just the last one I had, congrats on starting in Houston. I guess over time, how many communities do you think Green Brick can have in that market, and is it always just gonna be a Trophy market, or are you guys gonna look to do some infill properties? Well, right now it's. Let's talk strategically. Basically what we wanna do is enter any market that it really has to be a top 10 to 12 city market because Trophy's gonna be our scalable brand that goes into that market. To be effective, we're still gonna self-develop, and we wanna have a really experienced land team and a land acquisition team that has strategic advantages. If that's gonna make us really enter larger markets, we're looking at San Antonio right now, and I think the probability of us bringing other brands there is probably unlikely at this point, but you never can, should say never. Okay. That's all I had. Thanks, guys. Once again, if you have a question, it is star one on your telephone keypad. Your next question comes from Alex Rygiel with Texas Capital. Your line is open Thank you. Given the mix of backlog in Trophy homes, should we model ASPs declining through 2026? This is Jed. I think it's a mix issue more than a backlog issue. You know, as, you know, like we mentioned, we're seeing very strong demand at the entry level. If that becomes a bigger percentage of our sales, then the ASP would go down. How do sales in the Houston market affect ASPs? Houston will continue to bring ASP down. When you look at Zonda put out the biggest markets based on Q1 starts, DFW is the largest, Alex, and Houston was the second, and there was a huge drop-off to Phoenix, which was third. In Dallas, we're the third biggest by units, and we think we'll probably end up being the second biggest this year by revenue, trailing only D.R. Horton. Those are really big markets, but to have really big markets, you need very affordable housing. The ASP in Houston will be lower than the Dallas. Those are two very strong markets that, you know, we're gonna continue to grow our market share in Dallas, and we're excited about the early success in Houston, and we look forward to, you know, being able to, you know, in the near future, be a more dominant player there. As it relates to your comments about April being sort of in line with March, is that typical historically? Yeah, we've gone back. We've gone and looked at a lot of historical trends recently, and, you know, so much of it correlates with, you know, what interest rates were you get for every April versus every March going forward, but going backwards. For the most part, yes, what we typically see is April is just a little bit weaker than March, and then May is because of graduations and so forth, and the beginning of summer. You know, the spring season really kind of concludes in May, and then you enter the summer season. Thank you. Mm-hmm. Your next question comes from Rohit Seth with B. Riley Securities. Your line is open. Rohit, perhaps your line is on mute. Hey, thanks for taking my question. Just on sales pace, you had a good turnout in the first quarter. It looks like you have some levers with your, you know, strong margins. Do you think you can maintain sort of the sales pace that you had in the prior year from 2Q to two to Q4's kinda average about three homes per month? Yeah. Seth, this is Jeff. I think that's very doable when we look at the historical trends that Jed mentioned earlier. You know, we were about 2.97 last year in Q2 and 2.91 in Q3. When we look at how we performed this quarter compared to last year, we're down a little bit. Keep in mind, we did have that weather event that Jim referenced earlier in his remarks. We tend to be trending generally with the same pace as last year. Okay. Could you remind me the spread between Trophy homes? I know there's a faster sales pace there in the rest of the book. Trophy was 50%, 51%, 52% of our sales in Q1. We expect them to continue to increase that pace as we continue to grow the brand and expand in Houston and Austin. 75%, I believe, of our lots owned is controlled or allocated towards Trophy, so that will continue to increase over time. Is Trophy moving something like five units a month, something like that? It's really neighborhood dependent. I mean, I'll answer it this way. We have some communities that have two different lot sizes, where in Q1 we averaged 20 sales a month. That was, you know, as defined by community count, that'd be 10 sales. Then we had others where, you know, we averaged three or four. We can pull some better data for you for our next call on that. Yeah, some of our communities, you know, that are particularly in the last phases where we've had success and phasing out, we are milking margin intentionally and maintaining slower sales pace. Okay. Is there a margin floor where you guys are not willing to breach? No, we don't look at it that way, really. We look at basically, we're always modeling internal rate of return in sales pace and price. It's a little bit more complex than that because we also want to get our capital returned on our lots and looking at, you know, that redeployment of that capital. It's a little more complicated than just saying we will sell houses based upon margin. It's the sales pace that comes with the margin and the capital that comes in from that lot sale into the calculus. All right. Thank you. Obviously, when we're reporting 28.9% gross margins and we have peers that are reporting 15, 16, we feel excited about the coming months, and we feel excited about our ability to adjust prices as needed. Understood. It's a good position. Thanks for taking my question. This concludes the question and answer session. I will turn the call to Jim Brickman for closing remarks. Well, thank you everybody for attending our call. We're always delighted to have anybody call Jeff, Jed, or myself with follow-up questions, and really would encourage you to do that, and we can get into a little bit more detail about some of the master plan communities we're really excited about. Thank you for the call. This concludes today's conference call. Thank you for joining. You may now disconnect.

Speaker 6: Hello, and welcome to the Green Brick Partners, Inc. first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. I would now like to turn the conference over to Jeff Cox, Chief Financial Officer. Please go ahead. Hello, and welcome to the Green Brick Partners, Inc. first quarter 2026 earnings call. hello and welcome to the green brick partners inc first quarter 2026 earnings call All lines have been placed on mute to prevent any background noise. all lines have been placed on mute to prevent any background noise After the speaker's remarks, there will be a question-and-answer session. after the speaker's remarks there will be a question-and-answer session If you would like to ask a question, please press star one on your telephone keypad. if you would like to ask a question please press star one on your telephone keypad I would now like to turn the conference over to Jeff Cox, Chief Financial Officer. i would now like to turn the conference over to jeff cox chief financial officer Please go ahead. please go ahead

Speaker 4: Good afternoon and welcome to Green Brick Partners earnings call for the first quarter ended March 31st, 2026. Following today's remarks, we will hold a Q&A session. As a reminder, this call is being recorded and will be available for playback. In addition, a presentation will accompany today's webcast, which is available on the company's investor relations website at investors.greenbrickpartners.com. On the call today is Jim Brickman, Co-founder and Chief Executive Officer, Jed Dolson, President and Chief Operating Officer, and myself, Jeff Cox, Chief Financial Officer. Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2026 and beyond. In yesterday's press release, the company detailed material risks that may cause its future results to differ from its expectations. Good afternoon and welcome to Green Brick Partners earnings call for the first quarter ended March 31st, 2026. good afternoon and welcome to green brick partners earnings call for the first quarter ended march 31st 2026 Following today's remarks, we will hold a Q&A session. following today's remarks we will hold a q&a session As a reminder, this call is being recorded and will be available for playback. as a reminder this call is being recorded and will be available for playback In addition, a presentation will accompany today's webcast, which is available on the company's investor relations website at investors.greenbrickpartners.com. in addition a presentation will accompany today's webcast which is available on the company's investor relations website at investors.greenbrickpartners.com On the call today is Jim Brickman, Co-founder and Chief Executive Officer, Jed Dolson, President and Chief Operating Officer, and myself, Jeff Cox, Chief Financial Officer. on the call today is jim brickman co-founder and chief executive officer jed dolson president and chief operating officer and myself jeff cox chief financial officer Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2026 and beyond. some of the information discussed on this call is forward-looking including a discussion of the company's financial and operational expectations for 2026 and beyond In yesterday's press release, the company detailed material risks that may cause its future results to differ from its expectations. in yesterday's press release the company detailed material risks that may cause its future results to differ from its expectations The company's statements are as of today, April 30th, 2026, and the company has no obligation to update any forward-looking statement it may make. The comments also include non-GAAP financial metrics. The reconciliation of these metrics and the other information required by Regulation G can be found in the earnings release that the company issued yesterday and in the aforementioned presentation. With that, I'll turn the call over to Jim. The company's statements are as of today, April 30th, 2026, and the company has no obligation to update any forward-looking statement it may make. the company's statements are as of today april 30th 2026 and the company has no obligation to update any forward-looking statement it may make The comments also include non-GAAP financial metrics. the comments also include non-gaap financial metrics The reconciliation of these metrics and the other information required by Regulation G can be found in the earnings release that the company issued yesterday and in the aforementioned presentation. the reconciliation of these metrics and the other information required by regulation g can be found in the earnings release that the company issued yesterday and in the aforementioned presentation With that, I'll turn the call over to Jim. with that i'll turn the call over to jim

Speaker 5: Thank you, Jeff. I'm pleased to announce our first quarter results, particularly given that we achieved these results against a backdrop of ongoing and persistent affordability challenges faced by many consumers in the housing market. As well as increasing uncertainty and volatility for consumers caused by domestic and global events and trends ranging from increasing gas prices to job concerns in this new AI era. Despite these challenges, our team's effort and disciplined approach led to another excellent quarter for our business and our shareholders. Net income attributable to Green Brick for the first quarter was $61 million or $1.39 per diluted share on total revenues of $465 million. We delivered 908 homes in the quarter, only two less than in Q1 2025, and we had 1,037 net new orders. Thank you, Jeff. thank you jeff I'm pleased to announce our first quarter results, particularly given that we achieved these results against a backdrop of ongoing and persistent affordability challenges faced by many consumers in the housing market. i'm pleased to announce our first quarter results particularly given that we achieved these results against a backdrop of ongoing and persistent affordability challenges faced by many consumers in the housing market As well as increasing uncertainty and volatility for consumers caused by domestic and global events and trends ranging from increasing gas prices to job concerns in this new AI era. as well as increasing uncertainty and volatility for consumers caused by domestic and global events and trends ranging from increasing gas prices to job concerns in this new ai era Despite these challenges, our team's effort and disciplined approach led to another excellent quarter for our business and our shareholders. despite these challenges our team's effort and disciplined approach led to another excellent quarter for our business and our shareholders Net income attributable to Green Brick for the first quarter was $61 million or $1.39 per diluted share on total revenues of $465 million. net income attributable to green brick for the first quarter was $61 million or $1.39 per diluted share on total revenues of $465 million We delivered 908 homes in the quarter, only two less than in Q1 2025, and we had 1,037 net new orders. we delivered 908 homes in the quarter only two less than in q1 2025 and we had 1,037 net new orders We achieved this despite, as we mentioned on our last call, losing about seven selling days in January due to inclement weather in DFW., our largest market. Orders increased sequentially each month of the quarter, with March sales outpacing the same period in 2025. This was more in line with a normal spring selling season. We believe our investment-grade balance sheet and low financial leverage provide us with the flexibility to navigate and takes advantage of evolving market conditions. At the end of Q1, our home building debt to total capital ratio decreased to 11.5%, and our net home building debt to total capital ratio decreased to 5.5%, among the lowest of our public home building peers. We also have $475 million in available liquidity. We achieved this despite, as we mentioned on our last call, losing about seven selling days in January due to inclement weather in DFW., our largest market. we achieved this despite as we mentioned on our last call losing about seven selling days in january due to inclement weather in dfw our largest market Orders increased sequentially each month of the quarter, with March sales outpacing the same period in 2025. orders increased sequentially each month of the quarter with march sales outpacing the same period in 2025 This was more in line with a normal spring selling season. this was more in line with a normal spring selling season We believe our investment-grade balance sheet and low financial leverage provide us with the flexibility to navigate and takes advantage of evolving market conditions. we believe our investment-grade balance sheet and low financial leverage provide us with the flexibility to navigate and takes advantage of evolving market conditions At the end of Q1, our home building debt to total capital ratio decreased to 11.5%, and our net home building debt to total capital ratio decreased to 5.5%, among the lowest of our public home building peers. at the end of q1 our home building debt to total capital ratio decreased to 11.5% and our net home building debt to total capital ratio decreased to 5.5% among the lowest of our public home building peers We also have $475 million in available liquidity. we also have $475 million in available liquidity Our industry-leading home building gross margins of 28.9% give us the flexibility to profitably adjust the pricing of our homes to respond to market conditions. We believe the foundation of our industry-leading gross margin starts with our commitment to owning and developing land. We remain highly disciplined in how we control and purchase land. One of the primary differentiators from many of our peers is that we do not engage in off-balance sheet, high interest cost land banking arrangements that can distort a builder's economic leverage and risk, and that can give a land banker indirect control over a builder's lot purchase timing. At the end of the first quarter, 77% of our approximately 49,000 lots are owned. We have 3,400 lots owned or under contract and four joint ventures with other home builders or landowners. Our industry-leading home building gross margins of 28.9% give us the flexibility to profitably adjust the pricing of our homes to respond to market conditions. our industry-leading home building gross margins of 28.9% give us the flexibility to profitably adjust the pricing of our homes to respond to market conditions We believe the foundation of our industry-leading gross margin starts with our commitment to owning and developing land. we believe the foundation of our industry-leading gross margin starts with our commitment to owning and developing land We remain highly disciplined in how we control and purchase land. we remain highly disciplined in how we control and purchase land One of the primary differentiators from many of our peers is that we do not engage in off-balance sheet, high interest cost land banking arrangements that can distort a builder's economic leverage and risk, and that can give a land banker indirect control over a builder's lot purchase timing. one of the primary differentiators from many of our peers is that we do not engage in off-balance sheet high interest cost land banking arrangements that can distort a builder's economic leverage and risk and that can give a land banker indirect control over a builder's lot purchase timing At the end of the first quarter, 77% of our approximately 49,000 lots are owned. at the end of the first quarter 77% of our approximately 49,000 lots are owned We have 3,400 lots owned or under contract and four joint ventures with other home builders or landowners. we have 3,400 lots owned or under contract and four joint ventures with other home builders or landowners These joint ventures account for 7% of our total lots owned and controlled and only 2.9% of our total assets. These joint ventures are evaluated with the same underwriting criteria as our other land investments to ensure that we remain focused on attractive risk-adjusted returns and protect shareholder value. As many of you who follow our company know, this disciplined approach to land acquisition and development is not a new philosophy for our company. We have always believed that a self-development focused strategy provides us with better capital efficiency and returns, allowing us to make higher margins, lower cost, and enhance inventory control so that we can better determine the pace of land and lot deliveries. We generated strong operating cash flows of $56 million for the quarter. These joint ventures account for 7% of our total lots owned and controlled and only 2.9% of our total assets. these joint ventures account for 7% of our total lots owned and controlled and only 2.9% of our total assets These joint ventures are evaluated with the same underwriting criteria as our other land investments to ensure that we remain focused on attractive risk-adjusted returns and protect shareholder value. these joint ventures are evaluated with the same underwriting criteria as our other land investments to ensure that we remain focused on attractive risk-adjusted returns and protect shareholder value As many of you who follow our company know, this disciplined approach to land acquisition and development is not a new philosophy for our company. as many of you who follow our company know this disciplined approach to land acquisition and development is not a new philosophy for our company We have always believed that a self-development focused strategy provides us with better capital efficiency and returns, allowing us to make higher margins, lower cost, and enhance inventory control so that we can better determine the pace of land and lot deliveries. We generated strong operating cash flows of $56 million for the quarter. we have always believed that a self-development focused strategy provides us with better capital efficiency and returns allowing us to make higher margins lower cost and enhance inventory control so that we can better determine the pace of land and lot deliveries. we generated strong operating cash flows of $56 million for the quarter In the last 12 months, we generated $201 million in operating cash flows and returned $74 million to shareholders through repurchases. Even with our land-heavy balance sheet and macroeconomic headwinds, we delivered strong returns during the quarter of 9.6% return on assets and 13.1% return on equity, among the very best of public home building peers. Our disciplined returns-focused approach and our experienced team of operators position us well for future value creation. This quarter, we began reporting on financial service operations as a separate segment due to the strong growth of our wholly owned mortgage company. Green Brick Mortgage was founded in 2024 and funded its first loan in the first quarter of 2025. During 2025, Green Brick Mortgage grew rapidly, and by the end of Q1 2026, was serving all of our Texas communities. In the last 12 months, we generated $201 million in operating cash flows and returned $74 million to shareholders through repurchases. in the last 12 months we generated $201 million in operating cash flows and returned $74 million to shareholders through repurchases Even with our land-heavy balance sheet and macroeconomic headwinds, we delivered strong returns during the quarter of 9.6% return on assets and 13.1% return on equity, among the very best of public home building peers. even with our land-heavy balance sheet and macroeconomic headwinds we delivered strong returns during the quarter of 9.6% return on assets and 13.1% return on equity among the very best of public home building peers Our disciplined returns-focused approach and our experienced team of operators position us well for future value creation. our disciplined returns-focused approach and our experienced team of operators position us well for future value creation This quarter, we began reporting on financial service operations as a separate segment due to the strong growth of our wholly owned mortgage company. this quarter we began reporting on financial service operations as a separate segment due to the strong growth of our wholly owned mortgage company Green Brick Mortgage was founded in 2024 and funded its first loan in the first quarter of 2025. green brick mortgage was founded in 2024 and funded its first loan in the first quarter of 2025 During 2025, Green Brick Mortgage grew rapidly, and by the end of Q1 2026, was serving all of our Texas communities. during 2025 green brick mortgage grew rapidly and by the end of q1 2026 was serving all of our texas communities For the first quarter, revenues for Green Brick Mortgage increased from $1.3 million to $5.6 million year-over-year as the number of funded loans increased by almost 250%. Pre-tax income from our financial services segment increased year-over-year by 139% in Q1 to $4.3 million. While the macroeconomic landscape presents short-term headwinds for the entire industry, we believe the core strengths that have driven Green Brick's success over the past decade will enable us to continue to navigate any challenges with confidence and flexibility. For the first quarter, revenues for Green Brick Mortgage increased from $1.3 million to $5.6 million year-over-year as the number of funded loans increased by almost 250%. for the first quarter revenues for green brick mortgage increased from $1.3 million to $5.6 million year-over-year as the number of funded loans increased by almost 250% Pre-tax income from our financial services segment increased year-over-year by 139% in Q1 to $4.3 million. pre-tax income from our financial services segment increased year-over-year by 139% in q1 to $4.3 million While the macroeconomic landscape presents short-term headwinds for the entire industry, we believe the core strengths that have driven Green Brick's success over the past decade will enable us to continue to navigate any challenges with confidence and flexibility. while the macroeconomic landscape presents short-term headwinds for the entire industry we believe the core strengths that have driven green brick's success over the past decade will enable us to continue to navigate any challenges with confidence and flexibility As always, we will focus on maintaining operational excellence centered on our disciplined approach to land acquisition and development to position us for future growth and ensuring we continue to build out our team of experienced, dedicated employees who drive our growth and provide a quality home and buyer experience for our customers. We believe we are well-positioned to sustain our peer-leading return metrics and provide long-term value to our shareholders. We remain focused on growing our business, particularly our Trophy brand. Trophy's continued growth in DFW and Austin, combined with our first community opening in Houston, Q1, presents significant opportunities for sustained growth for the next few years. This expansion allows us to continue serving the critical first time and first move up buyer segments while further diversifying our revenue base and strengthening our presence in key Texas markets. As always, we will focus on maintaining operational excellence centered on our disciplined approach to land acquisition and development to position us for future growth and ensuring we continue to build out our team of experienced, dedicated employees who drive our growth and provide a quality home and buyer experience for our customers. as always we will focus on maintaining operational excellence centered on our disciplined approach to land acquisition and development to position us for future growth and ensuring we continue to build out our team of experienced dedicated employees who drive our growth and provide a quality home and buyer experience for our customers We believe we are well-positioned to sustain our peer-leading return metrics and provide long-term value to our shareholders. we believe we are well-positioned to sustain our peer-leading return metrics and provide long-term value to our shareholders We remain focused on growing our business, particularly our Trophy brand. we remain focused on growing our business particularly our trophy brand Trophy's continued growth in DFW and Austin, combined with our first community opening in Houston, Q1, presents significant opportunities for sustained growth for the next few years. trophy's continued growth in dfw and austin combined with our first community opening in houston q1 presents significant opportunities for sustained growth for the next few years This expansion allows us to continue serving the critical first time and first move up buyer segments while further diversifying our revenue base and strengthening our presence in key Texas markets. this expansion allows us to continue serving the critical first time and first move up buyer segments while further diversifying our revenue base and strengthening our presence in key texas markets With that, I'll now turn it over to Jeff to provide more detail regarding our financial results. With that, I'll now turn it over to Jeff to provide more detail regarding our financial results. with that i'll now turn it over to jeff to provide more detail regarding our financial results

Speaker 4: Thank you, Jim. I want to take a few minutes to address the Form 8-Ks that were filed yesterday in which we concluded that certain closing cost incentives offered to our buyers had been previously incorrectly classified as cost of residential units rather than as a reduction of the transaction price. After evaluating these issues under ASC 606, we determined that we will restate our previously issued audited consolidated statements of income for the years ended December 31st, 2023, 2024, and 2025 included in the annual report on Form 10-K and the unaudited condensed consolidated statements of income for the quarters ended in 2025 and 2024 to reflect the reclassification of closing cost incentives as a reduction in revenue rather than as a cost of residential units. Thank you, Jim. thank you jim I want to take a few minutes to address the Form 8-Ks that were filed yesterday in which we concluded that certain closing cost incentives offered to our buyers had been previously incorrectly classified as cost of residential units rather than as a reduction of the transaction price. i want to take a few minutes to address the form 8-ks that were filed yesterday in which we concluded that certain closing cost incentives offered to our buyers had been previously incorrectly classified as cost of residential units rather than as a reduction of the transaction price After evaluating these issues under ASC 606, we determined that we will restate our previously issued audited consolidated statements of income for the years ended December 31st, 2023, 2024, and 2025 included in the annual report on Form 10-K and the unaudited condensed consolidated statements of income for the quarters ended in 2025 and 2024 to reflect the reclassification of closing cost incentives as a reduction in revenue rather than as a cost of residential units. after evaluating these issues under asc 606 we determined that we will restate our previously issued audited consolidated statements of income for the years ended december 31st 2023 2024 and 2025 included in the annual report on form 10-k and the unaudited condensed consolidated statements of income for the quarters ended in 2025 and 2024 to reflect the reclassification of closing cost incentives as a reduction in revenue rather than as a cost of residential units This reclassification of closing cost incentives will not impact any prior periods reported gross profits, operating income, net income, earnings per share, cash flow, debt covenant compliance, shareholders' equity, or the strong underlying economics of the company's operations and business. The impact will be a reduction in home sales revenues and associated average sales prices and an improvement to our gross margins. We are currently in the process of completing the restatement of our prior period financial statements and expect to file an amended annual report on Form 10-K. However, our comments today reflect these changes for prior periods referenced. We have also filed an 8-K that sets forth our preliminary assessments of the impact of this reclassification for the years ended December 31st, 2023, 2024, and 2025, as well as each of the quarters in 2025 and 2024. This reclassification of closing cost incentives will not impact any prior periods reported gross profits, operating income, net income, earnings per share, cash flow, debt covenant compliance, shareholders' equity, or the strong underlying economics of the company's operations and business. this reclassification of closing cost incentives will not impact any prior periods reported gross profits operating income net income earnings per share cash flow debt covenant compliance shareholders' equity or the strong underlying economics of the company's operations and business The impact will be a reduction in home sales revenues and associated average sales prices and an improvement to our gross margins. the impact will be a reduction in home sales revenues and associated average sales prices and an improvement to our gross margins We are currently in the process of completing the restatement of our prior period financial statements and expect to file an amended annual report on Form 10-K. we are currently in the process of completing the restatement of our prior period financial statements and expect to file an amended annual report on form 10-k However, our comments today reflect these changes for prior periods referenced. however our comments today reflect these changes for prior periods referenced We have also filed an 8-K that sets forth our preliminary assessments of the impact of this reclassification for the years ended December 31st, 2023, 2024, and 2025, as well as each of the quarters in 2025 and 2024. we have also filed an 8-k that sets forth our preliminary assessments of the impact of this reclassification for the years ended december 31st 2023 2024 and 2025 as well as each of the quarters in 2025 and 2024 Our first quarter 2026 results are not affected by the pending restatement. Net income attributable to Green Brick for the first quarter decreased 18.8% year-over-year to $61 million, and diluted earnings per share decreased 16.8% year-over-year to $1.39 per share. SG&A as a percentage of residential unit revenue for the first quarter was 11.7%, an increase of 80 basis points year-over-year, driven primarily by mix and higher discounts and incentives. Given the challenging economic conditions and oversupply of housing inventories in our markets, discounts and incentives increased year-over-year as a percentage of home closing revenue to 10.1% from 6.8%. Our first quarter 2026 results are not affected by the pending restatement. our first quarter 2026 results are not affected by the pending restatement Net income attributable to Green Brick for the first quarter decreased 18.8% year-over-year to $61 million, and diluted earnings per share decreased 16.8% year-over-year to $1.39 per share. net income attributable to green brick for the first quarter decreased 18.8% year-over-year to $61 million and diluted earnings per share decreased 16.8% year-over-year to $1.39 per share SG&A as a percentage of residential unit revenue for the first quarter was 11.7%, an increase of 80 basis points year-over-year, driven primarily by mix and higher discounts and incentives. sg&a as a percentage of residential unit revenue for the first quarter was 11.7% an increase of 80 basis points year-over-year driven primarily by mix and higher discounts and incentives Given the challenging economic conditions and oversupply of housing inventories in our markets, discounts and incentives increased year-over-year as a percentage of home closing revenue to 10.1% from 6.8%. given the challenging economic conditions and oversupply of housing inventories in our markets discounts and incentives increased year-over-year as a percentage of home closing revenue to 10.1% from 6.8% Our average sales price of $493,000 was down 4.1% sequentially and down 6.9% year-over-year. Home closings revenue of $448 million on 908 deliveries declined 7.1% compared to the same period last year. Our homebuilding gross margins decreased 320 basis points year-over-year and 140 basis points sequentially to 28.9%. 63% of our Q1 closings were sold during the quarter, driven largely by our Trophy Signature Homes brand. We started 979 new homes, an increase of 13% year-over-year and 11% sequentially due to increasing buyer demand in the quarter. Our average sales price of $493,000 was down 4.1% sequentially and down 6.9% year-over-year. our average sales price of $493,000 was down 4.1% sequentially and down 6.9% year-over-year Home closings revenue of $448 million on 908 deliveries declined 7.1% compared to the same period last year. home closings revenue of $448 million on 908 deliveries declined 7.1% compared to the same period last year Our homebuilding gross margins decreased 320 basis points year-over-year and 140 basis points sequentially to 28.9%. 63% of our Q1 closings were sold during the quarter, driven largely by our Trophy Signature Homes brand. our homebuilding gross margins decreased 320 basis points year-over-year and 140 basis points sequentially to 28.9% 63% of our q1 closings were sold during the quarter driven largely by our trophy signature homes brand We started 979 new homes, an increase of 13% year-over-year and 11% sequentially due to increasing buyer demand in the quarter. we started 979 new homes an increase of 13% year-over-year and 11% sequentially due to increasing buyer demand in the quarter Units under construction at the end of the quarter were 2,119, down 7.7% year-over-year, but were up 3.5% sequentially as we increased starts in Q1 to better match our sales pace. We ended the quarter with 419 completed specs, an average of 4.1 per community, a reduction of 13% from Q4. We will continue to monitor market conditions and seasonal trends and align our starts with our sales pace to appropriately manage our investment in spec inventory. Our goal is to maintain approximately 1.5 months of supply of completed specs in our communities. Primarily due to adverse weather in January, we saw a 7.1% decline in traffic year-over-year during the quarter. Units under construction at the end of the quarter were 2,119, down 7.7% year-over-year, but were up 3.5% sequentially as we increased starts in Q1 to better match our sales pace. units under construction at the end of the quarter were 2,119 down 7.7% year-over-year but were up 3.5% sequentially as we increased starts in q1 to better match our sales pace We ended the quarter with 419 completed specs, an average of 4.1 per community, a reduction of 13% from Q4. we ended the quarter with 419 completed specs an average of 4.1 per community a reduction of 13% from q4 We will continue to monitor market conditions and seasonal trends and align our starts with our sales pace to appropriately manage our investment in spec inventory. we will continue to monitor market conditions and seasonal trends and align our starts with our sales pace to appropriately manage our investment in spec inventory Our goal is to maintain approximately 1.5 months of supply of completed specs in our communities. our goal is to maintain approximately 1.5 months of supply of completed specs in our communities Primarily due to adverse weather in January, we saw a 7.1% decline in traffic year-over-year during the quarter. primarily due to adverse weather in january we saw a 7.1% decline in traffic year-over-year during the quarter Net new homeowners during the first quarter were 1,037, down 6.2% year-over-year. Average active selling communities of 103 were down 1% year-over-year. As a result, our sales pace for the first quarter decreased slightly to 3.4 per month compared to 3.5 per month in the previous year. As noted in our prior call, we still expect community count to increase in the second half of the year. Our backlog at the end of the first quarter was 649 units with backlog revenue of $381 million, a 35% decrease year-over-year. We experienced a significant shift because Trophy Signature Homes represented 40% of our backlog units compared to 27% in Q1 of 2025. Net new homeowners during the first quarter were 1,037, down 6.2% year-over-year. net new homeowners during the first quarter were 1,037 down 6.2% year-over-year Average active selling communities of 103 were down 1% year-over-year. average active selling communities of 103 were down 1% year-over-year As a result, our sales pace for the first quarter decreased slightly to 3.4 per month compared to 3.5 per month in the previous year. as a result our sales pace for the first quarter decreased slightly to 3.4 per month compared to 3.5 per month in the previous year As noted in our prior call, we still expect community count to increase in the second half of the year. as noted in our prior call we still expect community count to increase in the second half of the year Our backlog at the end of the first quarter was 649 units with backlog revenue of $381 million, a 35% decrease year-over-year. our backlog at the end of the first quarter was 649 units with backlog revenue of $381 million a 35% decrease year-over-year We experienced a significant shift because Trophy Signature Homes represented 40% of our backlog units compared to 27% in Q1 of 2025. we experienced a significant shift because trophy signature homes represented 40% of our backlog units compared to 27% in q1 of 2025 As a result of the increased mix of Trophy orders in our backlog, along with continued elevated discounts and incentives across all of our brands, backlog ASP decreased 13% to $587,000. In Q1, we repurchased 114,000 shares of our common stock for approximately $7 million with $160 million remaining in authorized share repurchases. We will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders. During Q1, we terminated our secured revolving credit facility, and as of quarter end, we had no outstanding borrowings on our $330 million unsecured revolving credit facility. At the end of the quarter, we maintained a robust cash position of $145 million and total liquidity of $475 million. As a result of the increased mix of Trophy orders in our backlog, along with continued elevated discounts and incentives across all of our brands, backlog ASP decreased 13% to $587,000. as a result of the increased mix of trophy orders in our backlog along with continued elevated discounts and incentives across all of our brands backlog asp decreased 13% to $587,000 In Q1, we repurchased 114,000 shares of our common stock for approximately $7 million with $160 million remaining in authorized share repurchases. in q1 we repurchased 114,000 shares of our common stock for approximately $7 million with $160 million remaining in authorized share repurchases We will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders. we will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders During Q1, we terminated our secured revolving credit facility, and as of quarter end, we had no outstanding borrowings on our $330 million unsecured revolving credit facility. during q1 we terminated our secured revolving credit facility and as of quarter end we had no outstanding borrowings on our $330 million unsecured revolving credit facility At the end of the quarter, we maintained a robust cash position of $145 million and total liquidity of $475 million. at the end of the quarter we maintained a robust cash position of $145 million and total liquidity of $475 million We believe we are well positioned to weather the challenging market conditions and ongoing volatility to opportunistically deploy capital to maximize shareholder returns and to accelerate growth as the housing market improves. With that, I'll now turn it over to Jed. We believe we are well positioned to weather the challenging market conditions and ongoing volatility to opportunistically deploy capital to maximize shareholder returns and to accelerate growth as the housing market improves. we believe we are well positioned to weather the challenging market conditions and ongoing volatility to opportunistically deploy capital to maximize shareholder returns and to accelerate growth as the housing market improves With that, I'll now turn it over to Jed. with that i'll now turn it over to jed

Speaker 3: Thank you, Jeff. We continue to see a challenging sales environment within all our consumer segments, but we are encouraged by the positive response we have seen from first-time homebuyers who are most impacted by affordability challenges and a weakening job market. Our team responded well to these conditions as evidenced by our relatively strong first quarter sales volume and low cancellation rate of 7.7% during the quarter, which continues to be one of the lowest cancellation rates in the public home building industry. We believe it demonstrates the creditworthiness of our buyers, quality of our product, and desirability of our communities. Rate buydowns remained a necessary tool to drive traffic and sales, especially with first-time homebuyers and quick move-in homes. We helped address the affordability challenges faced by many consumers by providing our homebuyers with price concessions, interest rate buydowns, and closing cost incentives. Thank you, Jeff. thank you jeff We continue to see a challenging sales environment within all our consumer segments, but we are encouraged by the positive response we have seen from first-time homebuyers who are most impacted by affordability challenges and a weakening job market. we continue to see a challenging sales environment within all our consumer segments but we are encouraged by the positive response we have seen from first-time homebuyers who are most impacted by affordability challenges and a weakening job market Our team responded well to these conditions as evidenced by our relatively strong first quarter sales volume and low cancellation rate of 7.7% during the quarter, which continues to be one of the lowest cancellation rates in the public home building industry. our team responded well to these conditions as evidenced by our relatively strong first quarter sales volume and low cancellation rate of 7.7% during the quarter which continues to be one of the lowest cancellation rates in the public home building industry We believe it demonstrates the creditworthiness of our buyers, quality of our product, and desirability of our communities. we believe it demonstrates the creditworthiness of our buyers quality of our product and desirability of our communities Rate buydowns remained a necessary tool to drive traffic and sales, especially with first-time homebuyers and quick move-in homes. rate buydowns remained a necessary tool to drive traffic and sales especially with first-time homebuyers and quick move-in homes We helped address the affordability challenges faced by many consumers by providing our homebuyers with price concessions, interest rate buydowns, and closing cost incentives. we helped address the affordability challenges faced by many consumers by providing our homebuyers with price concessions interest rate buydowns and closing cost incentives Incentives for net new orders during the quarter were 9.9%, an increase of 320 basis points year-over-year, although a decrease of 30 basis points from the prior quarter. With our superior infill and infill-adjacent communities and industry-leading gross margins, we believe we're strategically positioned to adjust pricing as needed to meet market demand and maintain our sales pace. While we recognize the importance of preserving our margins, we also recognize that our industry-leading margins provide us with significant pricing flexibility to compete effectively in a volatile market and drive sales pace when appropriate. We are also excited about the progress of our wholly owned mortgage company. During the first quarter, Green Brick Mortgage closed and funded over 360 loans. Incentives for net new orders during the quarter were 9.9%, an increase of 320 basis points year-over-year, although a decrease of 30 basis points from the prior quarter. incentives for net new orders during the quarter were 9.9% an increase of 320 basis points year-over-year although a decrease of 30 basis points from the prior quarter With our superior infill and infill-adjacent communities and industry-leading gross margins, we believe we're strategically positioned to adjust pricing as needed to meet market demand and maintain our sales pace. with our superior infill and infill-adjacent communities and industry-leading gross margins we believe we're strategically positioned to adjust pricing as needed to meet market demand and maintain our sales pace While we recognize the importance of preserving our margins, we also recognize that our industry-leading margins provide us with significant pricing flexibility to compete effectively in a volatile market and drive sales pace when appropriate. while we recognize the importance of preserving our margins we also recognize that our industry-leading margins provide us with significant pricing flexibility to compete effectively in a volatile market and drive sales pace when appropriate We are also excited about the progress of our wholly owned mortgage company. we are also excited about the progress of our wholly owned mortgage company During the first quarter, Green Brick Mortgage closed and funded over 360 loans. during the first quarter green brick mortgage closed and funded over 360 loans The average FICO score was 742, and the average debt-to-income ratio was just under 40%, consistent with the previous quarter. We completed the rollout of Green Brick Mortgage to all of our Texas communities in the quarter, and we expect to roll out Green Brick Mortgage to The Providence Group, our Atlanta builder, in the latter part of 2026. As Green Brick Mortgage continues to expand its service to most of our communities, we anticipate that by year-end, its capture rate will range from 70%-80%, which should generate additional revenue as we increase the number of loans funded through our mortgage company. The average FICO score was 742, and the average debt-to-income ratio was just under 40%, consistent with the previous quarter. the average fico score was 742 and the average debt-to-income ratio was just under 40% consistent with the previous quarter We completed the rollout of Green Brick Mortgage to all of our Texas communities in the quarter, and we expect to roll out Green Brick Mortgage to The Providence Group, our Atlanta builder, in the latter part of 2026. we completed the rollout of green brick mortgage to all of our texas communities in the quarter and we expect to roll out green brick mortgage to the providence group our atlanta builder in the latter part of 2026 As Green Brick Mortgage continues to expand its service to most of our communities, we anticipate that by year-end, its capture rate will range from 70%-80%, which should generate additional revenue as we increase the number of loans funded through our mortgage company. as green brick mortgage continues to expand its service to most of our communities we anticipate that by year-end its capture rate will range from 70%-80% which should generate additional revenue as we increase the number of loans funded through our mortgage company We continue to reduce our construction cycle times, which were down 25 days from a year ago to under 130 days. Trophy's average cycle time in Dallas-Fort Worth was under 90 days, the lowest in their history, and a testament to the efficiency and quality of our construction teams and trade partner base. Labor availability remains relatively stable across all our markets, we are monitoring potential cost increases related to the rise in oil prices. We remain engaged with our trade partners to monitor potential cost pressures and will adjust as necessary. As part of our efforts to position ourselves for future growth, during the quarter, we invested approximately $89 million in land and lot acquisitions and $78 million in land development, excluding reimbursements. We continue to reduce our construction cycle times, which were down 25 days from a year ago to under 130 days. we continue to reduce our construction cycle times which were down 25 days from a year ago to under 130 days Trophy's average cycle time in Dallas-Fort Worth was under 90 days, the lowest in their history, and a testament to the efficiency and quality of our construction teams and trade partner base. trophy's average cycle time in dallas-fort worth was under 90 days the lowest in their history and a testament to the efficiency and quality of our construction teams and trade partner base Labor availability remains relatively stable across all our markets, we are monitoring potential cost increases related to the rise in oil prices. labor availability remains relatively stable across all our markets we are monitoring potential cost increases related to the rise in oil prices We remain engaged with our trade partners to monitor potential cost pressures and will adjust as necessary. we remain engaged with our trade partners to monitor potential cost pressures and will adjust as necessary As part of our efforts to position ourselves for future growth, during the quarter, we invested approximately $89 million in land and lot acquisitions and $78 million in land development, excluding reimbursements. as part of our efforts to position ourselves for future growth during the quarter we invested approximately $89 million in land and lot acquisitions and $78 million in land development excluding reimbursements For 2026, we expect land and lot acquisitions of approximately $400 million and land development outflows of approximately $420 million, excluding reimbursements. We believe our superior land position provides a competitive advantage that will be the foundation for strong growth in subsequent years. Approximately 38,000 of our lots are owned with approximately 11,000 lots under option contracts. Approximately 75% of our total lots owned and under contract are allocated to Trophy Signature Homes. Excluding approximately 25,000 lots in long-term master plan communities, our lot supply is approximately six years. With approximately 49,000 lots owned and under contract, we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near and intermediate term. With that, I'll turn it over to Jim for closing remarks. For 2026, we expect land and lot acquisitions of approximately $400 million and land development outflows of approximately $420 million, excluding reimbursements. for 2026 we expect land and lot acquisitions of approximately $400 million and land development outflows of approximately $420 million excluding reimbursements We believe our superior land position provides a competitive advantage that will be the foundation for strong growth in subsequent years. we believe our superior land position provides a competitive advantage that will be the foundation for strong growth in subsequent years Approximately 38,000 of our lots are owned with approximately 11,000 lots under option contracts. approximately 38,000 of our lots are owned with approximately 11,000 lots under option contracts Approximately 75% of our total lots owned and under contract are allocated to Trophy Signature Homes. approximately 75% of our total lots owned and under contract are allocated to trophy signature homes Excluding approximately 25,000 lots in long-term master plan communities, our lot supply is approximately six years. excluding approximately 25,000 lots in long-term master plan communities our lot supply is approximately six years With approximately 49,000 lots owned and under contract, we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near and intermediate term. with approximately 49,000 lots owned and under contract we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near and intermediate term With that, I'll turn it over to Jim for closing remarks. with that i'll turn it over to jim for closing remarks

Speaker 5: Thank you, Jed. In closing, we remain confident in our long-term outlook and our ability to continue to deliver excellent operational and financial results. Our land strategy, diversified product portfolio, and strong balance sheet continue to differentiate Green Brick from our peers and support attractive returns for our shareholders over the long term. Like the rest of our industry, we continue to navigate a challenging environment, but I am hopeful that the market is starting to find a more stable footing and normalization. I believe that 2026 will be a year that we lay a foundation so that we can execute our strategy and accelerate our growth in the coming years. With all of these challenges, I would like to recognize our team for their disciplined execution and resilience successfully navigating this market. Our results would not be possible without their focus, leadership, and commitment. Thank you, Jed. thank you jed In closing, we remain confident in our long-term outlook and our ability to continue to deliver excellent operational and financial results. in closing we remain confident in our long-term outlook and our ability to continue to deliver excellent operational and financial results Our land strategy, diversified product portfolio, and strong balance sheet continue to differentiate Green Brick from our peers and support attractive returns for our shareholders over the long term. our land strategy diversified product portfolio and strong balance sheet continue to differentiate green brick from our peers and support attractive returns for our shareholders over the long term Like the rest of our industry, we continue to navigate a challenging environment, but I am hopeful that the market is starting to find a more stable footing and normalization. like the rest of our industry we continue to navigate a challenging environment but i am hopeful that the market is starting to find a more stable footing and normalization I believe that 2026 will be a year that we lay a foundation so that we can execute our strategy and accelerate our growth in the coming years. i believe that 2026 will be a year that we lay a foundation so that we can execute our strategy and accelerate our growth in the coming years With all of these challenges, I would like to recognize our team for their disciplined execution and resilience successfully navigating this market. with all of these challenges i would like to recognize our team for their disciplined execution and resilience successfully navigating this market Our results would not be possible without their focus, leadership, and commitment. our results would not be possible without their focus leadership and commitment This concludes our prepared remarks, and we will now open the line for questions. Thank you. This concludes our prepared remarks, and we will now open the line for questions. this concludes our prepared remarks and we will now open the line for questions Thank you. thank you

Speaker 6: Thank you. If you would like to ask a question, please press star one on your telephone keypad. We ask that you limit yourself to one question and one follow-up, and rejoin the queue if needed. Your first question comes from Ryan Gilbert of BTIG. Your line is open. Thank you. thank you If you would like to ask a question, please press star one on your telephone keypad. if you would like to ask a question please press star one on your telephone keypad We ask that you limit yourself to one question and one follow-up, and rejoin the queue if needed. we ask that you limit yourself to one question and one follow-up and rejoin the queue if needed Your first question comes from Ryan Gilbert of BTIG. your first question comes from ryan gilbert of btig Your line is open. your line is open

Speaker 8: Hey, thanks, guys. Definitely encouraging to hear that, you know, I guess, demand improved throughout the quarter. Can you give us an update on how things are looking so far in April in terms of traffic and maybe sales pace? Hey, thanks, guys. hey thanks guys Definitely encouraging to hear that, you know, I guess, demand improved throughout the quarter. definitely encouraging to hear that you know i guess demand improved throughout the quarter Can you give us an update on how things are looking so far in April in terms of traffic and maybe sales pace? can you give us an update on how things are looking so far in april in terms of traffic and maybe sales pace

Speaker 5: Yeah. Jed, why don't you take that? Yeah. yeah Jed, why don't you take that? jed why don't you take that

Speaker 3: Yeah. I would say April's looking very similar to March. We're still in a strong spring season. Yeah. yeah I would say April's looking very similar to March. i would say april's looking very similar to march We're still in a strong spring season. we're still in a strong spring season

Speaker 8: Okay. Got it. Just, you know, around your commentary around the challenging sales environment that you're still seeing, you know, consumer response to the incentives that you're offering. I'm just curious, you know, Jim or maybe Jed, if you could, maybe expand on, I guess how long you think this can last or if you expect a weakening labor market to pressure first-time homebuyers. It doesn't seem like that's been the case so far, you know, just kind of looking ahead, what you're thinking. Okay. okay Got it. got it Just, you know, around your commentary around the challenging sales environment that you're still seeing, you know, consumer response to the incentives that you're offering. just you know around your commentary around the challenging sales environment that you're still seeing you know consumer response to the incentives that you're offering I'm just curious, you know, Jim or maybe Jed, if you could, maybe expand on, I guess how long you think this can last or if you expect a weakening labor market to pressure first-time homebuyers. i'm just curious you know jim or maybe jed if you could maybe expand on i guess how long you think this can last or if you expect a weakening labor market to pressure first-time homebuyers It doesn't seem like that's been the case so far, you know, just kind of looking ahead, what you're thinking. it doesn't seem like that's been the case so far you know just kind of looking ahead what you're thinking

Speaker 5: Yeah. This is Jim. Well, we're seeing strong demand. It's very elastic demand, meaning that the buyers are very educated and a small movement in pricing can really accelerate sales velocity. Really one of the things we're very encouraged about because our pre-tax margins are so high, they're running around 17% or just under, that we have tremendous flexibility if we need to get a buyer that wants a slight discount in the home, even from current levels. Pretty much we're not seeing that happening right now. We think that things may have bottomed, but if you can predict interest rates, I'll tell you what our margins are gonna look like because they're highly correlated right now, and we're not getting a lot of relief from the interest rate front. Jed, do you have anything you want to add to that? Yeah. yeah This is Jim. this is jim Well, we're seeing strong demand. well we're seeing strong demand It's very elastic demand, meaning that the buyers are very educated and a small movement in pricing can really accelerate sales velocity. it's very elastic demand meaning that the buyers are very educated and a small movement in pricing can really accelerate sales velocity Really one of the things we're very encouraged about because our pre-tax margins are so high, they're running around 17% or just under, that we have tremendous flexibility if we need to get a buyer that wants a slight discount in the home, even from current levels. really one of the things we're very encouraged about because our pre-tax margins are so high they're running around 17% or just under that we have tremendous flexibility if we need to get a buyer that wants a slight discount in the home even from current levels Pretty much we're not seeing that happening right now. pretty much we're not seeing that happening right now We think that things may have bottomed, but if you can predict interest rates, I'll tell you what our margins are gonna look like because they're highly correlated right now, and we're not getting a lot of relief from the interest rate front. we think that things may have bottomed but if you can predict interest rates i'll tell you what our margins are gonna look like because they're highly correlated right now and we're not getting a lot of relief from the interest rate front Jed, do you have anything you want to add to that? jed do you have anything you want to add to that

Speaker 3: I would just say, you know, the past week, you know, the past week has been rough on the mortgage rates and, you know, just a little change in mortgage rates can cause a 1% decline in gross margin for us. I would just say, you know, the past week, you know, the past week has been rough on the mortgage rates and, you know, just a little change in mortgage rates can cause a 1% decline in gross margin for us. i would just say you know the past week you know the past week has been rough on the mortgage rates and you know just a little change in mortgage rates can cause a 1% decline in gross margin for us

Speaker 8: Okay. Got it. Thank you, guys. Okay. okay Got it. got it Thank you, guys. thank you guys

Speaker 6: Your next question comes from Jay McCanless with Citizens Bank. Your line is open. Your next question comes from Jay McCanless with Citizens Bank. your next question comes from jay mccanless with citizens bank Your line is open. your line is open

Speaker 2: Hey, good afternoon, everyone. First question I had, what are you seeing in the land market right now? Land prices still continuing to go up or are you seeing some areas where maybe you're getting a little bit of a break or maybe land inflation slowing down a little bit? Hey, good afternoon, everyone. hey good afternoon everyone First question I had, what are you seeing in the land market right now? first question i had what are you seeing in the land market right now Land prices still continuing to go up or are you seeing some areas where maybe you're getting a little bit of a break or maybe land inflation slowing down a little bit? land prices still continuing to go up or are you seeing some areas where maybe you're getting a little bit of a break or maybe land inflation slowing down a little bit

Speaker 5: That's a good question, Jay. What we're seeing is on C-minus and D-location lots, builders are wanting to peddle those. Obviously, the only buyer are other builders, and if a builder wants to peddle a lot in a C-minus or D-location, he wants to do it because he's not making margin, so it's really not attractive to another builder to buy, and it's not distressed enough to have us get interested. That's what's taking place really in the perimeter locations or the further out perimeter locations. Interestingly, conversely, high margin land in the more infill or employment-centric locations is still in high demand. One of the things we're very excited about, we bought a large tract yesterday that we had been working on for how long, Jed, two years? That's a good question, Jay. that's a good question jay What we're seeing is on C-minus and D-location lots, builders are wanting to peddle those. what we're seeing is on c-minus and d-location lots builders are wanting to peddle those Obviously, the only buyer are other builders, and if a builder wants to peddle a lot in a C-minus or D-location, he wants to do it because he's not making margin, so it's really not attractive to another builder to buy, and it's not distressed enough to have us get interested. obviously the only buyer are other builders and if a builder wants to peddle a lot in a c-minus or d-location he wants to do it because he's not making margin so it's really not attractive to another builder to buy and it's not distressed enough to have us get interested That's what's taking place really in the perimeter locations or the further out perimeter locations. that's what's taking place really in the perimeter locations or the further out perimeter locations Interestingly, conversely, high margin land in the more infill or employment-centric locations is still in high demand. interestingly conversely high margin land in the more infill or employment-centric locations is still in high demand One of the things we're very excited about, we bought a large tract yesterday that we had been working on for how long, Jed, two years? one of the things we're very excited about we bought a large tract yesterday that we had been working on for how long jed two years

Speaker 3: Two years. Two years. two years

Speaker 5: You know, it was complicated, had a lot of moving parts. We're really excited about it because we have the balance sheet to take this down, other people don't. We have the management team to do the entitlement, sewer, water, and all of the other challenges that come with a large master plan property. We feel really good about that because it's a barrier to entry. All these land light guys just couldn't pull that kind of transaction off. You know, it was complicated, had a lot of moving parts. you know it was complicated had a lot of moving parts We're really excited about it because we have the balance sheet to take this down, other people don't. we're really excited about it because we have the balance sheet to take this down other people don't We have the management team to do the entitlement, sewer, water, and all of the other challenges that come with a large master plan property. we have the management team to do the entitlement sewer water and all of the other challenges that come with a large master plan property We feel really good about that because it's a barrier to entry. we feel really good about that because it's a barrier to entry All these land light guys just couldn't pull that kind of transaction off. all these land light guys just couldn't pull that kind of transaction off

Speaker 2: That's good to hear. Speaking of infill versus trophy and some of your higher-end brands versus trophy, I guess who, which performed better during the quarter? Was it move-up? Was it entry-level? What were you seeing in terms of demand between the different buyer segments? That's good to hear. that's good to hear Speaking of infill versus trophy and some of your higher-end brands versus trophy, I guess who, which performed better during the quarter? speaking of infill versus trophy and some of your higher-end brands versus trophy i guess who which performed better during the quarter Was it move-up? was it move-up Was it entry-level? was it entry-level What were you seeing in terms of demand between the different buyer segments? what were you seeing in terms of demand between the different buyer segments

Speaker 5: It was spotty, I think is the best way to define it. Trophy was a star. We found that, and Jed can elaborate on that there is a very large pool of buyers sub-$350,000, and Trophy can meet that price point and still make really nice margins. Florida did good. Atlanta slowed down in its market, that we were surprised 'cause Atlanta was traditionally very strong even in the infill markets. Jed, what do you want to add to that? It was spotty, I think is the best way to define it. it was spotty i think is the best way to define it Trophy was a star. trophy was a star We found that, and Jed can elaborate on that there is a very large pool of buyers sub-$350,000, and Trophy can meet that price point and still make really nice margins. we found that and jed can elaborate on that there is a very large pool of buyers sub-$350,000 and trophy can meet that price point and still make really nice margins Florida did good. florida did good Atlanta slowed down in its market, that we were surprised 'cause Atlanta was traditionally very strong even in the infill markets. atlanta slowed down in its market that we were surprised 'cause atlanta was traditionally very strong even in the infill markets Jed, what do you want to add to that? jed what do you want to add to that

Speaker 3: Yeah. I would just say that. You know, luxury continued to do well for us in that for us, that's homes priced in the $900,000 And up range. We saw, you know, spottiness in, say, the $500,000-$800,000 range, where we had some good months, some bad months depending on what sub-market. We're really encouraged in Dallas that in March and April we really hit good numbers with that buyer, which is typically a cultural buyer. We're encouraged about that. To, you know, kind of sum it all up, I'd say it's, we feel really good about luxury, and we feel really good about entry-level, and the stuff in the middle is more challenging. Yeah. yeah I would just say that. i would just say that You know, luxury continued to do well for us in that for us, that's homes priced in the $900,000 And up range. you know luxury continued to do well for us in that for us that's homes priced in the $900,000 and up range We saw, you know, spottiness in, say, the $500,000-$800,000 range, where we had some good months, some bad months depending on what sub-market. we saw you know spottiness in say the $500,000-$800,000 range where we had some good months some bad months depending on what sub-market We're really encouraged in Dallas that in March and April we really hit good numbers with that buyer, which is typically a cultural buyer. we're really encouraged in dallas that in march and april we really hit good numbers with that buyer which is typically a cultural buyer We're encouraged about that. we're encouraged about that To, you know, kind of sum it all up, I'd say it's, we feel really good about luxury, and we feel really good about entry-level, and the stuff in the middle is more challenging. to you know kind of sum it all up i'd say it's we feel really good about luxury and we feel really good about entry-level and the stuff in the middle is more challenging

Speaker 5: Yeah, Jay. Some of the stuff in the middle that Jed was talking about, this $500,000-$800,000 price point, one of the reasons why we think it's so much slower are our immigration policies. Many of those homes are sold to physicians, higher income people, and the current administration is making it uncertain for those people, and it's impacting housing as a result. Yeah, Jay. yeah jay Some of the stuff in the middle that Jed was talking about, this $500,000-$800,000 price point, one of the reasons why we think it's so much slower are our immigration policies. some of the stuff in the middle that jed was talking about this $500,000-$800,000 price point one of the reasons why we think it's so much slower are our immigration policies Many of those homes are sold to physicians, higher income people, and the current administration is making it uncertain for those people, and it's impacting housing as a result. many of those homes are sold to physicians higher income people and the current administration is making it uncertain for those people and it's impacting housing as a result

Speaker 2: That's great color, Jim. Thank you. Any concerns or issues with other builders maybe having built a little too much at that price point and having to be more aggressive on the discounting there? That's great color, Jim. that's great color jim Thank you. thank you Any concerns or issues with other builders maybe having built a little too much at that price point and having to be more aggressive on the discounting there? any concerns or issues with other builders maybe having built a little too much at that price point and having to be more aggressive on the discounting there

Speaker 5: I think it's, in some markets, I think it's fairly isolated. Jed and I were talking about it this morning that, it can affect some markets. Generally, I don't, I'm not worried about it. Again, one of the reasons I'm not worried about it is because if we're making a 17% pre-tax margin and we're competing against a builder that's making a 3% pre-tax margin, down the street that's land light, those guys have given about all they can give, and we're just kind of waiting and seeing what happens. I think it's, in some markets, I think it's fairly isolated. i think it's in some markets i think it's fairly isolated Jed and I were talking about it this morning that, it can affect some markets. jed and i were talking about it this morning that it can affect some markets Generally, I don't, I'm not worried about it. generally i don't i'm not worried about it Again, one of the reasons I'm not worried about it is because if we're making a 17% pre-tax margin and we're competing against a builder that's making a 3% pre-tax margin, down the street that's land light, those guys have given about all they can give, and we're just kind of waiting and seeing what happens. again one of the reasons i'm not worried about it is because if we're making a 17% pre-tax margin and we're competing against a builder that's making a 3% pre-tax margin down the street that's land light those guys have given about all they can give and we're just kind of waiting and seeing what happens

Speaker 2: Okay. Okay, great. Just the last one I had, congrats on starting in Houston. I guess over time, how many communities do you think Green Brick can have in that market, and is it always just gonna be a Trophy market, or are you guys gonna look to do some infill properties? Okay. okay Okay, great. okay great Just the last one I had, congrats on starting in Houston. just the last one i had congrats on starting in houston I guess over time, how many communities do you think Green Brick can have in that market, and is it always just gonna be a Trophy market, or are you guys gonna look to do some infill properties? i guess over time how many communities do you think green brick can have in that market and is it always just gonna be a trophy market or are you guys gonna look to do some infill properties

Speaker 5: Well, right now it's. Let's talk strategically. Basically what we wanna do is enter any market that it really has to be a top 10 to 12 city market because Trophy's gonna be our scalable brand that goes into that market. To be effective, we're still gonna self-develop, and we wanna have a really experienced land team and a land acquisition team that has strategic advantages. If that's gonna make us really enter larger markets, we're looking at San Antonio right now, and I think the probability of us bringing other brands there is probably unlikely at this point, but you never can, should say never. Well, right now it's. well right now it's Let's talk strategically. let's talk strategically Basically what we wanna do is enter any market that it really has to be a top 10 to 12 city market because Trophy's gonna be our scalable brand that goes into that market. basically what we wanna do is enter any market that it really has to be a top 10 to 12 city market because trophy's gonna be our scalable brand that goes into that market To be effective, we're still gonna self-develop, and we wanna have a really experienced land team and a land acquisition team that has strategic advantages. to be effective we're still gonna self-develop and we wanna have a really experienced land team and a land acquisition team that has strategic advantages If that's gonna make us really enter larger markets, we're looking at San Antonio right now, and I think the probability of us bringing other brands there is probably unlikely at this point, but you never can, should say never. if that's gonna make us really enter larger markets we're looking at san antonio right now and i think the probability of us bringing other brands there is probably unlikely at this point but you never can should say never

Speaker 2: Okay. That's all I had. Thanks, guys. Okay. okay That's all I had. that's all i had Thanks, guys. thanks guys

Speaker 6: Once again, if you have a question, it is star one on your telephone keypad. Your next question comes from Alex Rygiel with Texas Capital. Your line is open Once again, if you have a question, it is star one on your telephone keypad. once again if you have a question it is star one on your telephone keypad Your next question comes from Alex Rygiel with Texas Capital. your next question comes from alex rygiel with texas capital Your line is open your line is open

Speaker 1: Thank you. Given the mix of backlog in Trophy homes, should we model ASPs declining through 2026? Thank you. thank you Given the mix of backlog in Trophy homes, should we model ASPs declining through 2026? given the mix of backlog in trophy homes should we model asps declining through 2026

Speaker 3: This is Jed. I think it's a mix issue more than a backlog issue. You know, as, you know, like we mentioned, we're seeing very strong demand at the entry level. If that becomes a bigger percentage of our sales, then the ASP would go down. This is Jed. this is jed I think it's a mix issue more than a backlog issue. i think it's a mix issue more than a backlog issue You know, as, you know, like we mentioned, we're seeing very strong demand at the entry level. you know as you know like we mentioned we're seeing very strong demand at the entry level If that becomes a bigger percentage of our sales, then the ASP would go down. if that becomes a bigger percentage of our sales then the asp would go down

Speaker 1: How do sales in the Houston market affect ASPs? How do sales in the Houston market affect ASPs? how do sales in the houston market affect asps

Speaker 3: Houston will continue to bring ASP down. When you look at Zonda put out the biggest markets based on Q1 starts, DFW is the largest, Alex, and Houston was the second, and there was a huge drop-off to Phoenix, which was third. In Dallas, we're the third biggest by units, and we think we'll probably end up being the second biggest this year by revenue, trailing only D.R. Horton. Those are really big markets, but to have really big markets, you need very affordable housing. The ASP in Houston will be lower than the Dallas. Houston will continue to bring ASP down. houston will continue to bring asp down When you look at Zonda put out the biggest markets based on Q1 starts, DFW is the largest, Alex, and Houston was the second, and there was a huge drop-off to Phoenix, which was third. when you look at zonda put out the biggest markets based on q1 starts dfw is the largest alex and houston was the second and there was a huge drop-off to phoenix which was third In Dallas, we're the third biggest by units, and we think we'll probably end up being the second biggest this year by revenue, trailing only D.R. in dallas we're the third biggest by units and we think we'll probably end up being the second biggest this year by revenue trailing only d.r Horton. horton Those are really big markets, but to have really big markets, you need very affordable housing. those are really big markets but to have really big markets you need very affordable housing The ASP in Houston will be lower than the Dallas. the asp in houston will be lower than the dallas Those are two very strong markets that, you know, we're gonna continue to grow our market share in Dallas, and we're excited about the early success in Houston, and we look forward to, you know, being able to, you know, in the near future, be a more dominant player there. Those are two very strong markets that, you know, we're gonna continue to grow our market share in Dallas, and we're excited about the early success in Houston, and we look forward to, you know, being able to, you know, in the near future, be a more dominant player there. those are two very strong markets that you know we're gonna continue to grow our market share in dallas and we're excited about the early success in houston and we look forward to you know being able to you know in the near future be a more dominant player there

Speaker 1: As it relates to your comments about April being sort of in line with March, is that typical historically? As it relates to your comments about April being sort of in line with March, is that typical historically? as it relates to your comments about april being sort of in line with march is that typical historically

Speaker 3: Yeah, we've gone back. We've gone and looked at a lot of historical trends recently, and, you know, so much of it correlates with, you know, what interest rates were you get for every April versus every March going forward, but going backwards. For the most part, yes, what we typically see is April is just a little bit weaker than March, and then May is because of graduations and so forth, and the beginning of summer. You know, the spring season really kind of concludes in May, and then you enter the summer season. Yeah, we've gone back. yeah we've gone back We've gone and looked at a lot of historical trends recently, and, you know, so much of it correlates with, you know, what interest rates were you get for every April versus every March going forward, but going backwards. we've gone and looked at a lot of historical trends recently and you know so much of it correlates with you know what interest rates were you get for every april versus every march going forward but going backwards For the most part, yes, what we typically see is April is just a little bit weaker than March, and then May is because of graduations and so forth, and the beginning of summer. for the most part yes what we typically see is april is just a little bit weaker than march and then may is because of graduations and so forth and the beginning of summer You know, the spring season really kind of concludes in May, and then you enter the summer season. you know the spring season really kind of concludes in may and then you enter the summer season

Speaker 1: Thank you. Thank you. thank you

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 6: Your next question comes from Rohit Seth with B. Riley Securities. Your line is open. Rohit, perhaps your line is on mute. Your next question comes from Rohit Seth with B. your next question comes from rohit seth with b Riley Securities. riley securities Your line is open. your line is open Rohit, perhaps your line is on mute. rohit perhaps your line is on mute

Speaker 7: Hey, thanks for taking my question. Just on sales pace, you had a good turnout in the first quarter. It looks like you have some levers with your, you know, strong margins. Do you think you can maintain sort of the sales pace that you had in the prior year from 2Q to two to Q4's kinda average about three homes per month? Hey, thanks for taking my question. hey thanks for taking my question Just on sales pace, you had a good turnout in the first quarter. just on sales pace you had a good turnout in the first quarter It looks like you have some levers with your, you know, strong margins. it looks like you have some levers with your you know strong margins Do you think you can maintain sort of the sales pace that you had in the prior year from 2Q to two to Q4's kinda average about three homes per month? do you think you can maintain sort of the sales pace that you had in the prior year from 2q to two to q4's kinda average about three homes per month

Speaker 4: Yeah. Seth, this is Jeff. I think that's very doable when we look at the historical trends that Jed mentioned earlier. You know, we were about 2.97 last year in Q2 and 2.91 in Q3. When we look at how we performed this quarter compared to last year, we're down a little bit. Keep in mind, we did have that weather event that Jim referenced earlier in his remarks. We tend to be trending generally with the same pace as last year. Yeah. yeah Seth, this is Jeff. seth this is jeff I think that's very doable when we look at the historical trends that Jed mentioned earlier. i think that's very doable when we look at the historical trends that jed mentioned earlier You know, we were about 2.97 last year in Q2 and 2.91 in Q3. you know we were about 2.97 last year in q2 and 2.91 in q3 When we look at how we performed this quarter compared to last year, we're down a little bit. when we look at how we performed this quarter compared to last year we're down a little bit Keep in mind, we did have that weather event that Jim referenced earlier in his remarks. keep in mind we did have that weather event that jim referenced earlier in his remarks We tend to be trending generally with the same pace as last year. we tend to be trending generally with the same pace as last year

Speaker 7: Okay. Could you remind me the spread between Trophy homes? I know there's a faster sales pace there in the rest of the book. Okay. okay Could you remind me the spread between Trophy homes? could you remind me the spread between trophy homes I know there's a faster sales pace there in the rest of the book. i know there's a faster sales pace there in the rest of the book

Speaker 3: Trophy was 50%, 51%, 52% of our sales in Q1. We expect them to continue to increase that pace as we continue to grow the brand and expand in Houston and Austin. 75%, I believe, of our lots owned is controlled or allocated towards Trophy, so that will continue to increase over time. Trophy was 50%, 51%, 52% of our sales in Q1. trophy was 50%, 51%, 52% of our sales in q1 We expect them to continue to increase that pace as we continue to grow the brand and expand in Houston and Austin. 75%, I believe, of our lots owned is controlled or allocated towards Trophy, so that will continue to increase over time. we expect them to continue to increase that pace as we continue to grow the brand and expand in houston and austin 75% i believe of our lots owned is controlled or allocated towards trophy so that will continue to increase over time

Speaker 7: Is Trophy moving something like five units a month, something like that? Is Trophy moving something like five units a month, something like that? is trophy moving something like five units a month something like that

Speaker 3: It's really neighborhood dependent. I mean, I'll answer it this way. We have some communities that have two different lot sizes, where in Q1 we averaged 20 sales a month. That was, you know, as defined by community count, that'd be 10 sales. Then we had others where, you know, we averaged three or four. We can pull some better data for you for our next call on that. It's really neighborhood dependent. it's really neighborhood dependent I mean, I'll answer it this way. i mean i'll answer it this way We have some communities that have two different lot sizes, where in Q1 we averaged 20 sales a month. we have some communities that have two different lot sizes where in q1 we averaged 20 sales a month That was, you know, as defined by community count, that'd be 10 sales. that was you know as defined by community count that'd be 10 sales Then we had others where, you know, we averaged three or four. then we had others where you know we averaged three or four We can pull some better data for you for our next call on that. we can pull some better data for you for our next call on that

Speaker 5: Yeah, some of our communities, you know, that are particularly in the last phases where we've had success and phasing out, we are milking margin intentionally and maintaining slower sales pace. Yeah, some of our communities, you know, that are particularly in the last phases where we've had success and phasing out, we are milking margin intentionally and maintaining slower sales pace. yeah some of our communities you know that are particularly in the last phases where we've had success and phasing out we are milking margin intentionally and maintaining slower sales pace

Speaker 7: Okay. Is there a margin floor where you guys are not willing to breach? Okay. okay Is there a margin floor where you guys are not willing to breach? is there a margin floor where you guys are not willing to breach

Speaker 5: No, we don't look at it that way, really. We look at basically, we're always modeling internal rate of return in sales pace and price. It's a little bit more complex than that because we also want to get our capital returned on our lots and looking at, you know, that redeployment of that capital. It's a little more complicated than just saying we will sell houses based upon margin. It's the sales pace that comes with the margin and the capital that comes in from that lot sale into the calculus. No, we don't look at it that way, really. no we don't look at it that way really We look at basically, we're always modeling internal rate of return in sales pace and price. we look at basically we're always modeling internal rate of return in sales pace and price It's a little bit more complex than that because we also want to get our capital returned on our lots and looking at, you know, that redeployment of that capital. it's a little bit more complex than that because we also want to get our capital returned on our lots and looking at you know that redeployment of that capital It's a little more complicated than just saying we will sell houses based upon margin. it's a little more complicated than just saying we will sell houses based upon margin It's the sales pace that comes with the margin and the capital that comes in from that lot sale into the calculus. it's the sales pace that comes with the margin and the capital that comes in from that lot sale into the calculus

Speaker 7: All right. Thank you. All right. all right Thank you. thank you

Speaker 3: Obviously, when we're reporting 28.9% gross margins and we have peers that are reporting 15, 16, we feel excited about the coming months, and we feel excited about our ability to adjust prices as needed. Obviously, when we're reporting 28.9% gross margins and we have peers that are reporting 15, 16, we feel excited about the coming months, and we feel excited about our ability to adjust prices as needed. obviously when we're reporting 28.9% gross margins and we have peers that are reporting 15 16 we feel excited about the coming months and we feel excited about our ability to adjust prices as needed

Speaker 7: Understood. It's a good position. Thanks for taking my question. Understood. understood It's a good position. it's a good position Thanks for taking my question. thanks for taking my question

Speaker 6: This concludes the question and answer session. I will turn the call to Jim Brickman for closing remarks. This concludes the question and answer session. this concludes the question and answer session I will turn the call to Jim Brickman for closing remarks. i will turn the call to jim brickman for closing remarks

Speaker 5: Well, thank you everybody for attending our call. We're always delighted to have anybody call Jeff, Jed, or myself with follow-up questions, and really would encourage you to do that, and we can get into a little bit more detail about some of the master plan communities we're really excited about. Thank you for the call. Well, thank you everybody for attending our call. well thank you everybody for attending our call We're always delighted to have anybody call Jeff, Jed, or myself with follow-up questions, and really would encourage you to do that, and we can get into a little bit more detail about some of the master plan communities we're really excited about. we're always delighted to have anybody call jeff jed or myself with follow-up questions and really would encourage you to do that and we can get into a little bit more detail about some of the master plan communities we're really excited about Thank you for the call. thank you for the call

Speaker 6: This concludes today's conference call. Thank you for joining. You may now disconnect. This concludes today's conference call. this concludes today's conference call Thank you for joining. thank you for joining You may now disconnect. you may now disconnect