{"url_path":"/sec/grbk-pa/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 FINANCIAL STATEMENTS","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-11","source_url":"https://www.sec.gov/Archives/edgar/data/1373670/0001628280-26-033612-index.html","accession_number":"0001628280-26-033612","cik":"0001373670","ticker":"GRBK","issuer_name":"Green Brick Partners, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1373670/0001628280-26-033612-index.html","primary_entity_key":"0001373670","primary_entity_name":"Green Brick Partners, Inc."},"word_count":8405,"has_tables":true,"body_markdown":"ITEM 1. FINANCIAL STATEMENTS\n\nGREEN BRICK PARTNERS, INC.\n\nCONDENSED CONSOLIDATED BALANCE SHEETS\n\n(In thousands, except share data)\n\n(Unaudited)\n\nMarch 31, 2026December 31, 2025\n\nASSETS\n\nCash and cash equivalents$144,934 $154,590 \n\nRestricted cash32,099 36,395 \n\nReceivables30,818 39,982 \n\nReal estate inventory:\n\nInventory owned1,998,369 1,941,524 \n\nConsolidated inventory related to VIE157,616 157,687 \n\nTotal inventory2,155,985 2,099,211 \n\nMortgage loans held for sale\n27,186 49,099 \n\nInvestments in unconsolidated entities73,549 93,050 \n\nRight-of-use assets - operating leases7,108 7,475 \n\nProperty and equipment, net6,482 6,316 \n\nEarnest money deposits11,087 13,151 \n\nDeferred income tax assets, net11,235 11,243 \n\nIntangible assets, net176 197 \n\nGoodwill680 680 \n\nOther assets24,981 23,378 \n\nTotal assets$2,526,320 $2,534,767 \n\nLIABILITIES AND EQUITY\n\nLiabilities:\n\nAccounts payable$92,655 $94,516 \n\nAccrued expenses141,414 152,637 \n\nCustomer and builder deposits26,062 25,716 \n\nLease liabilities - operating leases8,241 8,637 \n\nBorrowings on lines of credit, net(2,253)(2,465)\n\nWarehouse lines of credit\n24,947 46,398 \n\nSenior unsecured notes, net237,068 261,972 \n\nNotes payable14,371 14,371 \n\nTotal liabilities542,505 601,782 \n\nCommitments and contingencies\n\nRedeemable noncontrolling interest in equity of consolidated subsidiary52,198 52,271 \n\nEquity:\n\nGreen Brick Partners, Inc. stockholders’ equity\n\nPreferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively\n47,603 47,603 \n\nCommon stock, $0.01 par value: 100,000,000 shares authorized; 43,146,177 issued and outstanding as of March 31, 2026 and 43,205,947 issued and outstanding as of December 31, 2025, respectively\n431 432 \n\nAdditional paid-in capital247,623 243,816 \n\nRetained earnings1,620,702 1,567,111 \n\nTotal Green Brick Partners, Inc. stockholders’ equity1,916,359 1,858,962 \n\nNoncontrolling interests15,258 21,752 \n\nTotal equity1,931,617 1,880,714 \n\nTotal liabilities and equity$2,526,320 $2,534,767 \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n1\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nGREEN BRICK PARTNERS, INC.\n\nCONDENSED CONSOLIDATED STATEMENTS OF INCOME\n\n(In thousands, except per share data)\n\n(Unaudited)\n\nThree Months Ended March 31,\n\n20262025\n\nRevenues:\n\nResidential units revenue$448,487 $482,149 \n\nLand and lots revenue7,500 2,304 \n\n455,987 484,453 \n\nFinancial services9,501 4,867 \n\nTotal revenues465,488 489,320 \n\nHomebuilding cost of revenues:\n\nCost of residential units318,616 327,453 \n\nCost of land and lots5,656 1,215 \n\n324,272 328,668 \n\nFinancial services expenses(5,180)(3,058)\n\nSelling, general and administrative expenses(52,593)(52,567)\n\nEquity in income of unconsolidated entities1,120 473 \n\nOther (loss) income, net(299)648 \n\nIncome before income taxes84,264 106,148 \n\nIncome tax expense18,425 22,223 \n\nNet income65,839 83,925 \n\nLess: Net income attributable to noncontrolling interests4,893 8,866 \n\nNet income attributable to Green Brick Partners, Inc.$60,946 $75,059 \n\nNet income attributable to Green Brick Partners, Inc. per common share:\n\nBasic$1.40 $1.67 \n\nDiluted$1.39 $1.67 \n\nWeighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:\n\nBasic43,149 44,440 \n\nDiluted43,335 44,508 \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n2\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nGREEN BRICK PARTNERS, INC.\n\nCONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY\n\n(In thousands, except share data) (Unaudited)\n\nFor the three months ended March 31, 2026 and 2025:\n\nCommon StockPreferred StockTreasury StockAdditional Paid-in CapitalRetained EarningsTotal GRBK Stockholders’ EquityNon\ncontrolling InterestsTotal Stockholders’ Equity\n\nSharesAmountSharesAmountSharesAmount\n\nDecember 31, 202543,205,947 $432 2,000 $47,603 — $— $243,816 $1,567,111 $1,858,962 $21,752 $1,880,714 \n\nIssuance of common stock from equity incentive plan, net of forfeitures73,988 1 — — — — 2,425 — 2,426 — 2,426 \n\nWithholdings from vesting of restricted stock awards(19,909)(1)— — — — (1,799)— (1,800)— (1,800)\n\nShare-based compensation— — — — — 1,646 — 1,646 — 1,646 \n\nDividends— — — — — — (719)(719)— (719)\n\nStock repurchases— — — — (113,849)(7,284)— — (7,284)— (7,284)\n\nRetirement of treasury shares(113,849)(1)— — 113,849 7,284 (647)(6,636)— — — \n\nChange in fair value of redeemable noncontrolling interest— — — — 2,182 — 2,182 — 2,182 \n\nDistributions— — — — — — — — — (9,278)(9,278)\n\nNet income— — — — — — — 60,946 60,946 2,784 63,730 \n\nMarch 31, 202643,146,177 $431 2,000 $47,603 — $— $247,623 $1,620,702 $1,916,359 $15,258 $1,931,617 \n\nCommon StockPreferred StockTreasury StockAdditional Paid-in CapitalRetained EarningsTotal GRBK Stockholders’ EquityNon\ncontrolling InterestsTotal Stockholders’ Equity\n\nSharesAmountSharesAmountSharesAmount\n\nDecember 31, 202444,498,097 $445 2,000 $47,603 — $— $244,653 $1,332,714 $1,625,415 $28,039 $1,653,454 \n\nIssuance of common stock from equity incentive plan, net of forfeitures147,278 1 — — — — 7,146 — 7,147 — 7,147 \n\nWithholdings from vesting of restricted stock awards(51,408)— — — — — (3,058)— (3,058)— (3,058)\n\nShare-based compensation— — — — — — 969 — 969 — 969 \n\nDividends— — — — — — — (719)(719)— (719)\n\nStock repurchases— — — (282,821)(16,919)— — (16,919)— (16,919)\n\nChange in fair value of redeemable noncontrolling interest— — — — — — 3,018 — 3,018 — 3,018 \n\nDistributions— — — — — — — — — (11,500)(11,500)\n\nNet income— — — — — — — 75,059 75,059 5,997 81,056 \n\nMarch 31, 202544,593,967 4462,000 $47,603 (282,821)$(16,919)$252,728 $1,407,054 $1,690,912 $22,536 $1,713,448 \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n3\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nGREEN BRICK PARTNERS, INC.\n\nCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(In thousands)\n\n(Unaudited)\n\nThree Months Ended March 31,\n\n20262025\n\nCash flows from operating activities:\n\nNet income$65,839 $83,925 \n\nAdjustments to reconcile net income to net cash provided by operating activities:    \n\nDepreciation and amortization expense1,082 1,405 \n\nLoss (gain) on disposal of property and equipment, net— (8)\n\nShare-based compensation expense4,072 8,133 \n\nEquity in income of unconsolidated entities(1,120)(473)\n\nAllowances for option deposits and pre-acquisition costs1,469 264 \n\nDistributions of income from unconsolidated entities24,082 — \n\nChanges in operating assets and liabilities:  \n\nDecrease in receivables9,164 1,262 \n\nIncrease in inventory(56,465)(48,489)\n\nDecrease (increase) in earnest money deposits2,064 (3,416)\n\nDecrease in mortgage loans held for sale\n21,913 — \n\n(Increase) decrease in other assets(3,095)13,294 \n\n(Decrease) increase in accounts payable(1,861)17,998 \n\nDecrease in accrued expenses(11,223)(6,597)\n\nIncrease in customer and builder deposits346 1,449 \n\nNet cash provided by operating activities56,267 68,747 \n\nCash flows from investing activities:\n\nInvestments in unconsolidated entities(3,461)(11,248)\n\nPurchases of property and equipment(1,227)(713)\n\nNet cash used in investing activities(4,688)(11,961)\n\nCash flows from financing activities:  \n\nBorrowings from lines of credit50,000 81,160 \n\nRepayments of lines of credit(50,000)(105,589)\n\nBorrowings from warehouse lines of credit\n74,245 — \n\nRepayments of warehouse lines of credit\n(95,696)— \n\nRepayments of senior unsecured notes(25,000)(25,000)\n\nPayments of withholding tax on vesting of restricted stock awards(1,799)(3,059)\n\nRepurchases of common stock(7,284)(16,919)\n\nDividends paid(719)(719)\n\nDistributions to noncontrolling interests(9,278)(11,500)\n\nNet cash used in financing activities(65,531)(81,626)\n\nNet decrease in cash and cash equivalents and restricted cash(13,952)(24,840)\n\nCash and cash equivalents and restricted cash, beginning of period190,985 159,696 \n\nCash and cash equivalents and restricted cash, end of period$177,033 $134,856 \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements. \n\n4\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nGREEN BRICK PARTNERS, INC.\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n(Unaudited)\n\n1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n\nBasis of Presentation\n\nThe accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”), but do not include all of the information and footnotes required for complete financial statements. The condensed consolidated balance sheet as of December 31, 2025 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments of a normal, recurring nature necessary to fairly state our financial position, results of operations and cash flows. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.\n\nOperating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2026 or subsequent periods due to seasonal variations and other factors.\n\nPrinciples of Consolidation\n\nThe accompanying unaudited condensed consolidated financial statements include the accounts of Green Brick Partners, Inc., its controlled subsidiaries, (together, the “Company”, “we”, or “Green Brick”) and variable interest entities (“VIEs”) in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary.\n\nAll intercompany balances and transactions have been eliminated in consolidation.\n\nThe Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses, if any, is included in the condensed consolidated statements of income.\n\nUse of Estimates\n\nThe preparation of the condensed consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.\n\nReclassifications\n\nCertain prior period amounts have been reclassified to conform to the current period presentation with no impact to net income in any period.\n\nFor a complete set of the Company’s significant accounting policies, refer to Note 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. \n\nRecent Accounting Pronouncements\n\nChanges to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standard Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements.\n\nIn November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2026, with early adoption permitted.\n\n5\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nThe Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its consolidated financial statements.\n\n2. HOMEBUILDING INVENTORY\n\nA summary of our inventory is as follows (in thousands):\n\nMarch 31, 2026December 31, 2025\n\nHomes completed or under construction$615,412 $621,677 \n\nLand and lots - developed and under development1,515,110 1,452,072 \n\nLand held for future development(1)\n14,482 14,481 \n\nLand held for sale10,981 10,981 \n\nTotal inventory$2,155,985 $2,099,211 \n\n(1)Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors. All applicable carrying costs, including property taxes, are expensed as incurred.\n\nAs of March 31, 2026, the Company reviewed the performance and outlook for all of its communities for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. For the three months ended March 31, 2026, the Company recorded a $0.9 million impairment charge to reduce the carrying value of inventory to fair value. This impairment charge was included in cost of residential units in our consolidated statements of income.\n\nFor the three months ended March 31, 2025, the Company did not record an impairment adjustment to reduce the carrying value of communities or land inventory to fair value.\n\nA summary of interest costs incurred, capitalized, and expensed is as follows (in thousands):\n\nThree Months Ended March 31,\n\n20262025\n\nInterest capitalized at beginning of period$29,742 $26,621\n\nInterest incurred2,960 3,441\n\nInterest charged to cost of revenues(2,124)(2,262)\n\nInterest capitalized at end of period$30,578 $27,800\n\nCapitalized interest as a percentage of inventory1.4 %1.4 %\n\n3. INVESTMENT IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES\n\nA summary of the Company’s investments in unconsolidated entities is as follows (in thousands):\n\nMarch 31, 2026December 31, 2025\n\nGBTM Sendera, LLC$21,985 $21,985 \n\nRainwater Crossing Single-Family, LLC31,363 51,484 \n\nTMGB Magnolia Ridge, LLC11,506 11,506 \n\nEJB River Holdings, LLC8,695 8,075 \n\nTotal investment in unconsolidated entities $73,549 $93,050 \n\nAs of March 31, 2026 and December 31, 2025 the Company’s maximum exposure to loss from its investments in unconsolidated entities was $118.3 million and $140.2 million, respectively. The Company’s maximum exposure to loss was limited to its investments in the unconsolidated entities, except with regard to the Company’s remaining commitment to fund capital in Rainwater Crossing Single-Family, LLC of $9.4 million and $9.6 million as of March 31, 2026 and December 31, 2025, respectively. In addition, the Company has a completion guarantee of up to $22.5 million on a revolving loan to fund the development activities of TMGB Magnolia Ridge, LLC and a $12.9 million guarantee on a loan agreement for GBTM Sendera to fund its development activities.\n\n6\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nA summary of the unaudited condensed financial information of the unconsolidated entities that are accounted for by the equity method is as follows (in thousands):\n\nMarch 31, 2026December 31, 2025\n\nAssets:\n\nCash$14,153 $7,334 \n\nAccounts receivable1,473 488 \n\nBonds and notes receivable9,396 12,038 \n\nLoans held for sale, at fair value— — \n\nInventory137,847 111,771 \n\nOther assets6,443 1,738 \n\nTotal assets$169,312 $133,369 \n\nLiabilities:\n\nAccounts payable$5,914 $6,280 \n\nAccrued expenses and other liabilities27 1,369 \n\nNotes payable38,288 23,194 \n\nTotal liabilities$44,229 $30,843 \n\nOwners’ equity:\n\nGreen Brick$77,075 $58,312 \n\nOthers48,008 44,214 \n\nTotal owners’ equity$125,083 $102,526 \n\nTotal liabilities and owners’ equity$169,312 $133,369 \n\nThree Months Ended March 31,\n\n20262025\n\nRevenues$8,870 $3,314 \n\nCosts and expenses6,630 2,370 \n\nNet earnings of unconsolidated entities$2,240 $944 \n\nCompany’s share in net earnings of unconsolidated entities$1,120 $473 \n\nConsolidated Entities\n\nThe aggregated carrying amounts of the assets and liabilities of The Providence Group of Georgia LLC (“TPG”) were $180.1 million and $171.5 million, respectively, as of March 31, 2026. As of December 31, 2025, TPG’s assets and liabilities were $184.5 million and $163.9 million, respectively. The noncontrolling interest attributable to the 50% minority interest owned by TPG was included as noncontrolling interests in the Company’s consolidated financial statements.\n\n7\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\n4. ACCRUED EXPENSES\n\nA summary of the Company’s accrued expenses is as follows (in thousands):\n\nMarch 31, 2026December 31, 2025\n\nReal estate development reserve to complete(1)\n$18,528 $31,708 \n\nWarranty reserve13,238 12,920 \n\nFederal income tax payable63,759 47,200 \n\nAccrued compensation10,425 16,911 \n\nSelf-insurance reserve7,786 7,021 \n\nAccrued property tax payable5,279 12,635 \n\nOther accrued expenses22,399 24,242 \n\nTotal accrued expenses$141,414 $152,637 \n\n(1)The Company’s real estate development reserve to complete consists of estimated future costs to complete the development of its communities.\n\nWarranties\n\nWarranty accruals are included within accrued expenses on the condensed consolidated balance sheets. Warranty activity during the three months ended March 31, 2026 and 2025 consisted of the following (in thousands):\n\nThree Months Ended March 31,\n\n20262025\n\nWarranty accrual, beginning of period$12,920 $17,373 \n\nWarranties issued1,148 1,691 \n\nChanges in liability for existing warranties(1)(359)\n\nPayments made(829)(1,070)\n\nWarranty accrual, end of period$13,238 $17,635 \n\n5. DEBT\n\nLines of Credit\n\nBorrowings on lines of credit outstanding, net of debt issuance costs, as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):\n\nMarch 31, 2026December 31, 2025\n\nSecured Revolving Credit Facility (1)\n$— $— \n\nUnsecured Revolving Credit Facility— — \n\nWarehouse facilities24,947 46,398 \n\nDebt issuance costs, net of amortization(2,253)(2,465)\n\nTotal borrowings on lines of credit, net$22,694 $43,933 \n\n(1)On March 31, 2026, the Company terminated its secured revolving credit facility.\n\nSecured Revolving Credit Facility\n\nThe Company was party to a revolving credit facility (the “Secured Revolving Credit Facility”) with Inwood National Bank, which provided for an aggregate commitment of $35.0 million. On March 31, 2026, the Company terminated its secured revolving credit facility. The termination was voluntary and not due to covenant violations or lender action.\n\n8\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nUnsecured Revolving Credit Facility\n\nThe Company is party to a credit agreement, providing for a senior, unsecured revolving credit facility (the “Unsecured Revolving Credit Facility”). On December 10, 2025, the Company entered into the Thirteenth Amendment to this credit agreement. The Unsecured Revolving Credit Facility was amended (i) to reduce the SOFR spread and base rate spread, (ii) to allow the Company to request a revolving credit advance using Daily SOFR (as defined in the Unsecured Revolving Credit Facility) and (iii) for other administrative changes. The total commitments remain at $330.0 million. The maturity of all commitments under the facility were extended to December 14, 2028.\n\nThe Unsecured Revolving Credit Facility is guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries.\n\nWarehouse Facilities\n\nGRBK Mortgage, a wholly owned subsidiary of the Company, is party to warehouse facilities to fund its origination of mortgage loans (the “Warehouse Facilities”) as follows (in thousands):\n\nOutstanding Balance As of\n\nMaturity Date\nMaximum Aggregate Commitment\nMarch 31, 2026December 31, 2025\n\nJanuary 29, 2027$40,000 $15,135 $16,828 \n\nDecember 15, 202740,000 9,81229,570\n\nJanuary 31, 202760,000 — — \n\n$140,000 $24,947 $46,398 \n\nThe Company’s borrowings and repayments on the warehouse lines of credit are directly related to the origination and sale of mortgage loans held for sale. As such, the gross activity in the warehouse lines of credit during the period substantially reconciles to the net change in mortgage loans held for sale, as reflected in the condensed consolidated statements of cash flows and discussed in Note 11, “Mortgage Loans Held for Sale.”\n\nThe Warehouse Facilities provide for an aggregate uncommitted amount of $140.0 million. The Warehouse Facilities are (i) secured by the underlying mortgage loans and bear interest at a variable rate based on SOFR plus a margin ranging from 1.4% to 2% and (ii) guaranteed by Green Brick. The facilities are subject to annual renewal and contain customary covenants and conditions regarding minimum net worth, leverage, profitability and liquidity. The Company was in compliance with the financial covenants under the Warehouse Facilities as of March 31, 2026.\n\nUnder the Warehouse Facilities, banks purchase a participation interest in individual mortgage loans, with GRBK Mortgage providing the remainder of the principal of the mortgage, typically up to 2% depending on the loan product. The mortgage loans, with the servicing rights, are then sold, typically within 14 to 60 days, to a third party investor and the bank is repaid its participation interest plus interest and the remainder is remitted to GRBK Mortgage. If a third party investor has not purchased the mortgage loan within the anticipated timeframes then GRBK Mortgage is required to repurchase the mortgage loan for the full amount of the participation interest plus interest.\n\nSenior Unsecured Notes\n\nSenior Unsecured Notes, net of debt issuance costs, as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):\n\nMarch 31, 2026December 31, 2025\n\n4.00% senior unsecured notes due in 2026 (“2026 Notes”)$50,000 $50,000 \n\n3.35% senior unsecured notes due in 2027 (“2027 Notes”)37,500 37,500 \n\n3.25% senior unsecured notes due in 2028 (“2028 Notes”)50,000 75,000 \n\n3.25% senior unsecured notes due in 2029 (“2029 Notes”)100,000 100,000 \n\nDebt issuance costs, net of amortization(432)(528)\n\nTotal senior unsecured notes, net$237,068 $261,972 \n\n9\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nThe Senior Unsecured Notes are guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries. The Senior Unsecured Notes will rank equally in right of payment with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness. Optional prepayment of each of the Notes is allowed with a payment of a “make-whole” penalty which fluctuates depending on market interest rates. Interest is payable quarterly in arrears.\n\n2026 Notes\n\nThe remaining principal on the 2026 Notes of $50.0 million is due on August 8, 2026\n\n2027 Notes\n\nThe aggregate principal amount of the 2027 Notes is due on August 26, 2027.\n\n2028 Notes\n\nPrincipal on the 2028 Notes is due in increments of $25.0 million annually on February 25 in each of 2027, and 2028.\n\n2029 Notes\n\nPrincipal on the 2029 Notes of $30.0 million is due on December 28, 2028. The remaining principal amount of $70.0 million is due on December 28, 2029.\n\nOur debt instruments require us to maintain specific financial covenants, each of which we were in compliance with as of March 31, 2026.\n\n6. REDEEMABLE NONCONTROLLING INTEREST\n\nRedeemable Noncontrolling Interest in Equity of Consolidated Subsidiaries\n\nThe Company has a noncontrolling interest attributable to the 20% minority interest in GRBK GHO Homes, LLC (“GRBK GHO”) owned by our Florida-based partner that is included as redeemable noncontrolling interest in equity of consolidated subsidiary in the Company’s condensed consolidated financial statements.\n\nAs amended, the operating agreement of GRBK GHO contains put and purchase options beginning in April 2027. Refer to Note 2 in the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for details on the put/call structure of this agreement.\n\nThe following table shows the changes in redeemable noncontrolling interest in equity of the consolidated subsidiary during the three months ended March 31, 2026 and 2025 (in thousands):\n\nThree Months Ended March 31,\n\n20262025\n\nRedeemable noncontrolling interest, beginning of period$52,271 $44,709 \n\nNet income attributable to redeemable noncontrolling interest partner2,109 2,869 \n\nChange in fair value of redeemable noncontrolling interest(2,182)(3,018)\n\nRedeemable noncontrolling interest, end of period$52,198 $44,560 \n\n7. STOCKHOLDERS’ EQUITY\n\n2025 Share Repurchase Plan\n\nOn February 17, 2025, the Company’s Board of Directors (the “Board”) approved and authorized a new $100.0 million stock repurchase program (the “2025 Repurchase Plan”), replacing the prior plan authorized on April 27, 2023, which had a remaining authorization of $55.9 million. This new plan authorizes the Company to purchase, from time to time, up to $100.0 million of our outstanding Common Stock through open market repurchases in compliance with Rule 10b-18 under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal requirements and other factors. Shares\n\n10\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nrepurchased will be retired. The 2025 Repurchase Plan has no time deadline and will continue until otherwise modified or terminated by the Board.\n\nDuring the three months ended March 31, 2025, the Company completed open market repurchases under the 2025 Share Repurchase Plan of 282,821 shares for approximately $16.7 million, excluding excise tax. These shares were subsequently retired.\n\nDuring the three months ended March 31, 2026, the Company repurchased 113,849 shares for approximately $7.2 million, excluding excise tax. As of March 31, 2026, the remaining dollar value of shares that may be repurchased under the 2025 Repurchase Plan was $9.9 million, excluding excise tax. As of March 31, 2026, the repurchased shares were retired.\n\n2026 Share Repurchase Plan\n\nOn December 11, 2025, the Company’s Board authorized a new share repurchase program of up to $150.0 million (the “2026 Repurchase Plan”), which shall commence upon the date in which the Company has exhausted the repurchases available under the 2025 Repurchase Plan. The new plan has no time deadline and will continue until otherwise modified or terminated by the Company’s Board any time in its sole discretion. Repurchases will be made from time to time in the open market, through block trades or in privately negotiated transactions based on market and business conditions, applicable legal requirements and other factors. All shares repurchased will be retired.\n\nPreferred Stock\n\nThe table below presents a summary of the perpetual preferred stock outstanding at March 31, 2026 and December 31, 2025.\n\nSeries DescriptionInitial date of issuanceTotal Shares Outstanding Liquidation Preference per Share (in dollars)Carrying Value (in thousands)Per Annum Dividend RateRedemption Period\n\nSeries A(1)\n5.75% Cumulative PerpetualDecember 20212,000 $25 $50,000 5.75 %n/a\n\n(1)     Ownership is held in the form of Depositary Shares, each representing a 1/1,000th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.\n\nDividends\n\nDividends paid on our Series A preferred stock were $0.7 million for each of the three months ended March 31, 2026 and 2025, respectively.\n\nOn April 20, 2026, the Board declared a quarterly cash dividend of $0.359 per depositary share on the Company’s preferred stock. The dividend is payable on June 15, 2026 to stockholders of record as of June 1, 2026.\n\n8. SHARE-BASED COMPENSATION\n\nThe Company’s 2024 Omnibus Equity Incentive Plan is administered by the Board and allows for the grant of stock awards (“SAs”), restricted stock awards (“RSAs”), performance restricted stock units (“PRSUs”), restricted stock units (“RSUs”), stock options and other stock based awards.\n\nShare-Based Award Activity\n\nDuring the three months ended March 31, 2026, the Company granted SAs, RSUs, and PRSUs to executive officers; RSAs to non-employee members of the Board, and RSUs to employees. The SAs granted to the executive officers were 100% vested and non-forfeitable on the grant date. Non-vested stock awards are usually granted with a one-year vesting for non-employee directors, two-year cliff vesting for employee RSAs, and three-year cliff vesting for PRSUs. The fair value of all share awards were recorded as share-based compensation expense on the grant date and over the vesting period, respectively. The Company withheld 19,909 shares of common stock from executive officers at a total cost of $1.8 million, to satisfy statutory minimum tax requirements upon vesting of the awards.\n\n11\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nA summary of share-based awards activity during the three months ended March 31, 2026 is as follows:\n\nNumber of Shares\n(in thousands)Weighted Average Grant Date Fair Value per Share\n\nUnvested, December 31, 2025225 $60.31 \n\nGranted186 $68.09 \n\nVested(94)$59.29 \n\nForfeited(2)$53.65 \n\nUnvested, March 31, 2026315 $66.14 \n\nShare-Based Compensation Expense\n\nShare-based compensation expense was $4.1 million and $8.1 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the estimated total remaining unamortized share-based compensation expense related to unvested RSAs and PRSUs, net of forfeitures, was $17.5 million which is expected to be recognized over a weighted-average period of 2.4 years.\n\n9. REVENUE RECOGNITION\n\nRevenue recognition\n\nHome Sales Revenue\n\nHome sale revenues is generally recognized when title to and possession of the home are transferred to the buyer, and our performance obligation to deliver the home is generally satisfied at the home closing date. All seller-paid closing cost incentives, including interest rate buydowns, are recorded as a reduction to residential units revenue.\n\nLand and Lots Revenue\n\nOccasionally, the Company sells developed and undeveloped land parcels. If the land parcel is developed prior to the sale of the land, the revenue is recognized at closing since we deliver a single performance obligation in the form of a developed parcel. We also recognize revenue at closing on undeveloped land parcel sales as there are no other obligations beyond delivering the undeveloped land.\n\nFinancial Services Revenue\n\nLoan origination fees net of any lender-paid incentives, brokered loan revenue, and discount points are recognized upon loan origination. Expected gains and losses from the sale of residential mortgage loans are included in the measurement of interest rate lock commitments (“IRLCs”) that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of IRLCs and residential mortgage loans available-for-sale are reflected in Financial Services revenues as they occur. Interest income is accrued from the date a mortgage loan is originated until the loan is sold.\n\nRevenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Insurance agency commissions relate to commissions on home and other insurance policies placed with third-party carriers through various agency channels. Our performance obligations for policy renewal commissions are considered satisfied upon issuance of the initial policy.\n\nContract Balances\n\nOpening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands):\n\nMarch 31, 2026December 31, 2025\n\nCustomer and builder deposits$26,062 $25,716 \n\nThe opening balance of customer and builder deposits was $25.7 million as of January 1, 2026, and the closing balance was $26.1 million as of March 31, 2026, as presented in the table above.The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customers’ payments of deposits and the Company’s delivery of the home, impacted slightly by cancellations of contracts.\n\n12\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nThe deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three months ended March 31, 2026 and 2025 are as follows (in thousands):\n\nThree Months Ended March 31,\n\n20262025\n\nType of Customer\n\nHomebuyers$12,995 $16,102 \n\nHomebuilders and Multi-Family Developers— 364 \n\nTotal deposits recognized as revenue$12,995 $16,466 \n\nTransaction Price Allocated to the Remaining Performance Obligations\n\nThe aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $7.5 million. The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel, which is expected to occur in the remainder of 2026.\n\nThe timing of lot takedowns is contingent upon a number of factors, including customer and business needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules.\n\nOur contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, and therefore has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.\n\nDisaggregation of Revenue\n\nThe following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three months ended March 31, 2026 and 2025 (in thousands):\n\nThree Months Ended March 31, 2026Three Months Ended March 31, 2025\n\nResidential units revenueLand and lots revenueFinancial servicesResidential units revenueLand and lots revenueFinancial services\n\nPrimary Geographical Market\n\nCentral$340,188 $7,500 $9,501 $349,404 $2,304 $4,867 \n\nSoutheast108,299 — — 132,745 — — \n\nTotal revenues$448,487 $7,500 $9,501 $482,149 $2,304 $4,867 \n\nType of Customer\n\nHomebuyers$448,487 $— $9,501 $482,149 $— $4,867 \n\nHomebuilders and Multi-family Developers— 7,500 — — 2,304 — \n\nTotal revenues$448,487 $7,500 $9,501 $482,149 $2,304 $4,867 \n\nProduct Type\n\nResidential units$448,487 $— $9,501 $482,149 $— $4,867 \n\nLand and lots— 7,500 — — 2,304 — \n\nTotal revenues$448,487 $7,500 $9,501 $482,149 $2,304 $4,867 \n\nTiming of Revenue Recognition\n\nTransferred at a point in time$448,006 $7,500 $9,501 $482,149 $2,304 $4,867 \n\nTransferred over time(1)\n481 — — — — — \n\nTotal revenues$448,487 $7,500 $9,501 $482,149 $2,304 $4,867 \n\n13\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\n(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.\n\n10. SEGMENT INFORMATION\n\nThe Company has four reportable segments - Builder operations Central, Builder operations Southeast, Financial Services and Land Development. Builder operations Central represents operations by our builders in Texas, whereas Builder operations Southeast represents operations by our builders in Georgia and Florida.\n\nEffective for the three months ended March 31, 2026, the Company began reporting its Financial Services operations as a separate reportable segment. Previously, the results of Financial Services were included within the Corporate, Other and Unallocated segment. The Financial Services segment includes mortgage banking, title, and insurance agency operations. This change was made to better reflect the growth and significance of the Financial Services operations and to provide enhanced transparency to investors. Prior period segment information has been recast to conform to the current period presentation, where applicable.\n\nThe Financial Services segment includes mortgage banking, title, and insurance agency operations. The Financial Services segment operates generally in the same markets as the Builder operations segments.\n\nThe Land Development segment acquires land for the development of residential lots that are transferred to our controlled builders or sold to third party homebuilders. The operations of the Company’s builders and land development were aggregated in three reportable segments based on similar economic characteristics, including geography, housing products, class of homebuyer, regulatory environments, and methods used to construct and sell homes.\n\nOperational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Financial information relating to the Company’s reportable segments is as follows.\n\nThree Months Ended March 31,\n\n(in thousands)20262025\n\nRevenues: (1)\n\nBuilder operations\n\nCentral$340,188 $349,404 \n\nSoutheast108,299 132,745 \n\nTotal builder operations448,487 482,149 \n\nLand development7,500 2,304 \n\nFinancial services9,501 4,867 \n\nTotal revenues$465,488 $489,320 \n\nGross profit:\n\nBuilder operations\n\nCentral$104,986 $117,144 \n\nSoutheast35,542 48,461 \n\nTotal builder operations140,528 165,605 \n\nLand development1,896 1,118 \n\nCorporate, other and unallocated (2)\n(10,709)(10,938)\n\nTotal gross profit$131,715 $155,785 \n\nSegment expenses:\n\nCommissions\n\nCentral$17,557 $17,575 \n\nSoutheast3,521 4,434 \n\nTotal builder operations21,078 22,009 \n\n14\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nThree Months Ended March 31,\n\n(in thousands)20262025\n\nFinancial services601 240 \n\nTotal commissions$21,679 $22,249 \n\nSalaries\n\nBuilder operations\n\nCentral$11,350 $11,777 \n\nSoutheast5,828 6,158 \n\nTotal builder operations17,178 17,935 \n\nFinancial services1,663 1,150 \n\nCorporate, other and unallocated1,815 (203)\n\nTotal salaries$20,656 $18,882 \n\nOther expenses:\n\nCentral$9,301 $9,455 \n\nSoutheast4,053 4,018 \n\nTotal builder operations13,354 13,473 \n\nLand development(254)147 \n\nFinancial services2,916 1,668 \n\nCorporate, other and unallocated\n(578)(794)\n\nTotal other expenses$15,438 $14,494 \n\nInterest expense (income):\n\nBuilder operations\n\nCentral$(154)$(72)\n\nSoutheast$5,211 4,840 \n\nTotal builder operations5,057 4,768 \n\nCorporate, other and unallocated(5,057)(4,768)\n\nLand development— — \n\nTotal interest expense, net$— $— \n\nTotal segment expenses:\n\nCentral$38,208 $38,807 \n\nSoutheast13,402 14,610 \n\nTotal builder operations51,610 53,417 \n\nLand development(254)147 \n\nFinancial services5,180 3,058 \n\nCorporate, other and unallocated1,237 (997)\n\nTotal segment expenses$57,773 $55,625 \n\nIncome before income taxes:\n\nCentral$67,598 $79,001 \n\nSoutheast23,894 34,478 \n\nTotal builder operations91,492 113,479 \n\nLand development837 1,220 \n\nFinancial services4,321 1,809 \n\n15\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nThree Months Ended March 31,\n\n(in thousands)20262025\n\nCorporate, other and unallocated (3)\n(12,386)(10,360)\n\nIncome before income taxes$84,264 $106,148 \n\nMarch 31, 2026December 31, 2025\n\nInventory:\n\nBuilder operations\n\nCentral$689,445 $688,219 \n\nSoutheast292,923 293,635 \n\nTotal builder operations982,368 981,854 \n\nLand development1,116,579 1,063,066 \n\nCorporate, other and unallocated\n57,038 54,291 \n\nTotal inventory$2,155,985 $2,099,211 \n\nGoodwill:\n\nBuilder operations - Southeast$680 $680 \n\n(1)The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the condensed consolidated statements of income in periods when our builders have revenues from land or lot closings. For the three months ended March 31, 2026, Builders had revenues from land or lot closings of $6.2 million and no revenues from land or lot closings for the three months ended March 31, 2025.\n\n(2)Corporate, other and unallocated gross loss is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments.\n\n(3)Corporate, other and unallocated inventory consists of capitalized overhead and interest related to work in process and land under development.\n\n11. MORTGAGE LOANS HELD FOR SALE\n\nThe majority of the loans originated by our wholly owned subsidiary, GRBK Mortgage, are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. The Company typically sells the servicing rights for the majority of the loans when they are sold. As of March 31, 2026 and December 31, 2025, loans held for sale had an aggregate fair value of $27.2 million and $49.1 million, respectively, and an aggregate outstanding principal balance of $26.0 million and $48.0 million, respectively. Changes in fair value are substantially offset by changes in fair value of the corresponding derivative instruments. Net gains from the sale of mortgage loans were $1.8 million and de minimis for the three months ended March 31, 2026 and March 31, 2025, respectively, and were included in financial services revenue.\n\nHedging Activities\n\nThe Company is party to Interest rate lock commitments (IRLCs) with customers resulting from its mortgage origination operations. The volume of the Company’s derivative activity is driven primarily by the level of mortgage origination activity during the period. The Company uses hedging instruments to mitigate its exposure to interest rate market risk using forward contracts on mortgage-backed securities (FLSCs), which are commitments to either purchase or sell a specified financial instrument at a specific future date for a specified price. Forward contracts on mortgage-backed securities are the main derivative financial instruments we use to minimize market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. The Company accounts for derivative instruments as free-standing derivative instruments and does not designate any for hedge accounting.\n\n16\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nThe notional amounts and fair values of derivative financial instruments not designated as hedging instruments are as follows:\n\nMarch 31, 2026\n\nFair value\n\nDerivative assetsDerivative liabilities\nNotional amount(1)\n\nIRLCs$1,149 $— $50,236 \n\nFLSCs335 — 74,993 \n\nTotal$1,484 $— \n\nDecember 31, 2025\n\nFair value\n\nDerivative assetsDerivative liabilitiesNotional amount\n\nIRLCs$71 $— $2,249 \n\nFLSCs— 56 11,250 \n\nTotal$71 $56 \n\n(1)Notional amount has been adjusted for pullthrough rate of 93.2% and 88% as of March 31, 2026 and December 31, 2025, respectively.\n\n12. FAIR VALUE MEASUREMENTS\n\nFair Value of Financial Instruments\n\nThe Company’s financial instruments, none of which are held for trading purposes, include cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, customer and builder deposits, borrowings on lines of credit, senior unsecured notes, and notes payable.\n\nAssets and liabilities measured and disclosed at fair value are as follows (in thousands):\n\nFair Value HierarchyMarch 31, 2026December 31, 2025\n\nMeasured at fair value on a recurring basis\n\nResidential loans available-for-saleLevel 2$27,186 $49,099 \n\nForward sales contractsLevel 2335 — \n\nInterest rate lock commitmentsLevel 31,149 70 \n\nDisclosed at fair value\n\nSenior unsecured notesLevel 2$231,095 $257,268 \n\nLevel 1\n\nPer the fair value hierarchy, level 1 financial instruments include: cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, and customer and builder deposits due to their short-term nature. The Company estimates that, due to the short-term nature of the underlying financial instruments or the proximity of the underlying transaction to the applicable reporting date, the fair value of level 1 financial instruments does not differ materially from the aggregate carrying values recorded in the condensed consolidated financial statements as of March 31, 2026 and December 31, 2025.\n\nLevel 2\n\n17\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nLevel 2 financial instruments include borrowings on lines of credit, senior unsecured notes, and notes payable. Due to the short-term nature and floating interest rate terms, the carrying amounts of borrowings on lines of credit are deemed to approximate fair value.\n\nThe fair value of forward sales contracts to investors considers the market price movement of the same type of security between the trade date and the balance sheet date. The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value. Mortgage loans available-for-sale are recorded at fair value when closed, and thereafter are carried at the lower of cost or fair value, net of deferred origination costs, until sold.\n\nLevel 3\n\nThe Company’s interest rate lock commitments are derivative instruments that are recorded at fair value based on valuation models that use the market price for similar loans sold in the secondary market. The IRLCs are then subject to an estimated loan funding probability, or “pullthrough rate”. Given the significant and unobservable nature of the pullthrough rate assumption, IRLC fair value measurements are classified as Level 3.\n\nThere were no transfers between the levels of the fair value hierarchy for any of our financial instruments during the three months ended March 31, 2026 and 2025.\n\n13. INCOME TAXES\n\nThe Company’s income tax expense for the three months ended March 31, 2026 and 2025 was $18.4 million and $22.2 million, respectively. The effective tax rate was 21.9% for the three months ended March 31, 2026, compared to 20.9% in the comparable prior year period. The change in the effective tax rate relates primarily to a decrease in the Energy Efficient Homes tax credits, a decrease in the non-controlled earnings benefit, and an increase in permanently non-deductible expenses in comparison to pre-tax book income.\n\nOn July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (“OBBBA”) into law, which is considered the enactment date under U.S. GAAP. Key corporate tax provisions include the restoration of 100% bonus depreciation, immediate expensing for domestic research and experimental expenditures, changes to Section 163(j) interest limitations, amendments to energy credits, and expanded 162(m) aggregation requirements. In accordance with ASC 740, the effects of the new tax law have been recognized in the period of enactment. The Company does not expect the impact of the OBBBA to have a material effect on the Company’s consolidated financial statements.\n\n14. EARNINGS PER SHARE\n\nThe Company’s RSAs have the right to receive forfeitable dividends on an equal basis with common stock, however, its PRSUs do not participate in dividends with common stock. As such, PRSUs are not considered participating securities and are excluded from the calculation of net income per share using the two-class method.\n\nBasic earnings per common share is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of RSAs and PRSUs during each period. Net income applicable to common stockholders is net income adjusted for preferred stock dividends including dividends declared and cumulative dividends related to the current dividend period that have not been declared as of period end. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options, RSAs, RSUs and PRSUs.\n\n18\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nThe computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts):\n\nThree Months Ended March 31,\n\n20262025\n\nNet income attributable to Green Brick Partners, Inc.$60,946 $75,059 \n\nCumulative preferred stock dividends(719)(719)\n\nNet income applicable to common stockholders$60,227 $74,340 \n\nWeighted-average number of common shares outstanding - basic\n43,149 44,440 \n\nBasic net income attributable to Green Brick Partners, Inc. per common share$1.40 $1.67 \n\nWeighted-average number of common shares outstanding - basic43,149 44,440 \n\nDilutive effect of stock options and restricted stock awards186 68 \n\nWeighted-average number of common shares outstanding - diluted43,335 44,508 \n\nDiluted net income attributable to Green Brick Partners, Inc. per common share$1.39 $1.67 \n\nThe following shares which could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands):\n\nThree Months Ended March 31,\n\n20262025\n\nAntidilutive options to purchase common stock and restricted stock awards24 (32)\n\n15. RELATED PARTY TRANSACTIONS\n\nDuring the three months ended March 31, 2026 and 2025, the Company had the following related party transactions in the normal course of business.\n\nCorporate Officers\n\nTrevor Brickman, the son of Green Brick’s Chief Executive Officer, is the President of CLH20, LLC (“Centre Living”). Green Brick’s ownership interest in Centre Living is 90% and Trevor Brickman’s ownership interest is 10%. Green Brick has 90% voting control over the operations of Centre Living. As such, 100% of Centre Living’s operations are included within our condensed consolidated financial statements.\n\nGRBK GHO\n\nGRBK GHO leases office space from entities affiliated with the president of GRBK GHO. During each of the three months ended March 31, 2026 and 2025, GRBK GHO incurred de minimis rent expense under such lease agreements. As of March 31, 2026, there were no amounts due to the affiliated entities related to such lease agreements.\n\n    \n\nGRBK GHO receives title closing services on the purchase of land and third-party lots from an entity affiliated with the president of GRBK GHO. During the three months ended March 31, 2026 and 2025, GRBK GHO incurred de minimis fees related to title closing services. As of March 31, 2026, and December 31, 2025, no amounts were due to the title company affiliate.\n\n16. COMMITMENTS AND CONTINGENCIES\n\nLetters of Credit and Performance Bonds\n\nDuring the ordinary course of business, certain regulatory agencies and municipalities require the Company to post letters of credit or performance bonds related to development projects. As of March 31, 2026 and December 31, 2025, letters of credit and performance bonds outstanding were $0.2 million. The Company does not believe that it is likely that any material claims will be made under a letter of credit or performance bond in the foreseeable future.\n\n19\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nOperating Leases\n\nThe Company has leases associated with office and design center space in Georgia, Texas, and Florida that, at the commencement date, have a lease term of more than 12 months and are classified as operating leases. The exercise of any extension options available in such operating lease contracts is not reasonably certain.\n\nOperating lease cost of $0.5 million and $0.4 million for the three months ended March 31, 2026 and March 31, 2025, respectively, is included in selling, general and administrative expenses in the condensed consolidated statements of income. Cash paid for amounts included in the measurement of operating lease liabilities was $0.5 million and $0.4 million for the three months ended March 31, 2026 and 2025, respectively.\n\nAs of March 31, 2026, the weighted-average remaining lease term and the weighted-average discount rate used in calculating our lease liabilities were 4.8 years and 7.5%, respectively.\n\nThe future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the condensed consolidated balance sheet as of March 31, 2026 are presented below (in thousands):\n\nRemainder of 2026$1,587 \n\n20272,095 \n\n20282,003 \n\n20291,665 \n\n20301,688 \n\nThereafter837 \n\nTotal future lease payments$9,875 \n\nLess: Interest1,634 \n\nPresent value of lease liabilities$8,241 \n\nThe Company elected the short-term lease recognition exemption for all leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. For such leases, the Company does not recognize right-of-use assets or lease liabilities and instead recognizes lease payments in the condensed consolidated income statements on a straight-line basis. Short-term lease cost of $0.2 million for each of the three months ended March 31, 2026 and 2025 is included in selling, general and administrative expenses in the condensed consolidated statements of income.\n\nLegal Matters\n\nLawsuits, claims and proceedings may be instituted or asserted against us in the normal course of business. The Company is also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, title company regulations, employment practices and environmental protection. As a result, the Company may be subject to periodic examinations or inquiry by agencies administering these laws and regulations.\n\nThe Company records an accrual for legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. The Company accrues for these matters based on facts and circumstances specific to each matter and revises these estimates when necessary.\n\nIn view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, the Company generally cannot predict their ultimate resolution, related timing or eventual loss. If evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, the Company will disclose their nature with an estimate of the possible range of losses or a statement that such loss is not reasonably estimable. We believe that the disposition of legal claims and related contingencies will not have a material adverse effect on our results of operations and liquidity or on our financial condition.\n\n20\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nFORWARD-LOOKING STATEMENTS\n\nThis Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts and typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will” or other words of similar meaning. Forward-looking statements in this Quarterly Report include statements concerning, (a) our balance sheet strategies, operational strength and margin performance; (b) our mortgage capture rate; (c) the success of our Financial Services and its expansion into other markets that we operate in; (d) our future financial and operational performance; (e) our ability to adapt to evolving market conditions; (f) our operational goals and strategies and their anticipated benefits; (g) our ability to deliver efficient and cost-effective growth; (h) our investments in our land acquisition, development and homebuilding activities; (i) the sufficiency of our capital resources and liquidity to support our business strategy and to service our debt; (j) our target debt to total capitalization ratio and its expected benefits; (k) our expectations regarding the timing of lots being taken down and the recognition of revenue; (l) our expectations regarding future cash needs and access to additional growth capital; (m) our expectations regarding the disposition of legal claims and/or claims under a letter of credit or performance bond; (n) the impact of the OBBA on our financial results; (o) seasonal factors and the impact of seasonality in future quarters and (p) beliefs regarding the impact of accounting standards and legal claims and related contingencies. These forward-looking statements reflect our current views about future events and involve estimates and assumptions which may be affected by risks and uncertainties in our business, as well as other external factors, which could cause future results to materially differ from those expressed or implied in any forward-looking statement. These risks include, but are not limited to: (1) general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; (2) changes in macroeconomic conditions, including increasing interest rates and inflation that could adversely impact demand for new homes or the ability of potential buyers to qualify; (3) shortages, delays or increased costs of raw materials and increased demand for materials, or increases in other operating costs, including costs related to labor, real estate taxes and insurance, which in each case exceed our ability to increase prices; (4) significant periods of inflation or deflation; (5) a shortage of labor; (6) an inability to acquire land in our markets at anticipated prices or difficulty in obtaining land-use entitlements; (7) our inability to successfully execute our strategies, including the successful development of our communities within expected time frames and the growth and expansion of our Trophy Signature Homes brand; (8) a failure to recruit, retain or develop highly skilled and competent employees; (9) the geographic concentration of our operations; (10) government regulation risks; (11) adverse changes in the availability or volatility of mortgage financing; (12) severe weather events or natural disasters; (13) difficulty in obtaining sufficient capital to fund our growth; (14) our ability to meet our debt service obligations; (15) a decline in the value of our inventories and resulting write-downs of the carrying value of our real estate assets; (16) our ability to adequately self-insure; and (17) changes in accounting standards that adversely affect our reported earnings or financial condition.\n\nPlease see “Risk Factors” located in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2025 for a further discussion of these and other risks and uncertainties which could affect our future results. We undertake no obligation to revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events, except to the extent we are legally required to disclose certain matters in SEC filings or otherwise.\n\n21\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)"}