# Green Brick Partners, Inc. (GRBK)

Informational only - not investment advice.

CIK: 0001373670
SIC: 1531 Operative Builders
SIC breadcrumb: [Construction](/division/C/) > [Building Construction General Contractors And Operative Builders](/major-group/15/) > [SIC 1531 Operative Builders](/industry/1531/)
Latest 10-K filed: 2026-02-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=1373670
Filing source: https://www.sec.gov/Archives/edgar/data/1373670/000162828026011798/grbk-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-05-11 · accession 0001628280-26-033478 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001373670.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,039,994,000 USD | 2025 | verified |
| Net income | 313,225,000 USD | 2025 | verified |
| Assets | 2,534,767,000 USD | 2025 | verified |
| Free cash flow | 208,446,000 USD | 2025 | computed |
| Net margin | 15.35% | 2025 | computed |
| Revenue YoY | -1.04% | 2025 | computed |
| ROE | 16.85% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | GRBK | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 15.4% | 8.0% | 100 | 14 |
| Revenue growth | -1.0% | -1.9% | 62 | 14 |
| FCF margin | 10.2% | 5.1% | 92 | 14 |
| ROE | 16.8% | 12.7% | 79 | 15 |
| ROA | 12.4% | 8.0% | 93 | 15 |
| Liabilities / equity | 0.32 | 0.71 | 0 | 15 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 1531 Operative Builders, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2039994000 | USD | 2025 | 2026-05-11 |
| Net income | 313225000 | USD | 2025 | 2026-05-11 |
| Assets | 2534767000 | USD | 2025 | 2026-05-11 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001373670.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 390,985,000 | 458,250,000 | 623,647,000 | 791,660,000 | 976,021,000 | 1,402,876,000 | 1,757,793,000 | 1,749,310,000 | 2,061,475,000 | 2,039,994,000 |
| Net income | 23,756,000 | 14,970,000 | 51,623,000 | 58,656,000 | 113,693,000 | 190,210,000 | 291,900,000 | 284,626,000 | 381,583,000 | 313,225,000 |
| Gross profit | 87,762,000 | 118,460,000 | 154,202,000 | 169,082,000 | 234,604,000 | 362,059,000 | 523,025,000 | 548,182,000 | 703,521,000 | 640,806,000 |
| Diluted EPS | 0.49 | 0.30 | 1.02 | 1.16 | 2.24 | 3.72 | 6.02 | 6.14 | 8.45 | 7.07 |
| Operating cash flow | -4,852,000 | -18,003,000 | -39,476,000 | -22,053,000 | 35,135,000 | -92,382,000 | 90,677,000 | 213,342,000 | 25,912,000 | 213,244,000 |
| Capital expenditures | 458,000 | 149,000 | 3,211,000 | 2,579,000 | 2,903,000 | 2,025,000 | 2,012,000 | 7,802,000 | 4,365,000 | 4,798,000 |
| Dividends paid |  |  |  |  | 0.00 | 0.00 | 2,812,000 | 2,875,000 | 2,875,000 | 2,875,000 |
| Share buybacks | 0.00 | 0.00 | 981,000 | 2,186,000 | 0.00 | 0.00 | 101,463,000 | 45,777,000 | 48,428,000 | 83,770,000 |
| Assets | 540,984,000 | 611,003,000 | 784,026,000 | 875,539,000 | 988,847,000 | 1,421,867,000 | 1,655,675,000 | 1,902,832,000 | 2,249,994,000 | 2,534,767,000 |
| Liabilities | 139,499,000 | 177,965,000 | 289,863,000 | 325,533,000 | 325,895,000 | 511,306,000 | 543,621,000 | 548,684,000 | 551,831,000 | 601,782,000 |
| Stockholders' equity | 384,572,000 | 416,347,000 | 468,351,000 | 523,168,000 | 640,242,000 | 874,548,000 | 1,061,907,000 | 1,300,704,000 | 1,625,415,000 | 1,858,962,000 |
| Free cash flow | -5,310,000 | -18,152,000 | -42,687,000 | -24,632,000 | 32,232,000 | -94,407,000 | 88,665,000 | 205,540,000 | 21,547,000 | 208,446,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 6.08% | 3.27% | 8.28% | 7.41% | 11.65% | 13.56% | 16.61% | 16.27% | 18.51% | 15.35% |
| Return on equity | 6.18% | 3.60% | 11.02% | 11.21% | 17.76% | 21.75% | 27.49% | 21.88% | 23.48% | 16.85% |
| Return on assets | 4.39% | 2.45% | 6.58% | 6.70% | 11.50% | 13.38% | 17.63% | 14.96% | 16.96% | 12.36% |
| Liabilities / equity | 0.36 | 0.43 | 0.62 | 0.62 | 0.51 | 0.58 | 0.51 | 0.42 | 0.34 | 0.32 |

## As-reported value updates

8 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/GRBK/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001373670.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-06-30 |  |  | 2.08 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 1.57 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.37 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 456,289,000 | 75,270,000 | 1.63 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 418,978,000 | 72,156,000 | 1.56 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 450,382,000 | 73,020,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q2 | 2024-06-30 | 560,631,000 | 105,358,000 | 2.32 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 523,660,000 | 89,111,000 | 1.98 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 567,314,000 | 103,813,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 497,621,000 | 75,059,000 | 1.67 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 549,147,000 | 81,948,000 | 1.85 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 499,091,000 | 77,853,000 | 1.77 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 494,135,000 | 78,365,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2026-03-31 | 465,488,000 | 60,946,000 | 1.39 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 493,839,000 | 74,170,000 | 1.70 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from GRBK's latest 10-K: [/company/GRBK/business/](/company/GRBK/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from GRBK's latest 10-K: [/company/GRBK/risk-factors/](/company/GRBK/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1373670/000162828026050640/grbk-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-29
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K/A for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on May 11, 2026 and our condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

Overview and Outlook

Our key financial and operating metrics are home deliveries, home closings revenue, average sales price of homes delivered, and net new home orders, which refers to sales contracts executed reduced by the number of sales contracts canceled during the relevant period, homebuilding gross margin, and incentives on homes closed as a percentage of residential units revenue. Our results for each key financial and operating metric, as compared to the same period in 2025, are provided below:

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30, 2026","","Six Months Ended June 30, 2026"],["Home deliveries","","Increased by 0.5%","","Increased by 0.2%"],["Home closings revenue","","Decreased by 11.5%","","Decreased by 9.4%"],["Average sales price of homes delivered","","Decreased by 11.9%","","Decreased by 9.5%"],["Net new home orders","","Increased by 18.8%","","Increased by 5.1%"],["Homebuilding gross margin percentage","","Decreased by 1.5%","","Decreased by 2.3%"],["Incentives on homes closed as a percentage of residential units revenue","","Increased by 2.3%","","Increased by 3.5%"]]
[[/GREPCENT_TABLE]]

Our home deliveries were substantially in line in the second quarter of 2026 year over year, while average sales prices decreased primarily as a result of elevated discounts and incentives. Homebuilding gross margins decreased from 31.3% to 29.8% for the three months ended June 30, 2026, primarily due to higher incentives and product mix.

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Residential Units Revenue and New Homes Delivered

The table below represents residential units revenue and new homes delivered for the three months ended June 30, 2026 and 2025 (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,"],["","","2026","","2025","","Change","","%"],["Home closings revenue","","$","471,455","","","$","532,525","","","$","(61,070)","","","(11.5)","%"],["Mechanic\u2019s lien contracts revenue","","541","","","\u2014","","","541","","","100%"],["Residential units revenue","","$","471,996","","","$","532,525","","","$","(60,529)","","","(11.4)","%"],["New homes delivered","","1,047","","","1,042","","","5","","","0.5","%"],["Average sales price of homes delivered","","$","450.3","","","$","511.1","","","$","(60.8)","","","(11.9)","%"]]
[[/GREPCENT_TABLE]]

Residential units revenue decreased 11.4% and new homes delivered were substantially in line with the prior year period. The 11.9% decrease in the average sales price of homes delivered during the three months ended June 30, 2026, is due to increased incentives and product mix.

24

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New Home Orders and Backlog

The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s lien contracts (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,"],["","","2026","","2025","","Change","","%"],["Net new home orders","","1,079","","","908","","","171","","","18.8","%"],["Revenue from net new home orders","","$","488,627","","","$","454,900","","","$","33,727","","","7.4","%"],["Average selling price of net new home orders","","$","452.9","","","$","501.0","","","$","(48.1)","","","(9.6)","%"],["Cancellation rate","","7.8","%","","9.9","%","","(2.1)","%","","(21.2)","%"],["Absorption rate per average active selling community per quarter","","10.0","","","8.9","","","1.1","","","12.4","%"],["Average active selling communities","","108","","","102","","","6","","","5.9","%"],["Active selling communities at end of period","","106","","","102","","","4","","","3.9","%"],["Backlog revenue","","$","387,376","","","$","507,137","","","$","(119,761)","","","(23.6)","%"],["Backlog units","","681","","","730","","","(49)","","","(6.7)","%"],["Average sales price of backlog","","$","568.8","","","$","694.7","","","$","(125.9)","","","(18.1)","%"]]
[[/GREPCENT_TABLE]]

Net new home orders increased 18.8% to 1,079 for the three months ended June 30, 2026, compared to 908 for the three months ended June 30, 2025, while average active selling communities increased by 5.9% to 108 communities. Revenue from net new home orders increased $33.7 million, or 7.4%, to $488.6 million, partially offset by a 9.6% decrease in the average selling price of net new home orders to $452.9 thousand, driven primarily by a higher mix of orders from Trophy Signature Homes, which operates at a lower price point relative to our other builders and targets first-time homebuyers. The 12.4% increase in the absorption rate per average active selling community, from 8.9 to 10.0 net new home orders per community per quarter was driven by higher levels of net new home orders from Trophy Signature Homes and a lower cancellation rate.

Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 7.8% for the three months ended June 30, 2026, compared to 9.9% for the three months ended June 30, 2025. Our cancellation rate has remained in a historically low range, under 10.0% since December 31, 2022.

Backlog units refer to homes under sales contracts that have not yet closed at the end of the respective period, and absorption rate refers to the rate at which net new home orders are contracted per average active selling community during the respective period. Sales contracts may be canceled prior to closing for a number of reasons, including the inability of the homebuyer to obtain suitable mortgage financing. Accordingly, backlog may not be indicative of our future revenue.

Backlog revenue decreased by 23.6% to $387.4 million as of June 30, 2026, compared to $507.1 million as of June 30, 2025, driven by a 6.7% decrease in backlog units to 681 homes and a 18.1% decrease in the average sales price of backlog to $568.8 thousand, reflecting higher sales from Trophy Signature Homes in addition to higher incentives and discounts offered to sustain orders.

Residential Units Gross Margin

The table below represents the components of residential units gross margin (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,"],["","","2026","","2025"],["Residential units revenue","","$","471,996","","","100.0","%","","$","532,525","","","100.0","%"],["Cost of residential units","","331,418","","","70.2","%","","366,072","","","68.7","%"],["Residential units gross margin","","$","140,578","","","29.8","%","","$","166,453","","","31.3","%"]]
[[/GREPCENT_TABLE]]

For the three months ended June 30, 2026, residential units revenue decreased $60.5 million or 11.4% while cost of residential units decreased by $34.7 million, or 9.5%, compared to the same period in the previous year. Residential units gross margin declined by 150 bps to 29.8% for the three months ended June 30, 2026, from 31.3% for the three months ended June 30, 2025. The decrease in residential units gross margin is attributable to higher incentives and discounts.

25

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Selling, General and Administrative Expenses

The table below represents the components of selling, general and administrative expenses (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,","","As Percentage of Segment Revenue"],["2026","","2025","","2026","","2025"],["Builder operations","","$","52,299","","","$","56,724","","","11.1","%","","10.7","%"],["Corporate, other and unallocated expense","","2,134","","","475","","","0.5","%","","0.1","%"],["Net builder operations","","54,433","","","57,199","","","11.5","%","","10.7","%"],["Land development","","(37)","","","238"],["Total selling, general and administrative expenses","","$","54,396","","","$","57,437","","","11.3","%","","10.7","%"]]
[[/GREPCENT_TABLE]]

Selling, general and administrative expenses as a percentage of revenue increased by 0.6% for the three months ended June 30, 2026, mainly due to lower revenue, partially offset by increased salaries and share-based compensation.

Builder Operations

Selling, general and administrative expenses as a percentage of revenue for builder operations increased 0.4% mainly due to the decline in residential units revenues. Builder operation expenditures include salary expenses, commissions, corporate allocations, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.

Corporate, Other and Unallocated

Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment for the three months ended June 30, 2026 were $2.1 million, compared to $0.5 million for the three months ended June 30, 2025. The increase was due to higher share-based compensation during the three months ended June 30, 2026. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.

Financial Services

Commencing on January 1, 2026, we began reporting on our Financial Services Operations, which were previously reported within the Corporate segment, as a separate financial services segment. Our Financial Services operations include mortgage banking, title, and insurance agency operations through our wholly owned subsidiaries. The majority of the loans originated by our wholly owned subsidiary, GRBK Mortgage, are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. We also sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning loans and related servicing rights for only a short period of time.

Operating as a captive business model primarily targeted to support our Builder operations, the business levels of our Financial Services operations are highly correlated to homebuilding, as the customers to our homes continue to account for substantially all of its business. We believe that our mortgage capture rate, which represents loan originations from our Builder operations as a percentage of total loan opportunities from our Builder operations, excluding cash closings, is an important metric in evaluating the effectiveness of our captive financial services business model. The following tables present selected financial information for our Financial Services operations (in thousands):

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,"],["","","2026","","2025","","Change","","%"],["Financial services revenues","","$","12,243","","","$","6,315","","","5,928","","","93.9","%"],["Financial services expenses(1)","","(6,604)","","","(3,351)","","","(3,253)","","","97.1","%"],["Income before income taxes","","$","5,639","","","$","2,964","","","2,675","","","90.2%"],["Total loans funded:"],["Loans","","521","","146","","375","","","256.8%"],["Principal","","$","196,531","","","$","31,374","","","165,157","","","526.4%"]]
[[/GREPCENT_TABLE]]

(1)    Includes selling, general and administrative expenses and other income and expenses related to Financial services.

26

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[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1373670/000162828026011798/grbk-20251231.htm
Complete FY 2025 MD&A: /company/GRBK/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-25
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

For business overview and developments during the year ended December 31, 2025, refer to Part I, Item 1 of this Annual Report on Form 10-K.

Overview and Outlook

Our key financial and operating metrics are home deliveries, home closings revenue, average sales price of homes delivered, net new home orders, which refers to the number of sales contracts executed reduced by the number of sales contracts canceled during the relevant period, and homebuilding gross margin. Our results for each key financial and operating metric, as compared to the year ended December 31, 2024, are provided below:

[[GREPCENT_TABLE]]
[["","","Year Ended"],["","","December 31, 2025"],["New homes delivered","","Increased by 4.2%"],["Home closings revenue","","Increased by 1.0%"],["Average sales price of homes delivered","","Decreased by 3.1%"],["Net new home orders","","Increased by 3.1%"],["Homebuilding gross margin percentage","","Decreased by 330 bps"]]
[[/GREPCENT_TABLE]]

The results achieved in our key metrics compared to last year are largely driven by our strategic focus on infill and infill-adjacent locations in high growth markets, our land approach to self-develop raw land into finished lots that are held on our balance sheet, and our reduced cycle times. Our home deliveries and net new home orders increased 4.2% and 3.1%, respectively. Home closings revenue remained relatively unchanged mainly due to a 3.1% decrease in the average sales price of homes delivered, which also resulted in a lower homebuilding gross margin percentage. We remain focused on disciplined land acquisition and operational efficiency to drive long-term value, even as we navigate a more competitive pricing environment.

We believe we operate in some of the most desirable housing markets in the nation and that increasing demand and supply levels in our target markets create favorable conditions for our future growth. As of October 2025, Texas, Florida and Georgia were ranked first, second and fifth, respectively, in terms of single-family building permits issued according to the National Association of Home Builders.

Results of Operations

Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024

Residential Units Revenue and New Homes Delivered

The table below represents residential units revenue and new homes delivered for the years ended December 31, 2025 and December 31, 2024 (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,"],["","","2025","","2024","","Change","","%"],["Home closings revenue","","$","2,091,258","","","$","2,069,756","","","$","21,502","","","1.0","%"],["Mechanic\u2019s lien contracts revenue","","219","","","380","","","(161)","","","(42.4)","%"],["Residential units revenue","","$","2,091,477","","","$","2,070,136","","","$","21,341","","","1.0","%"],["New homes delivered","","3,943","","","3,783","","","160","","","4.2","%"],["Average sales price of homes delivered","","$","530.4","","","$","547.1","","","$","(16.7)","","","(3.1)","%"]]
[[/GREPCENT_TABLE]]

The $21.3 million increase in residential units revenue was driven by the 4.2% increase in the number of homes delivered partially offset by a 3.1% decrease in average sales price of new homes delivered. The increase in new homes delivered was primarily driven by our Trophy Signature Homes and CB JENI Homes brands. The decrease in the average sales price of homes delivered was attributable to product mix, higher incentives, discounts, and closing costs to sustain order pace.

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New Home Orders and Backlog

The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s liens contracts (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,"],["","","2025","","2024","","Change","","%"],["Net new home orders","","3,795","","","3,681","","","114","","","3.1","%"],["Revenue from net new home orders","","$","1,949,703","","","$","2,010,439","","","$","(60,736)","","","(3.0)","%"],["Average selling price of net new home orders","","$","513.8","","","$","546.2","","","$","(32.4)","","","(5.9)","%"],["Cancellation rate","","7.5","%","","7.3","%","","0.2","%","","2.7","%"],["Absorption rate per average active selling community per quarter","","9.3","","","9.1","","","0.2","","","2.2","%"],["Average active selling communities","","102","","","101","","","1","","","1.0","%"],["Active selling communities at end of period","","101","","","106","","","(5)","","","(4.7)","%"],["Backlog revenue","","$","354,328","","","$","495,883","","","$","(141,555)","","","(28.5)","%"],["Backlog units","","520","","","668","","","(148)","","","(22.2)","%"],["Average sales price of backlog","","$","681.4","","","$","742.3","","","$","(60.9)","","","(8.2)","%"]]
[[/GREPCENT_TABLE]]

Net new home orders increased by 3.1% over the prior year while our average active selling communities remained relatively flat. Revenue from net new home orders declined $60.7 million or 3.0% consistent with the decline in the average selling price of net new home orders. The increase in net new home orders is attributable to a lower cancellation rate and higher incentives offered to drive sales orders.

Backlog refers to homes under sales contracts that have not yet closed at the end of the relevant period, and absorption rate refers to the rate at which net new home orders are contracted per average active selling community during the relevant period. Sales contracts may be canceled prior to closing for a number of reasons, including the inability of the homebuyer to obtain suitable mortgage financing. Accordingly, backlog may not be indicative of our future revenue.

Backlog revenue decreased by 28.5% mainly due to a decrease of 148 backlog units and a 8.2% decrease in the average sales price of backlog units compared to the prior year period. The change in backlog is due to increase in homes delivered of 160 units partially offset by an increase in new home orders of 114 units.

Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the respective period, was 7.5% for the year ended December 31, 2025, compared to 7.3% for the year ended December 31, 2024. Our cancellation rate remained in a historically low range under 10.0% since December 31, 2022.

26

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Residential Units Gross Margin

The table below represents the components of residential units gross margin (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,"],["","","2025","","2024"],["Home closings revenue","","$","2,091,258","","","100.0","%","","$","2,069,756","","","100.0","%"],["Cost of homebuilding units","","1,453,049","","","69.5","%","","1,370,613","","","66.2","%"],["Homebuilding gross margin","","$","638,209","","","30.5","%","","$","699,143","","","33.8","%"],["Mechanic\u2019s lien contracts revenue","","$","219","","","100.0","%","","$","380","","","100.0","%"],["Cost of mechanic\u2019s lien contracts","","134","","","61.2","%","","275","","","72.4","%"],["Mechanic\u2019s lien contracts gross margin","","$","85","","","38.8","%","","$","105","","","27.6","%"],["Residential units revenue","","$","2,091,477","","","100.0","%","","$","2,070,136","","","100.0","%"],["Cost of residential units","","1,453,183","","","69.5","%","","1,370,888","","","66.2","%"],["Residential units gross margin","","$","638,294","","","30.5","%","","$","699,248","","","33.8","%"]]
[[/GREPCENT_TABLE]]

Residential units revenue increased by $21.3 million or 1.0% during the year ended December 31, 2025 due to the increase in home deliveries of 4.2% partially offset by a 3.1% reduction in average sales price as discussed above. Cost of residential units as a percent of residential units revenue for the year ended December 31, 2025 increased to 69.5% compared to 66.2% in the previous year due to a combination of higher discounts and closing costs.

Residential units gross margin for the year ended December 31, 2025 decreased to 30.5%, compared to 33.8% for the year ended December 31, 2024. The decrease in residential units gross margin is primarily driven by higher incentives, discounts, and closing costs.

Land and Lots Revenue

The table below represents lots closed and land and lots revenue (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,"],["","","2025","","2024","","Change","","%"],["Lots revenue","","$","6,994","","","$","14,723","","","$","(7,729)","","","(52.5)","%"],["Land revenue","","\u2014","","","14,084","","","(14,084)","","","(100.0)","%"],["Land and lots revenue","","$","6,994","","","$","28,807","","","$","(21,813)","","","(75.7)","%"],["Lots closed","","68","","","185","","","(117)","","","(63.2)","%"],["Average sales price of lots closed","","$","102.9","","","$","79.6","","","$","23.3","","","29.3","%"]]
[[/GREPCENT_TABLE]]

From time to time, we will opportunistically sell finished lots to other homebuilders. Lots revenue decreased by 52.5% during the year ended December 31, 2025, driven by a 63.2% decrease in the number of lots closed partially offset by a 29.3% decrease in the average lot price. Land revenue represents sales of tracts of land during the year ended December 31, 2024.

27

TABLE OF CONTENTS

Selling, General and Administrative Expenses

The table below represents the components of selling, general and administrative expense (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,","","As Percentage of Segment Revenue"],["","","2025","","2024","","2025","","2024"],["Builder operations","","$","220,977","","","$","218,201"],["Corporate, other and unallocated expense","","9,225","","","8,083"],["Net builder operations","","230,202","","","226,284","","","11.0","%","","10.9","%"],["Land development","","1,161","","","282","","","16.6","%","","1.0","%"],["Total selling, general and administrative expenses","","$","231,363","","","$","226,566","","","11.0","%","","10.8","%"]]
[[/GREPCENT_TABLE]]

Total selling, general and administrative expense as a percentage of revenue increased to 11.0% for the year ended December 31, 2025, which is substantially in line with 10.8% for the year ended December 31, 2024.

Builder Operations

Selling, general and administrative expenses as a percentage of revenue for builder operations was 11.0% compared to 10.9% in the prior year period. Builder operations expenditures include salaries, sales commissions, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.

Corporate, Other and Unallocated

Selling, general and administrative expense for the corporate, other and unallocated non-operating segment for the year ended December 31, 2025 was $9.2 million, compared to $8.1 million for the year ended December 31, 2024. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.

Equity in Income of Unconsolidated Entities

Equity in income of unconsolidated entities decreased to $1.0 million, or 80.3%, for the year ended December 31, 2025, compared to $5.1 million for the year ended December 31, 2024, primarily due to the winding down of our BHome Mortgage joint venture and ramping up of our wholly-owned subsidiary GRBK Mortgage during the year ended December 31, 2025. See Note 5 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for a summary of Green Brick’s share in net earnings by unconsolidated entity.

Other Income, Net

Other income, net, decreased to $27.7 million for the year ended December 31, 2025, compared to $29.8 million for the year ended December 31, 2024. The change was primarily due to gain in the sale of our investment in Challenger during the year ended December 31, 2024 partial

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/GRBK/mda/fy2025/
All MD&A years: /company/GRBK/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/GRBK/mda/fy2024/): filed 2025-02-26; accession 0001373670-25-000007 (https://www.sec.gov/Archives/edgar/data/1373670/000137367025000007/grbk-20241231.htm)
- [FY 2023 MD&A](/company/GRBK/mda/fy2023/): filed 2024-02-29; accession 0001373670-24-000008 (https://www.sec.gov/Archives/edgar/data/1373670/000137367024000008/grbk-20231231.htm)
- [FY 2022 MD&A](/company/GRBK/mda/fy2022/): filed 2023-02-27; accession 0001373670-23-000006 (https://www.sec.gov/Archives/edgar/data/1373670/000137367023000006/grbk-20221231.htm)
- [FY 2021 MD&A](/company/GRBK/mda/fy2021/): filed 2022-03-01; accession 0001373670-22-000008 (https://www.sec.gov/Archives/edgar/data/1373670/000137367022000008/grbk-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 1531 Operative Builders) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Growth & output](/thread/growth-output/), [Housing & construction](/thread/housing-construction/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/GRBK.md · JSON record: /company/GRBK.json · verified financials: /company/GRBK/financials.json / /company/GRBK/financials.csv · machine TOC for the whole site: /llms.txt