SDHC Q2 net income plunges 89.6% to $246,000 despite 21.9% revenue growth to $273.0M

Filed August 6, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 6, 2025 · ~1 min read

Key Changes

• high

  Net income collapsed to $246,000 (diluted EPS $0.03) from $2.4M in Q2 FY25, down 89.6%, as gross margin compression and $7.6M in impairment/abandonment charges offset 21.9% revenue growth to $273.0M.

  MD&A: Financial Results verify on EDGAR →
• high

  Material weakness in IT general controls (user access, change management, segregation of duties) disclosed in Q2 FY25 has been remediated; management now concludes disclosure controls are effective as of June 30, 2026.

  Controls and Procedures verify on EDGAR →
• high

  Home closing gross profit fell to $47.9M from $51.9M in Q2 FY25 despite higher closings, indicating margin compression in the core homebuilding business.

  MD&A: Gross Margin verify on EDGAR →