Q1 revenue falls 28% to $1.3B as orders drop 14% amid tariffs, Iran war, rate headwinds

Filed April 22, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 23, 2025 · ~2 min read

Key Changes

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  Home closings revenue fell 28.3% YoY to $1.31B on 25.6% fewer closings (2,268 vs 3,048 units) and 3.7% lower ASP ($578k vs $600k). Gross margin compressed 400bp to 20.0% from 24.0%, driven by higher incentives (up 330bp as % of revenue), lower lot premiums, and 69% quick-move-in mix (vs 58% prior year) which carries lower margins.

  MD&A: Revenue & Margins verify on EDGAR →
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  Net sales orders fell 13.6% YoY to 2,914 units. Management cites new macro headwinds not present in Q1 2025: tariffs, war with Iran, petroleum price concerns, and elevated mortgage rates. Entry-level and move-up segments hit hardest; community traffic declined across all segments.

  MD&A: Net Sales Orders verify on EDGAR →
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  Senate proposed legislation to limit institutional ownership of single-family homes may affect Yardly Build-to-Rent business. Company lobbying for exclusion of horizontal apartment communities but acknowledges no assurance of favorable outcome. New regulatory risk not disclosed in prior year.

  MD&A: Regulatory Update verify on EDGAR →