The beat on adjusted EPS and raised margin guidance may support the stock near-term, but the persistent YoY revenue decline and high cancellation rate warrant caution. Monitor upcoming quarters for revenue stabilization and order trends.
Price Chart
Executive Summary
LGI Homes reported Q1 2026 adjusted EPS of $0.24, beating consensus of $0.19 by 26%, though revenue fell 9% YoY to $319.7M, slightly missing estimates of $322.9M. The company raised full-year gross margin guidance but maintained home closing and ASP outlook. Backlog grew 63.4% YoY, but cancellation rate surged to 45.6%.
Key Financial Metrics
Key Facts
- Q1 2026 home sales revenue $319.7M vs $351.4M YoY (-9.0%)
- GAAP net income $2.2M ($0.09 EPS) vs $3.99M ($0.17) YoY
- Adjusted net income $5.6M ($0.24 adjusted EPS), beating $0.19 consensus
- Raised FY2026 gross margin guidance to 18.5%-20.5% (from 18.0%-20.0%)
- Adjusted gross margin guidance raised to 22.0%-24.0% (from 21.0%-23.0%)
- Ending backlog 1,699 homes (+63.4% YoY), cancellation rate 45.6%
- Net debt to capital ratio 44.0% vs 43.2% at Q4 2025
Financial Impact
EPS beat by 26% but revenue declined 9% YoY; margin guidance raised modestly
Risk Factors
- Revenue declining 9% YoY for the second consecutive quarter
- Cancellation rate spiked to 45.6% from 16.3% a year ago
- Net debt to capital ratio increased to 44.0%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001580670-26-000044 |
| Document: lgih-20260428.htm | 0001580670-26-000044 |
| Document: 0001580670-26-000044-index-headers.html | 0001580670-26-000044 |
| Document: 0001580670-26-000044-index.html | 0001580670-26-000044 |
| Document: 0001580670-26-000044.txt | 0001580670-26-000044 |
| 8-K Data (Synthetic) | 0001580670-26-000044 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 12d ago | 8-K | $44.08 | awaiting T+20 | — | $42.29 (−4.06%) |
Oct 5, 2026 21d ago | Press Release | $46.09 | awaiting T+20 | — | $42.29 (−8.24%) |
Aug 4, 2026 12w ago | 8-K | $61.46 $53.74 | ▼ −12.56% | ▼ −11.32% | $42.29 (−31.19%) |
Jul 6, 2026 16w ago | Press Release | $58.92 | awaiting T+20 | — | $42.29 (−28.22%) |
Jun 10, 2026 19w ago | 8-K | $55.39 $58.09 | ▲ +4.87% | ▲ +2.98% | $42.29 (−23.65%) |
Jun 9, 2026 19w ago | Press Release | $52.56 $58.09 | ▲ +10.52% | ▲ +6.90% | $42.29 (−19.54%) |
Apr 28, 2026 26w ago | 8-K | $48.96 $46.75 | ▼ −4.51% | ▼ −9.98% | $42.29 (−13.62%) |
US Market Status
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