LGIH LGI Homes, Inc.

Overview and Growth

In fiscal 2025, LGI Homes, Inc. recorded $1.71B of revenue, net income of $72.55M, and an operating cash outflow of $139.97M. At $1.71B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $2.20B in fiscal 2024, revenue decreased 22.6%, a top-line contraction that reduced operating scale. The company reported diluted EPS of $3.12, adding a shareholder-level measure to the absolute income figures considered below. Diluted EPS decreased by 62.4% from $8.30 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Total assets stood at $3.93B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Asset turnover was 0.43x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $353.55M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 20.7%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $79.78M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 4.7% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $72.55M for the fiscal year. Measured against reported revenue, net income produced a 4.3% margin after operating costs and the remaining recognized items. The earnings statement records $98.49M of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 5.8%, relating income before taxes directly to revenue. Income tax expense totaled $25.93M, providing the reported tax component that separates pretax and after-tax earnings. The income-tax provision equaled 26.3% of pretax income, showing the tax burden absorbed by the year’s earnings. The relationship between net income and period-end equity was 3.5%, indicating the profitability achieved on book capital. The net-income-to-assets relationship measured 1.8%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

At period end, the $3.93B asset base was financed through $1.83B of liabilities and $2.10B of equity. Cash and equivalents totaled $61.25M, identifying the most liquid reported component available within the broader current-asset balance. The company carried $1.66B of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.79x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 42.2%, showing how much of the asset base was matched by borrowing. Relative to total assets, liabilities measured 46.6%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 1.6%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 4.5% from $3.76B in fiscal 2024, leaving current total assets higher year over year. Against $2.04B of equity in fiscal 2024, the current book-equity balance moved 2.9% and ended higher. The reported cash balance changed 15.1% from $53.20M in fiscal 2024, ending higher year over year.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $139.97M, rather than cash generation from operations. The company spent $924.00K on capital expenditures while operations also absorbed cash, so both ongoing activity and investment drew on liquidity during the period. Operating cash flow and capital spending combined to leave a $140.90M cash deficit after capital spending. The free-cash-flow deficit equaled 8.3% of revenue, showing the post-investment cash shortfall relative to sales. Relative to total assets, the post-investment cash deficit measured 3.6%.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.