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LGI Homes LGIH Central — Inventory impairment

Other segment segments

West
$2.4M

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Other financials

Income statement

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Revenue$319.7M-9.0%
Gross profit$59.9M-18.7%
Operating income-$582.0K-444%
Net income$2.2M-45.9%
EPS (diluted)$0.09-47.1%

Balance sheet

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Cash & equivalents$60.9M+5.7%
Total debt$5.0M-17.3%
Total equity$2.1B+2.9%
Total assets$4.0B+3.1%

Cash flow

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Operating cash flow-$55.5M+56.3%
CapEx$696.0K-16.2%
Free cash flow-$56.2M+56.1%

Valuation

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Market cap$1.4B+6.3%
Enterprise value$1.34B+6.5%
P/E19.7×+11.3×
P/S0.8×+0.2×

Profitability

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Gross margin20.3%-3.5pp
Operating margin4.7%-4.2pp
Net margin4.2%-4.2pp
FCF margin-10.5%-12.7pp

Returns & leverage

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Return on equity3.4%-5.9pp
Debt / equity0.0×

Where this comes from

Reported directly by LGI Homes in its filing.

Tagged under the XBRL concept us-gaap:InventoryWriteDown.

The source filing: LGI Homes’s 10-Q, filed April 28, 2026.

Filed
Apr 28, 2026, 4:30 PM EDT
Fiscal quarter
Q1 FY2026
Calendar quarter
Q1 2026
Accession
0001580670-26-000048

During the three months ended March 31, 2026, the Company recognized $4.7 million of impairment charges related to inventory, which were recorded in inventory on the consolidated balance sheets and cost of sales in the consolidated statement of operations. Of the total impairment charge, $2.4 million was related to our Florida reportable segment and $2.3 million was related to our Central reportable segment. The impairment charges were measured at fair value and classified within Level 3 of the fair value hierarchy.

Item 1. LGI Homes, Inc. Consolidated Financial Statements (Unaudited)

FAQ

What is LGI Homes's central — inventory impairment?
LGI Homes (LGIH) reported central — inventory impairment of $2.3M in Q1 2026.
What does central — inventory impairment mean?
Represents the non-cash charge recognized when the carrying value of real estate inventory exceeds its estimated fair value. This metric indicates potential market softening or overvaluation of land assets within the specific geographic segment. Monitoring this helps investors assess the quality of the land bank and the effectiveness of capital allocation strategies.

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