Toll Brothers TOL Home sales — Contract liabilities, revenue recognized

Home sales revenues: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed. In certain states where we build, we may not be able to complete certain outdoor features prior to the closing of the home. To the extent these separate performance obligations are not complete upon the home closing, we defer a portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations. As of April 30, 2026, the home sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities, consisting of deposits received from customers for sold but undelivered homes, totaled $472.1 million and $418.9 million at April 30, 2026 and October 31, 2025, respectively. Of the outstanding customer deposits held as of October 31, 2025, we recognized $113.8 million and $221.3 million in home sales revenues during the three months and six months ended April 30, 2026, respectively. Of the outstanding customer deposits held as of October 31, 2024, we recognized $145.1 million and $265.3 million in home sales revenues during the three months and six months ended April 30, 2025, respectively.