- Total Revenue: $494 million for the second quarter.
- Net Income: $74 million, or $1.70 per diluted share, a decrease of 9.5% year-over-year.
- Home Closings Revenue: $472 million, down 11.4% year-over-year, with 1,047 homes delivered.
- Average Sales Price (Home Closings): $450,000.
- Homebuilding Gross Margin: 29.8%, a decrease of 150 basis points year-over-year but an increase of 90 basis points sequentially.
- Net New Orders: 1,079, up 19% year-over-year.
- Average Active Selling Communities: 108, up 6% year-over-year.
- Monthly Sales Pace: 3.3 per community, up 10% year-over-year.
- Backlog: 681 units with backlog revenue of $387 million, a 24% decrease year-over-year.
- Financial Services Segment Revenue: $12 million, compared to $6.3 million in Q2 2025.
- Financial Services Segment Pretax Income: $5.7 million, up 91% year-over-year.
- SG&A Expenses: Declined 5% year-over-year; as a percentage of residential units revenue, increased 60 basis points to 11.3%.
- Discounts and Incentives: 8.8% of home closings revenue, up 180 basis points year-over-year.
- Homebuilding Debt to Total Capital Ratio: 11.2%.
- Net Homebuilding Debt to Total Capital Ratio: 6.1%.
- Book Value: $44.82 per share, up 16% year-over-year.
- Operating Cash Flow: $117 million over the last 12 months.
- Return on Assets: 11.8% for the quarter.
- Return on Equity: 16% for the quarter.
- Share Repurchases: Approximately 143,000 shares for $9.4 million during the quarter.
- Total Liquidity: $462 million, including $132 million in cash.
- Total Debt (excluding warehouse facilities): $252 million.
- GreenBrick Mortgage Funded Loans: 521 loans funded, up 257% year-over-year.
- GreenBrick Mortgage Capture Rate: 66% for the quarter.
- Average Construction Cycle Time: 124 days, down 29 days from a year ago.
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Net new orders increased 19% year-over-year, driven by strong demand for affordable homes from Trophy Signature Homes.
- Homebuilding gross margins of 29.8% were the highest among homebuilding peers, supported by disciplined land cost control.
- GreenBrick Mortgage grew rapidly, with funded loans up 257% year-over-year and a 66% capture rate, targeting 70%+ by year-end.
- Balance sheet remains strong with low leverage (net homebuilding debt to capital of 6.1%) and $462 million in total liquidity.
- Return on assets of 11.8% and return on equity of 16% are among the best in the industry, reflecting disciplined capital allocation.
Negative Points
- Home closings revenue declined 11.4% year-over-year due to a higher mix of lower-priced Trophy homes.
- Discounts and incentives increased to 8.8% of home closings revenue, up 180 basis points year-over-year, pressuring margins.
- Backlog revenue decreased 24% year-over-year, with average sales price down 18% due to Trophy mix and elevated incentives.
- Market conditions remain challenging with elevated interest rates, affordability pressures, and spotty demand across regions like Atlanta.
- SG&A expenses as a percentage of residential units revenue increased 60 basis points to 11.3% due to lower revenue.
Q & A Highlights
Here are the key highlights from the Green Brick Partners Inc GRBK Q2 2026 earnings call, focusing on the most significant Q&A exchanges.Q: Can you provide some color on how traffic has responded to the rate move-up in July?
A: (Jim Brickman, CEO) It's spotty and surprising. Florida (Vera Beach) had a great month of sales in July, which is unusual for this time of year. Conversely, Atlanta, which is usually steady, has been very slow in July. Overall, we still see tremendous buyer demand for the Trophy brand as long as we can provide favorable pricing and product.
Q: With several peers flexing more into move-up housing, is there an opportunity for you to pivot some of your Trophy land to take advantage of better demand for move-up, to-be-built homes?
A: (Jim Brickman, CEO) Yes, we are doing that in our larger communities. We can bifurcate the market. For example, in a very large land deal we are working on, Center Living Homes may do one-acre product, Southgate Homes may do $800,000 product, and Trophy Signature Homes may do $400,000 product. We can address all these markets with our existing brands.
Q: What would you need to see in the market to move homes under construction higher and accelerate the starts pace?
A: (Jed Dolson, President & COO) Our cycle times have come down, so it's not taking as long to build houses. We are keeping our inventory levels, especially finished inventory, exactly where we want them.
Q: Can you speak to the average selling price (ASP)? Is $450,000 the new norm, or should we expect it to tick up or down?
A: (Jim Brickman, CEO) Directionally, it will tick down. Trophy is growing much faster than our other businesses, which are flat. Trophy's ASP in many new communities is around $325,000. As we have more of those homes, the blended ASP will go down from the current $450,000.
Q: On the capture rate for your mortgage company, is the path to 70-80% coming through the Providence Group (Atlanta), or is Texas fully penetrated?
A: (Jeff Cox, CFO) We are still in the process of rolling out the mortgage company to the rest of our Texas markets. Our plan is still to enter Atlanta by the end of the year. We are encouraged by the current 66% capture rate and see opportunity to improve it, especially with builder-forward commitments to buy down rates for first-time homebuyers.
Q: With rates moving up in July, have you been able to hold the incentive rate at ~9%, and will you have to flex it if rates go higher?
A: (Jed Dolson, President & COO) I don't think the buyer will accept a quarter-point increase in their buy-down rate just because rates go up. They will hold us to the lower rate, so the cost will be borne by us.
Q: What drove the 80 bps sequential improvement in gross margin? Was it direct costs or land cost inflation?
A: (Jed Dolson, President & COO) The biggest driver is that buy-down costs are not static. The FHA rate began the year around 6% and is now at 6.4%, making buy-downs more expensive. On the cost side, we continue to see "sticks and bricks" and labor costs come down, with the exception of lumber, which has risen this year.
Q: You mentioned Atlanta being softer for a second quarter. Is that a function of H1B buyers, and how do you get that turned around?
A: (Jed Dolson, President & COO) It's two-fold. There are cultural buyer headwinds due to visa issues. Also, we don't provide entry-level housing in Atlanta; our ASP there is around $700,000. We are in a second-time move-up segment, and that market has been tougher.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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