At a glance
LGI Homes is worth $967.4M, about 13 times its fiscal 2025 earnings. Revenue fell 22.6% to $1.71B in fiscal 2025, with 4.3% kept as profit; over 5 years it has grown 6.4% a year. It pays no dividend; it spent $343.5M buying back its shares over FY2021–FY2025. The stock returned −7.2% over the past year with dividends reinvested and −22.4% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 61.2% in the 2020 crash (S&P 500: 33.7%) and 50.0% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
LGI Homes designs, builds and sells new houses, mainly to entry-level buyers. As of December 31, 2025, it was active in 144 communities across 36 markets in 21 states, from Texas and Florida to Washington and Pennsylvania. Its marketing targets renters. Ads steer them to information centers, where commissioned salespeople explain the path to owning a home. In 2025 it closed 4,788 homes. Excluding 103 leased homes, the average price was $364,035.
To build efficiently, it offers a set number of floor plans in each community with standard finishes. It typically completes move-in ready homes in about 105 to 135 days. Its own staff manage construction, while subcontractors supply labor and materials. It favors affordable land farther from city centers. Under the LGI Homes name it sells entry-level houses, town homes and active adult communities. It also sells luxury homes as Terrata Homes, which closed 189 homes in 2025 at an average of $672,000.
Revenue fell 22.6% to $1.71 billion in 2025. Retail home sales made up 86.5%. Wholesale sales made up 13.5%; these are mostly bulk deals with large institutions that rent out homes. By region, Northwest supplied 22.7% of revenue, West 13.9% and Southeast 11.1%, with the Central and Florida segments providing the rest. Joint ventures offer buyers mortgage and insurance services.
Price history
The interactive chart needs JavaScript.
LGIH -7.2% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Retail | $1.48B | 86.5% |
| Wholesale | $230.3M | 13.5% |
By business segment
| Central | $472.1M | 27.7% |
| Central | $419.2M | 24.6% |
| Northwest | $387.2M | 22.7% |
| West | $237.9M | 13.9% |
| Southeast | $189.0M | 11.1% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $516.0M, up 5.7% from a year earlier, and net income was $27.0M (-14.4%).
- For fiscal 2025, revenue was $1.71B (-22.6% year over year; -6.4% a year from FY2020 to FY2025) with a 4.3% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | -6.4% weak |
|---|---|
| Operating margin | 4.7% weak |
| Free cash flow margin | -8.3% weak |
| Return on equity (FY2025) | 3.5% weak |
| Return on assets (FY2025) | 1.8% weak |
| Net cash (cash minus debt) | $-1.52B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $2.37B | $323.9M | — |
| FY2021 | $3.05B | $429.6M | — |
| FY2022 | $2.30B | $326.6M | $-371.6M |
| FY2023 | $2.36B | $199.2M | $-58.4M |
| FY2024 | $2.20B | $196.1M | $-145.7M |
| FY2025 | $1.71B | $72.6M | $-140.9M |
Valuation snapshot
| Market value | $967.4M |
|---|---|
| P/E ratio | 13.3 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
LGI Homes’s market value went from $611.4M at the end of 2016 to $967.4M on Oct 28, 2026, up 58%; since the end of 2025 it is down 2%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $967.4M | -2.4% |
| 2025 | $991.5M | -52.8% |
| 2024 | $2.10B | -33.0% |
| 2023 | $3.14B | +45.5% |
| 2022 | $2.16B | -42.5% |
| 2021 | $3.75B | +41.1% |
| 2020 | $2.66B | +63.9% |
| 2019 | $1.62B | +57.8% |
| 2018 | $1.03B | -37.0% |
| 2017 | $1.63B | +166.7% |
| 2016 | $611.4M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| LGIH price data to Oct 28, 2026 | -3.1% | -7.2% | -22.0% | -22.4% | +3.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -3.1% |
| 2025 | -52.0% |
| 2024 | -32.9% |
| 2023 | +43.8% |
| 2022 | -40.1% |
| 2021 | +45.9% |
| 2020 | +49.8% |
| 2019 | +56.2% |
| 2018 | -39.7% |
| 2017 | +161.2% |
| 2016 | +18.1% |
| 2015 | +63.1% |
| 2014 | -16.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 52.7% over that stretch · deepest drop along the way 61.2%, back to its old high 3.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 42.3% over that stretch · deepest drop along the way 50%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (11 read): 0 open-market purchases and 18 sales ($2.6M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Mar 9, 2026 | Eric Thomas Lipar CEO and Chairman of the Board, Director, 10% owner | sell | $735K |
| Mar 9, 2026 | Eric Thomas Lipar CEO and Chairman of the Board, Director, 10% owner | sell | $449K |
| Mar 9, 2026 | Eric Thomas Lipar CEO and Chairman of the Board, Director, 10% owner | sell | $258K |
| Mar 9, 2026 | Michael Larry Snider President and COO | sell | $233K |
| Mar 9, 2026 | Charles Michael Merdian CFO and Treasurer | sell | $213K |
Who owns it
Large shareholders (13G filings)
| Vanguard Portfolio Management | 5.54% | Mar 31, 2026 |
| STATE STREET CORPORATION | 5.4% | Sep 30, 2025 |
| Dimensional Fund Advisors LP | 4.7% | Mar 31, 2026 |
| Wasatch Advisors LP | 2.7% | Sep 30, 2025 |
ETFs with the most weight in LGIH
| FYT First Trust Small Cap Value AlphaDEX Fund | 0.62% |
| HOMZ Hoya Capital Housing ETF | 0.51% |
| TXSS Texas Capital Texas Small Cap Equity Index ETF | 0.47% |
| FYX First Trust Small Cap Core AlphaDEX Fund | 0.3% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.26% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.24% |
| RZV Invesco S&P SmallCap 600® Pure Value ETF | 0.23% |
| VIOV Vanguard S&P Small-Cap 600 Value ETF | 0.23% |
What could go wrong
- Reliance on FHA and USDA-backed mortgages. Government-backed loans are especially important to LGI's business. If the Federal Housing Administration raised down payments or cut loan limits, or the Agriculture Department shrank its zero-down rural loan program, fewer customers could qualify.
- Entry-level buyers are sensitive to mortgage rates. Almost all LGI customers use mortgages. The company calls inflation and higher mortgage rates since January 2022 the main driver of weaker new-home demand, and sudden rate jumps can lead buyers to cancel contracts.
- Heavy debt compared with cash on hand. As of June 30, 2026, LGI had about $1.58 billion of debt and $61 million of cash and investments. Interest costs can limit money for growth, and its loan agreements carry restrictive terms.
- Falling land values could force write-downs. LGI buys raw land and finished lots, or options on them, for future communities. If real estate values fall, it may have to write down that land's recorded value, reducing profits.
- Dependence on subcontractors, labor and materials. Third-party subcontractors supply the labor and materials for LGI's homes. Shortages, swings in prices for lumber, steel or concrete, or poor subcontractor work could delay construction and raise costs.
- Regional slumps and natural disasters. LGI builds in 21 states, including Texas, Florida and the Carolinas. Downturns in its regional markets, natural disasters or severe weather can delay projects, raise costs and reduce demand for homes.
Recent events
- Major agreement signed; New debt or financial obligation
- Quarterly results released; Investor presentation or announcement
- Change of auditor
- Quarterly results released; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
LGI Homes does not pay a dividend and paid none from FY2021 through FY2025. For an income investor, that means no regular cash from holding it; any return depends on the share price. The company has repurchased its own shares instead, spending about $344 million over those five years, and its share count fell 4.2% between October 29, 2021 and July 30, 2026. Free cash flow (operating cash minus capital spending) was negative every year from 2022 to 2025, including a shortfall of about $141 million in 2025.
The shares have dropped hard in downturns. In the 2020 COVID crash they fell 61.2% from peak to low, then regained that peak by July 7, 2020, about 3.6 months after the low. In the 2022 bear market, a broad stock market slump, they fell 50% and had not regained that peak as of October 28, 2026. A single stock carries more risk than a diversified fund.
Questions investors ask
Does LGI Homes pay a dividend?
No. LGI Homes paid no dividends from FY2021 through FY2025 and had no dividend yield as of October 28, 2026. It returned cash through buybacks (repurchasing its own stock) instead, spending about $344 million over those five years, and its share count fell 4.2% between October 2021 and July 2026. For income investors, that means no regular cash payments; any return depends on the share price.
How does LGI Homes make money?
LGI Homes makes money by building and selling new homes, mainly to entry-level buyers, with marketing aimed at renters. Revenue was $1.71 billion in 2025. Retail home sales made up 86.5% of that. Wholesale sales made up 13.5%; these are mostly bulk deals with large institutions that rent out single-family homes. The company also leases some homes it has built, and joint ventures it partly owns offer its buyers mortgage brokerage and homeowners insurance.
How much does an LGI home cost?
LGI's average sales price was $364,035 per home closed in 2025, excluding 103 leased homes. Prices ranged from about $192,000 to more than $1,230,000, and homes ran from 900 to about 4,000 square feet. The company focuses on entry-level homes under the LGI Homes brand, including town homes in some markets. Its luxury Terrata Homes brand closed 189 homes in 2025 at an average of $672,000.
How much debt does LGI Homes have?
About $1.58 billion of total debt as of June 30, 2026, against about $61 million of cash and investments, leaving net debt of about $1.52 billion. Shareholders' equity (assets minus liabilities) was about $2.13 billion. The company says it expects to use leverage, meaning borrowed money, in its strategy, and that interest costs may limit cash for growth. Free cash flow, or cash from operations minus capital spending, was negative each year from 2022 to 2025.
Why has LGI Homes stock gone down?
It has fallen sharply as sales and profits shrank. Over the five years to October 28, 2026, the share price dropped 72%, and over three years it dropped 53%, though it was up 43% over ten years. The shares fell 51.95% in 2025, when revenue declined 22.6% and net income fell 63%. The company sees inflation and higher mortgage rates since January 2022 as the main driver of weaker demand for new homes. On October 28, 2026, the stock traded at 13.3 times its 2025 earnings per share.