REVENUE RECOGNITION
Disaggregation of Revenue
The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Residential units revenue | | Land and lots revenue | | Residential units revenue | | Land and lots revenue | | Residential units revenue | | Land and lots revenue |
| Primary Geographical Market | | | | | | | | | | | |
| Central | $ | 1,579,545 | | | $ | 6,994 | | | $ | 1,489,472 | | | $ | 28,807 | | | $ | 1,270,599 | | | $ | 7,980 | |
| Southeast | 511,932 | | | — | | | 580,664 | | | — | | | 498,656 | | | 475 | |
| Total revenues | $ | 2,091,477 | | | $ | 6,994 | | | $ | 2,070,136 | | | $ | 28,807 | | | $ | 1,769,255 | | | $ | 8,455 | |
| | | | | | | | | | | |
| Type of Customer | | | | | | | | | | | |
| Homebuyers | $ | 2,091,477 | | | $ | — | | | $ | 2,070,136 | | | $ | — | | | $ | 1,769,255 | | | $ | — | |
| Homebuilders and Multi-family Developers | — | | | 6,994 | | | — | | | 28,807 | | | — | | | 8,455 | |
| Total revenues | $ | 2,091,477 | | | $ | 6,994 | | | $ | 2,070,136 | | | $ | 28,807 | | | $ | 1,769,255 | | | $ | 8,455 | |
| | | | | | | | | | | |
| Product Type | | | | | | | | | | | |
| Residential units | $ | 2,091,477 | | | $ | — | | | $ | 2,070,136 | | | $ | — | | | $ | 1,769,255 | | | $ | — | |
| Land and lots | — | | | 6,994 | | | — | | | 28,807 | | | — | | | 8,455 | |
| Total revenues | $ | 2,091,477 | | | $ | 6,994 | | | $ | 2,070,136 | | | $ | 28,807 | | | $ | 1,769,255 | | | $ | 8,455 | |
| | | | | | | | | | | |
Timing of Revenue Recognition(1) | | | | | | | | | | | |
| Transferred at a point in time | $ | 2,091,258 | | | $ | 6,994 | | | $ | 2,069,756 | | | $ | 28,807 | | | $ | 1,767,788 | | | $ | 8,455 | |
| Transferred over time | 219 | | | — | | | 380 | | | — | | | 1,467 | | | — | |
| Total revenues | $ | 2,091,477 | | | $ | 6,994 | | | $ | 2,070,136 | | | $ | 28,807 | | | $ | 1,769,255 | | | $ | 8,455 | |
(1)Revenue recognized over time represents revenue from mechanic’s lien contracts.
Contract Balances
Opening and closing contract balances included in customer and builder deposits on the consolidated balance sheets are as follows (in thousands): | | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Customer and builder deposits | $ | 25,716 | | | $ | 37,068 | |
The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customer’s payment of a deposit and the Company’s delivery of the home, impacted slightly by terminations of contracts.
The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the years ended December 31, 2025 and 2024 are as follows (in thousands): | | | | | | | | | | | |
| 2025 | | 2024 |
| Type of Customer | | | |
| Homebuyers | $ | 34,509 | | | $ | 41,402 | |
| Homebuilders and Multi-Family Developers | 1,634 | | | 900 | |
| Total deposits recognized as revenue | $ | 36,143 | | | $ | 42,302 | |
Transaction Price Allocated to Remaining Performance Obligations
The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $7.5 million. The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel, which is expected to occur in 2026.
The timing of lot takedowns is contingent upon a number of factors, including customer needs and demand, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules.
Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, and has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.