10-Q · May 6, 2026
Millrose Properties, Inc. experienced a substantial increase in revenues in Q1 2026, reporting $194.9 million, up from $82.7 million in Q1 2025, reflecting growth in both option fee revenues and development loan income.…
Earnings analysis · 10-Q
MRP earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Millrose delivered Q2 revenue of $196.853 million, up 32.1% year over year and slightly above Q1's $195 million, while diluted EPS rose to $0.76 from $0.68 a year ago and $0.74 sequentially. Operating profitability…
Read full summary
Millrose delivered Q2 revenue of $196.853 million, up 32.1% year over year and slightly above Q1's $195 million, while diluted EPS rose to $0.76 from $0.68 a year ago and $0.74 sequentially. Operating profitability remained exceptionally stable, with a calculated 85.2% operating margin, but the higher debt structure lifted quarterly interest expense to $40.014 million from $10.285 million. The company expanded invested capital to $8.799 billion and reported ample facility capacity, although the April payoff of a $284 million development loan reduced development-loan income and revenue missed the provided consensus estimate.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.76
- Segment
- Single operating and reportable segment: total revenue was $196.853 million.
What stood out
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Revenue rose 32% year over year
Q2 revenue increased 32.1% year over year to $196.853 million from $149.002 million, driven by option-fee revenue growth to $195.400 million from $141.084 million. Revenue was also modestly higher than Q1 2026 revenue of $195 million.
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Operating margin remained near 85%
Income from operations rose 32.1% to $167.634 million from $126.861 million. Operating margin was effectively stable at 85.2% (income from operations of $167.634 million on revenue of $196.853 million), versus 85.1% a year earlier and 85.2% in Q1 2026.
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EPS increased year over year and sequentially
Diluted GAAP EPS increased to $0.76 from $0.68 a year ago and from $0.74 in Q1 2026. AFFO per diluted share rose to $0.77 from $0.69.
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Capital deployment and portfolio yield expanded
Invested capital increased to $8.799 billion at June 30 from $8.706 billion at March 31. The portfolio generated a 9.2% weighted-average yield, comprising $5.949 billion in the Master Program Agreement at 8.5% and $2.850 billion in Other Agreements at 10.6%.
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Operating cash generation remained strong
Six-month operating cash flow was $1.683 billion, up from $1.610 billion a year earlier. Investment cash use was $1.797 billion, largely for homesite acquisitions and development loans; conventional free cash flow and capex were not disclosed.
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New credit facility supports liquidity
Liquidity included $34.2 million of cash, about $850 million of revolver availability and $500 million of delayed-draw capacity at June 30. The new unsecured credit agreement provides a $1.335 billion revolver and a potential aggregate commitment of up to $2.5 billion including its accordion.
What to watch
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Higher leverage has materially raised interest cost
Interest expense increased to $40.014 million in Q2 from $10.285 million a year earlier, reflecting the Credit Agreement and Senior Notes. With $485 million drawn on the revolver, a 1% rate increase would add approximately $4.9 million of annual interest expense.
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Loan payoff reduced development-loan income
Development-loan income fell to $1.453 million from $7.918 million after an unaffiliated borrower repaid a $284 million loan on April 1, reducing interest-earning loan balances.
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Portfolio has concentrated housing-market exposure
Geographic exposure is meaningful: 51% of property assets are concentrated in California, Florida and Texas, while 42% are in Florida and Texas. A downturn in these housing markets could pressure option exercises and property values.
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No risk-factor updates; REIT compliance remains key
The filing reports no material changes to risk factors from the Form 10-K. Ongoing REIT qualification risk remains material because the company must distribute at least 90% of annual REIT taxable income and could be subject to a 4% excise tax for distribution shortfalls.
Management's outlook
The 10-Q provides no new quantitative earnings or revenue outlook. Management stated that $34.2 million of cash, approximately $850 million of revolver capacity and $500 million of delayed-draw term-loan capacity are expected to be sufficient for short- and long-term liquidity needs; it also intends regular dividends of at least 90% of REIT taxable income, subject to Board approval and other factors.
Earlier filings 4
10-K · March 2, 2026
Millrose Properties, Inc. (MRP) reported strong revenue growth in 2025, achieving total revenues of approximately $600.5 million, primarily driven by options fee revenues of $570.9 million following its spin-off from…
10-Q · October 23, 2025
Millrose Properties reported strong performance for Q3 2025, showing a revenue increase to $179.3 million from $149 million in Q2 2025, and a notable recovery to a net income of $105.1 million compared to a loss of…
10-Q · July 31, 2025
Millrose Properties, Inc. experienced significant growth in Q2 2025, reporting revenue of $149 million, up from $83 million in Q1 2025 and a net income of $112.8 million compared to a net loss of $59.8 million in the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.