10-K · February 13, 2026
Meritage positions itself as a value-oriented, scale homebuilder focused on affordable, move-in ready entry-level and first move-up homes (100% spec strategy) and introduced a 60-day closing ready guarantee beginning in…
Earnings analysis · 10-Q
MTH earnings analysis
Filed April 24, 2026 · Our reading of the company's report
The latest report
Meritage reported weaker Q1 results driven by lower closings, price concessions and margin pressure. Home closing revenue was $1,107,822,000 (down 17.5% YoY) and home closing gross margin compressed to 17.5% (down 450…
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Meritage reported weaker Q1 results driven by lower closings, price concessions and margin pressure. Home closing revenue was $1,107,822,000 (down 17.5% YoY) and home closing gross margin compressed to 17.5% (down 450 bps), producing net earnings of $55.3 million for the quarter. Management emphasizes liquidity (cash $766.6 million and $829.0 million available on the Credit Facility) and execution priorities (record 345 active communities, ~2,600 lots purchased for $141.0 million), but the near-term demand environment remains challenged.
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.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
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
- $0.86
- Gross margin
- 17.5%
What stood out
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Strong liquidity position
Company ended the quarter with $766.6 million of cash and cash equivalents and $829.0 million available under the Credit Facility (~$1.6 billion total capacity).
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Record active communities
Active communities reached a company high of 345 (vs 290 at March 31, 2025), supporting future volume optionality.
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Construction cycle time improvement
Construction cycle times remained under 110 calendar days (improved from historically ~120+ days), which management cites as a production efficiency driver.
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Share repurchases continuing
The company repurchased 1,815,820 shares during the quarter and has $384.1 million remaining under its repurchase program.
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Active land investment
The company purchased approximately 2,600 lots for $141.0 million and spent $185.1 million on land development (net of reimbursements) in the quarter.
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G&A cost reductions
General and administrative expenses decreased to $51.4 million, down $5.6 million from the prior year quarter.
What to watch
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Material revenue decline
Home closing revenue fell to $1,107,822,000, a 17.5% decrease from $1,342,104,000 in Q1 2025.
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Gross margin compression
Home closing gross margin declined to 17.5% from 22.0% in the prior year quarter, a 450 basis point reduction (adjusted margin 17.8% vs 22.1%).
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Earnings sharply lower
Net earnings were $55.3 million in the quarter versus $122.8 million in Q1 2025 (pre-tax earnings $72.5 million vs $160.2 million).
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Order/backlog deterioration
Home orders decreased to 3,664 (down 5.5% YoY) and backlog value declined to $711,466,000 (down 12.4% YoY); homes in backlog were 1,865 (down 6.9%).
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Rising cancellations and ASP pressure
Company cancellation rate rose to 11% (from 9% prior year) and average sales price on closings decreased to $373.4k (down $19.5k, or 5.0%).
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Land closing losses and impairments
Land closing gross loss of $269,000 in Q1 2026 versus land closing gross profit of $3,165,000 in Q1 2025; real estate-related impairments and terminated land deal charges also impacted margins.
Management's outlook
The 10-Q contains qualitative forward-looking language on liquidity and capital needs but does not provide explicit numeric FY2026 revenue or EPS guidance. (Separately, management updated full‑year 2026 home closing volume and revenue guidance to 'at or within 5% of full year 2025 results' in an 8‑K dated April 22, 2026.)
Earlier filings 4
10-Q · October 31, 2025
Meritage reported third-quarter closing revenue of $1,415,403,000 and diluted EPS of $1.39, both meaningfully lower than the year-ago quarter. Gross margin compressed to ~18.9% and earnings before taxes fell to…
10-Q · July 25, 2025
Meritage reported Q2 total closing revenue of $1,623,986,000 and diluted EPS of $2.04. Revenue and gross profit declined versus prior-year quarter (revenue down $69.8M; gross profit down $98.9M) while cash and liquidity…
10-Q · April 25, 2025
Meritage reported Q1 net earnings of $122,806 (diluted EPS $1.69) on total closing revenue of $1,357,525. Gross profit narrowed to $298,815 and earnings before income taxes fell to $160,159 versus the year-ago quarter.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.