SDHC earnings analysis
What we found in SDHC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Smith Douglas Homes reported a decrease in revenue and margins in Q1 2026, with home closing revenue falling to $206.4 million, an 8.1% decline year-over-year. Diluted EPS dropped to $0.06, representing a 79.1% decrease from the prior year, reflecting operational challenges despite increased order activity and backlog.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Home closing revenue fell to $206.4M, down 8.1% from $224.7M in Q1 2025.
- Significant EPS Drop
- Reported diluted EPS of $0.06 decreased 79.1% from $0.30 in the previous year.
- Net New Orders Surge
- Net new home orders increased by 27.7%, reaching 981 units compared to 768 in Q1 2025.
- Backlog Homes Up
- Total backlog homes increased to 869, a 10% rise from 791 in the same period last year.
- Increased Cash Position
- Cash and cash equivalents rose to $28M from $12.7M year-over-year.
- Reduced Interest Expense Impact
- Interest expense increased marginally by 27.3% to $0.848M compared to $0.666M in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decreased Home Closings
- Home closings fell to 624, a 7% decrease from 671 in Q1 2025.
- Gross Margin Compression
- Home closing gross margin shrank to 19.6%, down from 23.8% in the prior year.
- Decline in Income Before Taxes
- Income before taxes dropped 77.9% to $4.3M from $19.6M in Q1 2025.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.06
- Gross margin
- 19.6%
What they said about what is next.
Outlook deferred to earnings call.
The filing reads worse than the one before it.
What came before.
- 10-K · March 12, 2026
- Smith Douglas reported a Q4 2025 revenue beat with home-closing revenue of $260,429,000 and delivered full-year revenue roughly $971.0 million (sum of quarterly results). Profitability and cash flow compressed through…
- 10-Q · November 5, 2025
- Q3 results showed revenue of $262,041,000 (beat consensus) but diluted EPS of $0.24 missed estimates. Margins compressed materially year-over-year (gross ~21.0%, operating ~7.2%) while inventory and financed land…
- 10-Q · May 14, 2025
- Smith Douglas Homes reported Q1 home closing revenue of $224,722,000, up $35,513,000 (+18.8%) versus $189,209,000 in Q1 2024, but margins compressed with home closing gross profit of $53,530,000 (23.8% gross margin) and…
- 10-Q · August 14, 2024
- Q2 results beat consensus: revenue of $220,933,000 and EPS of $0.40 (vs. $209,140,000 est. and $0.37 est.). Revenue and profitability improved vs the prior quarter (Q1 revenue $189.0M → +$31.9M; gross margin +0.6 ppt to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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