TMHC earnings analysis
What we found in TMHC'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
Taylor Morrison reported Q1 revenue of $1,387,092,000 and diluted EPS of $1.01 for the three months ended March 31, 2026, with revenue and profitability meaningfully below the prior-year quarter. Gross margin contracted to 20.96% and operating margin to ~10.01% versus Q1 2025. Operating cash flow was negative $10,431,000 and free cash flow was negative $20,394,000 for the quarter.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue still large but down year-over-year
- Total revenue was $1,387,092,000 for Q1 2026 (Three Months Ended March 31, 2026), down from $1,896,019,000 in Q1 2025 (Three Months Ended March 31, 2025).
- Solid gross margin dollars but margin compression
- Gross margin was $290,638,000 (20.96% of revenue) in Q1 2026 versus $463,274,000 (24.44%) in Q1 2025, indicating a ~3.48 percentage point decline in gross margin.
- Strong home closings revenue component
- Home closings revenue remained the dominant component at $1,311,421,000 in Q1 2026, supporting the bulk of total revenue.
- Balance sheet: inventory and land deposits increased
- Total real estate inventory increased to $6,238,563,000 as of March 31, 2026 from $6,140,663,000 as of December 31, 2025, and land deposits rose to $388,277,000 from $360,690,000.
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.
- Large year-over-year profit decline
- Diluted EPS fell to $1.01 in Q1 2026 from $2.07 in Q1 2025 (Three Months Ended March 31, 2026 and 2025), a decline of about $1.06 per diluted share.
- Operating margin compression
- Operating income implied at $138,914,000 (calculated as gross margin less sales and G&A and unconsolidated losses) for Q1 2026 implies an operating margin of ~10.01%, down from the ~15.0% level reported in the prior-year quarter.
- Negative operating and free cash flow this quarter
- Net cash used in operating activities was $10,431,000 for Q1 2026 and purchases of property and equipment were $9,963,000, implying free cash flow of negative $20,394,000 for the quarter.
- Cash balance declined materially
- Cash, cash equivalents and restricted cash declined to $653,433,000 at March 31, 2026 from $851,231,000 at December 31, 2025, a decrease of $197,798,000.
- Inventory impairment and incentives pressure
- The Company recorded inventory impairment charges of $8,182,000 in Q1 2026 (three months ended March 31, 2026), reflecting price reductions and incentives in certain communities.
- Rising exposure from land banking
- Aggregate exposure to loss under land banking arrangements increased to $245.5 million as of March 31, 2026 from $211.7 million as of December 31, 2025.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.01
- Gross margin
- 20.9568%
- Operating margin
- 10.0136%
- Segment
- Home closings revenue, net: $1,311,421 (thousands) (Three Months Ended March 31, 2026)
- Segment
- Land closings revenue: $14,479 (thousands) (Three Months Ended March 31, 2026)
- Segment
- Financial services revenue, net: $49,264 (thousands) (Three Months Ended March 31, 2026)
- Segment
- Amenity and other revenue: $11,928 (thousands) (Three Months Ended March 31, 2026)
What they said about what is next.
No quantitative forward-looking revenue or EPS guidance is provided in the Form 10-Q. MD&A discloses discrete items (e.g., inventory impairments, land banking exposure) but does not give numeric full-year guidance; formal outlook appears deferred to earnings release/call.
The filing reads worse than the one before it.
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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