Here are 1-3 brief analogies for LGI Homes (LGIH):

• LGI Homes is like the IKEA of new homes.
• LGI Homes is like the McDonald's of new home construction.

• Single-family homes: These are detached residential properties built for individual families, often designed with included upgrades and appealing to first-time homebuyers.
• Townhomes: These are multi-story homes that share one or more walls with adjacent units, providing an affordable homeownership option in various communities.

LGI Homes (LGIH) primarily sells homes directly to individuals rather than to other companies.

The company serves the following categories of individual customers:

• First-time Homebuyers: LGI Homes specializes in assisting individuals and families purchase their very first home, often providing programs and simplified processes to make homeownership accessible.
• Entry-Level Homebuyers: This category includes buyers seeking new, affordable homes, often transitioning from renting. LGIH focuses on offering value-driven homes at accessible price points.
• Renters Seeking Homeownership: A significant portion of LGI Homes' customer base consists of individuals and families who are currently renting and aspire to own a home. The company's sales model and product offerings are tailored to help these renters achieve homeownership.

Eric Lipar, Chief Executive Officer & Chairman of the Board

Mr. Lipar co-founded LGI Homes in 2003, serving as its President from 2003 to 2009, and as Chief Executive Officer since 2009. He has been involved in the residential land development business since the mid-1990s and has overseen land acquisitions, development, and the sale of over 75,000 homes since LGI Homes' inception. Additionally, he was involved with LGI Development, a company his father started, where they sold acreage lots.

Charles Merdian, Chief Financial Officer & Treasurer

Mr. Merdian has served as Chief Financial Officer since 2010 and Treasurer since 2013. He was previously the Controller for LGI Homes from 2004 to 2010. Before joining the company in 2004, he was an Accounting and Finance Manager for The Woodlands Operating Company, where he specialized in accounting and financial analysis of real estate ventures. His career also includes roles as an Accounting Manager at Williamson-Dickie Manufacturing Co. and a Senior Auditor for Coopers & Lybrand, L.L.P. He has worked in residential real estate and homebuilding finance since 1998 and is a Certified Public Accountant.

Mike Snider, President & Chief Operating Officer

Mr. Snider has held the role of President since 2009 and Chief Operating Officer since July 2013. Prior to these positions, he served as Executive Vice President of Homebuilding from 2005 to 2009 and as Homebuilding Manager in 2004 at LGI Homes. Before joining LGI Homes in 2004, he worked as a Project Manager for Tadian Homes. He is responsible for all aspects of LGI Homes' sales, construction, and product development.

Scott Garber, General Counsel and Corporate Secretary

Mr. Garber has served as General Counsel and Corporate Secretary since April 2018, overseeing all company legal matters, corporate governance, and risk management. Before joining LGI Homes, he was Assistant General Counsel at Chevron Phillips Chemical Company from 2012 to 2018. His experience also includes serving as Associate General Counsel for United Airlines (formerly Continental Airlines) and specializing in intellectual property law at Howrey Simon Arnold & White, a major international law firm.

Rachel Eaton, Chief Marketing Officer

Ms. Eaton has been the Chief Marketing Officer of LGI Homes since June 2013. She began her career at LGI Homes as an Executive Assistant and Administrative Assistant, later advancing to Director of Marketing & Special Events.

1. Persistent High Interest Rates and Buyer Affordability

   LGI Homes faces a significant challenge from persistently high interest rates, which directly impact the affordability for potential homebuyers, especially those transitioning from renting or seeking entry-level homes. These elevated rates contribute to a slower sales pace, increased competition, and can make homeownership less attractive or feasible for the company's target demographic. If high interest rates continue, LGI Homes may experience sustained pressure on sales volumes and potentially on profit margins, possibly necessitating more incentives or price adjustments to maintain demand.

2. Scrutiny Over Sales Practices and Foreclosure Rates

   LGI Homes is currently under heightened scrutiny due to allegations of misleading sales tactics and higher foreclosure rates among its buyers. This negative media coverage and increasing focus on sales quality introduce a material risk, potentially leading to intensified regulatory scrutiny, diminished buyer trust, and adverse effects on the company's sales and margins. The company's business model, which heavily relies on converting renters into homeowners, is particularly vulnerable to concerns regarding its sales strategies and buyer financial risk.

3. Significant Debt Burden and Cash Flow Concerns

   The company operates with a notable debt burden, with its debt-to-equity ratio at 0.85, and has experienced a decline in its return on equity. Concerns have also been raised regarding LGI Homes' cash runway, as it burned through a significant amount of cash in recent years, while its debt substantially exceeds its cash on hand. This financial leverage, coupled with declining backlog and fewer profitable growth opportunities, poses a risk of potential dilution for shareholders if the company needs to raise capital under unfavorable conditions to sustain operations.

The increasing viability and scaling of advanced construction technologies, such as modular construction, prefabrication, and potentially 3D printing. These methods promise faster build times, greater cost efficiencies, reduced reliance on traditional skilled labor, and improved quality control compared to conventional stick-built construction. As these technologies mature and achieve wider adoption, they could directly challenge the competitive advantages of traditional volume homebuilders like LGIH, particularly in the entry-level and affordable housing segments. This shift could lead to new market entrants or existing competitors adopting these more industrialized building methods to deliver homes more quickly and at potentially lower price points, thereby disrupting LGIH's market share and profitability.

Here are 3-5 expected drivers of future revenue growth for LGI Homes (LGIH) over the next 2-3 years:

1. Expansion of Active Selling Communities: LGI Homes plans to significantly increase its number of active selling communities. The company aims for 160 to 170 active communities by the end of 2025, and projects community count to grow by 10% to 15% by the end of 2026. This expansion directly translates to a broader reach and increased potential for home sales.
2. Increased Home Closings and Sales Volume: Management anticipates a rise in home closings, with a projected 26% increase in Q4 2025 closings compared to Q3 2025. For the full year 2025, LGI Homes expects to close between 6,200 and 7,000 homes. Higher volumes of home sales are a direct driver of revenue growth.
3. Strategic Focus on Entry-Level Buyers and Affordability Initiatives: LGI Homes' core business model is centered on offering affordable, quality homes to entry-level homebuyers. The company is implementing strategic initiatives such as innovative financing options and promotional mortgage rates (e.g., 3.99% promotional rates) to attract these buyers, especially amid ongoing affordability challenges. This focus helps to expand their customer base and drive sales.
4. Geographic Market Expansion and Deepening Presence: LGI Homes is actively expanding its footprint by opening new communities in various markets and deepening its presence in existing key regions. Examples include opening new communities in the Albuquerque market in August 2024, expanding in the Charlotte market in July 2023, and growing its presence near Fort Pierce, Florida, in August 2025. Management also highlighted a prioritization of Florida and Texas markets for community expansion through 2026. These expansions open up new revenue streams and increase market share.
5. Disciplined Land Acquisition and Development Strategy: The company's strategy involves a flexible approach to land acquisition, including purchasing and optioning finished lots and raw land, with a focus on maintaining low lot costs. LGI Homes reported 67,792 owned and controlled lots as of March 31, 2025, indicating a robust pipeline for future community development and sustained homebuilding activities. This strategy helps ensure a steady supply of inventory and supports long-term revenue growth.

Share Repurchases

• LGI Homes repurchased $193.8 million of common stock in 2021.
• The company repurchased $95.1 million of common stock in 2022, including $57.66 million in Q1 and $37.44 million in Q2.
• In 2024, LGI Homes repurchased $31.0 million of common stock, with $10.00 million in Q1, $8.00 million in Q2, and $12.80 million in Q4. As of December 31, 2023, $211.5 million remained authorized for future share repurchases.

Share Issuance

• No significant dollar amount of shares issued for cash was identified in the last 3-5 years.

Inbound Investments

• No information is available regarding large inbound investments made in LGI Homes by third-parties within the last 3-5 years.

Outbound Investments

• No information is available regarding LGI Homes making strategic investments in other companies within the last 3-5 years.

Capital Expenditures

• Capital expenditures were reported as -$1.7 million in 2021, -$1.2 million in 2022, -$1.4 million in 2023, and -$2.0 million in 2024.
• These capital expenditures, given their relatively small amounts for a homebuilder, typically focus on property, plant, and equipment such as office improvements, technology, and operational machinery, rather than land acquisition or direct home construction.
• The primary focus of the company's broader investments is the acquisition and development of land for residential communities, which is generally classified as inventory in homebuilding accounting.