Dream Finders Homes Reports 9% Revenue Growth to $1.15 Billion in Q2 2025

Dream Finders Homes, Inc. reported its financial results for the second quarter of 2025, revealing total revenues of $1.15 billion, a 9% increase from $1.06 billion in the same period last year. The company's homebuilding segment generated $1.10 billion in revenue, up from $1.05 billion, while financial services revenues surged to $50.9 million, compared to just $3.5 million in the prior year. Despite the revenue growth, net income for the quarter fell to $56.6 million, down from $80.9 million in Q2 2024, reflecting a decrease in profitability attributed to rising costs and increased selling, general, and administrative expenses.

The company's balance sheet showed significant changes, with total assets increasing to $3.65 billion as of June 30, 2025, compared to $3.33 billion at the end of 2024. This growth was driven by higher inventories, which rose to $1.99 billion from $1.72 billion, and an increase in cash and cash equivalents, which totaled $210.3 million, down from $274.4 million. Total liabilities also increased to $2.14 billion, primarily due to a rise in borrowings under the revolving credit facility, which reached $1.14 billion, up from $701.4 million at the end of 2024.

Strategically, Dream Finders made several acquisitions in 2025, including Alliant Title, a title insurance underwriter, for $40.2 million, and Green River Builders for $32.8 million. These acquisitions are expected to enhance the company's financial services offerings and expand its market presence, particularly in the Southeast region. The company also reported a significant increase in active communities, which rose to 271, a 22% increase from the previous year, indicating a positive trend in operational expansion.

Operationally, Dream Finders experienced a 10% increase in home closings, totaling 2,232 for the quarter, while the average sales price of homes closed decreased by 7% to $481,027. The cancellation rate for home sales increased slightly to 14.0%, up from 13.2% in the prior year. The company’s backlog of homes decreased significantly, with 2,513 homes valued at approximately $1.2 billion, down 40% in units and 43% in value compared to the previous year, reflecting a shift towards more move-in ready homes.

Looking ahead, Dream Finders remains optimistic about its long-term growth prospects despite current market challenges, including high mortgage rates and affordability issues. The company plans to continue leveraging its asset-light lot acquisition strategy and expanding its operational footprint in high-demand markets. However, management cautioned that the macroeconomic environment may continue to impact sales and profitability in the near term.