Dream Finders Homes Reports 19.6% Revenue Growth to $989.9 Million in Q1 2025

Dream Finders Homes, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenues reaching $989.9 million, up 19.6% from $827.8 million in the same period last year. The homebuilding segment contributed $970.1 million, a rise of 17.5% from $825.2 million, while financial services revenues surged to $19.8 million from $2.6 million, reflecting the consolidation of Jet HomeLoans. Despite these gains, net income attributable to Dream Finders Homes was $54.9 million, slightly up from $54.5 million in the prior year, indicating a stable profitability level amid rising costs.

The company experienced notable changes in operational metrics, with home closings increasing by 16% to 1,925 units compared to 1,655 units in the previous year. The average sales price of homes closed rose marginally to $498,284, up from $494,995. However, the backlog of homes decreased significantly, with 2,802 homes valued at approximately $1.4 billion, down 38% in units and 40% in value from the previous year. This decline in backlog reflects a strategic shift towards selling more move-in-ready homes rather than pre-orders, which has been a response to current market conditions.

Strategically, Dream Finders made significant acquisitions, including Liberty Communities on January 23, 2025, for $111.5 million, which expanded its operations into the Atlanta market and enhanced its presence in Greenville, South Carolina. The acquisition is expected to contribute positively to future revenues, with Liberty generating $38.3 million in homebuilding revenues during the quarter. Additionally, the company announced the acquisition of Alliant National Title Insurance Company on April 18, 2025, further diversifying its financial services segment.

Operationally, Dream Finders reported a total employee headcount of 1,200 as of March 31, 2025, reflecting growth in its workforce to support expanded operations. The company also noted an increase in customer engagement, with net sales rising by 18% to 2,032 homes. However, the cancellation rate improved to 11.7%, down from 21.0% in the previous year, indicating a more stable market environment for homebuyers. The company continues to focus on its asset-light strategy, maintaining a robust pipeline of controlled lots through option contracts, which totaled 60,538 lots as of March 31, 2025.

Looking ahead, Dream Finders remains optimistic about its growth prospects, citing favorable demographic trends and a limited supply of affordable homes in its markets. The company plans to leverage its recent acquisitions and ongoing operational expansions to drive future revenue growth, despite the challenges posed by elevated mortgage rates and inflationary pressures affecting homebuyer demand. The management anticipates that these factors will support continued demand for its homes and enhance inventory turnover in the coming quarters.