$DHI D.R. Horton Q3 2026 Earnings Conference Call

Good morning and welcome to the third quarter 2026 earnings conference call for Dior Orton, America's builder. At this time, all participants are in a listenon mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the call over to Jessica Hansen, senior vice president of communications for Dior Horton.

Thank you, Paul, and good morning. Welcome to our call to discuss our financial results for the third quarter of fiscal 2026. Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although Dear Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to Dr. Horton on the date of this conference call and Dr. Horton does not undertake any obligation to publicly update or revise any forward-looking statements. Additional information about factors that could lead to material changes in performance is contained in Dr. Horton's annual report on form 10K and its most recent quarterly report on form 10Q, both of which are filed with the Securities and Exchange Commission. This morning's earnings release and our supplemental data presentation can be found on our website at investor.diorhorton.com and we plan to file our 10Q later this week. After this call, we will also post our updated investor presentation to our investor relations site on the presentation section under news and events for your reference. Now, I will turn the call over to Paul Romanowski, our president and CEO.

Thank you, Jessica, and good morning. I'm pleased to also be joined on this call by Mike Murray, our chief operating officer, and Bill Wheat, our chief financial officer. The Dr. Horton team delivered a solid third quarter, highlighted by earnings per diluted share of $3.20. Consolidated pre-tax income totaled $1.2 billion on $9.2 million of revenues, resulting in a pre-tax profit margin of 13.3%. We closed 23,983 homes during the quarter, which was at the high end of our guidance range, and achieved a home sales gross margin of 20.7%. We remain focused on capital efficiency to generate strong operating cash flows and deliver compelling returns to our shareholders. Over the past 12 months, we generated $3.4 billion of cash from operations and returned all of it to shareholders through repurchases and dividends. For the trailing 12 months ended June 30th, our home building pre-tax return on inventory was 17%. While our consolidated returns on equity and assets were 12.8% and 8.5%. Our return on assets ranks in the top 20% of all S&P 500 companies for the past three, five, and 10-year periods, demonstrating that our disciplined, returns focused operating model delivers sustainable results and positions us well for continued value creation. We work every day to leverage our industry-leading platform, unmatched scale, efficient operations, and experienced teams to bring home ownership opportunities at affordable price points to more Americans. 65% of our mortgage company's closings this quarter were to firsttime home buyers. Our teams manage each community with discipline, balancing pace, price, incentives, and inventory levels to meet demand and maximize returns. Affordability constraints and cautious consumer sentiment continue to impact new home demand, and our operators will continue to adjust as market conditions evolve. Mike, earnings for the third quarter of fiscal 2026 were $3.20 per diluted share compared to $3.36 per share in the prior year quarter. Net income for the quarter was $95 million on consolidated revenues of $9.2 billion. Home sales revenues in the third quarter totaled $8.7 billion on 23,983 homes closed compared to $8.6 billion on 23,160 homes closed in the prior year quarter. Our average closing price was flat sequentially and down 2% year-over-year to $362,000. This is below the average price of new homes in the United States by approximately $155,000 for 30% reflecting our continued focus on affordability. Bill net sales order value in the third quarter totaled $8.4 billion on 23,084 homes sold, both flat with the prior year quarter. Our cancellation rate for the quarter was 20%. Up from 17% in the prior year period and from 16% sequentially within our normal historical range. The average number of active selling communities increased 2% sequentially and 9% year-over-year. The average price of net sales orders was $365,600, essentially flat both sequentially and year-over-year. Jessica,

Our gross profit margin on home sales revenues in the third quarter was 20.7%. Above the high end of our guidance range, reflecting lower stick and brick costs and slightly lower incentives than the second quarter. However, we expect incentives to remain elevated relative to historical levels. On a per square foot basis, home sales revenues and lot costs were flat sequentially, while stick and brick costs were down 2%. Year-over-year, home sales revenue was down 3%, stick and brick costs were down 5% and lot costs were up 5%. We currently expect our home sales gross margin to be relatively flat in the fourth quarter compared to the third quarter. Bill,

Started 23,900 homes in the third quarter and we ended the quarter with 38,000 homes in inventory down 1% both sequentially and year-over-year. 23,300 of our homes at June 30th were unsold. 7,600 of our total unsold homes were completed, of which 600 have been completed for more than 6 months. For homes closed in the third quarter, our median cycle time from home start to home close improved by roughly 3 weeks year-over-year. Our improved cycle times enable us to hold less housing inventory and turn it more efficiently. We expect starts in the fourth quarter to be lower than the third quarter and we will continue to manage our inventory levels and starts pace based on market conditions. Mike, our home building lock

Position at June 30th consisted of approximately 570,000 lots of which 22% were owned and 78% were controlled through purchase contracts. We continue to actively manage our investments in lots, land, and development based on market conditions. We remain focused on relationships with land developers across the country so we can build more homes on lots developed by others. This approach enhances our capital efficiency, returns, and operational flexibility. Our own lot position is down 13% from a year ago and in the third quarter 67% of the homes we closed were on lots developed by either fourstar or third parties, up from 66% in the prior year quarter. During the third quarter, our home building investments in lots, land, and development totaled $2.1 billion, including $1.5 billion for finished lots and $520 million for land development and $75 million for land acquisition. Paul, in the third quarter, our rental

Operations generated $31 million of pre-tax income on $266 million of revenues from the sale of 601 single family rental homes and 339 multifamily rental units. At June 30th, our rental property inventory totaled $3 billion, including $2.7 billion of multifamily rental properties and $321 million of single family rental properties. We remain focused on improving the capital efficiency and returns of our rental operations, and we currently expect our rental inventory to remain around $3 billion. Turning to our financial services operations, pre-tax income for the third quarter was $70 million on $221 million of revenues, resulting in a pre-tax profit margin of 31.9%. Mike Fourstar, our majorityowned residential lot development company, reported third quarter revenues of $47 million on 3,659 lots sold with pre-tax income of $49 million. At June 30th, FourStar's owned and controlled lot position total 92,000 lots. 66% of FourStar's owned lots are under contract with or subject to a right of first offer to Dr. Horton. During the third quarter, we purchased $360 million of finished lots from Fourstar. Fourstar's strong, separately capitalized balance sheet, national operating platform, and lot supply position them well to provide essential finished lots to the home building industry and to continue aggregating significant market share over the next several years. Bill, our capital

Looking ahead to the fourth quarter, we currently expect consolidated revenues to be in the range of 8.8 to $9.3 billion with homes closed by our home building operations to be in the range of 22,500 to 23,000 homes. We expect our home sales gross margin for the fourth quarter to be in the range of 20.5 to 21% and our consolidated pre-tax profit margin to be between 12.3% and 12.8%. For the full year of fiscal 2026, we now expect consolidated revenues of approximately 32.5 to $33 billion and homes closed by our home building operations of 83,800 to 84,300 homes. We now forecast an income tax rate for fiscal 2026 of approximately 25% and still expect operating cash flow of at least $3 billion, common stock repurchases of approximately $2.5 billion, and dividend payments of around $500 million. Paul,

In closing, our results and positioning reflect the strength of our experienced teams, industryleading market share, broad geographic footprint, and focus on delivering quality homes at affordable price points. These are key components of our operating platform that support our ability to grow market share, generate substantial operating cash flows, and consistently return capital to our shareholders. We recognize the current volatility and uncertainty in the broader economy and we will remain agile and disciplined as we focus on enhancing the long-term value of Dr. Horton. Finally, I want to thank the entire Dr. Horton family, our employees, land developers, trade partners, vendors, and real estate agents for your continued dedication and hard work. We remain committed to continuing to improve our operations and creating home ownership opportunities for even more individuals and families. This concludes our prepared remarks. We will now host questions.

Thank you. At this time, we'll be conducting a question and answer session. In the interest of time, we ask that participants limit themselves to one question and one follow-up on today's call. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions.

And the first question today is coming from John Lavalo from UBS. John, your line is live.

Good morning, guys. And thanks for taking my questions. The first one is that stabilization is something we've heard numerous times in our channel checks despite continued volatility from not only an interest rate but a geopolitical standpoint. I mean would you agree with that assessment and you think that we're kind of getting to a point where we're starting to form a bottom here?

I would say that when looking at our sales, our sales were relatively in line with normal seasonality. They were a little softer post our call in April. And still see plenty of buyers out there in our sales offices as we travel and in front of people. It's just needing to see them be a little more confident in the overall economy and in their ability to move forward with a purchase today.

Understood. And you guys slightly pulled back, I think about 3% on your full year deliveries despite being within actually towards the upper end of the third quarter range and with flattish or orders on a year-over-year basis. So, I guess is the trimmed outlook predominantly driven by just uncertainty in consumer confidence and geopolitics as we move into the fourth quarter? Is it a function of maybe lower than internally expected orders in the third quarter or you just kind of moderating growth to maintain margin?

It was lower than our internal expected sales rate. We really needed to see a little better than normal seasonality in the quarter and felt like we could see that at the beginning of the quarter that demand softened a little bit as we went through the quarter and hence the reduction in our annual guide. But to your point, John, happy with the trade-off of what we were able to achieve from a gross margin perspective at the lower sales volume level.

Yeah, 100%. Thank you, guys.

Thank you. The next question will be from Steven Kim from Evercore. Stephen, your line is live.

Yeah, thanks very much, guys. Impressive results in what I consider to be a pretty tough environment, but that's kind of the related to my first question. When you think about the current environment and you look at your outlook for let's say long-term through cycle returns, how do these current results stack up relative to that? Like do you regard your current returns as about average longer term or if not what are the elements that you expect might push your returns higher or lower over the longer term?

Well, that's encouraging. And appreciate that color, Bill. Second question kind of relates to scale and I think you talked about when growth returns that's when you think SGNA could be levers and that makes sense. So, however, I was curious if you could contextualize that given the fact that we've seen a lot of consolidation in the industry from competitors, let's say both foreign and domestic. I'm wondering if you can comment on how you think about your opportunity set from a scale perspective particularly. I know you've been hard at work generating a lot of economies of scale and your volume is kind of stabilized here but you still talk about future growth and so I'm curious can you talk about what the importance of scale for you to achieve the efficiencies that you desire. Should we be thinking there's another sort of step function higher in volume that could unlock some of these opportunities or maybe you could walk us through that. Thanks.

Steve, when you look at our scale today or at our revenues and absorption being relatively flat over the last couple years, that's while we have been expanding our footprint. We've opened 30 or so markets over the last five years and we've lacked some leverage on our SGNA because of creating that footprint. But I think that footprint geographically puts us in a great position as we see demand rebound a little bit. We see some strengthening in consumer confidence and demand. We feel we're in a great position to gain scale nationally. We also feel very good about our positioning at a local level. That scale is still very important to us. We see the benefits of it, believe in it, talk about it, and still have our operators in a position to maintain their position in the market and grow when the opportunities are there for us.

And as a reminder, we're only number one in half of the markets we operate in today. So, we still have a lot of opportunity to continue to grow our share locally across the country.

That's great perspective. Appreciate that, guys.

Thank you. The next question will be from Alan Ratner from Zelman. Alan, your line is live.

Hey guys, good morning. Thanks for the detail so far and taking my question. Obviously very impressive results on the gross margin. It looks like a lot of that has been driven by really strong cost controls and I'm curious, as you think about the cost environment today. Obviously you've done a great job of pushing back on suppliers and trades and driving down costs where you can. Where do you think you are in that process? Because, as we look at at least the announcements on Canadian concrete, I'm not sure how big of a piece of your business that is. Fuel remains elevated. So, do you feel like there's still further room to drive costs lower or is there a risk over the next handful of quarters that that could actually reverse given all of those headwinds I just mentioned?

We lost a little bit of your question, Alan, but I think I got the gist of it. We've seen good improvement in our cost containment efforts compared to the prior year. But it's an ongoing battle and there is certainly some headwind out there right now with some fuel cost increases. I don't believe the Canadian recently announced Canadian tariff changes are going to have a material impact on Dr. Horton and our footprint. But I'm looking for us to hang on to perhaps squeeze out a little additional cost improvements in future quarters, but it's more challenging now just as you get closer to an optimal state to get significant improvement going forward.

Thanks very much.

Thank you. The next question will be from Matthew Bully from Barclays. Matthew, your line is live.

Morning everyone. Thanks for taking the question. Want to ask on incentives. I think you said the incentives were slightly lower quarter over quarter. And so you mentioned demand softened a bit during the quarter. It looked like finished spec came up slightly and obviously interest rates are where they are. It seems like obviously you're still guiding to that flattish sequential gross margin going forward. So maybe you just kind of unpack what's assumed around incentives there and why wouldn't there be an incremental incentive headwind going forward. Thank you.

Okay, got it. Thank you for that. And then secondly, stepping back, wanted to ask about your exposure to the first-time buyer. I think it looks like you're around 2/3 today first-time buyer and we can go back any number of years. Once upon a time that was half the business, maybe even less than half the business. So, it's been a very steady mix towards that first-time buyer. And so, given the state of the first-time buyer today, would you say that the two-thirds of the business you're at now maybe stabilizes, do you expect it to actually continue to move higher? If you look at it as we are kind of the answer to the affordable needs of the country today or would you actually look at it and say maybe we do want to mix a little bit back towards that kind of first-time move up buyer. So just curious on how you're positioning the business from that perspective on a multi-year time frame. Thank you.

The positioning of our business today lends itself to still seeing a significant portion of our buyers in that two-thirds range as first-time home buyers. There's some opportunity to go up some. We'll certainly take it. If we see more buyers out there, we're happy every day to sell them a home. That said, as we penetrate markets, we also take the opportunity to move up market a little bit. So I think blending that at a community level and at a division level, our operators are charged every day to find the market, go meet that market, but I would expect us to see a first-time home buyer segment relatively consistent with what we see this quarter.

All right. Well, thank you, Paul. Good luck, guys.

Thank you. The next question will be from Eric Bosard from Cleveland Research. Eric, your line is live.

Good morning. The stick and brick down 5%. Curious where you're seeing that if labor is a meaningful piece of that. And then the path forward you expect from here and how this is influencing or contributing to gross margin.

Sure, Eric. The majority of the savings we're seeing is still on framing, which would be inclusive of labor. As I think we've talked about previously, we pay for a lot of things turnkey, so we can't split it out for you perfectly, labor versus materials, but framing was our biggest cost category of savings. Very positively though, across all of our major cost categories, we saw a decline in terms of our costs on closings in the third quarter. And so, I think we expect that to hold at least into Q4. Maybe into 27 we start to have a slight lumber headwind again with where lumber prices have gone, but we feel good for at least the next quarter or so.

And then in terms of how that is supporting gross margin or supporting the ability to increase incentives, how are you thinking about that or planning that or how is that playing out?

Incentives in the cost structure and incentives in our mind are kind of separate things. We think about the home we want to deliver on the lot. Try to build it as efficiently as possible and then look to go to market with the appropriate price and incentives that stimulate demand in the marketplace to get the pace we need to drive the return we need and then manage the return on the basis of trying to pull back or increase incentives to stimulate demand or to improve margin. Two separate parts of the equation for us.

Okay. And then secondly, you were relatively clear that in the quarter a little less volume, a little bit more margin. Is this the path forward strategically? I know it moves around, but is that kind of plan A from here?

That was our plan this past quarter and we're going to respond to the market based on what we see quarter to quarter, month to month, really week to week. So, we're managing our business very efficiently, responding to the market as it comes to us. Our operators did a great job of delivering on the quarter in terms of our guidance in closings and in margin. We did make the decision to hold margin a little more than push into the units and hence the reduction in our guide for the year. But we're going to continue to manage the business as efficiently as we can to drive the best returns that we have at a community level.

Thank you.

Thank you. The next question will be from Sam Reed from Wells Fargo. Sam, your line is live.

Thanks so much everyone and good quarter. You gave a lot of helpful color on lock cost inflation. I believe it was up about 5% year-over-year in the third quarter. Curious as to what's embedded for lot cost inflation in the fourth quarter and then contextualize where you see that line item potentially tracking into next year whether you

Expect to get some help just from slack in the horizontal supply chain or whether there could be some implications from higher oil costs on some of those horizontal lot inputs. Thanks.

That's helpful. And maybe let's switch gears and quickly touch on SGNA. You know, there was a step up in SGNA spend on a dollar basis. Realize there was probably some community count embedded in that, but just if you could contextualize some of the levers behind the higher year-over-year home building SGNA dollars just so we can understand how we should be thinking about that both for the quarter and also for FQ4. Thanks.

Thanks so much. I appreciate it.

Thank you. The next question will be from Ryan Gilbert from BTIG. Ryan, your line is live.

Hi, thanks. Good morning, everyone. I wanted to circle back on the finish spec inventory question. It does look like finish specs are up around 2100 homes sequentially. I think that's more than the typical sequential increase. Is that more than you expected? And is that tied to some of the softer results in May and June versus what you saw in mid-April? And then how should we think about potential gross margin implications for right sizing the spec count?

Yeah. And as we said in the scripted part, we do expect our Q4 starts to be lower than Q3, and we'll continue to adjust our starts accordingly based on the demand that we're seeing. Of our total completed specs, only 600 have been completed and unsold for greater than six months. And that's actually down from 800 sequentially. So to Mike's point, the vast majority of our completed specs are very fresh.

Right? Okay. Yep, that makes sense. Thanks. And then second question is on community count growth. I think you've talked in the past about that growth rate decelerating to kind of a mid-single-digit rate at some point in time. I'm just wondering given the continued declines in the control block count, should we recalibrate that mid-single-digit growth rate expectation or do you think you can continue to grow community count despite lower control lots?

Okay, great. Thanks so much.

Thank you. The next question will be from Anthony Pinari from City. Anthony, your line is live.

Good morning. I was wondering if you could talk about any meaningful regional variation you're seeing in terms of demand and any MSAs that stand out as being stronger or weaker. And I guess related question, we've heard about some MSAs with tech exposure being strong, like Bay Area, some others like Seattle being weak. Is there anything you're sort of observing there? It's kind of sometimes hard to tell whether that's a plus or a minus, but

Okay. And then any other regional variations that you'd highlight in terms of, I don't know, Sun Belt or Northeast or

Great. And then I guess one last one. Stick and brick costs down year-over-year. You've taken down cycle times year-over-year. Is there sort of a theoretical limit or floor for cycle times? Just generally how should we think about that?

Understood. I'll turn it over.

Thank you. The next question will be from Rafe Jadrasich from Bank of America. Rafe, your line is live.

Hi, good morning. Thanks for taking my question. First, can you remind us the lag between when lumber prices move and when it shows up in your gross margin for delivered homes?

A few so three

Two to three. Okay. And then the second question, your operators have been pretty nimble sort of balancing margin and volume and coming earlier this year it seemed like there was more of a push into volume in the first half and there's been an adjustment here. Can you just talk about maybe what you're seeing out there that caused that shift? Is it where Q3 orders came in? Is the outlook for the fourth quarter and then what would it take to get you to shift back to more aggressive volume given the growth ambitions you have longer term and the strong lot pipeline?

Thank you. That's very helpful.

Thank you. The next question will be from Trevor Allensson from Wolf Research. Trevor, your line is live.

Hi, good morning. Thank you for taking my questions. First question is back on incentives and your rate buy down program. With rates moving higher through the quarter, have you made any adjustments to those programs? And if so, can you talk about what rate you were buying down to on average currently and how does that compare to recent quarters?

It was actually the first quarter that we did see our rate in backlog tick up because of that move in rates. So we saw our average buy down decreased slightly to 1.6% from 1.7% in the second quarter. And the mortgage rate for our buyers in backlog utilizing our mortgage company at June 30th was 4.9% against a rough market rate of about 6.5%. So we're still in the market pretty consistently with anywhere from 4.99% to 5.5% depending on mortgage product. We have an array of offerings so you'll find some things outside of that band but that would be the largest piece of our offering today.

Okay, thank you for that Jessica. And then second question, last quarter you talked about selling specs earlier in the construction cycle expecting that to provide some gross margin benefits. Can you quantify or at least talk about any of the benefit you saw in Q3 from that process and should we expect incremental tailwinds from selling earlier in the construction process in Q4? Thanks.

Thank you for all the color and good luck moving forward.

Thank you. The next question will be from Susan McClary from Goldman Sachs. Susan, your line is live.

Thank you. Good morning, everyone. My first question is on the rental side of the market. Can you talk about what you're seeing there, especially post the housing legislation that passed and how you're thinking about the outlook in terms of that part of the business?

Okay, that's helpful. And then digging into the priorities of capital allocation, you reiterated the guide for the $2.5 billion of buybacks. Considering though where you are already coming into this quarter and the seasonality of the cash flows, how should we think about the potential for some upside there? What are you watching for to get more active in that? And can you talk about any other priorities in terms of capital allocation?

Okay. Thank you. Good luck.

Thank you. The next question will be from Mike Dal from RBC Capital Markets. Mike, your line is live.

Morning. Thanks for taking my questions. Maybe to expand on Susan's question. Can you just broaden out and give us your perspective now that the road to housing has officially passed and all the final details? Give us your view on puts and takes and whether or not anything really is impactful aside from what you just commented on on the SFR or BTR dynamic.

Got it. Okay. Appreciate that. And then just shifting gears back to the land dynamic. Your land acquisition spend in particular has been coming down and obviously that's kind of alongside the lot count, but can you give us your perspective on the land market right now and how you're managing that? Seems like for the time being, even as you enter new markets and try to build those positions, you're comfortable moving to the sidelines a bit on acquisition or shrinking your lot count a little. Just curious to get your updated views on how that market's evolving.

Great. Appreciate that. Thanks.

Thank you. The next question will be from Buck Horn from Raymond James. Buck, your line is live.

Hey, thanks. Good morning. I'm just wondering if you could go back to the inter-quarter demand trends a little bit as it relates to the can rate. As demand seasonally softened into May and June, was the can rate increase back-loaded or was it more of a slowdown in the incoming gross orders or some combination of both?

Yeah, it was a little bit of both. As we saw a bit of softening mid-quarter and in the later part of the quarter, our can rate did tick up alongside that. And so that was something that our operators were adjusting through throughout the quarter. Even our exit rate can rate wise for the quarter was still well within our normal historical range.

Awesome. That's helpful, Jessica. Appreciate that. And what were the largest reasons for cancellation in the quarter? Was it the ability to qualify or just cold feet or any other reasons?

Yeah, it's still largely qualification as it historically has been. We have general lack of confidence. We'd love to see a bit more confidence among our buyers today, but qualification is still largely the biggest reason for cans.

Got it. Thanks guys. Appreciate it.

Thank you. The next question will be from Kenneth Zener from Seaport Research. Kenneth, your line is live.

Good morning everybody. Hello. Just checking. Your gross margin beat. Can you talk to, I mean your regional segment results are very consistent versus other builders. So what kind of led to the modest beat that you guys had? Was it regional mix? Can you talk to if these newer 30 markets which you said Bill have higher SGNA, do they also have higher gross margins? Thank you.

Morning Ken.

Okay. And then you talked about Q4 starts being below Q3, which is not heroic. Last year your starts were 14.5 thousand. Is that the range that we should be thinking about given that occurred last year? I'm just trying to think about your base of inventory units, which historically you said are ending inventory times two. That was your long-term revenue outlook. Now you're a little more efficient, so it could be higher than that. But I'm trying to think where you're bringing starts in Q4 and inventory for your 27th positioning.

Really. Okay. Do appreciate it. Thank you.

Thank you. The next question will be from Jade Rammani from KBW. Jade, your line is live.

Thank you very much. Just the multifamily inventory given where rates are and cap rates in the market as well as supply overhang. What's the outlook for stabilizing and moving that inventory?

Thank you. And then on the technology side, was wondering if there's anything in off-site manufacturing or AI you're seeing that looks promising. The housing legislation included some manufacturing housing incentives and maybe that's an area of potential synergy. Just curious about your thoughts there.

Thank you.

Thank you. The next question will be from Jay Mccandas from Citizens. Jay, your line is live.

Hey, good morning everyone. So my first question, nice to see the backlog price up year-on-year for the first time in several quarters. Is that just a function of mix or were you guys able to find some pricing power in some of these markets?

Yes. And then the second question, looking at July and rates have been moving up pretty aggressively, what have you seen so far on traffic and demand? And also as part of that, what are you seeing from competitive inventories especially on the entry level and first-time buyer side?

Got it. All right. Thank you.

Thank you. And the next question will be from Alex Baron from Housing Research Center. Alex, your line is live.

Yes, thank you. I'm sorry if this was asked in a different manner, but on the single family rental side, it seems the business has sort of been winding down. Is that the basic idea of what's going to happen or is this going to come back at some point?

So will it still show like an on-balance sheet type business where you report revenues and closings and stuff or is it more of an off-balance sheet or JV or something like

Okay. And on the multifamily side, it seems like you guys still have a lot of assets committed, but it doesn't seem like there's too many revenues coming out of it lately. So can you expand on what the future looks like?

Okay, appreciate it. Thank you guys.

Thank you. And that does conclude today's Q&A session. I will now hand the call over to Paul Romanowski for closing remarks.

Thank you, Paul. We appreciate everyone joining us today and we look forward to sharing our fourth quarter and full year results with you on Thursday, October 29th. And to the entire DR Horton team, congratulations on a solid third quarter. Thank you for all that you do.

Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.