Dream Finders Homes, Inc. (DFH)

Price$13.80Cached quoteAs of 2026-09-05 14:57 UTC

AI: Fair-priced

Price checkThe shares look inexpensive, but falling profits and the Beazer deal absorb that discount.

At the observed market value, Dream Finders trades at about nine times the last four quarters’ diluted earnings of roughly $1.43 a share. It is also near tangible book value—shareholders’ equity minus goodwill—using $1.432 billion of equity, $377 million of goodwill, and 90.9 million shares. Those are cheap-looking signals. However, first-half earnings fell 63%, cash generation was negative, and a $2.2 billion acquisition is pending. The discount therefore looks warranted, supporting a Fair-priced verdict rather than clear undervaluation.

Big pictureHome sales remain active, but lower prices and rising costs have sharply reduced earnings.

First-half 2026 revenue fell 9% and net income dropped 63% to $41 million, although home closings were essentially flat. The average selling price declined about 10%, while the homebuilding gross margin fell to 14.3% from 17.8%. Free cash flow—cash left after running and investing in the business—was approximately negative $162 million, largely because inventory absorbed $300 million. It was also negative in 2024 and 2025 after being strongly positive in 2023, showing that reported earnings have not produced dependable cash.

Business strengthThe flexible land strategy supports growth, but debt now limits the balance sheet’s protection.

The land-light strategy buys many lots near construction instead of holding undeveloped land for years, but funding needs remain substantial: inventory reached $2.33 billion. Cash and unused borrowing capacity totaled $605 million. Net homebuilding debt was 46.5% of the capital base containing net debt, preferred claims, and equity, up from 44.5%. Repurchases totaled $41.7 million in 2025 and $33.3 million in first-half 2026; outstanding shares fell 2.7% from year-end 2024 despite $35.7 million of stock compensation. That helps each remaining share, but borrowing weakens downside protection.

What could change the storyMargin recovery and disciplined Beazer financing could reveal value; failed integration could destroy it.

The strongest bull evidence is record first-half net sales, 353 active communities, reaffirmed guidance for about 9,250 annual closings, and management’s estimate of more than $100 million in recurring Beazer cost savings. The bear case is a gross margin already below 15%, negative cash flow, and much heavier financing after the merger. The current valuation appears to assume earnings stabilize near the recent annual pace and leverage falls within management’s promised 18–24 months. Gross margin recovering above 16%, positive operating cash, and lower debt would strengthen the case; continued deterioration would not.

AI: News

Profit slump despite salesRecord sales and closings could not prevent a sharp drop in quarterly profit.

On July 30, Dream Finders reported second-quarter revenue of $1.06 billion and net income of $27.7 million, down from $56.6 million a year earlier. Closings rose 3% and net sales rose 15%, but lower selling prices and higher land and financing costs reduced the homebuilding gross margin to 14.2% from 16.5%. The shares closed 13.5% lower that session. The timing suggests the results mattered, although a one-day move does not prove they were the only cause.

Beazer deal signedThe all-cash Beazer purchase promises scale and savings while introducing major financing and integration risk.

On August 7, Dream Finders signed a definitive agreement to acquire Beazer for approximately $2.2 billion including debt, paying $33.50 for each Beazer share. The planned combination would operate about 520 communities across 26 markets. Management estimates more than $100 million of annual cost savings and a double-digit percentage increase in first-year earnings per share. Dream Finders shares rose 7.2% that session, then fell 8.3% the next trading day; this volatility cannot be attributed conclusively to the deal alone.

Financing plan takes shapePlanned debt and preferred funding make the Beazer integration outcome central to shareholder value.

An August 18 filing projected approximately $1.3 billion of senior notes, $80 million of junior debt, and $675 million of redeemable preferred stock after the merger, with final terms still unsettled. On September 9, Dream Finders asked holders of two Beazer note series to waive mandatory change-of-control repurchase offers; failure would require offers at 101% of principal but would not block the merger. Shares declined roughly 9% over September 9–10, though available evidence does not establish the financing announcement as the cause.

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Revenue

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2020

2021

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2023

2024

2025

Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$4.32B	$4.45B	$3.75B	$3.34B	$1.92B	$1.13B	$744.3M
Gross profit	$754.8M	$827.9M	$736.8M	$620.2M	$313.6M	$170.9M	$103.0M
Gross margin	17.46%	18.61%	19.65%	18.56%	16.30%	15.07%	13.83%
Operating expenses	$485.2M	$395.1M	$302.8M	$266.1M	—	—	—
Operating income	$269.6M	$432.8M	$428.0M	$349.2M	—	—	—
Operating margin	6.24%	9.73%	11.42%	10.45%	—	—	—
EBITDA	$298.7M	$450.0M	$445.9M	$366.2M	—	—	—
EBITDA margin	6.91%	10.11%	11.89%	10.96%	—	—	—
Net income	$217.2M	$335.3M	$295.9M	$262.3M	$121.1M	$79.1M	$39.2M
Net profit margin	5.02%	7.54%	7.89%	7.85%	6.30%	6.98%	5.27%
Basic EPSper basic share	$2.19	$3.44	$3.03	$2.67	$1.27	$0.00	$0.00
Diluted EPSper diluted share	$2.14	$3.34	$2.79	$2.45	$1.27	$0.00	$0.00

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

14.50%of listed shares

BlackRock, Inc.4.81M shares · Jun 30, 2026

View holders

Top 20 reported holders of DFH
Holder	% owned
BlackRock, Inc.	14.50%4.81M shares
Lovett William Radford II	≈9.68%3.21M shares
KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC	9.25%3.07M shares
Zalupski Patrick O.	≈6.30%2.09M shares
Jupiter Topco LLC	5.79%1.92M shares
COOKE & BIELER LP	5.64%1.87M shares
STATE STREET CORP	5.15%1.71M shares
DIMENSIONAL FUND ADVISORS LP	4.66%1.55M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.41%1.46M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.63%1.21M shares
Elgethun Capital Management	2.47%819.41K shares
GEODE CAPITAL MANAGEMENT, LLC	2.20%729.02K shares
MORGAN STANLEY	1.94%642.73K shares
Invesco Ltd.	1.64%545.75K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.45%481.92K shares
Point72 Asset Management, L.P.	1.38%457.33K shares
UBS Group AG	1.14%377.59K shares
Szubinski Clinton	≈1.09%362.1K shares
ELEVATION POINT WEALTH PARTNERS, LLC	1.04%344.82K shares
Vestmark Advisory Solutions, Inc.	1.04%344.8K shares

Percentages use 33.2M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)148$72.89M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 24, 2026Form 4	Lovett William Radford IITenPercentOwner	SellClass A common stock, par value $0.01 per share · indirect	54.1K	$16.70	$904.1K	3.19M
Jun 24, 2026Form 4	Lovett William Radford IITenPercentOwner	SellClass A common stock, par value $0.01 per share · indirect	2.5K	$16.00	$39.2K	3.25M
Jun 22, 2026Form 4	Lovett William Radford IITenPercentOwner	SellClass A common stock, par value $0.01 per share · indirect	22.0K	$15.00	$329.4K	3.25M
Jun 18, 2026Form 4	Lovett William Radford IITenPercentOwner	SellClass A common stock, par value $0.01 per share · indirect	85.1K	$15.52	$1.32M	3.27M
Jun 17, 2026Form 4	Lovett William Radford IITenPercentOwner	SellClass A common stock, par value $0.01 per share · indirect	45.5K	$15.21	$692.7K	3.35M