KB Home Profit Drops 69% to $33.4M as Q1 Revenue Falls to $1.08 Billion

KB Home (NYSE: KBH), a homebuilder, reported net income of $33.4 million for the quarter ending February 28, 2026, down 69% from $109.6 million in the same period a year earlier. Diluted earnings per share fell to $0.52 from $1.49. Read more earnings reports.

Total revenue declined 23% to $1.08 billion from $1.39 billion in the prior-year quarter. Housing revenue, which accounts for the bulk of sales, fell to $1.07 billion from $1.39 billion a year earlier.

Operating income dropped 74% to $33.0 million from $127.3 million in the year-ago quarter. The company's operating margin compressed sharply as gross profit fell to $164.0 million from $279.6 million, a decline of 41%.

Regional Performance

The company's West Coast region generated $449.2 million in revenue, down from $601.6 million a year earlier. The Central region posted $180.2 million compared to $312.9 million in the prior year. The Southeast region recorded $223.6 million versus $275.6 million, while the Southwest region brought in $219.0 million, up from $196.9 million.

Cost of goods sold totaled $908.0 million, down from $1.11 billion in the year-ago quarter. Selling, general and administrative expenses declined to $131.0 million from $152.3 million.

Balance Sheet and Cash Flow

Total assets stood at $6.70 billion as of February 28, 2026, up slightly from $6.68 billion at the end of November 2025. Cash and cash equivalents fell to $200.5 million from $228.6 million over the same period.

The company reported negative cash flow from operations of $125.4 million for the quarter, compared to negative $334.3 million in the prior-year period. Cash used in investing activities totaled $18.0 million, while cash from financing activities was $114.7 million.

Total stockholders' equity declined to $3.86 billion as of February 28, 2026, from $3.90 billion at November 30, 2025. The company had 62.6 million weighted average diluted shares outstanding during the quarter, down from 73.0 million a year earlier.