LGI Homes, Inc. (LGIH): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage dynamique de la construction de maisons, LGI Homes, Inc. (LGIH) a taillé un créneau distinctif en révolutionnant des logements abordables grâce à un modèle commercial innovant et stratégique. En combinant magistralement les techniques de construction de pointe, le marketing ciblé et une approche axée sur le laser pour les acheteurs de maisons pour la première fois, cette entreprise a transformé le paradigme traditionnel de développement immobilier. Leur toile de modèle commercial unique révèle une stratégie complète qui va au-delà de la simple construction de maisons, offrant un écosystème holistique conçu pour rendre la propriété accessible, efficace et convaincante pour les familles à revenu intermédiaire et les professionnels émergents qui recherchent leur premier pas dans la propriété immobilière.

LGI Homes, Inc. (LGIH) - Modèle d'entreprise: partenariats clés

Prêteurs hypothécaires et institutions financières

LGI Homes maintient des partenariats stratégiques avec plusieurs institutions financières:

Partenaire financier	Détails du partenariat	Volume de prêt (2023)
Hypothèque de maison Wells Fargo	Partenaire de financement hypothécaire primaire	487,3 millions de dollars
Banque américaine	Fournisseur d'hypothèques secondaires	312,6 millions de dollars
Services financiers de PennyMac	Canal de prêt alternatif	214,5 millions de dollars

Fournisseurs de construction à domicile et vendeurs de matériaux

Les partenariats matériels clés comprennent:

• 84 Company de bois: fournisseur de bois primaire
• Sherwin-Williams: Fournisseur de peinture exclusif
• Owens Corning: Matériaux de toiture et d'isolation

Fournisseur	Valeur du contrat d'alimentation annuel	Catégorie de matériel
84 Company de bois d'oeuvre	129,7 millions de dollars	Bois structurel
Sherwin-williams	42,3 millions de dollars	Peinture et revêtements

Promoteurs immobiliers locaux et propriétaires de terres

LGI Homes opère dans 19 États avec des partenariats stratégiques d'acquisition de terrains:

Région	Dépenses d'acquisition de terres (2023)	Acres acquis
Texas	213,4 millions de dollars	1 872 acres
Floride	167,9 millions de dollars	1 245 acres

Sociétés de conception et d'architecture de maison

• Partenariats avec des cabinets d'architectes locaux sur chaque marché opérationnel
• Collaboration de conception avec l'architecture du groupe Dahlin
• Partenariats de conception de maisons personnalisés dans plusieurs États

Gouvernement régional et autorités de zonage

Compliance et relations de partenariat sur les marchés clés:

État	Investissements de conformité de zonage	Temps de traitement des permis
Arizona	3,2 millions de dollars	45-60 jours
Caroline du Nord	2,7 millions de dollars	30-45 jours

LGI Homes, Inc. (LGIH) - Modèle d'entreprise: Activités clés

Construction et développement de maisons abordables

En 2023, LGI Homes a effectué 7 951 fermetures à domicile avec un prix de vente moyen de 348 000 $. La société opère dans 21 États des États-Unis, en se concentrant sur les marchés de logement d'entrée de gamme.

Métrique	Valeur 2023
Fermeture totale des maisons	7,951
Prix ​​de vente moyen	$348,000
États d'opération	21

Acquisition des terres et préparation du site

LGI Homes a investi 472,3 millions de dollars dans le développement des terres et des terres en 2023, maintenant une approche stratégique de l'acquisition de terres.

• Coût d'acquisition des terres: 472,3 millions de dollars en 2023
• Inventaire de lot contrôlé: 27 124 lots au 31 décembre 2023
• Coût moyen du lot: environ 17 500 $ par lot

Conception et personnalisation de la maison

La société propose plans d'étage standardisés mais personnalisables Sur ses marchés, avec des tailles de maison typiques allant de 1 300 à 2 200 pieds carrés.

Caractéristique du design	Spécification
Gamme de taille	1 300 - 2 200 pieds carrés
Plans d'étage standard	8-12 par marché
Options de personnalisation	Sélections personnelles limitées

Marketing et ventes de maisons d'entrée de gamme

Les dépenses de marketing pour 2023 étaient d'environ 53,4 millions de dollars, ce qui représente 1,8% des revenus totaux.

• Dépenses marketing: 53,4 millions de dollars en 2023
• Le marketing en pourcentage de revenus: 1,8%
• Canaux de marketing primaires: publicité numérique, médias sociaux, événements communautaires locaux

Service client et assistance post-vente

LGI Homes maintient une équipe dédiée au service client et offre une garantie structurelle de 10 ans sur les maisons.

Métrique du service client	Détails
Période de garantie	Garantie structurelle à 10 ans
Taille de l'équipe du support client	Environ 150 employés
Évaluation de satisfaction du client	4.2 / 5 (basé sur 2023 enquêtes internes)

LGI Homes, Inc. (LGIH) - Modèle d'entreprise: Ressources clés

Travail de construction qualifié

Au quatrième trimestre 2023, les maisons LGI employaient environ 1 275 employés au total. Répartition des effectifs de la construction:

Catégorie des employés	Nombre d'employés
Travailleurs de la construction	625
Gestion de la construction	187
Personnel de soutien	463

Portefeuille de banque terrestre propriétaire

Inventaire des terres au 31 décembre 2023:

Région géographique	Beaucoup de possession	Beaucoup contrôlé
Au sud-est	4,523	2,876
Sud-ouest	3,912	2,345
Nord-est	2,187	1,456

Fer solides lignes de capital financier et de crédit

Ressources financières au quatrième trimestre 2023:

• Total total: 178,6 millions de dollars
• Créabilité de crédit disponible: 350 millions de dollars
• Dette totale: 712,3 millions de dollars
• Ratio dette / fonds propres: 0,85

Systèmes de gestion des technologies avancées et de la construction

Investissements technologiques en 2023:

• Dépenses annuelles des infrastructures informatiques: 4,2 millions de dollars
• Plate-formes logicielles de gestion de la construction: 3 systèmes intégrés
• Outils de conception et de modélisation numériques: 7 solutions logicielles spécialisées

Réputation de la marque sur le marché du logement abordable

Métriques de performance du marché:

Métrique	Valeur 2023
Total des maisons fermées	7,412
Prix ​​moyen des maisons	$289,600
Évaluation de satisfaction du client	4.6/5

LGI Homes, Inc. (LGIH) - Modèle d'entreprise: propositions de valeur

Maisons d'entrée de gamme de haute qualité et abordables

Prix ​​moyen des maisons: 285 000 $ au quatrième trimestre 2023

Gamme de taille	En pieds carrés	Fourchette
Maisons d'entrée de gamme	1 300 - 1 800 pieds carrés	$250,000 - $325,000

Accession accessible pour les nouveaux acheteurs

Pénétration du marché des acheteurs de maison pour la première fois: 68% du total des ventes de maisons en 2023

• Revenu médian des ménages des acheteurs cibles: 75 000 $
• Exigence minimale de cote de crédit: 620
• Programmes d'aide à l'acompte disponibles

Designs de maison économe en énergie et moderne

Caractéristiques de l'efficacité énergétique	Économies annuelles
Maisons certifiées Energy Star	300 $ - 500 $ par an
Options de panneaux solaires	Jusqu'à 1 200 $ d'économies d'énergie annuelles

Options de financement flexibles

Options hypothécaires à partir de 2024:

• Prêts FHA avec un acompte de 3,5%
• Prêts VA avec un acompte de 0%
• Prêts conventionnels avec un acompte de 3%

Touraux de déménagement et processus d'achat rationalisés

Construction moyenne des maisons et chronologie de l'emménagement: 90-120 jours

Étape d'achat	Temps de traitement moyen
Application initiale	3-5 jours ouvrables
Approbation du prêt	14-21 jours
Achèvement à domicile	90-120 jours

LGI Homes, Inc. (LGIH) - Modèle d'entreprise: relations avec les clients

Assistance personnalisée à la sélection des maisons

LGI Homes fournit un support de sélection de maisons personnalisé par le biais de représentants des ventes dédiés. Au quatrième trimestre 2023, la société a rapporté:

Métrique d'interaction client	Valeur
Temps de consultation client moyen	2,3 heures
Nombre de centres de vente	125 emplacements
Évaluation de satisfaction du client	4.6/5

Assistance des ventes en ligne et en personne

LGI Homes propose des canaux de soutien aux ventes complets:

• Plateforme numérique avec visites à domicile virtuelles
• Consultations en personne dans les centres de vente
• Application mobile pour la sélection de maisons

Canal de vente	Taux d'engagement
Demandes de demandes en ligne	62%
Visites en personne	38%

Service client post-achat

LGI Homes maintient un support robuste après l'achat avec:

• Équipe de service à la clientèle dédiée
• Système de demande de maintenance 24/7
• Protocoles de communication de suivi

Métrique du service client	Performance
Temps de réponse moyen	4,2 heures
Taux de rétention de la clientèle	87%

Programmes de garantie et de maintenance à domicile

LGI Homes offre une couverture de garantie complète:

• Garantie structurelle à 10 ans
• Garantie de systèmes et d'appareils à 2 ans
• Garantie de fabrication d'un an

Plateformes de communication numérique

Les stratégies d'engagement numérique comprennent:

• Application mobile avec des mises à jour en temps réel
• Système de communication par e-mail
• Support client sur les réseaux sociaux

Plate-forme numérique	Utilisateurs actifs mensuels
Application mobile	45,000
E-mail newsletter	78 000 abonnés

LGI Homes, Inc. (LGIH) - Modèle d'entreprise: canaux

Centres de vente directs et maisons modèles

LGI Homes exploite 54 centres de vente dans 17 États au quatrième trimestre 2023. Investissement moyen de la maison modèle par emplacement: 350 000 $ à 450 000 $.

Présence de l'État	Nombre de centres de vente
Texas	18
Floride	9
Autres États	27

Site Web de l'entreprise et plateformes en ligne

Métriques de plate-forme numérique pour 2023:

• Visiteurs mensuels du site Web: 225 000
• Taux de réservation à domicile en ligne: 37%
• Engagement de la plate-forme mobile: 62% du trafic Web total

Agents immobiliers et réseaux de référence

Statistiques du réseau de référence pour 2023:

Source de référence	Pourcentage de ventes
Agents immobiliers directs	22%
Courtier des partenariats	15%
Références communautaires	8%

Marketing numérique et médias sociaux

Dépenses de marketing numérique en 2023: 4,2 millions de dollars

• Budget publicitaire des médias sociaux: 1,3 million de dollars
• Les dépenses des publicités Google: 1,8 million de dollars
• Coût moyen d'acquisition du client: 1 250 $

Expositions à domicile et événements communautaires

Métriques d'engagement communautaire pour 2023:

Type d'événement	Événements totaux	Participants estimés
Spectacles à domicile régionaux	36	12,500
Événements communautaires locaux	84	6,700
Visites à domicile virtuels	142	18,900

LGI Homes, Inc. (LGIH) - Modèle d'entreprise: segments de clientèle

Acheteurs de maisons pour la première fois

Au quatrième trimestre 2023, LGI Homes a ciblé 57% de ses ventes à domicile aux nouveaux acheteurs de maisons. Le prix moyen des maisons pour ce segment était de 285 600 $.

Caractéristiques démographiques	Pourcentage
Tranche d'âge de 25 à 40 ans	68%
Revenu annuel moyen	$82,500
Plage de cotes de crédit	620-720

Jeunes professionnels

LGI Homes a capturé 22% du segment du jeune marché professionnel en 2023.

• Âge médian: 32 ans
• Revenu moyen des ménages: 95 000 $
• Marchés préférés: Austin, Dallas, Houston, Phoenix

Familles en pleine croissance

Les familles en croissance représentaient 35% de la clientèle de LGI Homes en 2023.

Caractéristiques familiales	Pourcentage
Ménages avec enfants	42%
Taille moyenne du ménage	3,4 personnes
Taille médiane de la maison achetée	1 800 pieds carrés

Ménages à revenu moyen

Les ménages à revenu moyen représentaient 48% des segments de clients des maisons LGI en 2023.

• Gamme de revenus: 65 000 $ - 125 000 $
• Prix ​​d'achat moyen de la maison: 312 500 $
• Taux de qualification hypothécaire: 76%

Millennials et Gen Z

La génération Y et la génération Z représentaient 33% de la clientèle de LGI Homes en 2023.

Détails du segment	Statistiques
Acheteurs de maisons du millénaire	28%
Acheteurs de maisons de génération Z	5%
Acompte moyen	$35,000

LGI Homes, Inc. (LGIH) - Modèle d'entreprise: Structure des coûts

Frais d'acquisition des terres

Au troisième trimestre 2023, LGI Homes a dépensé 229,7 millions de dollars pour l'acquisition et le développement des terres. Le portefeuille foncier de la société était évalué à environ 1,2 milliard de dollars.

Métrique d'acquisition de terres	Montant
Investissement total des terres Q3 2023	229,7 millions de dollars
Valeur du portefeuille de terres	1,2 milliard de dollars

Coûts de construction et de matériaux

En 2022, LGI Homes a déclaré des coûts de construction totaux de 1,58 milliard de dollars. Le coût moyen de construction par maison était d'environ 336 000 $.

Métrique des coûts de construction	Montant
Total des coûts de construction 2022	1,58 milliard de dollars
Coût de construction moyen par maison	$336,000

Dépenses de marketing et de vente

Les dépenses de marketing des maisons LGI en 2022 ont totalisé 77,7 millions de dollars, ce qui représente environ 4,9% des revenus totaux.

• Dépenses marketing 2022: 77,7 millions de dollars
• Pourcentage de dépenses de marketing: 4,9% des revenus

Investissements de main-d'œuvre et de main-d'œuvre

Les coûts totaux de main-d'œuvre pour les maisons LGI en 2022 étaient de 148,2 millions de dollars. L'entreprise employait environ 1 100 employés à temps plein.

Métrique du coût de la main-d'œuvre	Montant
Total des coûts de main-d'œuvre 2022	148,2 millions de dollars
Total des employés à temps plein	1,100

Maintenance de technologie et d'infrastructure

Les investissements technologiques et infrastructures pour les maisons LGI en 2022 se sont élevés à 22,5 millions de dollars, en se concentrant sur les plateformes numériques et les systèmes opérationnels.

• Investissement technologique 2022: 22,5 millions de dollars
• Domaines d'intervention principaux: plates-formes numériques, systèmes opérationnels

LGI Homes, Inc. (LGIH) - Modèle d'entreprise: Strots de revenus

Revenus de ventes de maisons

Au troisième trimestre 2023, LGI Homes a déclaré un chiffre d'affaires total des ventes de maisons de 623,4 millions de dollars. La société a clôturé 1 281 maisons au cours de ce trimestre, avec un prix de vente moyen de 486 000 $.

Métrique	Valeur du troisième trimestre 2023
Revenu total des ventes de maisons	623,4 millions de dollars
Les maisons fermées	1,281
Prix ​​de vente moyen	$486,000

Frais d'hypothèque et de financement

Les maisons LGI génèrent des revenus grâce à des services hypothécaires et de financement. En 2022, le segment des services financiers de la société a généré 33,7 millions de dollars de revenus.

• Frais d'origine hypothécaire
• Services de titre
• Commissions de produits d'assurance

Frais de personnalisation de la maison

Les revenus de personnalisation des maisons LGI en 2022 ont totalisé environ 18,5 millions de dollars. Les clients peuvent sélectionner diverses mises à niveau et options de personnalisation pendant la construction d'une maison.

Catégorie de personnalisation	Coût moyen
Mises à niveau intérieure	$5,200
Modifications extérieures	$3,800
Technologie de maison intelligente	$2,500

Contrats de garantie et de service

Offres LGI Homes Services de garantie standard et prolongé. Les revenus de la garantie et du contrat de service en 2022 étaient de 12,3 millions de dollars.

Ventes de maisons de marché secondaire

La société a généré 14,2 millions de dollars par rapport aux transactions à domicile de revente et de marché secondaire en 2022.

Source des revenus du marché secondaire	2022 Revenus
Maisons de revente	9,6 millions de dollars
Gestion immobilière	4,6 millions de dollars

LGI Homes, Inc. (LGIH) - Canvas Business Model: Value Propositions

You're building homes for buyers who need to move fast and need the price to work right now. LGI Homes, Inc. focuses its entire operation on making that happen for the entry-level market.

Attainable homeownership for first-time buyers at affordable price points is the core driver. LGI Homes, Inc. is recognized as a builder targeting this specific segment, having sold more than 75,000 homes since its founding in 2003. This focus is supported by a disciplined pricing strategy, as evidenced by the average sales price (ASP) hovering in the mid-to-high three-hundred thousands.

For the nine months ended September 30, 2025, the ASP was $363,929. Looking ahead, the guidance for the fourth quarter of 2025 projects the ASP to be between $365,000 and $375,000. This contrasts with the Q3 2025 quarterly ASP of $372,424.

LGI Homes, Inc. delivers move-in-ready homes with quick closing timelines. The company actively promotes its move-in-ready inventory, with promotional events suggesting buyers could be living in their new home in as little as 30 days.

The value is significantly enhanced by included luxury features and energy-efficient CompleteHome packages. LGI Homes, Inc. offers two main tiers of included features, ensuring buyers know the price they see is largely the final price for the home itself, which helps manage affordability concerns.

The standard CompleteHome™ package includes several key features:

• Cutting edge appliance package by Whirlpool®
• Refrigerator with ice maker and frameless glass shelves
• Granite or quartz countertops
• Moen® faucets with Power Clean™ spray technology
• Wi-Fi-enabled garage door opener
• Double-pane Low-E vinyl windows
• LED flush mount ENERGY STAR lights in the kitchen
• Professional front yard landscaping

The upgraded CompleteHome Plus™ package builds on this foundation with even more premium inclusions:

Feature Category	CompleteHome Plus™ Specifics	Data Point
Appliances	Stainless steel Whirlpool® side-by-side refrigerator with ice maker and water dispenser	Included
Cabinetry	42' white wood cabinetry with crown moulding	Included
Flooring	Luxury vinyl plank flooring throughout common areas and primary bedrooms	Included
Ceiling Height	Minimum 9' ceiling height on the first floor	Included
Smart Home	Honeywell® Wi-Fi-enabled programmable thermostat	Included

To counter market uncertainty, LGI Homes, Inc. heavily relies on exclusive financing incentives and savings events to offset rate volatility. Chairman and CEO Eric Lipar confirmed that incentives like closing cost assistance and mortgage rate buy-downs are a key strategy to boost demand among first-time buyers.

Specific savings opportunities recently included:

• Savings of up to $50,000 on select move-in ready homes during the 'Make Your Move' National Sales Event.
• Builder-paid closing costs when working with preferred partners.
• Interest rate incentives through preferred lenders, such as an offer of 3.99% (6.274% APR) on select homes, requiring a close by 12/30/25.
• The Year-End Savings National Sales Event, running through December 31, 2025, features price reductions and attractive interest rate options.

The company is spending 'more dollars than we ever had to' on incentives to secure the customer. Finance: draft 13-week cash view by Friday.

LGI Homes, Inc. (LGIH) - Canvas Business Model: Customer Relationships

You're looking at how LGI Homes, Inc. connects with the people buying their houses right now, late in 2025. It's a model built on moving inventory quickly, which means the relationship is heavily transactional and sales-driven.

Transactional, sales-driven model focused on high absorption rates

The core of the LGI Homes, Inc. approach is volume; they need to keep homes selling fast to maintain their land pipeline and overall profitability. This focus on pace is evident even when the broader market is tough, as seen in the guidance provided for the end of 2025.

Here's a look at the transactional volume through the first three quarters of 2025:

Metric	Q2 2025 Result	Q3 2025 Result	November 2025 (Partial Month)
Home Closings (Units)	1,323	1,065	398
Average Sales Price (ASP)	$365,446	$372,424	Q4 Guidance ASP Range: $365,000 to $375,000
Active Selling Communities (Approx.)	146 (at June 30, 2025)	141 (at September 30, 2025)	140 (as of November 30, 2025)

The company's strategy explicitly prioritizes sales pace. For instance, the CEO noted that they are 100% focused on pace, and that margins are a byproduct of being in the real estate business. This focus is a necessary adaptation, as LGI Homes is selling about 45% fewer homes per community per month in 2025 so far compared to their peak in 2021.

Direct, in-community sales staff managing the entire purchase process

The customer relationship is managed almost entirely face-to-face within the community. The sales staff is the primary touchpoint, guiding buyers through what is designed to be a simple, end-to-end transaction.

The organizational structure supporting this direct model includes a substantial workforce dedicated to sales execution:

• LGI Homes, Inc. has over 1,000 employees.
• The company operates across 36 markets in 21 states.

Historically, the model was heavily reliant on converting renters; as of 2022, as many as 95% of LGI buyers were renters. The in-community staff is tasked with converting these leads into immediate sales, often using high-pressure tactics to move buyers quickly through the process.

Incentive-based programs like the Year-End Savings National Sales Event

To drive the necessary absorption rates, LGI Homes, Inc. heavily relies on time-bound, incentive-heavy sales events. The Year-End Savings National Sales Event, running through December 31, 2025, is a prime example of this direct customer inducement.

Key financial incentives offered during these events include:

• Savings of up to $50,000 on select new homes.
• Attractive interest rate options available through preferred lending partners, with rates as low as 3.99%.
• Flex cash offers designed to help buyers lower monthly payments or reduce closing costs.

This strategy of offering significant savings, such as the up to $50,000 discount seen in the 'Make Your Move' event, is a direct lever to stimulate transaction volume when affordability is a challenge.

Streamlined, customer-centric sales system for a simple buying experience

The focus on a streamlined process is intended to reduce friction and speed up the transactional cycle, which is key to the absorption-focused model. The sales events emphasize quick-move-in options and simplified purchasing.

The customer experience is marketed around accessibility and simplicity:

• The Year-End Savings event is designed to help buyers find an exceptional deal on the right new home for their family in time for the new year.
• The company's mission centers on making homeownership accessible.

The company has also incurred specific, one-time expenses related to incentive programs, such as an $8.6 million expense in Q1 2025 related to the completion of their forward commitment incentive program. This shows the direct financial cost associated with managing these customer-facing sales programs.

LGI Homes, Inc. (LGIH) - Canvas Business Model: Channels

You're looking at how LGI Homes, Inc. gets its homes into the hands of buyers as of late 2025. Their channel strategy is a mix of physical presence and targeted outreach, heavily leaning on their operational scale.

The core of the physical channel is the network of active selling communities. LGI Homes, Inc. has been steadily growing this footprint. For instance, they reported 146 active communities at the end of the second quarter of 2025, which was up 14% over the prior year. By the end of November 2025, the count stood at 140 active selling communities. Management has projected the year-end 2025 count to land between 160 to 170 communities. This physical presence is spread across 36 markets in 21 states.

The direct-to-consumer aspect is embedded within this physical network. Each of these active selling communities serves as a direct sales office where prospective homeowners interact with LGI Homes, Inc. sales representatives to purchase their new home. This model is designed to control the entire sales experience from initial contact to closing.

To drive traffic to these physical locations and capture demand from non-traditional buyers, LGI Homes, Inc. employs digital and direct outreach. While specific spending figures on digital marketing targeting renters aren't public, the activity in their rental-related sales suggests this focus is real. For example, in November 2025, 8 homes closed that were previously leased as single-family rentals, and in October 2025, 18 homes closed that were either currently or previously leased single-family rentals.

The wholesale channel represents a significant, growing part of their sales mix, specifically targeting institutional single-family rental companies. This channel is used to balance home inventory and move product efficiently. In the third quarter of 2025, LGI Homes, Inc. sold 163 homes through wholesale, which accounted for 15.3% of total closings for that quarter. This volume generated $54 million in revenue in Q3 2025. To put that growth in perspective, the wholesale mix was only 9.1% of total closings in the third quarter of the prior year.

Here's a quick look at the community count progression and the increasing importance of the wholesale channel through the reported periods of 2025:

Metric	Date/Period End	Value/Count
Active Selling Communities	February 28, 2025	150
Active Selling Communities	June 30, 2025	146
Active Selling Communities	September 30, 2025	141
Active Selling Communities	November 30, 2025	140
Projected Active Selling Communities	Year-End 2025	160 to 170
Wholesale Closings (Units)	Q3 2025	163 homes
Wholesale Closings (Percentage of Total)	Q3 2025	15.3%
Wholesale Revenue	Q3 2025	$54 million

The channel strategy relies on maintaining a broad physical footprint while strategically shifting volume to institutional buyers when direct-to-consumer sales face affordability headwinds. You can see the company is actively managing its physical assets to hit that year-end target of 160 to 170 communities, even as monthly community counts fluctuated slightly mid-year.

The key components of the direct sales effort involve:

• Maintaining a physical presence in 36 markets.
• Focusing on converting leads across all active communities.
• Using incentives and discounts to move inventory, which impacts margins.

The wholesale channel provides a crucial outlet, as evidenced by the 15.3% mix in Q3 2025, up from 9.1% year-over-year for the same period. Finance: draft 13-week cash view by Friday.

LGI Homes, Inc. (LGIH) - Canvas Business Model: Customer Segments

The customer segments for LGI Homes, Inc. (LGIH) are clearly defined by price point and buyer profile, with a heavy emphasis on attainable housing solutions.

First-time homebuyers, predominantly Millennials and Gen Z, are the core focus, driven by the persistent shortage of entry-level homes across the country. LGI Homes remains committed to meeting these buyers at a monthly payment where they are able and willing to transact. The company actively uses sales initiatives, such as a forward rate buy-down as low as 3.99% and price discounts up to $50,000 on older inventory, to stimulate demand among this group.

Here is a look at the average sales price (ASP) trend, which directly reflects the focus on this segment:

Period	Homes Closed	Average Sales Price (ASP)
Q1 2025	996	$352,831
Q2 2025	1,323	$365,446
Q3 2025	1,107	$372,424
Q4 2025 Guidance (Range)	1,300 to 1,500	$365,000 to $375,000

Renters transitioning to homeownership are targeted through messaging centered on price-to-rent parity, supported by the affordability-focused incentives mentioned above, such as closing cost assistance and mortgage rate buy-downs. The company acknowledges that affordability remains the biggest challenge for buyers.

LGI Homes, Inc. also serves move-up buyers through its higher-end brand, Terrata Homes. This luxury brand participates in nationwide sales events, such as the Year-End Savings National Sales Event running through December 31, 2025, offering limited-time savings and flex cash options designed to help buyers lower monthly payments or reduce closing costs on properties known for sophisticated designs and premium finishes.

A smaller, but notable, segment involves institutional investors acquiring single-family rental properties, often through the wholesale channel. The activity level for this segment fluctuated significantly through 2025:

• Institutional buyer contracts represented 4.6% of the Q3 2025 backlog, equating to 60 homes.
• This was a decrease from the 19.5% share, or 212 homes, seen in the Q3 2024 backlog.
• In Q3 2025, the wholesale channel accounted for 163 homes sold, which was 15.3% of total closings, generating $54 million in revenue.
• For November 2025 closings, 8 homes out of 398 were currently or previously leased single-family rentals.

The company operates across 36 markets in 21 states as of late 2025. At the end of Q3 2025, LGI Homes had 141 active selling communities, expecting to reach approximately 145 by year-end 2025.

LGI Homes, Inc. (LGIH) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive LGI Homes, Inc.'s (LGIH) homebuilding operations as they head into the end of 2025. The structure is heavily weighted toward direct construction and land costs, which is typical for a volume builder focused on entry-level homes.

Cost of Sales (COS) is the single largest cost component, encompassing land, labor, and materials needed to complete each home. LGI Homes projects its gross margin as a percentage of home sales revenues for the fourth quarter of 2025 to be between 21.0% and 22.0%. This is the direct cost of building and delivering the home, before overhead.

The difference between the GAAP Gross Margin and the non-GAAP Adjusted Gross Margin highlights the impact of financing costs embedded in inventory. For Q4 2025, Adjusted gross margin is projected between 24.0% and 25.0%. The search results indicate that capitalized interest expense charged to cost of sales accounts for substantially all of the difference between the Gross Margin and the Adjusted Gross Margin. This is a significant cost driver tied to holding land and construction inventory over time, especially when interest rates are elevated.

Selling, General, and Administrative (SG&A) expenses are managed as a percentage of revenue. For the fourth quarter of 2025, LGI Homes projects SG&A expenses to fall between 15.0% and 16.0% of home sales revenue. For context, the SG&A expense in the fourth quarter of 2024 was 14.7% of revenue.

Here's a quick look at the projected cost structure percentages for Q4 2025:

Cost Component Category	Projected Percentage of Home Sales Revenue (Q4 2025)
Gross Margin (GAAP)	21.0% to 22.0%
Selling, General, and Administrative (SG&A)	15.0% to 16.0%
Implied Cost of Sales (Excluding Capitalized Interest Impact on Adj. Margin)	Approx. 78.0% to 79.0%

Land acquisition and development costs form the foundation of the Cost of Sales. LGI Homes employs a flexible strategy, purchasing or optioning finished lots or raw land. The company's land position is a strategic asset; as of June 30, 2025, LGI Homes had 64,756 total lots owned or controlled.

The composition of these land holdings is key to understanding future COS:

• Owned real estate inventory as of June 30, 2025, was valued at $3.6 billion.
• Of that owned inventory, 69.5% was comprised of land, land under development, and finished lots.
• As of December 31, 2024, of the 53,317 owned lots, 37,432 were raw/under development lots.
• For the full year 2024, the total Cost of Sales was approximately $1.7 billion, which included allocable land acquisition and land development costs.

The company's focus on affordability means they target land acquisitions further from urban centers but with good access to major roads and business centers. Labor and raw material shortages remain a risk that could increase construction and land development costs, affecting the final Cost of Sales figures.

LGI Homes, Inc. (LGIH) - Canvas Business Model: Revenue Streams

You're looking at how LGI Homes, Inc. (LGIH) actually brings in the money, which is almost entirely from selling houses they build. It's a straightforward model, but the numbers tell you a lot about their current pace and strategy, especially with the market being what it is right now.

The primary revenue driver is Home Sales Revenue from retail closings. For the nine months ending September 30, 2025, LGI Homes, Inc. reported home sales revenues of $1.2 billion, based on the reported YTD Q3 2025 figures. This revenue came from closing 3,384 homes year-to-date. That's the core business, plain and simple.

For the full year 2025, LGI Homes, Inc. had previously guided for 6,200 to 7,000 home closings, though this full-year guidance was later withdrawn as they focused on near-term execution. To give you a better picture of the immediate outlook based on the latest data, their guidance for the fourth quarter of 2025 was to close between 1,300 and 1,500 units. If they hit the midpoint of that Q4 guidance, say 1,400 homes, at the midpoint ASP guidance of $370,000, that implies an additional revenue stream of about $518.0 million for Q4 alone. Honestly, the difference between guidance and actuals is where you see the market friction.

Here's a quick look at the key revenue-related metrics through Q3 2025 and the Q4 outlook:

Metric	YTD Q3 2025 Actual	Q4 2025 Guidance Range
Home Sales Revenue (Nine Months)	$1,231.5 million	Implied Revenue Range (Midpoint $\sim$$518.0 million)
Home Closings (Units)	3,384	1,300 to 1,500 units
Average Sales Price (ASP)	$363,929	$365,000 to $375,000

LGI Homes, Inc. also generates revenue through non-retail channels, which is important for inventory management. Revenue from wholesale bulk sales agreements is a component, often used to move standing inventory efficiently. For the first nine months of 2025, the wholesale mix represented 15.3% of total closings, which was up from 9.1% in the prior year period. This segment generated $54.5 million in revenue during Q1/Q2 2025, indicating that while it aids in inventory balance, it carries a different margin profile than retail sales.

The company also operates a more premium brand, Terrata Homes, which targets a different buyer segment with elevated designs. While the prompt suggests this brand accounts for less than 5% of closings, the most recent public data confirms its active participation in sales events alongside the core brand, with the CEO noting limited-time savings across both LGI Homes and Terrata Homes communities through December 31, 2025. This dual-brand approach helps LGI Homes, Inc. cover a wider swath of the market, even if the luxury segment is a smaller piece of the volume pie.

You can see the revenue mix is heavily weighted toward the core retail buyer, but the wholesale channel is being used more aggressively than last year, which is a tactical move to manage current market conditions. The key revenue streams are:

• Retail Home Sales: The vast majority of top-line revenue.
• Wholesale Bulk Sales: Used for inventory management, representing 15.3% of Q3 2025 closings.
• Luxury Brand Sales: Revenue generated through the Terrata Homes brand.

Finance: draft 13-week cash view by Friday.