Segment Information

3 Months Ended

Feb. 28, 2026

We operate two principal businesses: homebuilding and financial services. An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.

Each of our homebuilding divisions has been identified as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments, based primarily on similarities in economic and geographic characteristics, product types, regulatory environments, methods used to sell and construct homes and land acquisition characteristics. Through February 28, 2026, our chief executive officer and chief operating officer together served as our CODM for purposes of our reportable segment disclosures and regularly reviewed the operating results for the individual operating segments that comprise our reporting segments. Effective March 1, 2026, our chief executive officer transitioned to executive chairman of the board and our chief operating officer was promoted to chief executive officer. As a result, effective March 1, 2026, our CODM is our executive chairman of the board and our chief executive officer. This CODM transition did not affect the CODM’s approach to deciding how to allocate resources or to assessing performance with respect to our operating segments.

The CODM evaluates the performance of our homebuilding operating segments primarily based on their respective housing gross profit margin and pretax income (loss). These profitability measures are used by the CODM in making operating and capital resource allocation decisions at the segment level, including their review and approval of land acquisition and land sale transactions. The CODM also uses these measures in business planning and forecasting, and considers budget-to-actual variances for these measures when assessing segment performance. In addition, segment pretax income (loss) is used by the CODM in determining the compensation of certain employees.

As of February 28, 2026, our homebuilding reporting segments conducted ongoing operations in the following states:


West Coast:			California, Idaho and Washington
Southwest:			Arizona and Nevada
Central:			Colorado and Texas
Southeast:			Florida and North Carolina

Our homebuilding reporting segments are engaged in the acquisition and development of land primarily for residential purposes and offer a wide variety of homes that are designed to appeal to first-time, first move-up and active adult homebuyers. Our homebuilding operations generate most of their revenues from the delivery of completed homes to homebuyers. They also earn revenues from the sale of land.

We also have one financial services reporting segment. The CODM reviews pretax income for our financial services segment to assess performance and to inform decisions about the allocation of resources to the segment and as to financial services product offerings.

Our financial services reporting segment offers property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to our homebuyers in the same markets as our homebuilding reporting segments, and provides title services in the majority of our markets located within our Southwest, Central and Southeast homebuilding reporting segments. Our financial services reporting segment earns revenues primarily from insurance commissions and from the provision of title services.

We offer mortgage banking services, including residential consumer mortgage loan (“mortgage loan”) originations, to our homebuyers indirectly through KBHS Home Loans, LLC (“KBHS”), our unconsolidated joint venture with GR Alliance Ventures, LLC (“GR Alliance”), a subsidiary of Guaranteed Rate, Inc. We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations. The financial services reporting segment is separately reported in our consolidated financial statements and in Note 3 – Financial Services.

Corporate and other is a non-operating segment that develops and oversees the implementation of company-wide strategic initiatives and provides support to our reporting segments by centralizing certain administrative functions. Corporate

management is responsible for, among other things, evaluating and selecting the geographic markets in which we operate, consistent with our overall business strategy; allocating capital resources to markets for land acquisition and development activities; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of our divisions. Corporate and other includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate and other is allocated to our homebuilding reporting segments.

Our reporting segments follow the same accounting policies used for our consolidated financial statements. The results of each reporting segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented, nor are they indicative of the results to be expected in future periods.

The following tables present certain statements of operations information relating to our homebuilding reporting segments (dollars in thousands):


	Three Months Ended February 28, 2026
	West Coast			Southwest			Central			Southeast			Corporate and Other			Total
Revenues:
Housing	$	449,209		$	180,232		$	223,608		$	218,425		$	—		$	1,071,474
Land	—			—			—			585			—			585
Total	449,209			180,232			223,608			219,010			—			1,072,059
Construction and land costs:
Housing	(383,687)			(141,919)			(189,805)			(187,692)			(2,255)			(905,358)
Land	—			—			—			(516)			—			(516)
Inventory-related charges	(645)			—			(649)			(861)			—			(2,155)
Total	(384,332)			(141,919)			(190,454)			(189,069)			(2,255)			(908,029)
Gross profits:
Housing (a)	64,877			38,313			33,154			29,872			(2,255)			163,961
Land	—			—			—			69			—			69
Total	64,877			38,313			33,154			29,941			(2,255)			164,030
Marketing expenses	(15,535)			(5,375)			(8,667)			(7,094)			(2,044)			(38,715)
Commission expenses	(15,202)			(5,928)			(9,752)			(8,698)			—			(39,580)
General and administrative expenses	(8,921)			(4,403)			(4,641)			(5,312)			(29,472)			(52,749)
Operating income (loss)	25,219			22,607			10,094			8,837			(33,771)			32,986
Other (b)	562			(37)			1			(3)			1,280			1,803
Homebuilding pretax income (loss)	$	25,781		$	22,570		$	10,095		$	8,834		$	(32,491)		$	34,789
Housing gross profit margin as a percentage of housing revenues	14.4		%	21.3		%	14.8		%	13.7		%	—		%	15.3		%


	Three Months Ended February 28, 2025
	West Coast			Southwest			Central			Southeast			Corporate and Other			Total
Revenues:
Housing	$	601,649		$	312,879		$	275,613		$	196,900		$	—		$	1,387,041
Land	—			—			—			—			—			—
Total	601,649			312,879			275,613			196,900			—			1,387,041
Construction and land costs:
Housing	(490,522)			(232,408)			(219,578)			(161,875)			(1,576)			(1,105,959)
Land	—			—			—			—			—			—
Inventory-related charges	(646)			(310)			(318)			(181)			—			(1,455)
Total	(491,168)			(232,718)			(219,896)			(162,056)			(1,576)			(1,107,414)
Gross profits:
Housing (a)	110,481			80,161			55,717			34,844			(1,576)			279,627
Land	—			—			—			—			—			—
Total	110,481			80,161			55,717			34,844			(1,576)			279,627
Marketing expenses	(14,324)			(5,762)			(9,772)			(6,623)			(3,182)			(39,663)
Commission expenses	(16,883)			(10,101)			(12,048)			(8,134)			—			(47,166)
General and administrative expenses	(12,782)			(5,523)			(8,409)			(7,010)			(31,735)			(65,459)
Operating income (loss)	66,492			58,775			25,488			13,077			(36,493)			127,339
Other (b)	2,399			17			5			(3)			2,074			4,492
Homebuilding pretax income (loss)	$	68,891		$	58,792		$	25,493		$	13,074		$	(34,419)		$	131,831
Housing gross profit margin as a percentage of housing revenues	18.4		%	25.6		%	20.2		%	17.7		%	—		%	20.2		%

(a) Housing gross profits are calculated by subtracting housing construction and land costs and inventory-related charges from housing revenues.

(b) Other is primarily comprised of interest income, interest expense and equity in income (loss) of unconsolidated joint ventures. The following table summarizes the equity in income (loss) of unconsolidated joint ventures by homebuilding reporting segment (in thousands):


	Three Months Ended February 28,
	2026		2025


Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	562	$	2,399
Southwest	(37)		17
Central	—		—
Southeast	(3)		(3)
Total	$	522	$	2,413

The following tables present certain balance sheet information relating to our homebuilding reporting segments (in thousands):


	February 28, 2026		November 30, 2025
Inventories:
West Coast	$	3,075,043	$	3,048,056
Southwest	1,046,060		969,260
Central	721,833		758,962
Southeast	861,034		894,524
Total	$	5,703,970	$	5,670,802


	February 28, 2026		November 30, 2025
Investments in unconsolidated joint ventures:
West Coast	$	72,018	$	68,708
Southwest	2,272		1,180
Central	—		—
Southeast	2,545		2,548
Total	$	76,835	$	72,436



Assets:
West Coast	$	3,365,518	$	3,300,212
Southwest	1,105,748		1,019,475
Central	879,742		910,307
Southeast	902,916		943,846
Corporate and other	391,481		446,603
Total	$	6,645,405	$	6,620,443

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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