UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~February~~May 2831, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _______ To _______

Commission File Number: 1-11749

Lennar Corporation

(Exact name of registrant as specified in its charter)


Delaware						95-4337490
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

5505 Waterford District Drive, Miami, Florida 33126

(Address of principal executive offices) (Zip Code)

(305) 559-4000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $.10	LEN	New York Stock Exchange
Class B Common Stock, par value $.10	LEN.B	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Emerging growth company

Non-accelerated filer

Smaller reporting company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Common stock outstanding as of ~~February~~May 2831, 2026:

Class A ~~215~~210,~~244~~506,~~398~~003

Class B 3130,~~053~~389,~~898~~139

LENNAR CORPORATION

FORM 10-Q

For the period ended February 28, 2026

For the quarterly period ended May 31, 2026

Part I

Financial Information

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets as of February 28, 2026 and November 30, 2025

Condensed Consolidated Balance Sheets as of May 31, 2026 and November 30, 2025

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended February 28, 2026 and 2025

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended May 31, 2026 and 2025

Condensed Consolidated Statements of Cash Flows for the three months ended February 28, 2026 and 2025

Condensed Consolidated Statements of Cash Flows for the six months ended May 31, 2026 and 2025

Notes to Condensed Consolidated Financial Statements

Forward-Looking Statements

2931

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

3032

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

4348

Item 4.

Controls and Procedures

4348

Part II

Other Information

4449

Item 1.

Legal Proceedings

4449

Item 1A.

Risk Factors

4449

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

4449

Item 3 - 4.

Not Applicable

4449

Item 5.

Other Information

4449

Item 6.

Exhibits

4549

Signatures

4650

Part I. Financial Information

Item 1. Financial Statements

Lennar Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

	February 28,		November 30,
	May 31,		November 30,
	2026 (1)		2025 (1)
ASSETS
Homebuilding:
Cash and cash equivalents	$	21,~~085~~816,~~384~~248	3,441,324
Restricted cash	2729,~~541~~204		25,930
Receivables, net	~~960~~978,~~912~~796		1,002,629
Inventories:
Finished homes and construction in progress	910,~~547~~093,~~262~~878		8,822,271
Land and land under development	~~928~~801,~~517~~156		1,098,961
Inventory owned	10,~~475~~895,~~779~~034		9,921,232
Consolidated inventory not owned	1,~~646~~488,~~284~~684		1,696,401
Inventory owned and consolidated inventory not owned	12,~~122~~383,~~063~~718		11,617,633
Deposits and pre-acquisition costs on real estate	67,~~824~~061,~~948~~935		6,383,633
Investments in unconsolidated entities	1,~~479~~478,~~812~~719		1,545,370
Goodwill	3,442,359		3,442,359
Other assets	1,~~787~~785,~~517~~201		1,794,378
	28,730,536		29,253,256
	28,976,180		29,253,256
Financial Services	23,~~808~~123,~~039~~509		3,377,413
Multifamily	~~842~~801,~~100~~356		902,136
Lennar Other	~~829~~800,~~667~~410		897,632
Total assets	$	33,~~210~~701,~~342~~455	34,430,437

(1)Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations.

As of ~~February~~May 2831, 2026, total assets include $1.54 billion related to consolidated VIEs of which $4945.76 million is included in Homebuilding cash and cash equivalents, $031.25 million in Homebuilding ~~receivables, net, $38.2 million in Homebuilding~~ finished homes and construction in progress, $~~232~~223.93 million in Homebuilding land and land under development, $1958.04 ~~billion~~million in Homebuilding consolidated inventory not owned, $94102.15 million in Homebuilding deposits and pre-acquisition costs on real estate, $0.3 million in Homebuilding investments in unconsolidated entities, ~~$1.7 million in Homebuilding other assets~~ and $24.72 million in Multifamily assets.

As of November 30, 2025, total assets include $1.5 billion related to consolidated VIEs of which $61.1 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $45.6 million in Homebuilding finished homes and construction in progress, $300.3 million in Homebuilding land and land under development, $984.4 million in Homebuilding consolidated inventory not owned, $88.3 million in Homebuilding deposits and pre-acquisition costs on real estate, $0.3 million in Homebuilding investments in unconsolidated entities, $8.9 million in Homebuilding other assets and $25.0 million in Multifamily assets.

See accompanying notes to condensed consolidated financial statements.

Lennar Corporation and Subsidiaries

Condensed Consolidated Balance Sheets (Continued)

(In thousands, except share amounts)

(Unaudited)

	February 28,		November 30,
	May 31,		November 30,
	2026 (2)		2025 (2)
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	1,~~737~~784,~~575~~916	1,812,484
Liabilities related to consolidated inventory not owned	1,~~447~~312,~~697~~689		1,476,376
Senior notes and other debts payable, net	4,~~065~~047,~~459~~487		4,084,686
Other liabilities	2,~~353~~470,~~359~~608		2,691,876
	9,604,090		10,065,422
	9,615,700		10,065,422
Financial Services	12,~~390~~151,~~277~~670		2,010,598
Multifamily	8876,~~547~~768		113,361
Lennar Other	9591,~~165~~591		100,447
Total liabilities	11,~~178~~935,~~079~~729		12,289,828
Commitments and contingent liabilities (See Note 10)
Stockholders’ equity:
Preferred stock	—		—
Class A common stock of $0.10 par value; Authorized: February 28, 2026 and November 30, 2025 - 400,000,000 shares; Issued: February 28, 2026 - 263,189,720 shares and November 30, 2025 - 261,579,253 shares	26,319		26,158
Class A common stock of $0.10 par value; Authorized: May 31, 2026 and November 30, 2025 - 400,000,000 shares; Issued: May 31, 2026 - 263,086,837 shares and November 30, 2025 - 261,579,253 shares	26,309		26,158
Class B common stock of $0.10 par value; Authorized: February 28, 2026 and November 30, 2025 - 90,000,000 shares; Issued: February 28, 2026 - 36,601,215 shares and November 30, 2025 - 36,601,215 shares	3,660		3,660
Class B common stock of $0.10 par value; Authorized: May 31, 2026 and November 30, 2025 - 90,000,000 shares; Issued: May 31, 2026 - 36,601,215 shares and November 30, 2025 - 36,601,215 shares	3,660		3,660
Additional paid-in capital	56,~~993~~020,~~733~~306		5,909,726
Retained earnings	22,~~577~~759,~~374~~089		22,471,471
Treasury stock, at cost; February 28, 2026 - 47,945,322 shares of Class A common stock and 5,547,317 shares of Class B common stock; November 30, 2025 - 45,804,348 shares of Class A common stock and 5,384,202 shares of Class B common stock	(6,727,316)		(6,457,609)
Treasury stock, at cost; May 31, 2026 - 52,580,834 shares of Class A common stock and 6,212,076 shares of Class B common stock; November 30, 2025 - 45,804,348 shares of Class A common stock and 5,384,202 shares of Class B common stock	(7,194,402)		(6,457,609)
Accumulated other comprehensive income	5,~~606~~676		6,011
Total stockholders’ equity	21,~~879~~620,~~376~~638		21,959,417
Noncontrolling interests	~~152~~145,~~887~~088		181,192
Total equity	2221,~~032~~765,~~263~~726		22,140,609
Total liabilities and equity	$	33,~~210~~701,~~342~~455	34,430,437

(2)As of ~~February~~May 2831, 2026, total liabilities include $1920.02 ~~billion~~million related to consolidated VIEs as to which there was no recourse against the Company, of which $159.53 million is included in Homebuilding accounts payable, $~~961~~907.7 million in Homebuilding liabilities related to consolidated inventory not owned, $1.2.5 million in Homebuilding other liabilities, and $1.0.7 million in Multifamily liabilities.

As of November 30, 2025, total liabilities include $962.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $23.8 million is included in Homebuilding accounts payable, $930.1 million in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debts payable, net, $1.5 million in Homebuilding other liabilities, and $1.0 million in Multifamily liabilities.

See accompanying notes to condensed consolidated financial statements.

Lennar Corporation and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended			Six Months Ended
	February 28,
	May 31,			May 31,
	2026		2025	2026	2025
Revenues:
Homebuilding	$	67,~~298~~616,~~563~~314	7,~~283~~843,~~870~~862	13,914,877	15,127,732
Financial Services	~~215~~236,~~555~~939		~~277~~298,~~077~~098	452,494	575,175
Multifamily	8263,~~499~~564		63230,~~196~~305	146,063	293,501
Lennar Other	2223,~~859~~055		75,~~402~~237	45,914	12,639
Total revenues	67,~~619~~939,~~476~~872		78,~~631~~377,~~545~~502	14,559,348	16,009,047
Costs and expenses:
Homebuilding	57,~~970~~132,~~420~~558		67,~~539~~147,~~960~~552	13,102,978	13,687,512
Financial Services	~~124~~135,~~242~~836		~~133~~140,~~594~~818	260,078	274,412
Multifamily	9072,~~428~~788		73254,~~376~~677	163,216	328,053
Lennar Other	43,~~684~~726		2330,~~564~~025	87,410	53,589
Corporate general and administrative	~~157~~136,~~638~~149		~~147~~155,~~378~~853	293,787	303,231
Charitable foundation contribution	1620,~~863~~519		1720,~~834~~131	37,382	37,965
Total costs and expenses	67,~~403~~541,~~275~~576		67,~~935~~749,~~706~~056	13,944,851	14,684,762
Equity in earnings from unconsolidated entities	6334,~~268~~087		3312,~~234~~116	97,355	45,351
Other income, net and other gains, net	84,~~146~~056		3130,~~668~~759	12,202	62,426
Lennar Other gains (losses) from technology investments	14,838		(62,503)
Lennar Other losses from technology investments	(23,252)		(29,440)	(8,414)	(91,943)
Earnings before income taxes	~~302~~413,~~453~~187		~~698~~641,~~238~~881	715,640	1,340,119
Provision for income taxes	(69105,~~092~~058)		(~~169~~160,~~525~~061)	(174,150)	(329,586)
Net earnings (including net earnings attributable to noncontrolling interests)	~~233~~308,~~361~~129		~~528~~481,~~713~~820	541,490	1,010,533
Less: Net earnings attributable to noncontrolling interests	3,~~978~~357		94,~~187~~371	7,335	13,558
Net earnings attributable to Lennar	$	~~229~~304,~~383~~772	~~519~~477,~~526~~449	534,155	996,975
Other comprehensive loss, net of tax:
Other comprehensive income (loss), net of tax:
Net unrealized losses on securities available-for-sale	$	(405)	(178)
Net unrealized gains (losses) on securities available-for-sale	$	70	(1,332)	(335)	(1,510)
Total other comprehensive loss, net of tax	$	(405)	(178)
Total other comprehensive income (loss), net of tax	$	70	(1,332)	(335)	(1,510)
Total comprehensive income attributable to Lennar	$	~~228~~304,~~978~~842	~~519~~476,~~348~~117	533,820	995,465
Total comprehensive income attributable to noncontrolling interests	$	3,~~978~~357	94,~~187~~371	7,335	13,558
Basic and diluted earnings per share	$	01.9324	1.9681	2.17	3.77

See accompanying notes to condensed consolidated financial statements.

Lennar Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three Months Ended
	Six Months Ended
	February 28,
	May 31,
	2026		2025
Cash flows from operating activities:
Net earnings (including net earnings attributable to noncontrolling interests)	$	~~233~~541,~~361~~490	~~528~~1,~~713~~010,533
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization	3368,~~388~~708		3165,~~332~~157
Amortization of discount/premium and accretion on debt, net	~~112~~922		(91142)
Equity in earnings from unconsolidated entities	(6397,~~268~~355)		(3345,~~234~~351)
Distributions of earnings from unconsolidated entities	2651,~~656~~047		1120,~~586~~070
Share-based compensation expense	6288,~~377~~648		84112,~~085~~858
Deferred income tax expense	4463,~~205~~449		2338,~~472~~381
Loans held-for-sale unrealized (gains) losses	(32,402)		(30,403)
Loans held-for-sale unrealized losses	25,490		2,350
Lennar Other (gains) losses from technology investments and other (gains) losses, net	(14,838)		71,427
Lennar Other losses from technology investments and other losses, net	8,074		100,006
Gains on sale of operating properties and equipment and other assets	(9,296)		(2334,~~411~~597)
Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets	38,128		28,261
Gain on sale of investments in unconsolidated entities and other	—		(35,033)
Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets	108,319		89,727
Changes in assets and liabilities:
Decrease in receivables	~~296~~128,~~232~~525		~~117~~69,~~753~~599
Increase in inventories, excluding valuation adjustments	(~~652~~1,~~015~~088,860)		(~~513~~1,~~257~~624,586)
Increase in deposits and pre-acquisition costs on real estate	(~~353~~554,~~721~~766)		(~~757~~781,~~972~~716)
Increase in other assets	(3627,~~460~~175)		(57132,~~501~~671)
Decrease in loans held-for-sale	~~397~~246,~~801~~731		~~445~~361,~~233~~377
Decrease in accounts payable and other liabilities	(~~403~~271,~~762~~836)		(~~215~~600,~~035~~026)
Net cash used in operating activities	(~~433~~717,~~502~~885)		(~~289~~1,~~042~~384,064)
Cash flows from investing activities:
Net additions of operating properties and equipment	(2948,~~992~~848)		(5671,~~043~~259)
Proceeds from sale of other assets	26,~~163~~238		4050,~~258~~696
Proceeds from sale of investments in unconsolidated joint venture	—		233,007
Proceeds from sales of investments	28,258		72,003
Investments in and contributions to unconsolidated entities	(3159,~~841~~410)		(78145,~~709~~494)
Distributions of capital from unconsolidated entities	~~104~~133,~~999~~541		35175,~~455~~203
Acquisition, net of cash and restricted cash acquired	—		(231,426)
Proceeds from sale of loan receivables	—		114,661
Decrease in Financial Services loans held-for-investment	—		8,467
Acquisition, net of cash and restricted cash acquired	—		(254,492)
Decrease in Financial Services loans held-for-investment	—		9,466
Purchases of investment securities	(6,218)		(3,456)
Proceeds from maturities/sales of investment securities	13,~~993~~879		12,~~934~~546
Net cash provided by investing activities	$	9377,~~362~~440	21182,~~490~~881

See accompanying notes to condensed consolidated financial statements.

Lennar Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Continued)

(~~Dollars~~In in thousands)

(Unaudited)

Three Months Ended

Six Months Ended

February 28,

May 31,

2026

2025

Cash flows from financing activities:

Net repayments under warehouse facilities

(599,303)

(533,831)

Net borrowings under revolving credit facility

—

400,000

Principal payments on notes payable and other borrowings

(12,092)

(27,600)

Net borrowings (repayments) under warehouse facilities

173,437

(514,818)

Proceeds from issuance of senior notes

—

700,000

Redemption/repurchases of senior notes

—

(500,000)

Principal payments on notes payable and other borrowings

(24,665)

(40,329)

Net cash distributed in connection with Millrose Properties, Inc. spin-off

—

(416,006)

Proceeds from liabilities related to consolidated inventory not owned

—11,574

259

Payments for liabilities related to consolidated inventory not owned

(80166,~~155~~819)

(~~255~~385,~~862~~794)

Payments related to other liabilities, net

(12,~~421~~842)

Receipts related to noncontrolling interests

12,~~083~~543

1121,~~328~~029

Payments related to noncontrolling interests

(1026,~~709~~409)

(5,~~389~~965)

Debt issuance costs

—

(4,417)

Common stock:

Repurchases

(~~269~~736,~~707~~793)

(~~774~~1,~~475~~295,894)

Dividends

(~~123~~246,~~480~~537)

(~~131~~265,~~646~~235)

Net cash used in financing activities

(1,~~095~~016,~~784~~511)

(2,~~134~~310,~~643~~012)

Net decrease in cash and cash equivalents and restricted cash

(1,~~435~~656,~~924~~956)

(23,~~402~~511,195)

Cash and cash equivalents and restricted cash at beginning of period

3,830,734

4,990,210

Cash and cash equivalents and restricted cash at end of period

2,~~394~~173,~~810~~778

21,~~588~~479,015

Summary of cash and cash equivalents and restricted cash:

Homebuilding

21,~~085~~816,~~384~~248

21,~~283~~168,~~928~~143

Financial Services

~~210~~242,~~147~~588

~~188~~202,~~833~~647

Multifamily

3210,~~623~~657

1514,~~030~~211

Lennar Other

2422,~~488~~202

2822,~~981~~693

Homebuilding restricted cash

2729,~~541~~204

2223,~~487~~987

Financial Services restricted cash

1452,~~627~~879

4847,~~756~~334

2,~~394~~173,~~810~~778

21,~~588~~479,015

Supplemental disclosures of non-cash investing and financing activities:

Homebuilding:

Payments of inventories financed by sellers

1,235

320

Net non-cash contributions to unconsolidated entities

2142,~~241~~070

17162,~~330~~454

Non-cash sale of investments in unconsolidated entities

90,~~730~~785

—

Non-cash impact of Millrose Properties, Inc. spin-off:

Inventories

—

(5,~~576~~578,~~376~~704)

Investments in unconsolidated entities

—

1,~~194~~197,~~711~~039

Other assets

—

(60,156)

Notes payable

—

19,000

Retained earnings

—

4,422,821

See accompanying notes to condensed consolidated financial statements.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(1)Basis of Presentation

Basis of Consolidation

The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2025 ("2025 Form 10-K"). The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its 2025 Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made.

Seasonality

The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements of operations for the three and six months ended ~~February~~May 2831, 2026 are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

Homebuilding cash and cash equivalents as of ~~February~~May 2831, 2026 and November 30, 2025 included $~~530~~559.68 million and $150.6 million, respectively, of cash held in escrow for approximately two days.

Share-based Payments

During both the three months ended ~~February~~May 2831, 2026 and 2025, the Company granted employees an immaterial number of nonvested shares. During the six months ended May 31, 2026 and 2025, the Company granted employees 1.5 million and 1.4 million of nonvested shares of Class A common stock, respectively.

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 is effective for the Company's fiscal year ending November 30, 2026 and may be applied either retrospectively or prospectively. The Company does not expect ASU 2023-09 to have a material effect on its condensed consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the Company's fiscal year ending November 30, 2028. The Company is currently evaluating the impact

that the adoption of ASU 2024-03 will have on its condensed consolidated financial statements and disclosures.

Reclassifications

In the first quarter of fiscal 2026, the Company implemented a reorganization of certain geographic communities within its Homebuilding segments. As a result of this reorganization, eleven communities previously allocated to the Central segment were moved to the East segment. Accordingly, the Company reclassified certain prior year segment information in the condensed consolidated financial statements to conform with the 2026 presentation. This reclassification was for operational purposes and between segments and had no impact on the Company's total assets, total equity, revenue or net income in the condensed consolidated financial statements.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(2) Operating and Reporting Segments

Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. The Company defines the Chief Operating Decision Maker ("CODM") function as the Executive Chairman, Chief Executive Officer and President. The CODM manages and assesses the Company's Homebuilding performance at a regional level. The CODM evaluates the Homebuilding segment performance using each segment’s revenues generated from sales of homes and earnings (loss) before income taxes. These operating results are reviewed against the annual business plan and quarterly forecast updates, as applicable, and used by the CODM when making the Company’s decisions about the allocation of operating and capital resources to each Homebuilding segment. The CODM’s evaluation of the Financial Services, Multifamily and Lennar Other segments is based on the revenues and earnings (loss) before income taxes.

Operational results of each 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. The following are the Company’s operating and reportable segments:

Homebuilding segments: (1) East (2) Central (3) South Central (4) West

(5) Financial Services

(6) Multifamily

(7) Lennar Other

The assets and liabilities related to the Company’s segments were as follows:

(In thousands)

At ~~February~~May 2831, 2026

Assets:

Homebuilding

FinancialServices

Multifamily

Lennar Other

Total

Cash and cash equivalents

21,~~085~~816,~~384~~248

~~210~~242,~~147~~588

3210,~~623~~657

2422,~~488~~202

2,~~352~~091,~~642~~695

Restricted cash

2729,~~541~~204

1452,~~627~~879

—

4282,~~168~~083

Receivables, net (1)

~~960~~978,~~912~~796

~~305~~462,~~460~~311

3932,~~888~~697

—

1,~~306~~473,~~260~~804

Inventory owned and consolidated inventory not owned

12,~~122~~383,~~063~~718

—

~~212~~200,~~882~~544

—

12,~~334~~584,~~945~~262

Deposits and pre-acquisition costs on real estate

67,~~824~~061,~~948~~935

—

74,~~756~~395

—

67,~~832~~066,~~704~~330

Investments in unconsolidated entities

1,~~479~~478,~~812~~719

~~2,431~~679

~~474~~491,~~767~~325

~~361~~364,~~092~~484

2,~~318~~335,~~102~~207

Loans held-for-sale (2)

—

1,~~847~~939,~~078~~919

—

1,~~847~~939,~~078~~919

Investments in equity securities (3)

—

~~222~~202,~~460~~758

Investments available-for-sale (4)

—

38,~~655~~725

Investments held-to-maturity

—

~~130~~129,~~997~~320

—

~~130~~129,~~997~~320

Goodwill

3,442,359

189,699

—

3,632,058

Other assets

1,~~787~~785,~~517~~201

~~107~~106,~~600~~114

7461,~~184~~738

~~182~~172,~~972~~241

2,~~152~~125,~~273~~294

Total assets

28,~~730~~976,~~536~~180

23,~~808~~123,~~039~~509

~~842~~801,~~100~~356

~~829~~800,~~667~~410

33,~~210~~701,~~342~~455

Liabilities:

Senior notes and other debts payable, net

4,~~065~~047,~~459~~487

1,~~191~~963,~~006~~746

—

56,~~256~~011,~~465~~233

Liabilities related to consolidated inventory not owned

1,~~447~~312,~~697~~689

—

1,~~447~~312,~~697~~689

Accounts payable and other liabilities

4,~~090~~255,~~934~~524

~~199~~187,~~271~~924

8876,~~547~~768

9591,~~165~~591

4,~~473~~611,~~917~~807

Total liabilities

9,~~604~~615,~~090~~700

12,~~390~~151,~~277~~670

8876,~~547~~768

9591,~~165~~591

11,~~178~~935,~~079~~729

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)


(In thousands)	At November 30, 2025
Assets:	Homebuilding		Financial Services	Multifamily	Lennar Other	Total
Cash and cash equivalents	$	3,441,324	258,873	34,172	21,936	3,756,305
Restricted cash	25,930		48,499	—	—	74,429
Receivables, net (1)	1,002,629		429,560	38,673	—	1,470,862
Inventory owned and consolidated inventory not owned	11,617,633		—	223,622	—	11,841,255
Deposits and pre-acquisition costs on real estate	6,383,633		—	15,096	—	6,398,729
Investments in unconsolidated entities	1,545,370		2,528	506,573	367,965	2,422,436
Loans held-for-sale (2) (5)	—		2,212,624	—	—	2,212,624

Investments in equity securities (3)	—		—	—	346,820	346,820
Investments available-for-sale (4)	—		—	—	39,060	39,060

Investments held-to-maturity	—		132,868	—	—	132,868


Goodwill	3,442,359		189,699	—	—	3,632,058
Other assets	1,794,378		102,762	84,000	121,851	2,102,991
Total assets	$	29,253,256	3,377,413	902,136	897,632	34,430,437
Liabilities:
Senior notes and other debts payable, net	$	4,084,686	1,790,309	—	—	5,874,995
Liabilities related to consolidated inventory not owned	1,476,376		—	—	—	1,476,376
Accounts payable and other liabilities	4,504,360		220,289	113,361	100,447	4,938,457
Total liabilities	$	10,065,422	2,010,598	113,361	100,447	12,289,828

(1)Financial Services, receivables, net, are primarily related to loans sold to investors for which the Company had not yet been paid as of both ~~February~~May 2831, 2026 and November 30, 2025.

(2)Loans held-for-sale related to unsold residential and commercial loans carried at fair value, of which $1513.38 million and $15.5 million of residential loans are carried at lower of cost or fair value as of ~~February~~May 2831, 2026 and November 30, 2025, respectively.

(3)Investments in equity securities include investments of $113.2 million and $114.4 million without readily available fair values as of ~~both February~~May 2831, 2026 and November 30, 2025, respectively.

(4)Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) in the condensed consolidated balance sheets.

(5)During the year ended November 30, 2025, the Financial Services segment transferred its loans held-for-investment of $61.0 million (fair value of $50.3 million) to held-for-sale, based on the Company’s intent to sell the loans in the near future.

Homebuilding Segments

Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under “Homebuilding Other,” which is not considered a reportable segment.

East: Florida, New Jersey and Pennsylvania

Central: Alabama, Georgia, Illinois, Indiana, Maryland/Virginia, Minnesota, North Carolina, South Carolina and Tennessee

South Central: Arkansas, Kansas, Oklahoma and Texas

West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington

Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC (“FivePoint”).

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The assets related to the Company’s Homebuilding segments were as follows:

(In thousands)	At ~~February~~May 2831, 2026		At November 30, 2025
East	$	5,~~510~~738,~~902~~233	5,413,918
Central	4,~~686~~926,~~323~~333		4,565,781
South Central	4,~~553~~523,~~494~~414		4,195,858
West	9,~~775~~847,~~856~~315		9,519,804
Other	1,~~800~~793,~~785~~234		1,692,453
Corporate and Unallocated	2,~~403~~147,~~176~~651		3,865,442
Total Homebuilding	$	28,~~730~~976,~~536~~180	29,253,256

Financial information relating to the Company’s segments was as follows:

	Three Months Ended February 28, 2026
	Three Months Ended May 31, 2026
(In thousands)	East		Central	South Central	West	Other (2)	Homebuilding	Financial Services	Multifamily	Lennar Other	Total
Revenues:
Sales of homes	$	1,~~512~~709,~~078~~254	1,~~345~~662,~~033~~594	1,~~160~~463,~~180~~140	2,~~251~~758,~~747~~154	31,~~884~~897	67,~~272~~595,~~922~~039	—	—	—	67,~~272~~595,~~922~~039
Sales of land	81,~~074~~517		~~873~~—	42,~~023~~877	28,~~188~~007	—	1512,~~158~~401	—	—	—	1512,~~158~~401
Other revenues	43,~~869~~705		1,~~153~~076	~~660~~560	1,~~202~~160	2,~~599~~373	108,~~483~~874	~~215~~236,~~555~~939	8263,~~499~~564	2223,~~859~~055	~~331~~332,~~396~~432
Total revenues	1,~~525~~714,~~021~~476		1,~~347~~663,~~059~~670	1,~~164~~466,~~863~~577	2,~~255~~767,~~137~~321	64,~~483~~270	67,~~298~~616,~~563~~314	~~215~~236,~~555~~939	8263,~~499~~564	2223,~~859~~055	67,~~619~~939,~~476~~872
Costs and expenses:
Costs of home sold	1,238,852		1,152,715	956,368	1,967,522	6,157	5,321,614	—	—	—	5,321,614
Costs of homes sold	1,382,260		1,407,144	1,210,579	2,409,274	3,362	6,412,619	—	—	—	6,412,619
Costs of land sold	155,~~302~~695		32,~~736~~130	63,~~368~~850	59,~~905~~869	—	3121,~~311~~544	—	—	—	3121,~~311~~544
Other costs and expenses	—		—	—	—	—	—	~~124~~135,~~242~~836	9072,~~428~~788	43,~~684~~726	~~258~~252,~~354~~350
Selling, general and administrative expenses	~~162~~169,~~774~~055		~~148~~178,~~205~~482	~~107~~135,~~634~~089	~~191~~210,~~170~~422	75,~~712~~347	~~617~~698,~~495~~395	—	—	—	~~617~~698,~~495~~395
Corporate general and administrative expenses (1)	—		—	—	—	—	—	—	—	—	~~157~~136,~~638~~149
Charitable foundation contribution (1)	—		—	—	—	—	—	—	—	—	1620,~~863~~519
Total costs and expenses	1,~~416~~557,~~928~~010		1,~~304~~587,~~656~~756	1,~~070~~349,~~370~~518	2,~~164~~629,~~597~~565	138,~~869~~709	57,~~970~~132,~~420~~558	~~124~~135,~~242~~836	9072,~~428~~788	43,~~684~~726	67,~~403~~541,~~275~~576
Equity in earnings (losses) from unconsolidated entities	104,~~683~~978		59(18)	(1510)	~~912~~676	26(2,~~542~~956)	382,~~181~~670	—	2527,~~481~~233	~~(394)~~4,184	6334,~~268~~087
Other income (expense), net and other gains (losses), net	(31,~~821)~~942		12,~~883~~276	(12,~~669~~712)	(21,~~032)~~603	~~12,343~~(164)	62,~~704~~945	—	~~307~~316	~~1,135~~795	84,~~146~~056
Lennar Other gains from technology investments	—		—	—	—	—	—	—	—	14,838	14,838
Lennar Other losses from technology investments	—		—	—	—	—	—	—	—	(23,252)	(23,252)
Earnings (loss) before income taxes	$	~~114~~164,~~955~~386	4478,~~345~~172	92114,~~809~~337	89140,~~420~~035	31(7,~~499~~559)	~~373~~489,~~028~~371	91101,~~313~~103	1718,~~859~~325	(538,~~246~~944)	~~302~~413,~~453~~187

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Three Months Ended February 28, 2025

Three Months Ended May 31, 2025

(In thousands)

East

Central

South Central

West

Other (2)

Homebuilding

Financial Services

Multifamily

Lennar Other

Total

Revenues:

Sales of homes

1,~~655~~715,~~259~~407

1,~~530~~743,~~193~~304

1,~~160~~505,~~523~~750

2,~~888~~818,~~685~~980

54,~~886~~834

7,~~240~~788,~~546~~275

—

7,~~240~~788,~~546~~275

Sales of land

2314,~~122~~384

~~1,600~~—

516,~~604~~589

512,~~000~~222

—

3543,~~326~~195

—

3543,~~326~~195

Other revenues

23,~~736~~714

~~854~~1,963

~~701~~1,058

12,~~248~~095

23,~~459~~562

712,~~998~~392

~~277~~298,~~077~~098

63230,~~196~~305

75,~~402~~237

~~355~~546,~~673~~032

Total revenues

1,~~681~~733,~~117~~505

1,~~532~~745,~~647~~267

1,~~166~~523,~~828~~397

2,~~894~~833,~~933~~297

8,~~345~~396

7,~~283~~843,~~870~~862

~~277~~298,~~077~~098

63230,~~196~~305

75,~~402~~237

78,~~631~~377,~~545~~502

Costs and expenses:

Costs of home sold

1,303,019

1,245,610

946,529

2,386,679

6,307

5,888,144

—

5,888,144

Costs of homes sold

1,390,760

1,417,197

1,241,884

2,346,962

5,729

6,402,532

—

6,402,532

Costs of land sold

2314,~~511~~237

31,~~040~~143

218,~~940~~004

622,~~586~~789

—

3656,~~077~~173

—

3656,~~077~~173

Other costs and expenses

—

~~133~~140,~~594~~818

73254,~~376~~677

2330,~~564~~025

~~230~~425,~~534~~520

Selling, general and administrative expenses

~~162~~167,~~186~~318

~~152~~165,~~324~~828

94125,~~822~~911

~~202~~217,~~381~~155

412,~~026~~635

~~615~~688,~~739~~847

—

~~615~~688,~~739~~847

Corporate general and administrative expenses (1)

—

~~147~~155,~~378~~853

Charitable foundation contribution (1)

—

1720,~~834~~131

Total costs and expenses

1,~~488~~572,~~716~~315

1,~~400~~584,~~974~~168

1,~~044~~385,~~291~~799

2,~~595~~586,~~646~~906

1018,~~333~~364

67,~~539~~147,~~960~~552

~~133~~140,~~594~~818

73254,~~376~~677

2330,~~564~~025

67,~~935~~749,~~706~~056

Equity in earnings (losses) from unconsolidated entities

68,~~638~~295

(31)

(26)

~~(28)~~1,038

288,~~399~~390

3517,~~004~~716

—

~~727~~(5,269)

(~~2,497~~331)

3312,~~234~~116

Other income (expense), net and other gains (losses), net

257,~~315~~161

21,~~050~~099

(~~452~~903)

(~~478~~2,005)

38,~~924~~856

3014,~~359~~208

—

914,~~430~~887

(81,~~121)~~664

3130,~~668~~759

Lennar Other losses from technology investments

—

(6229,~~503~~440)

Earnings (loss) before income taxes

~~224~~176,~~354~~646

~~133~~162,~~720~~197

~~122~~136,~~083~~689

~~298~~245,~~781~~424

307,~~335~~278

~~809~~728,~~273~~234

~~143~~157,~~483~~280

(2314,754)

(8952,~~283~~895)

~~698~~641,~~238~~881

(1)Primarily represent costs of operations at the Company's corporate headquarters in Miami. These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources. Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contributions to the Lennar Foundation. These corporate expenses cannot be attributed to any specific segment, thus they are presented within the Total column in the table above.


	Six Months Ended May 31, 2026
(In thousands)	East		Central	South Central	West	Other (2)	Homebuilding	Financial Services	Multifamily	Lennar Other	Total
Revenues:
Sales of homes	$	3,221,332	3,007,627	2,623,320	5,009,901	5,781	13,867,961	—	—	—	13,867,961
Sales of land	9,591		873	6,900	10,195	—	27,559	—	—	—	27,559
Other revenues	8,574		2,229	1,220	2,362	4,972	19,357	452,494	146,063	45,914	663,828
Total revenues	3,239,497		3,010,729	2,631,440	5,022,458	10,753	13,914,877	452,494	146,063	45,914	14,559,348
Costs and expenses:
Costs of homes sold	2,621,112		2,559,859	2,166,947	4,376,796	9,519	11,734,233	—	—	—	11,734,233
Costs of land sold	20,997		5,866	10,218	15,774	—	52,855	—	—	—	52,855
Other costs and expenses	—		—	—	—	—	—	260,078	163,216	87,410	510,704
Selling, general and administrative expenses	331,829		326,687	242,723	401,592	13,059	1,315,890	—	—	—	1,315,890
Corporate general and administrative expenses (1)	—		—	—	—	—	—	—	—	—	293,787
Charitable foundation contribution (1)	—		—	—	—	—	—	—	—	—	37,382
Total costs and expenses	2,973,938		2,892,412	2,419,888	4,794,162	22,578	13,102,978	260,078	163,216	87,410	13,944,851
Equity in earnings (losses) from unconsolidated entities	15,661		41	(25)	1,588	23,586	40,851	—	52,714	3,790	97,355
Other income (expense), net and other gains (losses), net	(1,879)		4,159	(4,381)	(429)	12,179	9,649	—	623	1,930	12,202
Lennar Other losses from technology investments	—		—	—	—	—	—	—	—	(8,414)	(8,414)
Earnings (loss) before income taxes	$	279,341	122,517	207,146	229,455	23,940	862,399	192,416	36,184	(44,190)	715,640

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)


	Six Months Ended May 31, 2025
(In thousands)	East		Central	South Central	West	Other (2)	Homebuilding	Financial Services	Multifamily	Lennar Other	Total
Revenues:
Sales of homes	$	3,370,667	3,273,496	2,666,273	5,707,665	10,720	15,028,821	—	—	—	15,028,821
Sales of land	37,506		1,600	22,193	17,222	—	78,521	—	—	—	78,521
Other revenues	6,449		2,817	1,759	3,343	6,022	20,390	575,175	293,501	12,639	901,705
Total revenues	3,414,622		3,277,913	2,690,225	5,728,230	16,742	15,127,732	575,175	293,501	12,639	16,009,047
Costs and expenses:
Costs of homes sold	2,693,780		2,662,807	2,188,413	4,733,641	12,035	12,290,676	—	—	—	12,290,676
Costs of land sold	37,748		4,183	20,944	29,375	—	92,250	—	—	—	92,250
Other costs and expenses	—		—	—	—	—	—	274,412	328,053	53,589	656,054
Selling, general and administrative expenses	329,504		318,152	220,733	419,536	16,661	1,304,586	—	—	—	1,304,586
Corporate general and administrative expenses (1)	—		—	—	—	—	—	—	—	—	303,231
Charitable foundation contribution (1)	—		—	—	—	—	—	—	—	—	37,965
Total costs and expenses	3,061,032		2,985,142	2,430,090	5,182,552	28,696	13,687,512	274,412	328,053	53,589	14,684,762
Equity in earnings (losses) from unconsolidated entities	14,933		(4)	(8)	1,010	36,789	52,720	—	(4,542)	(2,827)	45,351
Other income (expense), net and other gains (losses), net	32,477		3,150	(1,355)	(2,483)	12,778	44,567	—	24,317	(6,458)	62,426
Lennar Other losses from technology investments	—		—	—	—	—	—	—	—	(91,943)	(91,943)
Earnings (loss) before income taxes	$	401,000	295,917	258,772	544,205	37,613	1,537,507	300,763	(14,777)	(142,178)	1,340,119

(1)Primarily represent costs of operations at the Company's corporate headquarters in Miami. These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources. Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable contributions to the Lennar Foundation. These corporate expenses cannot be attributed to any specific segment, thus they are presented within the Total column in the table above.

(2)The Other segment includes operating results from the Company's Urban divisions, which are not considered reportable segments.

Financial Services

Operations of the Financial Services segment include mortgage financing, title and closing services primarily for buyers of the Company’s homes. They also include originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and sales of property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations.

1213

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

At ~~February~~May 2831, 2026, the Financial Services segment had warehouse facilities which were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows:

	Maximum Aggregate Commitment
(In thousands)	Committed Amount		Uncommitted Amount	Total
Residential facilities maturing:
March 2026 (1)	$	250,000	250,000	500,000
July 2026	$	350,000	350,000	700,000
May 2026	250,000		250,000	500,000
July 2026	100,000		100,000	200,000
September 2026	200,000		200,000	400,000
November 2026	100,000		100,000	200,000
December 2026	—		375,000	375,000
Total residential facilities	$	900,000	1,275,000	2,175,000
March 2027	200,000		300,000	500,000
May 2027	30,000		270,000	300,000
Total residential facilities	$	880,000	1,595,000	2,475,000
LMF commercial facilities maturing:
January 2027	100,000		—	100,000
December 2027	200,000		—	200,000
Total LMF commercial facilities	$	300,000	—	300,000
Total				$	2,~~475~~775,000

(1)Subsequent to February 28, 2026, the maturity date was extended to March 2027.

The Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to 80% interests in the originated commercial loans financed.

Borrowings and collateral under the facilities were as follows:

(In thousands)	At ~~February~~May 2831, 2026		At November 30, 2025
Borrowings under residential facilities	$	1,~~008~~791,~~627~~758	1,653,484
Collateral under residential facilities	12,~~794~~058,~~339~~429		1,718,338
Borrowings under LMF Commercial facilities	6152,~~000~~240		13,719

If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.

Substantially all of the loans the Financial Services segment originates are sold within a short period on the secondary mortgage market on a servicing-released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray any losses incurred by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements and seeking to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors, which are included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets. These accruals are based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans as well as previous settlements. While the Company believes it has adequately reserved for known losses and projected repurchase requests, given the volatility in the mortgage market and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving purchase claims exceed the Company’s expectations, additional recourse expense may be incurred. The provision for loan losses was immaterial for both the three and six months ended ~~February~~May 2831, 2026 and 2025. Loan origination liabilities were $17.3 million and $17.4 million as of ~~both February~~May 2831, 2026 and November 30, 2025, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets.

1314

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

LMF Commercial - loans held-for-sale

LMF Commercial originated commercial loans as follows:

	Three Months Ended			Six Months Ended
	February 28,
	May 31,			May 31,
(Dollars in thousands)	2026		2025	2026	2025
Originations (1)	$	8373,~~050~~300	~~127~~180,~~965~~875	156,350	308,840
Sold	3376,~~325~~250		94190,~~887~~936	109,575	285,823
Securitizations	12		42	3	6

(1)During both the three and six months ended ~~February~~May 2831, 2026 and 2025, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.

Investments held-to-maturity

At ~~February~~May 2831, 2026 and November 30, 2025, the Financial Services segment held commercial mortgage-backed securities (“CMBS”). These securities are classified as held-to-maturity based on the segment's intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during the three or six months ended ~~February~~May 2831, 2026 and 2025. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.

Details related to Financial Services' CMBS were as follows:

(Dollars in thousands)	At ~~February~~May 2831, 2026		At November 30, 2025
Carrying value	$	~~130~~129,~~997~~320	132,868
Outstanding debt, net of debt issuance costs	~~121~~119,~~379~~748		123,106
Incurred interest rate	3.4%		3.4%

	At February 28, 2026
	At May 31, 2026
	Range
Discount rates at purchase	6%	—	84%
Coupon rates	2.0%	—	5.3%
Distribution dates	October 2027	—	December 2028
Stated maturity dates	October 2050	—	December 2051

Multifamily

The Company is actively involved, primarily through unconsolidated funds and joint ventures, in the development and construction of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.

The Multifamily segment (i) ~~manages and~~ owns interests in funds that are engaged in the development of multifamily residential communities with the intention of holding the newly constructed and occupied properties as income and fee generating assets, and (ii) ~~manages and~~ owns interests in joint ventures that are engaged in the development of multifamily residential communities, in most instances with the intention of selling them when they are built and substantially occupied. The multifamily business is a vertically integrated platform with capabilities spanning development, construction, asset management, and capital markets. Revenues are generated from the sales of land, from construction activities, and from management and promote fees generated from funds and joint ventures less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses. Operations of the Multifamily segment also include equity in earnings (losses) from unconsolidated entities and other gains (losses), which include proceeds of sales of investments.

Lennar Other

Lennar Other includes strategic investments in various types of technology and other companies, primarily managed by the Company's LENX subsidiary, and fund interests the Company retained when it sold the Rialto Capital Management ("Rialto") asset and investment management platform. Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments, along with equity in earnings (losses) from the Rialto fund investments and technology investments, realized and unrealized gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment.

The Company has investments in ~~several~~ publicly traded technology companies, which are held at market and the carrying value of which will therefore change depending on the value of the Company's shareholdings in those entities on the last day of each

1415

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

~~last day of each~~ quarter. All the investments are accounted for as investments in equity securities and other assets which are held at fair value and the changes in fair values are recognized through earnings.

During the three months ended ~~February~~May 2831, 2026 and ~~February 28,~~ 2025, the Company recorded mark-to-market ~~gains~~losses of $1423.83 million and $29.4 million, respectively, on its publicly traded technology investments, which were included in Lennar Other gains (losses) in the Company's condensed consolidated statements of operations and comprehensive income (loss). During the six months ended May 31, 2026 and 2025, the Company recorded mark-to-market losses of $628.54 million and $91.9 million, respectively, on its publicly traded technology investments, which were included in Lennar Other gains (losses) in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(3)Investments in Unconsolidated Entities

Homebuilding Unconsolidated Entities

The investments in the Company's Homebuilding unconsolidated entities were as follows:

(In thousands)

At ~~February~~May 2831, 2026

At November 30, 2025

Investments in unconsolidated entities (1) (2)

1,~~479~~478,~~812~~719

1,545,370

Underlying equity in unconsolidated entities' net assets (1) (2)

1,~~777~~768,~~533~~675

1,790,697

(1)The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in FivePoint.

(2)Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of ~~February~~May 2831, 2026 and November 30, 2025, the carrying amount of the Company's investment was $~~605~~602.68 million and $585.2 million, respectively.

As of ~~February~~May 2831, 2026 and November 30, 2025, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $~~324~~317.0 million and $511.9 million, respectively.

The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments. While the Company sometimes guarantees debt of unconsolidated entities, in most instances the Company’s partners have also guaranteed that debt and are required to contribute their shares of any payments. In most instances, the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it.

As of both ~~February~~May 2831, 2026 and November 30, 2025, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were immaterial. The Company believes that as of ~~February~~May 2831, 2026, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under a guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture. In certain instances, the Company has placed performance letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 7 of the Notes to Condensed Consolidated Financial Statements). The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its 2025 Form 10-K.

The Upward America Venture LP (“Upward America”) is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to the people who will live in them. Upward America could raise equity commitments totaling $1.0 billion. The commitments are primarily from institutional investors, including $78.1 million committed by the Company. As of ~~February~~May 2831, 2026 and November 30, 2025, the carrying amount of the Company's investment in Upward America was $12.48 million and $13.8 million, respectively.

Multifamily Unconsolidated Entities

The unconsolidated joint ventures in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the bank loans to the Multifamily unconsolidated joint ventures, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would increase the Company's investment in the entities and would increase its share of funds the entities distribute to the Company after the achievement of certain thresholds. The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its 2025 Form 10-K. As of both ~~February~~May 2831, 2026 and November 30, 2025, the fair value of the completion guarantees was immaterial. As of ~~February~~May 2831, 2026 and November 30, 2025, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $~~727~~776.63 million and $798.1 million, respectively. The decrease in the non-recourse debt with completion guarantees was due to completion of projects and sale of joint ventures' rental operation projects and investments in various rental projects.

In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. Each Multifamily real estate investment trust, JV and fund has unilateral decision-making rights related to development and other sales activity through its executive committee or asset management committee. The Multifamily segment also provides general contractor services for construction

1516

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

trust, JV and fund has unilateral decision-making rights related to development and other sales activity through its executive committee or asset management committee. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. In some situations, the Multifamily segment sells land to various joint ventures and funds. The details of the activity were as follows:

	Three Months Ended February 28,
	Three Months Ended May 31,			Six Months Ended May 31,
(In thousands)	2026		2025	2026	2025
General contractor services, net of deferrals	$	5340,~~243~~896	3028,~~450~~264	94,139	58,714
General contractor costs	5141,~~880~~191		2827,~~314~~586	93,071	55,900
Land sales to joint ventures	—20,185		17145,~~330~~118	46,585	162,447
Management fee income, net of deferrals	2,~~843~~468		6,~~941~~436	5,311	13,377

The Multifamily segment includes managing and investing in Multifamily Venture Fund I LP (“LMV I”), Multifamily Venture Fund II LP (“LMV II”), Canada Pension Plan Investments Fund (the “CPPIB Fund”) and a joint venture with an institutional investor (the “Institutional JV”), which are long-term multifamily development investment vehicles involved in the development and construction of class-A multifamily assets. As of ~~February~~May 2831, 2026, the Company has a $28.21 million investment in the CPPIB Fund. The Company's stated ownership percentage in the Institutional JV is 103.5%. As of ~~February~~May 2831, 2026, the Company holds a $4144.14 million investment in the Institutional JV. Additional dollars will be committed as opportunities are identified by the CPPIB Fund and the Institutional JV.

In December 2025, the Company sold a majority interest in Quarterra Group, Inc. ("Quarterra"), a subsidiary of the Multifamily segment, to TPG Real Estate (“TPG”), thus retaining a ~~non-controlling~~noncontrolling interest. The sale of Quarterra to TPG did not have a material impact on the Company's condensed consolidated financial statements.

Details of LMV I and LMV II are included below:

	At February 28, 2026
	At May 31, 2026
(In thousands)	LMV I		LMV II
Lennar's carrying value of investments	$	7169,~~667~~706	~~194~~184,~~320~~619
Equity commitments	2,204,016		1,257,700
Equity commitments called	2,154,328		1,229,585
Lennar's equity commitments	504,016		381,000
Lennar's equity commitments called	500,381		371,492
Lennar's remaining commitments (1)	3,635		9,508
Distributions to Lennar during the three months ended February 28, 2026	37,083		24,425
Distributions to Lennar during the six months ended May 31, 2026	37,083		57,537

(1)While there are remaining commitments with LMV I, there are no plans for additional capital calls.

During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects as the fund has come to the end of its contractual life. During the year ended November 30, 2025, 35 LMV I rental operation projects were sold to various third-party buyers. During the ~~three~~six months ended ~~February~~May 2831, 2026, one additional LMV I rental operation project was sold to a third-party ~~buyers~~buyer.

Lennar Other Unconsolidated Entities

Lennar Other's unconsolidated entities include fund investments the Company retained when it sold the Rialto assets and investment management platform in 2018, as well as strategic investments in technology companies and investment funds. The Company's investment in the Rialto funds totaled $~~128~~130.63 million and $133.0 million as of ~~February~~May 2831, 2026 and November 30, 2025, respectively. In addition, the Company is entitled to a portion of the carried interest distributions by those funds. The Company also had strategic technology investments in unconsolidated entities and investment funds accounted for under the equity method of accounting with a carrying value of $~~232~~234.51 million and $235.0 million, as of ~~February~~May 2831, 2026 and November 30, 2025, respectively.

1617

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(4)Stockholders' Equity

The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three and six months ended ~~February~~May 2831, 2026 and 2025:

	Three Months Ended February 28, 2026
	Three Months Ended May 31, 2026
(In thousands)	TotalEquity		Class ACommon Stock	Class BCommon Stock	AdditionalPaid - in Capital	TreasuryStock	Accumulated Other Comprehensive Income ~~(Loss)~~	RetainedEarnings	NoncontrollingInterests
Balance at November 30, 2025	$	22,140,609	26,158	3,660	5,909,726	(6,457,609)	6,011	22,471,471	181,192
Net earnings (including net earnings attributable to noncontrolling interests)	233,361		—	—	—	—	—	229,383	3,978
Employee stock and directors plans	(8,419)		161	—	21,630	(30,210)	—	—	—
Purchases of treasury stock	(239,497)		—	—	—	(239,497)	—	—	—
Amortization of restricted stock	62,377		—	—	62,377	—	—	—	—
Cash dividends	(123,480)		—	—	—	—	—	(123,480)	—
Receipts related to noncontrolling interests	1,083		—	—	—	—	—	—	1,083
Payments related to noncontrolling interests	(10,709)		—	—	—	—	—	—	(10,709)
Non-cash purchase or activity of noncontrolling interests, net	(22,657)		—	—	—	—	—	—	(22,657)
Total other comprehensive loss, net of tax	(405)		—	—	—	—	(405)	—	—
Balance at February 28, 2026	$	22,032,263	26,319	3,660	5,993,733	(6,727,316)	5,606	22,577,374	152,887
Net earnings (including net earnings attributable to noncontrolling interests)	308,129		—	—	—	—	—	304,772	3,357
Employee stock and directors plans	(15,489)		(10)	—	302	(15,781)	—	—	—
Purchases of treasury stock	(451,305)		—	—	—	(451,305)	—	—	—
Amortization of restricted stock	26,271		—	—	26,271	—	—	—	—
Cash dividends	(123,057)		—	—	—	—	—	(123,057)	—
Receipts related to noncontrolling interests	1,460		—	—	—	—	—	—	1,460
Payments related to noncontrolling interests	(15,700)		—	—	—	—	—	—	(15,700)
Non-cash purchase or activity of noncontrolling interests, net	3,084		—	—	—	—	—	—	3,084
Total other comprehensive income, net of tax	70		—	—	—	—	70	—	—
Balance at May 31, 2026	$	21,765,726	26,309	3,660	6,020,306	(7,194,402)	5,676	22,759,089	145,088

	Three Months Ended February 28, 2025
	Three Months Ended May 31, 2025
(In thousands)	TotalEquity		Class ACommon Stock	Class BCommon Stock	AdditionalPaid - in Capital	TreasuryStock	Accumulated Other Comprehensive Income (Loss)	RetainedEarnings	NoncontrollingInterests
Balance at November 30, 2024	$	28,021,225	25,998	3,660	5,729,434	(3,649,564)	7,529	25,753,078	151,090
Net earnings (including net earnings attributable to noncontrolling interests)	528,713		—	—	—	—	—	519,526	9,187
Employee stock and directors plans	(64,393)		135	—	232	(64,760)	—	—	—
Purchases of treasury stock	(709,715)		—	—	—	(709,715)	—	—	—
Amortization of restricted stock	84,085		—	—	84,085	—	—	—	—
Cash dividends	(131,646)		—	—	—	—	—	(131,646)	—
Receipts related to noncontrolling interests	11,328		—	—	—	—	—	—	11,328
Payments related to noncontrolling interests	(5,389)		—	—	—	—	—	—	(5,389)
Millrose Properties, Inc. spin-off	(4,838,827)		—	—	—	—	—	(4,838,827)	—
Non-cash purchase or activity of noncontrolling interests, net	(27,859)		—	—	(949)	—	—	—	(26,910)
Total other comprehensive loss, net of tax	(178)		—	—	—	—	(178)	—	—
Balance at February 28, 2025	$	22,867,344	26,133	3,660	5,812,802	(4,424,039)	7,351	21,302,131	139,306
Net earnings (including net earnings attributable to noncontrolling interests)	481,820		—	—	—	—	—	477,449	4,371
Employee stock and directors plans	722		3	—	1,157	(438)	—	—	—
Purchases of treasury stock	(520,981)		—	—	—	(520,981)	—	—	—
Amortization of restricted stock	28,773		—	—	28,773	—	—	—	—
Cash dividends	(133,589)		—	—	—	—	—	(133,589)	—
Receipts related to noncontrolling interests	9,701		—	—	—	—	—	—	9,701
Payments related to noncontrolling interests	(576)		—	—	—	—	—	—	(576)
Total other comprehensive loss, net of tax	(1,332)		—	—	—	—	(1,332)	—	—
Balance at May 31, 2025	$	22,731,882	26,136	3,660	5,842,732	(4,945,458)	6,019	21,645,991	152,802

On April 8, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.50 per share on both its Class A and Class B common stock, payable on May 6, 2026 to holders of record at the close of business on April 22, 2026. On February 19, 2026, the Company paid a quarterly cash dividend of $0.50 per share for both of its Class A and Class B common stock to holders of record at the close of business on February 4, 2026. The Company approved and paid cash dividends of $0.50 per share for each of the four quarters of 2025 for both its Class A and Class B common stock.18

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

In January 2024, the Company's Board of Directors authorized an increase to its stock repurchase program to enable it to repurchase up to an additional $5 billion in value of its outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. This authorization was in addition to what was remaining of the Company's March 2022 stock repurchase program. The repurchase authorization has no expiration date. At February 28, 2026, the Company has a remaining authorization to repurchase $1.5 billion in value of the Company's Class A or Class B common stock. The following table sets forth the repurchases of the Company's Class A and Class B common stock under the authorized repurchase programs:


	Six Months Ended May 31, 2026
(In thousands)	Total Equity		Class A Common Stock	Class B Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Noncontrolling Interests
Balance at November 30, 2025	$	22,140,609	26,158	3,660	5,909,726	(6,457,609)	6,011	22,471,471	181,192
Net earnings (including net earnings attributable to noncontrolling interests)	541,490		—	—	—	—	—	534,155	7,335
Employee stock and directors plans	(23,908)		151	—	21,932	(45,991)	—	—	—

Purchases of treasury stock	(690,802)		—	—	—	(690,802)	—	—	—




Amortization of restricted stock	88,648		—	—	88,648	—	—	—	—
Cash dividends	(246,537)		—	—	—	—	—	(246,537)	—

Receipts related to noncontrolling interests	2,543		—	—	—	—	—	—	2,543
Payments related to noncontrolling interests	(26,409)		—	—	—	—	—	—	(26,409)
Non-cash purchase or activity of noncontrolling interests, net	(19,573)		—	—	—	—	—	—	(19,573)



Total other comprehensive loss, net of tax	(335)		—	—	—	—	(335)	—	—
Balance at May 31, 2026	$	21,765,726	26,309	3,660	6,020,306	(7,194,402)	5,676	22,759,089	145,088

	Three Months Ended February 28,
	Six Months Ended May 31, 2025
	2026				2025
(In thousands)	TotalEquity		Class ACommon Stock		Class BCommon Stock		AdditionalPaid-in Capital		TreasuryStock	Accumulated Other Comprehensive Income (Loss)	RetainedEarnings	NoncontrollingInterests
(Dollars in thousands, except price per share amounts)	Class A		Class B		Class A		Class B
Balance at November 30, 2024	$	28,021,225	25,998		3,660		5,729,434		(3,649,564)	7,529	25,753,078	151,090
Shares repurchased	1,836,885		163,115		4,770,000		458,805
Net earnings (including net earnings attributable to noncontrolling interests)	1,010,533		—		—		—		—	—	996,975	13,558
Total purchase price	$	219,271	$	17,816	$	644,618	$	58,121
Employee stock and directors plans	(63,671)		138		—		1,389		(65,198)	—	—	—
Average price per share	$	119.37	$	109.22	$	135.14	$	126.68
Purchases of treasury stock	(1,230,696)		—		—		—		(1,230,696)	—	—	—
Amortization of restricted stock	112,858		—		—		112,858		—	—	—	—
Cash dividends	(265,235)		—		—		—		—	—	(265,235)	—
Receipts related to noncontrolling interests	21,029		—		—		—		—	—	—	21,029
Payments related to noncontrolling interests	(5,965)		—		—		—		—	—	—	(5,965)
Millrose Properties, Inc. spin-off	(4,838,827)		—		—		—		—	—	(4,838,827)	—
Non-cash purchase or activity of noncontrolling interests, net	(27,859)		—		—		(949)		—	—	—	(26,910)
Total other comprehensive loss, net of tax	(1,510)		—		—		—		—	(1,510)	—	—
Balance at May 31, 2025	$	22,731,882	26,136		3,660		5,842,732		(4,945,458)	6,019	21,645,991	152,802

On June 25, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.50 per share on both its Class A and Class B common stock, payable on July 24, 2026 to holders of record at the close of business on July 10, 2026. On May 6, 2026, the Company paid a quarterly cash dividend of $0.50 per share for both of its Class A and Class B common stock to holders of record at the close of business on April 22, 2026. The Company approved and paid cash dividends of $0.50 per share for each of the four quarters of 2025 for both its Class A and Class B common stock.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

In January 2024, the Company's Board of Directors authorized an increase to its stock repurchase program to enable it to repurchase up to an additional $5 billion in value of its outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. This authorization was in addition to what was remaining of the Company's March 2022 stock repurchase program. The repurchase authorization has no expiration date. At May 31, 2026, the Company has a remaining authorization to repurchase $1.0 billion in value of the Company's Class A or Class B common stock. The following table sets forth the repurchases of the Company's Class A and Class B common stock under the authorized repurchase programs:


	Three Months Ended May 31,								Six Months Ended May 31,

	2026				2025				2026				2025
(Dollars in thousands, except price per share amounts)	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Shares repurchased	4,335,241		664,759		4,501,936		204,515		6,172,126		827,874		9,271,936		663,320
Total purchase price	$	388,784	$	57,954	$	495,230	$	21,504	$	608,055	$	75,770	$	1,139,849	$	79,625
Average price per share	$	89.68	$	87.18	$	110.00	$	105.15	$	98.52	$	91.52	$	122.94	$	120.04

(5)Income Taxes

The provision for income taxes and effective tax rate were as follows:

	Three Months Ended		Six Months Ended
	February 28,
	May 31,		May 31,
(Dollars in thousands)	2026	2025	2026		2025
Provision for income taxes	$69105,~~092~~058	~~169~~160,~~525~~061	174,150		329,586
Effective tax rate (1)	2325.16%	2425.61%	24.6	%	24.8	%

(1)For the three and six months ended ~~February~~May 2831, 2026 and 2025, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. ~~The decrease in the effective tax rate for the three months ended February 28, 2026 compared to the prior period was primarily due to a charitable contribution of appreciated stock.~~

(6)Earnings Per Share

Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company.

All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock (“nonvested shares”) is considered participating securities.

Basic and diluted earnings per share were calculated as follows:

	Three Months Ended			Six Months Ended
	February 28,
	May 31,			May 31,
(In thousands, except per share amounts)	2026		2025	2026	2025
Numerator:
Net earnings attributable to Lennar	$	~~229~~304,~~383~~772	~~519~~477,~~526~~449	534,155	996,975
Less: distributed earnings allocated to nonvested shares	13,~~170~~051		~~955~~2,973	4,221	3,929
Less: undistributed earnings allocated to nonvested shares	12,~~164~~025		3,~~862~~304	3,183	7,160
Numerator for basic and diluted earnings per share	~~227~~299,~~049~~696		~~514~~471,~~709~~172	526,751	985,886
Denominator:
Denominator for basic and diluted earnings per share - weighted average common shares outstanding	~~244~~240,~~438~~776		~~262~~260,~~733~~286	242,607	261,510
Basic and diluted earnings per share	$	01.9324	1.9681	2.17	3.77

1820

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(7)Homebuilding Senior Notes and Other Debts Payable

(Dollars in thousands)	At ~~February~~May 2831, 2026		At November 30, 2025
Unsecured delayed draw term loan facility due 2028	$	1,~~710~~704,~~000~~487	1,710,000
5.25% senior notes due 2026	400,304		400,608
5.25% senior notes due 2026 (1)	400,000		400,608
5.00% senior notes due 2027	350,~~494~~399		350,590
4.75% senior notes due 2027	~~698~~699,~~990~~134		698,845
5.20% senior notes due 2030	694,~~478~~791		694,165
Mortgage notes on land and other debt	~~211~~198,~~193~~676		230,478
	$	4,~~065~~047,~~459~~487	4,084,686

~~The~~(1)Subsequent ~~carrying~~to ~~amounts~~May of31, ~~the~~2026, ~~senior notes in~~ the ~~table~~Company ~~above~~redeemed ~~are~~all ~~net~~ of ~~debt~~its ~~issuance costs of $6.~~5 ~~million and $7~~.025% ~~million~~senior asnotes ofdue ~~February 28,~~June 2026 ~~and November 30, 2025, respectively~~.

InThe ~~May~~carrying ~~2025,~~amounts of the ~~Company~~senior ~~also~~notes ~~entered~~and ~~into a new~~ unsecured delayed draw term loan facility ~~with~~in anthe ~~initial~~table ~~committed~~above ~~borrowing~~are ~~availability~~net of ~~approximately~~debt ~~$1.6~~issuance ~~billion~~costs ~~(the~~of ~~“Delayed Draw Term Loan Facility”), which can be increased by an additional~~ $~~500 million via an accordion feature~~11.2 ~~In July 2025, the total commitment under the Delayed Draw Term Loan Facility was increased by $100~~ million, ~~thereby~~and ~~increasing the borrowing available capacity to~~ $1.7 ~~billion~~.0 ~~Once~~million ~~drawn,~~as ~~the Company may at any time prepay the loan, in whole or in part, without premium or penalty. The term loan’s maturity date is three years from the initial effectiveness date~~ of ~~the credit agreement or~~ May ~~2028~~ 31, 2026 and at the Company’s discretion, it can be extended for an additional year until May 2029, subject to the satisfaction of certain conditions. Under the Delayed Draw Term Loan Facility, interest rates equal the adjusted term SOFR determined for the interest period plus the applicable margin. As of FebruaryNovember 2830, ~~2026~~2025, ~~the Company had outstanding borrowings of $1~~respectively.~~7 billion under the credit agreement governing its new unsecured Delayed Draw Term Loan Facility.~~

The Company has an unsecured delayed draw term loan facility with committed borrowing availability of approximately $1.7 billion (the “Delayed Draw Term Loan Facility”), which can be increased by an additional $500 million via an accordion feature. As of May 31, 2026, the Company had outstanding borrowings of $1.7 billion under the credit agreement governing its unsecured Delayed Draw Term Loan Facility. The Company may at any time prepay the loan, in whole or in part, without premium or penalty. The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement or May 2028, and at the Company’s discretion, it can be extended for an additional year until May 2029, subject to the satisfaction of certain conditions. Under the Delayed Draw Term Loan Facility, interest rates equal the adjusted term SOFR determined for the interest period plus the applicable margin.

The maximum available borrowings on the Company's unsecured revolving credit facility (the "Credit Facility") were as follows:

(In thousands)	At ~~February~~May 2831, 2026
Commitments - maturing in May 2027	$	225,000
Commitments - maturing in November 2029	2,900,000
Total commitments	$	3,125,000
Accordion feature	375,000
Total maximum borrowings capacity	$	3,500,000

The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit agreement also provides that up to $477.5 million in commitments may be used for letters of credit. The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2025 Form 10-K. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions.

The Company's processes for posting performance and financial letters of credit and surety bonds are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2025 Form 10-K. The Company's outstanding letters of credit and surety bonds are disclosed below:

(In thousands)

At ~~February~~May 2831, 2026

At November 30, 2025

Performance letters of credit

2,~~039~~069,~~975~~635

1,963,643

Financial letters of credit

~~853~~802,~~997~~809

926,304

Surety bonds

5,~~646~~712,~~906~~218

5,614,807

Anticipated future costs primarily for site improvements related to performance surety bonds

3,~~114~~276,~~409~~374

3,056,582

The Company's outstanding senior notes are guaranteed by certain of its wholly-owned subsidiaries, which are primarily homebuilding subsidiaries. These guarantees are full and unconditional. The guarantors of the Company's senior notes are currently those subsidiaries that also guarantee the Company's letter of credit facilities, its Credit Facility and Delayed Draw Term Loan Facility. Under the indentures governing the Company's senior notes, guarantees may be suspended or released under certain circumstances. Other than as set forth in the Supplemental Financial Information, the terms of guarantees are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2025 Form 10-K.

1921

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(8)Financial Instruments and Fair Value Disclosures

The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at May 31, 2026 and November 30, 2025, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.

At February 28, 2026

At November 30, 2025

At May 31, 2026

At November 30, 2025

(In thousands)

Fair Value Hierarchy

Carrying Amount

Fair Value

Carrying Amount

Fair Value

ASSETS

Financial Services:

Loans held-for-sale

Level 3

1513,~~278~~830

1513,~~278~~959

15,547

Investments held-to-maturity

Level 3

~~130~~129,~~997~~320

~~130~~127,~~156~~778

132,868

132,032

LIABILITIES

Homebuilding senior notes and other debts payable, net

Level 2

4,~~065~~047,~~459~~487

4,~~106~~072,~~171~~154

4,084,686

4,122,169

Financial Services notes and other debts payable, net

Level 2

1,~~191~~963,~~006~~746

1,~~191~~964,~~448~~163

1,790,309

1,790,789

The following methods and assumptions are used by the Company in estimating fair values:

Financial Services - The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. The fair value of residential loans held-for-sale for which there is no active market for similar mortgage loans is determined using an independent third-party valuation that uses a discounted cash flow model to estimate fair value and is categorized as Level 3. The key assumptions used in the model, which are generally unobservable inputs, are mortgage prepayment rates, default rates, loss severity rates, and discount rates. Loans held-for-sale are carried at the lower of cost or fair value. For notes and other debts payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the majority of the borrowings.

Homebuilding - For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates.

Fair Value Measurements:

GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows:

Level 1: Fair value determined based on quoted prices in active markets for identical assets.

Level 2: Fair value determined using significant other observable inputs.

Level 3: Fair value determined using significant unobservable inputs.

The Company’s financial instruments measured at fair value on a recurring basis are summarized below:

Fair Value Hierarchy

Fair Value at

(In thousands)

~~February~~May 2831, 2026

November 30, 2025

Financial Services Assets:

Residential loans held-for-sale

Level 2

1,~~756~~855,~~684~~423

2,170,677

LMF Commercial loans held-for-sale

Level 3

7470,~~793~~296

26,401

Mortgage servicing rights

Level 3

2,~~783~~983

3,266

Forward options

Level 1

~~2,076~~124

986

Lennar Other Assets:

Investments in equity securities

Level 1

~~108~~89,~~012~~551

232,372

Investments available-for-sale

Level 3

38,~~655~~725

39,060

2022

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Residential and LMF Commercial loans held-for-sale in the table above include:

At February 28, 2026

At November 30, 2025

At May 31, 2026

At November 30, 2025

(In thousands)

Aggregate Principal Balance

Change in Fair Value

Aggregate Principal Balance

Change in Fair Value

Residential loans held-for-sale

1,~~760~~917,~~512~~191

(361,~~828~~768)

2,206,966

(36,289)

LMF Commercial loans held-for-sale

7673,~~250~~300

(13,~~457~~004)

26,525

(124)

The estimated fair values of the Company's financial instruments have been determined by using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The following methods and assumptions are used by the Company in estimating fair values.

Financial Services residential loans held-for-sale - The fair value of residential loans held-for-sale that trade in active secondary markets is determined based upon quoted market prices for similar mortgage loans, adjusted for credit risk and other loan characteristics, and is categorized as Level 2. The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these are included in Financial Services’ loans held-for-sale as of ~~February~~May 2831, 2026 and November 30, 2025. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics.

LMF Commercial loans held-for-sale - The fair value of commercial loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. The details and methods of the calculation are unchanged from the fair value disclosure in the Company's Notes to the Financial Statements section in its 2025 Form 10-K. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust.

Mortgage servicing rights - Financial Services records mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below:

	February 28, 2026	November 30, 2025
	May 31, 2026	November 30, 2025
Unobservable inputs:
Mortgage prepayment rate	9%	9%
Discount rate	13%	13%
Delinquency rate	1411%	11%

Forward contracts, forward options and interest rate swaps - Fair value of forward contracts, forward options and interest rate swaps is based on independent quoted market prices for similar financial instruments. The fair value of these are included in Financial Services' other assets and other liabilities and the Company recognizes the changes in the fair value of the premium paid as Financial Services' revenues.

Lennar Other investments in equity securities - The fair value of investments in equity securities was calculated based on independent quoted market prices. The Company’s investments in equity securities were recorded at fair value with all changes in fair value recorded to Lennar Other gains (losses) from technology investments on the Company’s condensed consolidated statements of operations and comprehensive income (loss).

Lennar Other investments available-for-sale - The fair value of investments available-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads.

2123

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item:

Three Months Ended

Six Months Ended

February 28,

May 31,

(In thousands)

2026

2025

2026

2025

Changes in fair value included in Financial Services revenues:

Loans held-for-sale

32(57,~~402~~891)

30(32,~~403~~753)

(25,489)

(2,350)

Mortgage loan commitments

7(16,~~210~~520)

33(22,~~504~~583)

(9,310)

10,921

Forward contracts

~~(12~~21,~~983)~~558

~~(48~~76,~~463)~~955

8,575

28,492

Interest rate swaps

(917,~~272)~~550

(3,~~296)~~458

8,278

162

Changes in fair value included in Lennar Other gains (losses) from technology investments:

Changes in fair value included in Lennar Other losses from technology investments:

Investments in equity securities

14(23,~~838~~252)

(6229,~~503~~440)

(8,414)

(91,943)

Changes in fair value included in other comprehensive loss, net of tax:

Changes in fair value included in other comprehensive income (loss), net of tax:

Lennar Other investments available-for-sale

~~(405)~~70

(~~178~~1,332)

(335)

(1,510)

Interest on Financial Services loans held-for-sale and LMF Commercial loans held-for-sale measured at fair value is calculated based on the interest rate of the loans and recorded as revenues in the Financial Services’ statement of operations.

The following table sets forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment:

Three Months Ended February 28,

Three Months Ended May 31,

2026

2025

(In thousands)

Mortgage servicing rights

LMF Commercial loans held-for-sale

Mortgage servicing rights

LMF Commercial loans held-for-sale

Beginning balance

32,~~266~~783

2674,~~401~~793

3,~~463~~297

5082,~~316~~794

Purchases/loan originations

72191

8373,~~050~~300

26251

~~127~~180,~~965~~875

Sales/loan originations sold, including those not settled

—

(3376,~~325~~250)

—

(94190,~~887~~936)

Disposals/settlements

(5172)

—

(9756)

—

Changes in fair value (1)

~~(504)~~81

(1,~~457~~547)

(9525)

(~~281~~466)

Interest and principal paydowns

—

~~124~~—

—

(~~319~~64)

Ending balance

2,~~783~~983

7470,~~793~~296

3,~~297~~467

8272,~~794~~203


	Six Months Ended May 31,

	2026				2025
(In thousands)	Mortgage servicing rights		LMF Commercial loans held-for-sale		Mortgage servicing rights		LMF Commercial loans held-for-sale
Beginning balance	$	3,266	26,401		3,463		50,316
Purchases/loan originations	263		156,350		277		308,840
Sales/loan originations sold, including those not settled	—		(109,575)		—		(285,823)
Disposals/settlements	(123)		—		(153)		—
Changes in fair value (1)	(423)		(3,004)		(120)		(747)
Interest and principal paydowns	—		124		—		(383)
Ending balance	$	2,983	$	70,296	$	3,467	$	72,203

(1)Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues.

The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs. The fair values included in the table below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below:

		Three Months Ended February 28,
		2026				2025
(In thousands)	Fair ValueHierarchy	Carrying Value		Fair Value	Total Losses, Net (1)	Carrying Value	Fair Value	Total Losses, Net (1)
Homebuilding - non-financial assets:
Finished homes and construction in progress (2)	Level 3	$	404,294	371,507	(32,787)	259,540	239,197	(20,343)
Land and land under development (2)	Level 3	—		—	—	190	134	(56)
Deposits and pre-acquisition costs on real estate (3)	Level 3	5,341		—	(5,341)	268	—	(268)
Financial Services - financial assets:
Loans held-for-sale (4)	Level 3	$	15,317	15,169	(148)	—	—	—
Multifamily - non-financial assets:
Investments in unconsolidated entities (5)	Level 3	$	—	—	—	7,594	—	(7,594)

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)


		Three Months Ended May 31,

		2026				2025
(In thousands)	Fair Value Hierarchy	Carrying Value		Fair Value	Total Losses, Net (1)	Carrying Value	Fair Value	Total Losses, Net (1)



Homebuilding - non-financial assets:
Finished homes and construction in progress (2)	Level 3	$	310,460	242,214	(68,246)	470,734	421,051	(49,683)
Land and land under development (2)	Level 3	549		—	(549)	—	—	—
Deposits and pre-acquisition costs on real estate (3)	Level 3	1,397		—	(1,397)	8,661	—	(8,661)

Financial Services - financial assets:
Loans held-for-sale (4)	Level 3	$	13,830	14,168	(338)	—	—	—
Multifamily - non-financial assets:
Investments in unconsolidated entities (5)	Level 3	$	—	—	—	3,122	—	(3,122)


		Six Months Ended May 31,

		2026				2025
(In thousands)	Fair Value Hierarchy	Carrying Value		Fair Value	Total Losses, Net (1)	Carrying Value	Fair Value	Total Losses, Net (1)



Homebuilding - non-financial assets:
Finished homes and construction in progress (2)	Level 3	$	714,753	613,721	(101,032)	742,658	672,632	(70,026)
Land and land under development (2)	Level 3	549		—	(549)	191	134	(57)
Deposits and pre-acquisition costs on real estate (3)	Level 3	6,738		—	(6,738)	8,928	—	(8,928)

Financial Services - financial assets:
Loans held-for-sale (4)	Level 3	$	14,316	13,830	(486)	—	—	—
Multifamily - non-financial assets:
Investments in unconsolidated entities (5)	Level 3	$	—	—	—	10,716	—	(10,716)

(1)Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods.

(2)Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(3)Forfeited deposits and write-off of pre-acquisition costs on real estate were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss).

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(4)Changes in fair value below amortized cost basis are recognized through a valuation allowance, with the adjustment included in Financial Services earnings in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(5)Valuation adjustments related to investments in unconsolidated entities were primarily included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss).

Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its 2025 Form 10-K.

The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts.

On a quarterly basis, the Company reviews its active communities for indicators of potential impairments. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:

			Communities with valuation adjustments
At or for the Three Months Ended	# of active communities	# of communities with potential indicator of impairment	# of communities	Fair Value(in thousands)		Valuation Adjustments(in thousands)
February 28, 2026	1,678	170	4	$	27,183	$	5,659
February 28, 2025	1,584	46	2	14,934		3,834

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)


			Communities with valuation adjustments
At or for the Six Months Ended	# of active communities	# of communities with potential indicator of impairment	# of communities	Fair Value (in thousands)		Valuation Adjustments (in thousands)

May 31, 2026	1,683	151	18	$	143,785	$	36,240
May 31, 2025	1,617	102	14	35,482		17,918

The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments:

	Three Months Ended February 28,
	Six Months Ended May 31,
	2026			2025
Unobservable inputs	Range			Range
Average selling price (1)	$~~166~~129,000	—	~~310~~1,015,000	~~215~~168,000	—	~~571~~872,000
Absorption rate per quarter (homes)	75	—	19	52	—	7
Discount rate	20%			20%

(1)Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the ~~three~~six months ended ~~February~~May 2831, 2026 and 2025.

The Company disclosed its accounting policy related to investments in unconsolidated entities and its review for indicators of impairment for the long-lived assets of an unconsolidated entity and the decline in the fair value of an investment below the carrying value in the Summary of Significant Accounting Policies in its 2025 Form 10-K.

The Company evaluates if a decrease in the fair value of an investment below the carrying value is other-than-temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions, (3) the length of the time and the extent to which the market value has been less than cost and (4) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status, and liquidity needs of the unconsolidated entity. The Company generally estimates the fair value of an investment in an unconsolidated entity by using a cash flow analysis for estimated future net distributions from the unconsolidated entity, subject to the perceived risks associated with the unconsolidated entity’s cash flow streams. During the three and six months ended ~~February~~May 2831, 2026, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had no other-than-temporary impairment. During the three and six months ended ~~February~~May 2831, 2025, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had an other-than-temporary impairment of $73.61 million and $10.7 million included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss).

The Company estimates the fair value of investments in unconsolidated entities evaluated for impairment based on market conditions and assumptions made by management at the time the investment is evaluated, which may differ materially from actual results if market conditions or assumptions change.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(9)Variable Interest Entities

During the ~~three~~six months ended ~~February~~May 2831, 2026, the Company evaluated the joint venture (“JV”) agreements of its JVs that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements. Based on the Company's evaluation, there were no variable interest entities ("VIEs") that were consolidated or deconsolidated during the ~~three~~six months ended ~~February~~May 2831, 2026.

The carrying amount of the Company's consolidated VIEs' assets and non-recourse liabilities are disclosed in the footnote to the condensed consolidated balance sheets.

A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes or other debts payable. The assets held by a VIE are usually collateral for that VIE’s debt. The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with VIE’s lenders. Other than debt guarantee agreements with VIE’s lenders, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to a VIE. While the Company has option contracts to purchase land from certain of its VIEs, the Company is not required to purchase the assets and could walk away from the contracts, but that would require forfeiture of deposits and pre-acquisition costs.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Unconsolidated VIEs

The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows:

At February 28, 2026

At November 30, 2025

At May 31, 2026

At November 30, 2025

(In thousands)

Investments inUnconsolidated VIEs

Lennar’s MaximumExposure to Loss

Investments inUnconsolidated VIEs

Lennar’s MaximumExposure to Loss

Homebuilding (1)

~~794~~689,~~825~~540

~~809~~701,~~433~~550

824,241

861,679

Multifamily (2)

~~379~~208,~~061~~578

~~380~~209,~~515~~258

167,873

169,364

Financial Services (3)

~~133~~129,~~428~~999

135,396

Lennar Other (4)

103,~~901~~226

105,151

1,~~411~~131,~~215~~343

1,~~427~~144,~~277~~033

1,232,661

1,271,590

(1)As of ~~February~~May 2831, 2026 and November 30, 2025, the Company's maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs. In addition, as of ~~February~~May 2831, 2026 and November 30, 2025, there was recourse debt of VIEs of $8.2 million and $30.1 million, respectively.

(2)As of both ~~February~~May 2831, 2026 and November 30, 2025, the Company's maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs. The increase was primarily due to LMV II becoming a VIE in anticipation of future capital contributions.

(3)As of both ~~February~~May 2831, 2026 and November 30, 2025, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and primarily related to the Financial Services' CMBS held-to-maturity investments.

(4)As of both ~~February~~May 2831, 2026 and November 30, 2025, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs.

The Company and its JV partners generally fund JVs as needed and in accordance with business plans to allow the entities to finance their activities. Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of ~~February~~May 2831, 2026 in accordance with ASC 810 due to insufficient equity at risk. While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents. While the Company generally manages the day-to-day operations of the VIEs, each of these VIEs has an executive committee made up of representatives from each partner. The members of the executive committee have equal votes and major decisions require unanimous consent and approval from all members. The Company does not have the unilateral ability to exercise participating voting rights without partner consent.

There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the VIEs. Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs.

Option Contracts

The Company has access to land through option contracts, which generally enable it to control portions of properties owned by third parties (including land banks) until the Company has determined whether to exercise the options. All deposits and pre-acquisition costs on real estate, including option maintenance fees paid to land banks, are capitalized on the condensed consolidated balance ~~sheet~~sheets and are allocated to the land basis when the land is acquired.

24The Company evaluates option contracts with third-party land holding companies for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these option contracts. Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary and makes a significant deposit or pre-acquisition cost investment for optioned land, or is otherwise economically compelled to takedown the optioned land, it may need to consolidate the land under option at the purchase price of the optioned land. As of May 31, 2026, land under option with third parties that the Company was compelled to takedown was $958.4 million, of which $255.4 million were land purchase contract obligations due to land banks upon maturity of the contracts. The Company's intention is to have other land banks close on the land purchase commitments and the Company will option the land from the land banks. Land under option with third parties is included in consolidated inventory not owned. Consolidated inventory not owned related to land financing transactions, which are land sale transactions that did not meet the criteria for revenue recognition and derecognition of land by the Company as a result of the Company maintaining an option to repurchase the land in the future, was $530.3 million as of May 31, 2026.

During the six months ended May 31, 2026, consolidated inventory not owned decreased by $207.7 million with a $163.7 million decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of May 31, 2026. The decrease was primarily due to takedowns. To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

~~The Company evaluates option contracts with third-party land holding companies for land to determine whether they are VIEs~~ and, ifconstruction ~~so,~~in ~~whether~~progress ~~the~~in ~~Company is~~ the ~~primary~~accompanying ~~beneficiary~~condensed ofconsolidated ~~certain~~balance ofsheet ~~these~~as option contracts. Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary and makes a significant deposit or pre-acquisition cost investment for optioned land, or is otherwise economically compelled to takedown the optioned land, it may need to consolidate the land under option at the purchase price of ~~the optioned land. As of February~~May 2831, 2026~~, land under option with third parties that the Company was compelled to takedown was $1~~.0 ~~billion, of which $267.8 million were land purchase contract obligations due to land banks upon maturity of the contracts.~~ The ~~Company's~~liabilities ~~intention~~related is to ~~have other land banks close on the land purchase commitments and the Company will option the land from the land banks. Land under option with third parties is included in~~ consolidated inventory not owned. ~~Consolidated~~primarily ~~inventory~~represent ~~not owned related to land financing transactions, which are land sale transactions that did not meet~~ the ~~criteria~~difference ~~for~~between ~~revenue recognition and derecognition of land by~~ the ~~Company~~option asexercise aprices ~~result~~for of the ~~Company~~optioned ~~maintaining an option to repurchase the~~ land inand the ~~future,~~Company’s ~~was~~cash ~~$631~~deposits.~~0 million as of February 28, 2026.~~

During the three months ended February 28, 2026, consolidated inventory not owned decreased by $50.1 million with a $28.7 million decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2026. The decrease was primarily due to takedowns. To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying condensed consolidated balance sheet as of February 28, 2026. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits.

The Company's exposure to losses on its option contracts with third parties and unconsolidated entities were as follows:

(In thousands)	At ~~February~~May 2831, 2026		At November 30, 2025
Non-refundable option deposits and pre-acquisition costs on real estate	$	6,~~735~~982,~~971~~603	6,301,909
Non-refundable option deposits included in consolidated inventory not owned	~~198~~175,~~587~~995		220,025
Letters of credit in lieu of cash deposits under certain land and option contracts	~~423~~411,~~767~~051		443,277

For the ~~three~~six months ended ~~February~~May 2831, 2026, the Company purchased a significant portion of land from three land banks (the “Land Banks”). There were no amounts due to the Land Banks as of ~~February~~May 2831, 2026, resulting from land purchases as the full purchase price of the land is typically paid to the Land Banks at closing when land is purchased by the Company. As of ~~February~~May 2831, 2026, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $2.86 billion, which are included in the corresponding line item presented in the table above. As of ~~February~~May 2831, 2026, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $~~449~~379.62 million and $~~349~~295.84 million. As of ~~February~~May 2831, 2026, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose Properties, Inc. (one of the three Land Banks) were $1.12 billion.

The Company believes there are other land banks that could be substituted should the Land Banks become unavailable or non-competitive with respect to land banking of future land. Thus, the Company does not believe that the loss of the Company’s relationship with these Land Banks would have a material adverse effect on the Company’s business, financial condition or cash flows.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(10)Commitments and Contingent Liabilities

The Company is involved in various claims, legal proceedings, and regulatory matters that arise in the ordinary course of business, including, but not limited to, matters related to construction defects, product liability, warranty claims, land use, zoning and permitting issues, environmental matters, contract disputes, employment matters, and other legal matters incidental to its business operations.

The Company follows established accounting standards to identify, evaluate, record, and disclose legal contingencies. A liability is recorded when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not record liabilities for contingencies when the likelihood of loss is remote or if reasonably possible, or when a probable loss cannot be reasonably estimated. If a loss is probable or reasonably possible, the Company discloses the nature of the contingency and, if estimable, the possible range of loss.

In assessing contingencies, management considers, among other factors, the nature of the claim, the status of the matter, the advice of legal counsel, the Company's historical experience with similar matters, insurance coverage, and recoveries, if any, and other relevant facts and circumstances. Estimates of loss contingencies are inherently subjective and involve significant judgment. As a result, actual outcomes may differ materially from amounts recorded or disclosed.

Certain of the Company's legal matters are covered, in whole or in part, by insurance policies subject to applicable retentions, deductibles, and policy limits, as well as through contractual indemnities. Recoveries, if any, are recognized only when realization is considered probable.

As of ~~February~~May 2831, 2026, the Company has recorded accruals for loss contingencies that management believes are probable and reasonably estimable. These accruals are included in Other liabilities in the condensed consolidated balance sheets. For these matters as well as for matters for which a loss is reasonably possible but not probable, management believes that any reasonably possible losses, either individually or in the aggregate, would not have a material adverse effect on the Company’s consolidated financial position. However, the ultimate resolution of these matters could have a material effect on the Company’s results of operations or cash flows in a particular period.

The Company cannot predict with certainty the outcome or timing of resolution of its pending matters, and no assurance can be given that the results will not differ from management’s expectations.

Product Warranty

Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows:

	Three Months Ended
	February 28,
(In thousands)	2026		2025
Warranty reserve, beginning of the period	$	400,591	446,240
Warranties issued	42,520		60,468
Adjustments to pre-existing warranties from changes in estimates (1)	13,006		2,562
Payments	(74,451)		(80,344)
Warranty reserve, end of period	$	381,666	428,926

(1)The adjustments to pre-existing warranties from changes in estimates during the three months ended February 28, 2026 and 2025 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.

Leases

The Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(Dollars in thousands)	At February 28, 2026		At November 30, 2025
	Three Months Ended			Six Months Ended
Right-of-use assets	$	252,317	269,011
	May 31,			May 31,
Lease liabilities	249,851		264,157
(In thousands)	2026		2025	2026	2025
Weighted-average remaining lease term (in years)	5.3		5.4
Warranty reserve, beginning of the period	$	381,666	428,926	400,591	446,240
Weighted-average discount rate	4.4%		4.7%
Warranties issued	47,479		63,164	89,999	123,632
Adjustments to pre-existing warranties from changes in estimates (1)	6,899		11,824	19,905	14,386
Payments	(52,892)		(61,856)	(127,343)	(142,200)
Warranty reserve, end of period	$	383,152	442,058	383,152	442,058

~~Future~~(1)The ~~minimum~~adjustments ~~payments~~to ~~under~~pre-existing ~~the~~warranties ~~noncancellable~~from ~~leases~~changes in ~~effect~~estimates atduring ~~February 28~~the three and six months ended May 31, 2026 ~~were~~and as2025 ~~follows:~~primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.

(In thousands)	Lease Payments
2026	$	65,382
2027	58,181
2028	40,592
2029	28,680
2030	25,193
Thereafter	66,331
Total future minimum lease payments (1)	$	284,359
Less: Interest (2)	34,508
Present value of lease liabilities (2)	$	249,851

Leases

(1)Total future minimum lease payments exclude variable lease costs of $33.9 million and short-term lease costs of $3.7 million.


(Dollars in thousands)	At May 31, 2026		At November 30, 2025
Right-of-use assets	$	232,599	269,011
Lease liabilities	233,775		264,157
Weighted-average remaining lease term (in years)	5.4		5.4
Weighted-average discount rate	4.6%		4.7%

~~(2)The~~Future ~~Company's~~minimum ~~leases~~payments dounder ~~not include a readily determinable implicit rate. As such,~~ the ~~Company~~noncancellable ~~estimated the discount rate for these~~ leases toin ~~determine~~effect ~~the present value of lease payments~~ at ~~the lease commencement date. As of February~~May 2831, 2026, ~~the~~were ~~Company~~as ~~recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments.~~follows:


(In thousands)	Lease Payments
2026	$	42,105
2027	59,360
2028	41,836
2029	29,776
2030	26,212
Thereafter	66,805
Total future minimum lease payments (1)	$	266,094
Less: Interest (2)	32,319
Present value of lease liabilities (2)	$	233,775

(1)Total future minimum lease payments exclude variable lease costs of $30.8 million and an immaterial amount of short-term lease costs.

(2)The Company's leases do not include a readily determinable implicit rate. As such, the Company estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date. As of May 31, 2026, the Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments.

The Company's rental expense on lease liabilities was as follows:

	Three Months Ended February 28,
	Six Months Ended May 31,
(In thousands)	2026		2025
Rental expense	$	4282,~~565~~485	51102,~~504~~628

In December 2023, the Company purchased its corporate headquarters building in which the Company had previously leased office space. This building contains approximately 213,200 square feet of office space, of which the Company leases approximately 53,000 square feet of unused office space to other tenants. On occasion, the Company may sublease other rented ~~space which is no longer used for the Company's operations. For both the three months ended February 28, 2026 and 2025, the Company had an immaterial amount of sublease income.~~

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

space which is no longer used for the Company's operations. For both the six months ended May 31, 2026 and 2025, the Company had an immaterial amount of sublease income.

Letters of Credits and Surety Bonds

The Company is committed, under various letters of credit, to perform certain development and construction activities and provide certain guarantees in the normal course of business. The Company also had outstanding surety bonds, including performance bonds related to site improvements at various projects (including certain joint ventures) and financial surety bonds. Although significant development and construction activities have been completed, these bonds are generally not released until all development and construction activities are completed (see Note 7 of the Notes to Condensed Consolidated Financial Statements for additional information).

The Company does not presently anticipate any draws upon these letters of credit or surety bonds that would have a material effect on its condensed consolidated financial statements.

Option Agreements

The Company is subject to the usual obligations associated with contractual agreements entered into in routine conduct of its business (including option contracts) for the purchase, development and sale of real estate. The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings (see Note 9 of the Notes to Condensed Consolidated Financial Statements for additional information).

Loan Servicing

Substantially all of the loans the Financial Services segment originates are sold within a short period on the secondary mortgage market on a servicing-released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray any losses incurred by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements and seeking to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors, which are included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets. These accruals are based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans as well as previous settlements. While the Company believes it has adequately reserved for known losses and projected repurchase requests, given the volatility in the mortgage market and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving purchase claims exceed the Company’s expectations, additional recourse expense may be incurred.

2730

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

representations and warranties in particular loan sale agreements and seeking to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors, which are included in Financial Services’ liabilities in the Company's consolidated balance sheets. These accruals are based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans as well as previous settlements. While the Company believes it has adequately reserved for known losses and projected repurchase requests, given the volatility in the mortgage market and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving purchase claims exceed the Company’s expectations, additional recourse expense may be incurred.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will,” “may” or other words of similar meaning. Some of them are opinions formed based upon general observations, anecdotal evidence and industry experience, but that are not supported by specific investigation or analysis.

These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements. The most important factors that could cause actual results to differ materially from those anticipated by our forward-looking statements include, but are not limited to: slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased or continued high interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials and labor; changes in trade policy affecting our business, including new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties that may impact the cost of raw materials and other goods related to our homebuilding business; changes in U.S. and foreign governmental laws, regulations and policies, including retaliatory policies against the United States, that may impact our business operations; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings or the willingness of the funds to invest in new projects; increased energy prices; reductions in the market value of our investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land-light strategy; problems exercising options to purchase homesites; a decline in the value of the land and home inventories we maintain and resulting possible future write downs of the carrying value of our real estate assets; the forfeiture of deposits and pre-acquisition costs on real estate related to land purchase options we decide not to exercise; the potential negative impact to our business from public health issues; labor shortages and/or a decrease in the number of potential homebuyers due to increased enforcement of restrictions on immigration; possible unfavorable outcomes in legal proceedings; conditions in the capital, credit and financial markets; and changes in laws, regulations or the regulatory environment affecting our business.

Please see our Annual Report on Form 10-K for the fiscal year ended November 30, 2025 ("2025 Form 10-K"), filed with the Securities and Exchange Commission (the “SEC”) on January 28, 2026 and our other filings with the SEC for a further discussion of these and other risks and uncertainties which could affect our future results. We undertake no obligation, other than those imposed by securities laws, to publicly revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events.

2931

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and accompanying notes included under Item 1 of this Quarterly Report on Form 10-Q and our audited consolidated financial statements and accompanying notes included in our 2025 Form 10-K.

Outlook

Lennar's ~~first~~second quarter 2026 results ~~reflect~~represent ~~what~~strong ~~remains~~operational aexecution ~~stubbornly~~against ~~challenging~~a ~~housing~~macro ~~market.~~backdrop ~~While~~that ~~margins~~has ~~continue~~grown tomore ~~reflect~~complicated throughout the ~~affordability-driven~~quarter. ~~realities~~While ~~facing today's homebuyers,~~ our ~~underlying~~margin ~~demand~~ remains ~~strong~~under ~~and~~pressure ~~supply~~as ~~continues to fall short of need. Throughout this period of market difficulty,~~ we ~~have~~continue ~~remained~~to ~~focused~~focus on ~~our~~bringing ~~clear~~affordable ~~and~~housing ~~consistent strategy. We drove consistent volume and we matched production and sales pace. We used margin as a circuit breaker, and we continued~~ to ~~refine~~an ~~and~~affordability-constrained ~~improve~~consumer ~~our asset-light~~base, ~~land-light~~underlying ~~manufacturing~~demand ~~platform.~~is Wereal ~~have maintained volume~~ and ~~focused~~growing ~~on building improved business programs to bring costs down so that we can remain profitable~~ and ~~still provide the much-needed housing~~ supply ~~America~~remains ~~demands~~structurally short.

WeMortgage ~~entered~~interest ~~the~~rates ~~first~~remained ~~quarter~~stubbornly ~~with~~elevated ~~cautious~~in ~~optimism~~the ~~following~~mid-to-upper ~~signs~~6% ofrange ~~moderating~~throughout ~~interest~~the ~~rates late in 2025~~quarter, ~~however,~~keeping ~~consumer~~affordability ~~confidence~~challenged ~~continued~~for tothe bemajority ~~tested by a range~~ of ~~domestic~~our ~~and global uncertainties~~buyers. ~~Mortgage~~Complicating ~~rates~~the ~~remained~~picture ~~stubbornly above 6%~~further, ~~hovering~~headline ~~between~~inflation ~~approximately~~rose 6to 4.2% ~~and~~year-over-year ~~6.4%~~in ~~throughout~~May, the ~~quarter;~~highest ~~concerns~~reading ~~about~~since ~~job~~early ~~security~~2023, ~~have~~driven ~~grown~~primarily ~~increasingly~~by ~~prominent~~energy asprices ~~rapid~~tied ~~advancements~~to insupply ~~artificial~~disruptions ~~intelligence~~from ~~raise important questions about~~ the ~~future~~Iran ~~of employment; and ongoing~~ conflict. inWhile ~~the~~core ~~Middle~~inflation ~~East~~decelerated ~~presents~~on ~~potential~~a ~~upside~~monthly ~~risks~~basis, tohigher energy ~~prices,~~costs ~~inflation,~~impact ~~and~~every ~~interest~~part ~~rates.~~of At the ~~same~~American ~~time,~~household ~~institutional~~budget ~~purchasers~~and ~~have~~weigh ~~been~~on ~~sidelined~~consumer byconfidence ~~political~~and ~~pressures~~the ~~that~~urgency ~~suggest~~to ~~that~~make ~~they~~major ~~are~~financial ~~part~~commitments. ofThe ~~the~~Federal ~~housing~~Reserve ~~problem.~~remains ~~They~~on ~~generally~~hold, ~~purchased~~and ~~between~~near-term 5%rate ~~and~~relief 7%appears ofunlikely. ~~new~~Consumer ~~homes~~psychology ~~for~~continues ~~rental~~to ~~purposes,~~be ~~primarily~~tested toby ~~people~~concerns ~~who~~about ~~cannot~~long-term ~~afford~~job tosecurity ~~purchase~~amid ~~but~~rapid ~~still~~advances ~~want~~in ~~single-family~~artificial ~~lifestyles~~intelligence. ~~While~~Traffic ~~traffic~~ across our communities ~~remained~~has ~~reasonably~~been ~~consistent,~~inconsistent; ~~the~~intent is high but urgency to ~~transact~~close ~~remained~~remains measured and deliberate rather than confident.

On aan ~~more~~encouraging ~~positive~~ note, ~~the~~after ~~federal~~three ~~government's~~years ~~engagement~~of ~~with~~incentive ~~the~~levels ~~national~~that ~~housing crisis continues to deepen. Federal officials~~ have been ~~actively~~generally ~~engaged~~increasing, ~~with~~we ~~builders~~saw ~~and~~a ~~industry~~meaningful ~~associations~~decline toin ~~explore~~our ~~practical~~sales ~~solutions~~incentives toon ~~the~~deliveries ~~affordability~~this ~~challenge~~quarter. ~~What~~While ~~programs~~the ~~will~~overall bemarket ~~adopted~~ remains tochoppy beand ~~seen,~~it ~~but~~is ~~the~~too ~~attention~~early ~~being paid at the federal level~~ to ~~the~~declare ~~housing~~a ~~shortage~~sustained ~~is unprecedented~~trend, ~~and~~this wemay ~~believe~~be ~~meaningful,~~a ~~long-term~~leading ~~policy~~indicator ~~support~~of ismargin ~~more~~recovery. ~~likely~~The ~~now~~federal ~~than~~government's atengagement ~~any~~with ~~time~~the innational ~~recent~~housing ~~history.~~crisis ~~Congress~~also iscontinues ~~working~~to ~~on housing legislation~~deepen, ~~but~~with wehousing ~~believe~~affordability ~~that~~remaining ita ~~will~~genuine ~~not~~focal ~~meaningfully~~point ~~impact~~of ~~housing~~both orthe ~~affordability~~administration inand the ~~short term~~legislature.

Our operating strategy has not changed. We remain focused on ~~three~~two ~~core~~strategic ~~operating tenets~~priorities: driving consistent, ~~volume~~even-flow toproduction ~~maximize~~and ~~efficiency;~~volume, and continuously refining our asset-light, land-light balance sheet model to generate strong and growing ~~returns and~~ cash flow; and ~~engaging~~returns. ~~new~~Using ~~technologies~~incentives, we price to ~~advance~~market ~~operational~~in ~~progress~~order ~~and~~to ~~enhance~~maintain sales at a consistent level as the ~~customer~~market ~~experience~~adjusts. ~~Our~~This ~~technology~~has ~~initiatives~~given -us ~~including~~a ~~improvements~~competitive edge, and has enabled us to ~~our~~drive ~~marketing~~down construction costs per square foot and ~~sales~~to ~~platform,~~reduce cycle time to a record low. Our land-light ~~bank~~model ~~administration,~~enables ~~and~~us ~~the~~to ~~ongoing~~be ~~buildout~~a ofsignificantly ~~our~~more ~~internal~~efficient ~~engineering~~land buyer, land developer and ~~technology~~land ~~capabilities~~administrator -at a meaningfully lower cost of capital. We are ~~beginning~~not towaiting ~~yield~~for ~~real~~conditions ~~and~~to ~~measurable~~normalize, ~~results~~we are building and ~~are~~executing ~~positioning~~in usthe tomarket ~~operate~~as ~~with~~it aexists ~~leaner~~today, ~~more~~and ~~competitive~~we ~~cost~~are ~~structure~~currently ~~going~~expecting ~~forward~~sequential margin improvement to continue as the year progresses.

WeFor ~~know that margins will remain under pressure in~~ the ~~second~~third quarter of 2026, aswe ~~affordability~~expect ~~headwinds~~new ~~persist~~orders ~~and~~to ~~macroeconomic~~be ~~uncertainty~~in ~~continues.~~the ~~However~~range of 21,000 ~~our~~to ~~cost~~22,000 ~~structure~~homes, iswith ~~materially~~continued ~~more~~focus ~~efficient~~on ~~than~~matching itstarts ~~was~~and ~~two~~sales ~~years~~pace. ~~ago,~~We ~~and~~anticipate wethird ~~are~~quarter ~~seeing~~deliveries ~~continuous~~to ~~improvement~~be ~~across~~in ~~construction~~the ~~costs,~~range ~~cycle~~of ~~times~~20,500 ~~and~~to ~~overhead.~~21,500 ~~While~~homes ~~our~~as ~~margins~~we ~~are~~maintain ~~down,~~even-flow ~~this~~production isand ~~due~~convert inventory to ~~incentives~~cash. ~~required~~Our toaverage ~~stimulate~~ sales, ~~which~~price ~~sit~~on atthose ~~14%~~deliveries ~~today,~~is ~~compared~~expected to ~~our~~be ~~historical average~~ between 4%$375,000 toand 6%$380,000. ~~That~~ ~~gap~~We ~~represents~~expect ~~significant~~gross ~~margin~~margins ~~recovery~~to ~~opportunity~~be asapproximately ~~mortgage~~16%, ~~rates moderate~~ and ~~pent-up~~our ~~demand~~SG&A ispercentage ~~activated.~~should Webe ~~continue~~in tothe ~~believe~~range weof ~~are~~8.8% ~~approaching~~to ~~an inflection point~~9.0%. ~~Our~~For ~~sales~~the ~~incentive~~full ~~levels~~year, ~~showed~~we ~~early~~are ~~signs~~adjusting ofour ~~stabilizing~~annual ~~during~~delivery ~~the~~guidance ~~first~~to ~~quarter~~82,000 asto ~~new~~83,000 ~~order~~homes, ~~incentive~~reflecting ~~rates~~current ~~trended~~pressures ~~below~~on ~~delivery~~interest ~~incentive~~ rates, ~~which~~and wecontinued ~~believe~~macro ~~reflects modestly improving demand dynamics~~uncertainty.

~~For~~After ~~the~~over ~~second~~three ~~quarter~~years of ~~2026,~~navigating wea ~~expect~~rather ~~new~~difficult ~~orders~~and tocomplicated behousing ~~in the range of 21~~market,~~000~~ towe ~~22,000~~believe ~~homes,~~that ~~with~~we ~~continued~~are ~~focus~~well-positioned onfor ~~matching~~market ~~starts~~conditions ~~and~~as ~~sales~~they ~~pace~~unfold. WeIn ~~anticipate~~the ~~second~~current ~~quarter~~market, ~~deliveries~~incentives toare bedeclining, inmargins ~~the~~are ~~range~~starting ~~of 20,000~~ to 21improve,~~000~~ ~~homes as we maintain even-flow production~~ and ~~convert~~our ~~inventory to cash. Our average~~ sales ~~price~~and onmarketing ~~those~~machines ~~deliveries~~are isgenerating ~~expected~~stronger toleads, befaster ~~between $370~~engagement,~~000~~ and ~~$375,000~~better conversion. WeOur ~~expect~~position ~~gross~~is ~~margins~~strong ~~to be~~ in the ~~range~~vast majority of ~~15.5%~~our ~~to 16%~~markets, ~~and~~which wegives ~~believe~~us ~~our~~the ~~first~~scale ~~quarter~~and ~~gross~~operational ~~margin~~discipline ofto ~~15.2%~~position ~~represents~~ourselves for improvements in the ~~low~~market ~~point~~rather ~~for~~than ~~the~~waiting ~~fiscal~~for ~~year.~~conditions ~~Our~~to ~~SG&A~~improve ~~percentage~~on istheir ~~expected~~own. toWe beare inbuilding ~~the~~towards ~~range~~that ofwith ~~8.9%~~clarity, todiscipline, ~~9.1%.~~and confidence.

We are determined to build more with less capital deployed, so that as margins begin to recover, returns on capital and equity will grow faster. Our balance sheet is strong, our land banking relationships are deep and productive, and our technology initiatives are positioning Lennar to be a materially different and better company in the years ahead. We remain committed to delivering affordable, high-quality homes to families across America, and we are confident that the steps we are taking today are building a stronger and more resilient Lennar for the future.32

(1) Results of Operations

Overview

We historically have experienced, and expect to continue to experience, variability in quarterly results. Our results of operations for the ~~first~~three ~~quarter~~and ofsix months ended May 31, 2026 are not necessarily indicative of the results to be expected for the full year. Our homebuilding business is seasonal in nature and generally reflects higher levels of new home order activity in our second and third fiscal quarters and increased deliveries in the second half of our fiscal year. However, a variety of factors can alter seasonal patterns.

Our ~~first~~second quarter net earnings attributable to Lennar in 2026 were $~~229~~304.48 million, or $01.9324 per diluted share, compared to our ~~first~~second quarter net earnings attributable to Lennar in 2025 of $~~519~~477.54 million, or $1.9681 per diluted share. Excluding pretax mark-to-market ~~gains~~losses of $1423.83 million and $29.4 million on technology investments, ~~first~~respectively, our second quarter net earnings attributable to Lennar in 2026 were $~~218~~322.01 million, or $01.8831 per diluted share., ~~Excluding~~compared ~~pretax mark-~~to~~-market~~ ~~losses of~~ $62499.5 million onor ~~technology~~$1.90 ~~investments,~~per ~~first~~diluted ~~quarter~~share ~~net~~in ~~earnings~~the ~~attributable~~second toquarter ~~Lennar~~of in 2025 ~~were $566~~.7 ~~million or $2.14 per diluted share.~~

Financial information relating to our operations was as follows:

	First Quarter 2026
	Three Months Ended May 31, 2026
(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate	Total
Revenues:
Sales of homes	$	67,~~272~~595,~~922~~039	—	—	—	—	67,~~272~~595,~~922~~039
Sales of land	1512,~~158~~401		—	—	—	—	1512,~~158~~401
Other revenues	108,~~483~~874		~~215~~236,~~555~~939	8263,~~499~~564	2223,~~859~~055	—	~~331~~332,~~396~~432
Total revenues	67,~~298~~616,~~563~~314		~~215~~236,~~555~~939	8263,~~499~~564	2223,~~859~~055	—	67,~~619~~939,~~476~~872
Costs and expenses:
Costs of homes sold	56,~~321~~412,~~614~~619		—	—	—	—	56,~~321~~412,~~614~~619
Costs of land sold	3121,~~311~~544		—	—	—	—	3121,~~311~~544
Selling, general and administrative expenses	~~617~~698,~~495~~395		—	—	—	—	~~617~~698,~~495~~395
Other costs and expenses	—		~~124~~135,~~242~~836	9072,~~428~~788	43,~~684~~726	—	~~258~~252,~~354~~350
Total costs and expenses	57,~~970~~132,~~420~~558		~~124~~135,~~242~~836	9072,~~428~~788	43,~~684~~726	—	67,~~228~~384,~~774~~908
Equity in earnings (losses) from unconsolidated entities	38,181		—	25,481	(394)	—	63,268
Equity in earnings from unconsolidated entities	2,670		—	27,233	4,184	—	34,087
Other income, net and other gains, net	62,~~704~~945		—	~~307~~316	~~1,135~~795	—	84,~~146~~056
Lennar Other gains from technology investments	—		—	—	14,838	—	14,838
Lennar Other losses from technology investments	—		—	—	(23,252)	—	(23,252)
Operating earnings (loss)	$	~~373~~489,~~028~~371	91101,~~313~~103	1718,~~859~~325	(538,~~246~~944)	—	~~476~~569,~~954~~855
Corporate general and administrative expenses	—		—	—	—	~~157~~136,~~638~~149	~~157~~136,~~638~~149
Charitable foundation contribution	—		—	—	—	1620,~~863~~519	1620,~~863~~519
Earnings (loss) before income taxes	$	~~373~~489,~~028~~371	91101,~~313~~103	1718,~~859~~325	(538,~~246~~944)	(~~174~~156,~~501~~668)	~~302~~413,~~453~~187

3133

	First Quarter 2025
	Three Months Ended May 31, 2025
(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate	Total
Revenues:
Sales of homes	$	7,~~240~~788,~~546~~275	—	—	—	—	7,~~240~~788,~~546~~275
Sales of land	3543,~~326~~195		—	—	—	—	3543,~~326~~195
Other revenues	712,~~998~~392		~~277~~298,~~077~~098	63230,~~196~~305	75,~~402~~237	—	~~355~~546,~~673~~032
Total revenues	7,~~283~~843,~~870~~862		~~277~~298,~~077~~098	63230,~~196~~305	75,~~402~~237	—	78,~~631~~377,~~545~~502
Costs and expenses:
Costs of homes sold	56,~~888~~402,~~144~~532		—	—	—	—	56,~~888~~402,~~144~~532
Costs of land sold	3656,~~077~~173		—	—	—	—	3656,~~077~~173
Selling, general and administrative expenses	~~615~~688,~~739~~847		—	—	—	—	~~615~~688,~~739~~847
Other costs and expenses	—		~~133~~140,~~594~~818	73254,~~376~~677	2330,~~564~~025	—	~~230~~425,~~534~~520
Total costs and expenses	67,~~539~~147,~~960~~552		~~133~~140,~~594~~818	73254,~~376~~677	2330,~~564~~025	—	67,~~770~~573,~~494~~072
Equity in earnings (losses) from unconsolidated entities	3517,~~004~~716		—	~~727~~(5,269)	(~~2,497~~331)	—	3312,~~234~~116
Other income (expense), net and other gains (losses), net	30,359		—	9,430	(8,121)	—	31,668
Other income, net and other gains, net	14,208		—	14,887	1,664	—	30,759
Lennar Other losses from technology investments	—		—	—	(6229,~~503~~440)	—	(6229,~~503~~440)
Operating earnings (loss)	$	~~809~~728,~~273~~234	~~143~~157,~~483~~280	(2314,754)	(8952,~~283~~895)	—	~~863~~817,~~450~~865
Corporate general and administrative expenses	—		—	—	—	~~147~~155,~~378~~853	~~147~~155,~~378~~853
Charitable foundation contribution	—		—	—	—	1720,~~834~~131	1720,~~834~~131
Earnings (loss) before income taxes	$	~~809~~728,~~273~~234	~~143~~157,~~483~~280	(2314,754)	(8952,~~283~~895)	(~~165~~175,~~212~~984)	~~698~~641,~~238~~881

First Quarter 2026 versus First Quarter 2025


	Six Months Ended May 31, 2026

(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate	Total
Revenues:
Sales of homes	$	13,867,961	—	—	—	—	13,867,961
Sales of land	27,559		—	—	—	—	27,559
Other revenues	19,357		452,494	146,063	45,914	—	663,828
Total revenues	13,914,877		452,494	146,063	45,914	—	14,559,348
Costs and expenses:
Costs of homes sold	11,734,233		—	—	—	—	11,734,233
Costs of land sold	52,855		—	—	—	—	52,855
Selling, general and administrative expenses	1,315,890		—	—	—	—	1,315,890
Other costs and expenses	—		260,078	163,216	87,410	—	510,704
Total costs and expenses	13,102,978		260,078	163,216	87,410	—	13,613,682
Equity in earnings from unconsolidated entities	40,851		—	52,714	3,790	—	97,355

Other income, net and other gains, net	9,649		—	623	1,930	—	12,202
Lennar Other losses from technology investments	—		—	—	(8,414)	—	(8,414)
Operating earnings (loss)	$	862,399	192,416	36,184	(44,190)	—	1,046,809
Corporate general and administrative expenses	—		—	—	—	293,787	293,787
Charitable foundation contribution	—		—	—	—	37,382	37,382
Earnings (loss) before income taxes	$	862,399	192,416	36,184	(44,190)	(331,169)	715,640

Revenues from home sales decreased 13% in the first quarter of 2026 to $6.3 billion from $7.2 billion in the first quarter of 2025. Revenues were lower primarily due to an 8% decrease in the average sales price of homes delivered and a 5% decrease in the number of home deliveries. New home deliveries were 16,863 homes in the first quarter of 2026, compared to 17,834 homes in the first quarter of 2025. The average sales price of homes delivered was $374,000 in the first quarter of 2026, compared to $408,000 in the first quarter of 2025. The decrease in average sales price of homes delivered in the first quarter of 2026 compared to the same period last year was primarily due to continued weakness in the market and an increased use of sales incentives offered to homebuyers.34

Gross margins on home sales were $951.3 million, or 15.2%, in the first quarter of 2026, compared to $1.4 billion, or 18.7%, in the first quarter of 2025. During the first quarter of 2026, gross margins decreased primarily due to lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.


	Six Months Ended May 31, 2025

(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate	Total
Revenues:
Sales of homes	$	15,028,821	—	—	—	—	15,028,821
Sales of land	78,521		—	—	—	—	78,521
Other revenues	20,390		575,175	293,501	12,639	—	901,705
Total revenues	15,127,732		575,175	293,501	12,639	—	16,009,047
Homebuilding costs and expenses:
Costs of homes sold	12,290,676		—	—	—	—	12,290,676
Costs of land sold	92,250		—	—	—	—	92,250
Selling, general and administrative	1,304,586		—	—	—	—	1,304,586
Other costs and expenses	—		274,412	328,053	53,589		656,054
Total costs and expenses	13,687,512		274,412	328,053	53,589	—	14,343,566
Equity in earnings (losses) from unconsolidated entities	52,720		—	(4,542)	(2,827)	—	45,351
Other income (expense), net and other gains (losses), net	44,567		—	24,317	(6,458)	—	62,426
Lennar Other losses from technology investments	—		—	—	(91,943)	—	(91,943)
Operating earnings	1,537,507		300,763	(14,777)	(142,178)	—	1,681,315
Corporate general and administrative expenses	—		—	—	—	303,231	303,231
Charitable foundation contribution	—		—	—	—	37,965	37,965
Earnings (loss) before income taxes	$	1,537,507	300,763	(14,777)	(142,178)	(341,196)	1,340,119

~~Selling,~~Three ~~general~~Months ~~and~~Ended ~~administrative~~May ~~expenses were $617.5 million in the first quarter of 2026~~31, ~~compared to $615.7 million in the first quarter of 2025. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.8% in the first quarter of~~ 2026, ~~from~~versus ~~8.5%~~Three inMonths ~~the~~Ended ~~first~~May ~~quarter of 2025~~31, ~~primarily due to less leverage as a result of lower revenues.~~ 2025

~~During~~Revenues from home sales decreased 2% in the ~~first~~second quarter of 2026, ~~our~~to ~~homebuilding~~$7.6 ~~operating~~billion ~~earnings~~from ~~included~~ $197.98 ~~million~~billion in the second quarter of ~~interest~~2025. ~~income~~Revenues were lower primarily due to a 5% decrease in the average sales price of homes delivered, partially offset by a 2% increase in the number of home deliveries. New home deliveries were 20,519 homes in the second quarter of 2026, compared to ~~$23~~20,131 homes in the second quarter of 2025.2 ~~million~~The average sales price of ~~interest~~homes ~~income~~delivered was $371,000 in the ~~first~~second quarter of 2026, compared to $389,000 in the second quarter of 2025. The decrease in average sales price of homes delivered in the second quarter of 2026 compared to the same period last year was primarily due to continued weakness in the market.

~~Operating~~Gross ~~earnings~~margins ~~for~~on ~~the~~home ~~Financial~~sales ~~Services segment~~ were $901.62 ~~million~~billion, or 15.6%, in the ~~first~~second quarter of 2026, compared to $~~142~~1.94 ~~million~~billion, or 17.8%, in the ~~first~~second quarter of 2025. ~~The~~During ~~decrease~~the insecond ~~operating~~quarter ~~earnings~~of ~~was~~2026, gross margins decreased primarily due to lower ~~lock~~revenue ~~volume~~per square foot and ~~lower~~higher ~~profit~~land ~~per~~costs ~~locked~~year ~~loan~~over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.

~~Operating~~Selling, ~~earnings~~general ~~for~~and ~~the~~administrative ~~Multifamily~~expenses ~~segment~~ were $18698.04 million in the ~~first~~second quarter of 2026, compared to a$688.8 ~~breakeven~~million ~~result~~ in the ~~first~~second quarter of 2025. ~~Operating~~As ~~loss~~a ~~for~~percentage ~~the~~of ~~Lennar~~revenues ~~Other~~from ~~segment~~home ~~was~~sales, ~~$5.2~~selling, ~~million~~general inand ~~the~~administrative ~~first~~expenses ~~quarter~~increased ~~of 2026, compared~~ to ~~operating loss of $89~~9.32% ~~million~~ in the ~~first~~second quarter of ~~2025.~~2026, ~~The~~from ~~Lennar~~8.8% ~~Other~~in ~~operating loss for~~ the ~~first~~second quarter of ~~2026~~2025, ~~was~~ primarily due to ~~operating~~less ~~losses,~~leverage ~~which~~as ~~was~~a ~~partially~~result ~~offset by mark-to-market gains~~ of ~~$14.8~~lower ~~million~~revenues onand ~~our~~an ~~technology~~increase ~~investments.~~in ~~The~~marketing ~~Lennar~~and ~~Other~~selling ~~operating loss for the first quarter of 2025 was primarily due to mark-to-market losses of $62~~expenses.~~5 million on our technology investments.~~

InDuring the ~~first~~second quarter of 2026 ~~and 2025~~, weour ~~had~~homebuilding ~~tax~~operating ~~provisions~~earnings ofincluded $699.14 million ~~and~~of ~~$169.5~~interest ~~million~~income, ~~which~~compared ~~resulted~~to in$13.8 anmillion ~~overall effective income tax rate~~ of ~~23.1%~~interest ~~and 24.6%, respectively. For both periods, our effective~~ income ~~tax~~in ~~rate~~the ~~included~~second ~~state~~quarter ~~income~~of ~~tax expense and non-deductible executive compensation, partially offset by tax credits~~2025. The decrease in ~~the~~interest ~~effective~~income ~~tax rate for the first quarter of 2026 compared to the prior period~~ was primarily due to alower ~~charitable~~cash ~~contribution~~balances ofyear ~~appreciated~~over ~~stock~~year.

32Operating earnings for the Financial Services segment were $100.2 million in the second quarter of 2026, compared to $156.6 million in the second quarter of 2025, both amounts are net of noncontrolling interest. The decrease in operating earnings was primarily due to lower profit per locked loan in the mortgage business.

Operating earnings for the Multifamily segment were $18.3 million in the second quarter of 2026, compared to an operating loss of $14.8 million in the second quarter of 2025. Operating loss for the Lennar Other segment was $38.9 million in the second quarter of 2026, compared to an operating loss of $52.9 million in the second quarter of 2025. The Lennar Other

operating loss for both second quarters of 2026 and 2025 was primarily driven by mark-to-market losses of $23.3 million and $29.4 million, respectively, on our technology investments.

In the second quarter of 2026 and 2025, we had tax provisions of $105.1 million and $160.1 million, which resulted in an overall effective income tax rate of 25.6% and 25.1%, respectively. For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

Six Months Ended May 31, 2026 versus Six Months Ended May 31, 2025

Revenues from home sales decreased 8% in the six months ended May 31, 2026 to $13.9 billion from $15.0 billion in the six months ended May 31, 2025. Revenues were lower primarily due to a 6% decrease in the average sales price of homes delivered and a 2% decrease in the number of home deliveries. New home deliveries were 37,382 homes in the six months ended May 31, 2026, compared to 37,965 homes in the six months ended May 31, 2025. The average sales price of homes delivered was $373,000 in the six months ended May 31, 2026, compared to $398,000 in the six months ended May 31, 2025. The decrease in average sales price of homes delivered in the six months ended May 31, 2026 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $2.1 billion, or 15.4%, in the six months ended May 31, 2026, compared to $2.7 billion, or 18.2%, in the six months ended May 31, 2025. During the six months ended May 31, 2026, gross margins decreased primarily due to lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.

Selling, general and administrative expenses were $1.3 billion in the six months ended May 31, 2026, consistent with $1.3 billion in the six months ended May 31, 2025. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.5% in the six months ended May 31, 2026, from 8.7% in the six months ended May 31, 2025, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the six months ended May 31, 2026, our homebuilding operating earnings included $29.3 million of interest income, compared to $37.0 million of interest income in the six months ended May 31, 2025. The decrease in interest income was primarily due to lower cash balances year over year.

Operating earnings for the Financial Services segment were $190.8 million in the six months ended May 31, 2026, compared to $299.5 million in the six months ended May 31, 2025, both amounts are net of noncontrolling interest. The decrease in operating earnings was primarily due to lower profit per locked loan in the mortgage business.

Operating earnings for the Multifamily segment were $36.2 million in the six months ended May 31, 2026, compared to an operating loss of $14.5 million in the six months ended May 31, 2025. Operating loss for the Lennar Other segment was $44.2 million in the six months ended May 31, 2026, compared to an operating loss of $142.2 million in the six months ended May 31, 2025. The Lennar Other operating loss for the six months ended May 31, 2026 was due to operating losses and mark-to-market losses of $8.4 million on our technology investments. The Lennar Other operating loss for the six months ended May 31, 2025 was primarily due to mark-to-market losses of $91.9 million on our technology investments.

In the six months ended May 31, 2026 and 2025, we had tax provisions of $174.2 million and $329.6 million, which resulted in an overall effective income tax rate of 24.6% and 24.8%, respectively. For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

Homebuilding Segments

At ~~February~~May 2831, 2026, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 2 of the Notes to Condensed Consolidated Financial Statements. The following tables set forth selected financial and operational information related to our homebuilding operations for the periods indicated:

Selected Financial and Operational Data

First Quarter 2026

Three Months Ended May 31, 2026

Gross Margins

Operating Earnings

($ in thousands)

Sales of Homes Revenue

Costs of Sales of Homes

Gross Margin (Loss) %

Net Margins (Losses) on Sales of Homes (1)

Gross Margins (Losses) on Sales of Land

Other Revenues

Equity in Earnings (Losses) from Unconsolidated Entities

Other Income (Expense), net

Operating Earnings (Losses)

East

1,~~512~~709,~~078~~254

1,~~238~~382,~~852~~260

1819.1

~~110~~157,~~452~~939

(74,~~228~~178)

43,~~869~~705

104,~~683~~978

(31,~~821)~~942

~~114~~164,~~955~~386

Central

1,~~345~~662,~~033~~594

1,~~152~~407,~~715~~144

1415.34

4476,~~113~~968

(2,~~863~~130)

1,~~153~~076

59(18)

12,~~883~~276

4478,~~345~~172

South Central

1,~~160~~463,~~180~~140

~~956~~1,~~368~~210,579

17.63

96117,~~178~~472

(~~2,345~~973)

~~660~~560

(1510)

(12,~~669~~712)

92114,~~809~~337

West

2,~~251~~758,~~747~~154

12,~~967~~409,~~522~~274

12.6

93138,~~055~~458

(31,~~717~~862)

1,~~202~~160

~~912~~676

(21,~~032)~~603

89140,~~420~~035

Other (2)

31,~~884~~897

63,~~157~~362

(5877.52)

(96,~~985~~812)

—

2,~~599~~373

26(2,~~542~~956)

~~12,343~~(164)

31(7,~~499~~559)

Totals

67,~~272~~595,~~922~~039

56,~~321~~412,~~614~~619

15.26

~~333~~484,~~813~~025

(169,~~153~~143)

108,~~483~~874

382,~~181~~670

62,~~704~~945

~~373~~489,~~028~~371

First Quarter 2025

Three Months Ended May 31, 2025

Gross Margins

Operating Earnings

($ in thousands)

Sales of Homes Revenue

Costs of Sales of Homes

Gross Margin (Loss) %

Net Margins (Losses) on Sales of Homes (1)

Gross Margins (Losses) on Sales of Land

Other Revenues

Equity in Earnings (Losses) from Unconsolidated Entities

Other Income (Expense), net

Operating Earnings

East

1,~~655~~715,~~259~~407

1,~~303~~390,~~019~~760

2118.39

~~190~~157,~~054~~329

~~(389)~~147

23,~~736~~714

68,~~638~~295

257,~~315~~161

~~224~~176,~~354~~646

Central

1,~~530~~743,~~193~~304

1,~~245~~417,~~610~~197

18.67

~~132~~160,~~258~~279

(1,~~440~~143)

~~854~~1,963

(31)

21,~~051~~099

~~133~~162,~~720~~197

South Central

1,~~160~~505,~~523~~750

~~946~~1,~~529~~241,884

1817.45

~~119~~137,~~172~~955

2(1,~~664~~415)

~~701~~1,058

(26)

(~~452~~903)

~~122~~136,~~083~~689

West

2,~~888~~818,~~685~~980

2,~~386~~346,~~679~~962

1716.47

~~299~~254,~~625~~863

(110,~~586~~567)

12,~~248~~095

~~(28)~~1,038

(~~478~~2,005)

~~298~~245,~~781~~424

Other (2)

54,~~886~~834

65,~~307~~729

(718.25)

(413,~~446~~530)

—

23,~~459~~562

288,~~399~~390

38,~~923~~856

307,~~335~~278

Totals

7,~~240~~788,~~546~~275

56,~~888~~402,~~144~~532

1817.78

~~736~~696,~~663~~896

(~~751~~12,978)

712,~~998~~392

3517,~~004~~716

3014,~~359~~208

~~809~~728,~~273~~234


	Six Months Ended May 31, 2026
	Gross Margins					Operating Earnings
($ in thousands)	Sales of Homes Revenue		Costs of Sales of Homes	Gross Margin (Loss) %		Net Margins (Losses) on Sales of Homes (1)	Gross Losses on Sales of Land	Other Revenues	Equity in Earnings (Losses) from Unconsolidated Entities	Other Income (Expense), net	Operating Earnings
East	$	3,221,332	2,621,112	18.6	%	268,391	(11,406)	8,574	15,661	(1,879)	279,341
Central	3,007,627		2,559,859	14.9	%	121,081	(4,993)	2,229	41	4,159	122,517
South Central	2,623,320		2,166,947	17.4	%	213,650	(3,318)	1,220	(25)	(4,381)	207,146
West	5,009,901		4,376,796	12.6	%	231,513	(5,579)	2,362	1,588	(429)	229,455
Other (2)	5,781		9,519	(64.7)	%	(16,797)	—	4,972	23,586	12,179	23,940
Totals	$	13,867,961	11,734,233	15.4	%	817,838	(25,296)	19,357	40,851	9,649	862,399


	Six Months Ended May 31, 2025
	Gross Margins					Operating Earnings
($ in thousands)	Sales of Homes Revenue		Costs of Sales of Homes	Gross Margin (Loss) %		Net Margins (Losses) on Sales of Homes (1)	Gross Margins (Losses) on Sales of Land	Other Revenues	Equity in Earnings (Losses) from Unconsolidated Entities	Other Income (Expense), net	Operating Earnings
East	$	3,370,667	2,693,780	20.1	%	347,383	(242)	6,449	14,933	32,477	401,000
Central	3,273,496		2,662,807	18.7	%	292,537	(2,583)	2,817	(4)	3,150	295,917
South Central	2,666,273		2,188,413	17.9	%	257,127	1,249	1,759	(8)	(1,355)	258,772
West	5,707,665		4,733,641	17.1	%	554,488	(12,153)	3,343	1,010	(2,483)	544,205
Other (2)	10,720		12,035	(12.3)	%	(17,976)	—	6,022	36,789	12,778	37,613
Totals	$	15,028,821	12,290,676	18.2	%	1,433,559	(13,729)	20,390	52,720	44,567	1,537,507

(1)Net margins on sales of homes include selling, general and administrative expenses.

(2)Negative gross and net margins were due to period costs in Urban divisions that impact costs of homes sold without sufficient sales of homes revenue to offset those costs.

Summary of Homebuilding Data

Deliveries:

First Quarter

Three Months Ended May 31,

2026

2025

2026

2025

2026

2025

Homes

Dollar Value (In thousands)

Average Sales Price

East

4,~~150~~761

4,~~384~~742

1,~~583~~757,~~951~~118

1,~~696~~766,~~242~~459

~~382~~369,000

~~387~~373,000

Central

34,~~801~~606

34,~~956~~538

1,~~345~~662,~~033~~594

1,~~530~~743,~~193~~304

~~354~~361,000

~~387~~384,000

South Central

56,~~039~~286

46,~~730~~174

1,~~160~~463,~~180~~140

1,~~160~~505,~~523~~750

~~230~~233,000

~~245~~244,000

West

34,~~868~~863

4,~~756~~669

2,~~251~~758,~~747~~154

2,~~888~~818,~~685~~980

~~582~~567,000

~~607~~604,000

Other

31,~~884~~897

54,~~886~~834

~~777~~632,000

~~736~~604,000

Total

1620,~~863~~519

1720,~~834~~131

67,~~344~~642,~~795~~903

7,~~281~~839,~~529~~327

~~374~~371,000

~~408~~389,000

Of the total homes delivered listed above, 8473 homes with a dollar value of $7147.9 million and an average sales price of $~~856~~656,000 represent homes from unconsolidated entities for the ~~first~~three ~~quarter~~months ofended May 31, 2026, compared to 80113 homes with a dollar value of $4151.01 million and an average sales price of $~~512~~452,000 for the ~~first~~three ~~quarter~~months ofended May 31, 2025.


	Six Months Ended May 31,
	2026	2025	2026		2025	2026		2025
	Homes		Dollar Value (In thousands)			Average Sales Price
East	8,911	9,126	$	3,341,069	3,462,701	$	375,000	379,000
Central	8,407	8,494	3,007,627		3,273,497	358,000		385,000
South Central	11,325	10,904	2,623,320		2,666,273	232,000		245,000
West	8,731	9,425	5,009,901		5,707,665	574,000		606,000
Other	8	16	5,780		10,720	723,000		670,000
Total	37,382	37,965	$	13,987,697	15,120,856	$	374,000	398,000

Of the total homes delivered listed above, 157 homes with a dollar value of $119.7 million and an average sales price of $763,000 represent homes from unconsolidated entities for the six months ended May 31, 2026, compared to 193 homes with a dollar value of $92.0 million and an average sales price of $477,000 for the six months ended May 31, 2025.

Sales Incentives (1):

	First Quarter
	Three Months Ended May 31,								Six Months Ended May 31,
		2026		2025	2026		2025		2026		2025	2026		2025
		Average Sales Incentives PerHome Delivered			Sales Incentivesas a % of Revenue				Average Sales Incentives PerHome Delivered			Sales Incentivesas a % of Revenue
East		$	7557,~~400~~500	6774,~~400~~800	1613.86	%	1416.98	%	$	65,800	71,300	15.2	%	15.9	%
Central		5243,~~800~~000		5045,~~200~~500	1310.06	%	1110.56	%	47,400		47,700	11.7	%	11.0	%
South Central		5255,~~100~~000		5854,400	1819.41	%	1918.2	%	53,700		56,100	18.8	%	18.7	%
West		6664,800		6564,~~300~~600	10.3	%	9.7	%	65,700		65,000	10.3	%	9.7	%
Other		9788,400		97101,~~300~~700	1112.13	%	1114.74	%	94,100		99,500	11.5	%	12.9	%
Total		$	6155,~~300~~200	6059,~~600~~500	1412.19	%	1213.93	%	$	57,900	60,000	13.5	%	13.1	%

(1) Sales incentives relate to homes delivered during the period, excluding homes delivered by unconsolidated entities.

New Orders (2):

First Quarter

As of May 31,

Three Months Ended May 31,

2026

2025

2026

2025

2026

2025

2026

2025

Active Communities

Homes

Dollar Value (In thousands)

Average Sales Price

East

~~359~~346

~~341~~340

45,~~480~~064

45,~~063~~604

1,~~711~~929,~~647~~424

1,~~561~~978,~~862~~078

~~382~~381,000

~~384~~353,000

Central

~~452~~462

~~436~~443

45,~~592~~218

45,~~550~~266

1,~~636~~896,~~213~~583

1,~~800~~987,~~195~~955

~~356~~363,000

~~396~~378,000

South Central

~~429~~433

~~387~~391

56,~~005~~293

46,~~921~~626

1,~~163~~475,~~614~~500

1,~~172~~607,~~861~~319

~~232~~234,000

~~238~~243,000

West

~~437~~441

~~418~~441

45,~~431~~173

45,~~811~~098

2,~~622~~906,~~800~~234

2,~~888~~997,~~650~~528

~~592~~562,000

~~600~~588,000

Other

107

~~5,112~~668

74,~~164~~383

~~730~~668,000

~~716~~626,000

Total

1,~~678~~683

1,~~584~~617

1821,~~515~~749

1822,~~355~~601

78,~~139~~208,~~386~~409

78,~~430~~575,~~732~~263

~~386~~377,000

~~405~~379,000

Of the total new orders listed above, 7157 homes with a dollar value of $3130.29 million and an average sales price of $~~440~~542,000 represent homes in ~~seven~~five active communities from unconsolidated entities for the ~~first~~three ~~quarter~~months ofended May 31, 2026, compared to ~~101~~141 homes with a dollar value of $5969.98 million and an average sales price of $~~593~~495,000 in 1110 active communities for the ~~first~~three ~~quarter~~months ofended May 31, 2025.

(2)Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the first quarter of 2026 and 2025.


	Six Months Ended May 31,
	2026	2025	2026		2025	2026		2025
	Homes		Dollar Value (In thousands)			Average Sales Price
East	9,544	9,667	$	3,641,071	3,539,940	$	382,000	366,000
Central	9,810	9,816	3,532,795		3,788,150	360,000		386,000
South Central	11,298	11,547	2,639,114		2,780,180	234,000		241,000
West	9,604	9,909	5,529,034		5,886,178	576,000		594,000
Other	8	17	5,781		11,547	723,000		679,000
Total	40,264	40,956	$	15,347,795	16,005,995	$	381,000	391,000

Filing Compare · LENNAR CORP /NEW/