SDHC Q2 2026 - Preliminary Earnings Alert

Event: Quartr Q2 2026 event Retrieved: 2026-08-06T11:30:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available | financials=earnings release only | transcript=not yet available (call 2026-08-06 12:30Z)

Consensus scorecard

• Consensus scorecard, bulleted equivalent:
  • Revenue / home closing revenue: Quartr actual $273.026m against API Ninjas consensus $258.103m - Beat +$14.923m, +5.8%.
  • EPS / GAAP diluted: Quartr actual $0.03 against API Ninjas consensus $0.112 - Miss −$0.082, −73.2%.

Reported results and guidance

• Q2 income statement, bulleted equivalent (Q2 2026 vs Q2 2025): home closing revenue $273,026k vs $223,924k (+21.9%); cost of home closings $225,105k vs $171,985k (+30.9%); home closing gross profit $47,921k vs $51,939k (−7.7%); gross margin 17.6% vs 23.2%; SG&A $41,914k vs $34,702k (+20.8%), 15.4% vs 15.5% of revenue; equity in income from unconsolidated entities $(786)k vs $(598)k; interest expense $640k vs $772k; other expense (income), net $4,285k vs $(116)k; income before income taxes $1,868k vs $17,179k (−89.1%); tax provision $100k vs $744k; net income $1,768k vs $16,435k (−89.2%); non-controlling interests $1,522k vs $14,070k; net income attributable to Smith Douglas Homes Corp. $246k vs $2,365k; basic and diluted EPS $0.03 vs $0.26; adjusted net income $1,366k vs $12,901k; weighted average basic and diluted shares 8,380,647 vs 8,998,470.

• Six-month results, bulleted equivalent (6M 2026 vs 6M 2025): home closing revenue $479,470k vs $448,646k (+6.9%); cost of home closings $391,098k vs $343,177k (+14.0%); gross profit $88,372k vs $105,469k (−16.2%); gross margin 18.4% vs 23.5%; SG&A $77,826k vs $67,701k (+15.0%); interest expense $1,488k vs $1,438k; other expense, net $4,188k vs $401k; income before income taxes $6,183k vs $36,746k (−83.2%); net income $5,830k vs $35,145k; net income attributable to the Corp. $811k vs $5,048k; basic EPS $0.09 vs $0.56 and diluted EPS $0.09 vs $0.55; adjusted net income $4,521k vs $27,596k.

• Operating data, bulleted equivalent: home closings 839 vs 669 (+25.4%); ASP of homes closed $325k vs $335k (−3.0%); net new home orders 970 vs 736 (+31.8%); contract value of net new orders $311,612k vs $247,421k (+25.9%); ASP of net new orders $321k vs $336k (−4.5%); cancellation rate 12.7% vs 10.0%; backlog homes 1,000 vs 858 (+16.6%); backlog contract value $322,147k vs $292,881k (+10.0%); backlog ASP $322k vs $341k (−5.6%); active communities 110 vs 92 (+19.6%); homes under construction 1,208 vs 1,091; owned lots 664 vs 834; optioned lots 21,655 vs 22,899; total controlled lots 23,527 vs 24,824 (−5.2%).

• Six-month operating data, bulleted equivalent: home closings 1,463 vs 1,340 (+9.2%); ASP of homes closed $328k vs $335k; net new home orders 1,951 vs 1,504 (+29.7%); contract value $635,305k vs $506,139k (+25.5%); ASP of net new orders $326k vs $337k; cancellation rate 11.0% vs 9.1%.

• Q2 segment revenue, bulleted equivalent: Southeast $168,995k on 509 closings at a $332k ASP versus $141,267k on 407 closings at $347k - revenue +20%, closings +25%, ASP −4%; Central $104,031k on 330 closings at a $315k ASP versus $82,657k on 262 closings at $315k - revenue +26%, closings +26%, ASP flat; total $273,026k on 839 closings at $325k versus $223,924k on 669 closings at $335k - revenue +22%, closings +25%, ASP −3%.

• Q2 segment net income, bulleted equivalent: Southeast $10,574k vs $21,991k, down $11,417k; Central $5,866k vs $6,345k, down $479k; segment total $16,440k vs $28,336k, down $11,896k; Other (non-reportable homebuilding operations and corporate overhead) $(14,672)k vs $(11,901)k, a $2,771k larger drag; total net income $1,768k vs $16,435k, down $14,667k.

• Six-month segment net income, bulleted equivalent: Southeast $23,054k vs $45,846k, down $22,792k; Central $11,301k vs $13,355k, down $2,054k; segment total $34,355k vs $59,201k, down $24,846k; Other $(28,525)k vs $(24,056)k; total $5,830k vs $35,145k, down $29,315k.

• Backlog by segment, bulleted equivalent: Southeast 591 homes worth $194,893k at a $330k ASP versus 511 homes worth $178,409k at $349k - homes +16%, value +9%, ASP −5%; Central 409 homes worth $127,254k at a $311k ASP versus 347 homes worth $114,472k at $330k - homes +18%, value +11%, ASP −6%; total 1,000 homes worth $322,147k at $322k versus 858 homes worth $292,881k at $341k - homes +17%, value +10%, ASP −6%.

• Controlled lots by segment, bulleted equivalent: Southeast 1,023 owned (+4%) and 14,007 optioned (−12%) for 15,030 controlled (−12%) versus 986 and 16,005 for 16,991; Central 849 owned (−10%) and 7,648 optioned (+11%) for 8,497 controlled (+8%) versus 939 and 6,894 for 7,833; total 1,872 owned (−3%) and 21,655 optioned (−5%) for 23,527 controlled (−5%) versus 1,925 and 22,899 for 24,824. Owned lots include homes under construction.

• Balance sheet, bulleted equivalent (30 Jun 2026 vs 31 Dec 2025): cash $14,200k vs $12,741k; real estate inventory $331,216k vs $298,637k (+10.9%); deposits on real estate under option or contract $139,288k vs $138,763k; real estate not owned $24,251k vs $28,051k; property and equipment $9,206k vs $9,720k; goodwill $25,726k in both periods; deferred tax asset $9,612k vs $9,666k; other assets $38,603k vs $34,289k; total assets $592,102k vs $557,593k; accounts payable $26,943k vs $1,938k; customer deposits $6,027k vs $3,108k; notes payable $66,026k vs $44,075k (+49.8%); liabilities related to real estate not owned $24,251k vs $28,051k; accrued expenses and other liabilities $26,517k vs $26,428k; tax receivable agreement liability $9,382k vs $9,857k; total liabilities $159,146k vs $113,457k (+40.3%); additional paid-in capital $62,122k vs $60,610k; retained earnings $26,924k vs $26,113k; treasury stock $(9,588)k versus none; equity attributable to the Corp. $79,463k vs $86,728k; non-controlling interests $353,493k vs $357,408k; total equity $432,956k vs $444,136k.

• Leverage, bulleted equivalent: notes payable $66,026k versus $44,075k; equity $432,956k versus $444,136k; total capitalization $498,982k versus $488,211k; debt-to-book capitalization 13.2% versus 9.0%; net debt $51,826k versus $31,334k; total net capitalization $484,782k versus $475,470k; net debt-to-net book capitalization 10.7% versus 6.6%.

• Cash flow, bulleted equivalent: operating activities provided $4,850k in 6M 2026 versus using $63,847k in 6M 2025; investing used $1,152k versus $4,225k; financing used $2,239k versus providing $62,486k; net change +$1,459k versus −$5,586k; ending cash $14,200k versus $16,777k.

• Adjusted net income reconciliation, bulleted equivalent: net income $1,768k (Q2 2026), $16,435k (Q2 2025), $5,830k (6M 2026), $35,145k (6M 2025); plus tax provision $100k, $744k, $353k, $1,601k; equals income before income taxes $1,868k, $17,179k, $6,183k, $36,746k; less tax-effected adjustments $502k, $4,278k, $1,662k, $9,150k; equals adjusted net income $1,366k, $12,901k, $4,521k, $27,596k. The adjustments assume a 26.9% blended federal and state rate for 2026 and 24.9% for 2025, and full public ownership of Smith Douglas Holdings LLC.

• Scorecard recap: home closing revenue of $273.0m beat consensus by 5.8% while GAAP diluted EPS of $0.03 missed the $0.112 estimate by 73.2%.

• The quarter's pretax income of $1.9m includes $7.6m of real estate inventory impairment and lot option contract abandonment charges.

• The company repurchased 312,351 shares of Class A common stock for $4.4 million during the quarter.

• No forward guidance of any kind is provided in this release.

• CEO and Vice Chairman Greg Bennett said the company delivered "another quarter of solid operational execution," citing growth in orders and closings "despite a market that remains uncertain and constantly evolving," and said the housing market "continues to face affordability challenges and macroeconomic uncertainty."

• CFO Russ Devendorf said the company "expanded our community count, increased sales, and continued to execute our land-light land strategy without compromising our underwriting standards."

• The 8:30 a.m. Eastern call on 6 August 2026 has not yet been held and no Quartr transcript exists.

Key bullish aspects

• Volume growth is strong and broad: home closings rose 25.4% to 839, net new home orders rose 31.8% to 970, and active communities rose 19.6% to 110.
• Home closing revenue rose 21.9% to $273.0m and beat consensus by 5.8%.
• Backlog homes rose 16.6% to 1,000 and backlog contract value rose 10.0% to $322.1m, so the order book supports continued closings growth.
• Both segments grew: Southeast revenue +20% on +25% closings and Central revenue +26% on +26% closings.
• Central segment ASP held flat at $315k while volume grew 26%, so the Central growth was not bought with price.
• Six-month net new home orders rose 29.7% to 1,951 with contract value up 25.5% to $635.3m, well ahead of the 9.2% growth in six-month closings, which builds the pipeline.
• Operating cash flow swung to +$4.9m in the first half from −$63.8m a year earlier, a $68.7m improvement.
• The land-light strategy is intact: 21,655 of 23,527 controlled lots (92.0%) are optioned rather than owned, and owned lots fell 20.4% year over year to 664.
• SG&A as a percentage of home closing revenue improved slightly to 15.4% from 15.5% despite the 19.6% increase in active communities.
• Leverage remains low in absolute terms: net debt-to-net book capitalization of 10.7% and debt-to-book capitalization of 13.2%.
• The company returned capital, repurchasing 312,351 Class A shares for $4.4m in the quarter, reducing Class A shares outstanding to 8,386,996 from 9,017,708 at 31 December 2025.
• Interest expense fell 17.1% to $0.6m in the quarter.
• Customer deposits nearly doubled over six months to $6.0m, consistent with the order growth.

Key bearish aspects

• Home closing gross margin collapsed 560 basis points to 17.6% from 23.2%, and gross profit fell 7.7% in absolute terms despite 21.9% revenue growth.
• Pretax income fell 89.1% to $1.9m and diluted EPS fell to $0.03 from $0.26, missing consensus by 73.2%.
• $7.6m of real estate inventory impairment and lot option contract abandonment charges are inside a $1.9m pretax income figure, so the charges are four times the reported pretax result.
• Cost of home closings rose 30.9%, nine percentage points faster than revenue.
• Pricing is deteriorating across every measure: ASP of homes closed fell 3.0% to $325k, ASP of net new orders fell 4.5% to $321k, and ASP of backlog fell 5.6% to $322k - the backlog ASP is the forward indicator and it is the weakest of the three.
• The cancellation rate rose to 12.7% from 10.0% in the quarter and to 11.0% from 9.1% over six months.
• Six-month results are worse than the quarter in trend terms: revenue up only 6.9% while gross profit fell 16.2% and pretax income fell 83.2%.
• Both reportable segments saw net income decline: Southeast fell $11.4m to $10.6m and Central fell $0.5m to $5.9m.
• The unallocated "Other" drag widened to $(14.7)m from $(11.9)m in the quarter and to $(28.5)m from $(24.1)m over six months, so corporate overhead grew as segment profit shrank.
• Segment net income of $16.4m was almost entirely consumed by the $(14.7)m Other line, leaving $1.8m of consolidated net income.
• Other expense, net swung to a $4.3m expense from a $0.1m income in the quarter and to $4.2m from $0.4m over six months; the release does not identify its components.
• Notes payable rose 49.8% over six months to $66.0m while total equity fell 2.5% to $433.0m, lifting debt-to-book capitalization to 13.2% from 9.0%.
• Accounts payable rose from $1.9m to $26.9m over six months, a $25.0m increase that flatters the first-half operating cash flow swing.
• Total controlled lots fell 5.2% to 23,527 and Southeast optioned lots fell 12% to 14,007, so the land pipeline shrank while community count grew.
• Real estate inventory rose 10.9% over six months to $331.2m against a quarter in which margin compressed and impairments were taken.
• Total stockholders' equity attributable to Smith Douglas Homes Corp. fell 8.4% over six months to $79.5m, largely on the $9.6m of treasury stock.
• The release provides no guidance on closings, revenue, margin, community count or land spend.

Key uncertainties

• The $7.6m of real estate inventory impairment and lot option contract abandonment charges is given as a single combined figure; the split between inventory impairment and option abandonment, the communities or markets affected, and whether further charges are expected are all undisclosed.
• The release does not state where the $7.6m sits in the income statement, so it cannot be attributed between cost of home closings, other expense and SG&A; the 17.6% gross margin therefore cannot be restated on an underlying basis.
• Other expense, net of $4.3m in the quarter is not broken out, and its $4.4m year-over-year swing is roughly two and a half times the quarter's pretax income.
• The gross margin decline of 560 basis points is not attributed between incentives, land and construction cost, mix, or the impairment charges.
• Backlog ASP of $322k is 6% below the prior year and below the $325k ASP of homes closed this quarter, which implies further ASP pressure in coming quarters, but the release gives no conversion timetable for the 1,000-home backlog.
• The cancellation rate increase to 12.7% is reported without commentary on cause or on trend within the quarter.
• Adjusted net income adjusts only for the pro-forma tax effect of the Up-C structure and does not exclude the $7.6m of charges, so no company-defined underlying earnings measure exists for this quarter.
• Net income attributable to Smith Douglas Homes Corp. is $246k of $1,768k of consolidated net income, so reported EPS reflects a roughly 14% economic interest; the release does not restate per-share earnings on a fully exchanged basis.
• The tax receivable agreement liability of $9.4m and the deferred tax asset of $9.6m are disclosed without movement detail.
• Accounts payable rising from $1.9m to $26.9m over six months is not explained; whether this reflects a timing change, a policy change, or seasonality is not stated.
• No quarterly cash flow statement is provided - only six-month summary lines - so second-quarter operating cash flow and land spend cannot be isolated.
• Capital expenditure, land acquisition and land development spend are not disclosed separately.
• The share repurchase is disclosed for the quarter only; no authorisation size, remaining capacity, or programme timetable is given.
• Homes under construction rose 10.7% to 1,208 against 839 closings in the quarter; the release does not state the specification versus build-to-order mix or standing inventory.
• The 8:30 a.m. Eastern call on 6 August 2026 has not occurred and no Quartr transcript exists, so management's account of the margin decline, the impairment charges and the incentive environment is not assessed at this stage.

Market context

• API Ninjas snapshot: SDHC $15.55 on NYSE, volume 18,584, quote timestamped 2026-08-06T11:13:25Z, retrieved 2026-08-06T11:30:00Z. The release was published pre-market on 2026-08-06; this is a single thin pre-market quote of unstated session basis, not a measured reaction to the release.

Source limitations

• Every actual above comes from the Quartr Q2 2026 earnings release document (3686716) attached to Quartr event 656946. Quartr standardized financials for this event are not yet populated.
• API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter and is dated 2026-08-06, matching the Quartr event date exactly, so the exact ticker-and-date match is the path used.
• The API Ninjas EPS estimate of $0.1118 is used as published, but the provider's historical actual EPS series for this ticker does not agree with the company's reported figures - the provider records $(0.13)$ for the quarter ended June 2025 against the company's reported $0.26, and $(0.04)$ for the quarter ended March 2026. The basis of the provider's EPS series for SDHC therefore cannot be confirmed against the company's Class A diluted EPS, and the −73.2% EPS variance should be read with that caveat. Maximal mode publishes the labeled result rather than leaving the row blank.
• Home closing revenue is the company's only revenue line; there is no separate financial services, land sale or other revenue caption in this release.
• Adjusted net income and net debt-to-net book capitalization are non-GAAP measures as defined by the company; adjusted net income adjusts only for pro-forma taxation of the Up-C structure.
• Year-over-year percentage changes, margin-point changes and ratios above are calculated from the release's own figures; where the release prints a percentage or a period-over-period change, the calculated value agrees.
• The condensed consolidated statements in this release are unaudited.
• Balance sheet comparatives are to 31 December 2025, the fiscal year end, not to the prior-year quarter; operating data and segment comparatives are to the prior-year quarter.
• The release rounds segment period-over-period changes to whole percentage points; those rounded figures are reproduced as printed in the bulleted equivalents.
• Weighted average basic and diluted share counts are identical in every period shown except six-month 2025, where diluted was 9,160,922 against basic of 8,983,328.
• Average selling prices are stated by the company in thousands of dollars per home.
• The document's text extraction places several balance sheet and operating-data values away from their labels; every figure reproduced above was placed by an arithmetic check - total assets, total liabilities, total equity and total liabilities and equity all foot in both periods; segment revenue, closings, backlog homes, backlog value and controlled lots all sum to their stated totals in both years; every per-share figure equals its net income attributable to the Corp. divided by the stated share count; the adjusted net income reconciliation foots in all four periods; and the leverage table's capitalization and net capitalization subtotals foot in both periods. Any figure that could not be resolved by such a check is omitted rather than estimated.

Source links

• Quartr Q2 2026 earnings release
• Quartr release highlights and management commentary page
• Quartr release income statement and balance sheet page
• Quartr release operating data and segment page
• Quartr release segment detail and non-GAAP page
• Quartr release leverage and adjusted net income page