LGIH · 10-Q · 2026Q1 · Full report
Operating Cash Flow Trends
LGI Homes, Inc. · 2026-04-28 · Importance 50 · Surprise 24
Net cash used in operating activities was $55.5 million during the three months ended March 31, 2026, primarily driven by a $99.1 million cash outflow in real estate inventory related to homes under construction and land acquisitions and development. The Company also recorded a $12.5 million decrease in the net change in accounts receivable, partially offset by a $22.4 million increase in accounts payable, and increases of $13.2 million in other assets and $12.1 million related to pre-acquisition costs, deposits, inventory impairment and equity award compensation. By comparison, net cash used in operating activities was $127.1 million during the three months ended March 31, 2025, primarily driven by a $186.6 million decrease in the net change in real estate inventory and a $27.9 million decrease in the net change in accrued expenses and other liabilities, partially offset by increases of $43.8 million in other assets and $18.6 million in accounts payable. These swings show large quarter-to-quarter inventory and working capital movements materially affecting operating cash flow.
Key facts
- Net cash used in operating activities was $55.5 million during the three months ended March 31, 2026.
- Net cash used in operating activities was $127.1 million during the three months ended March 31, 2025.
- Net cash used in operating activities during the three months ended March 31, 2026 was primarily driven by a $99.1 million cash outflow in real estate inventory.
- During the three months ended March 31, 2026 there was a $12.5 million decrease in the net change in accounts receivable.
- During the three months ended March 31, 2026 accounts payable increased by $22.4 million.
- During the three months ended March 31, 2026 other assets showed a net change increase of $13.2 million.
- During the three months ended March 31, 2026 there was a $12.1 million increase in the net change related to pre-acquisition costs and deposits, inventory impairment, and compensation expense for equity awards.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -1.4% | Net cash used in operating activities was $55.5 million during the three months ended March 31, 2026. |
| liability | negative | realized | -0.6% | During the three months ended March 31, 2026 accounts payable increased by $22.4 million. |
| cash | positive | realized | +0.6% | During the three months ended March 31, 2026 accounts payable increased by $22.4 million. |
| assets | positive | realized | +0.3% | During the three months ended March 31, 2026 other assets showed a net change increase of $13.2 million. |
| cash | negative | realized | -0.3% | During the three months ended March 31, 2026 other assets showed a net change increase of $13.2 million. |
| cash | positive | realized | +0.3% | During the three months ended March 31, 2026 there was a $12.5 million decrease in the net change in accounts receivable. |
| cash | negative | realized | -0.3% | During the three months ended March 31, 2026 there was a $12.1 million increase in the net change related to pre-acquisition costs and… |