LGIH · 10-Q · 2026Q1 · Full report
Operating Expense Trends
LGI Homes, Inc. · 2026-04-28 · Importance 41 · Surprise 48
Selling expenses fell to $32.7 million in Q1 2026, a decrease of $9.7 million or 22.9% from $42.3 million in Q1 2025, primarily due to fewer homes closed and lower sales commissions ($12.5 million in Q1 2026 vs. $14.0 million in Q1 2025). Selling expenses as a percentage of home sales revenues declined to 10.2% from 12.0%, aided by cost efficiencies in advertising. General and administrative expenses declined 10.7% to $27.9 million in Q1 2026 from $31.2 million in Q1 2025, with the drop reflecting the absence of a one-time sales incentive fee in the prior period and reduced meetings, entertainment and travel spend. G&A as a percent of revenues was 8.7% in Q1 2026 versus 8.9% in Q1 2025.
Key facts
- Selling expenses for the three months ended March 31, 2026 were $32.650 million, a decrease of $9.692 million, or 22.9%, from $42.342 million for the three months ended March 31, 2025.
- Selling expenses as a percentage of home sales revenues were 10.2% for the three months ended March 31, 2026 and 12.0% for the three months ended March 31, 2025.
- General and administrative expenses for the three months ended March 31, 2026 were $27.861 million, a decrease of $3.341 million, or 10.7%, from $31.202 million for the three months ended March 31, 2025.
- Operating loss for the three months ended March 31, 2026 was $(0.582) million compared to operating income of $0.196 million for the three months ended March 31, 2025.
- General and administrative expenses as a percentage of home sales revenues were 8.7% for the three months ended March 31, 2026 and 8.9% for the three months ended March 31, 2025.
- Sales commissions decreased to $12.5 million for the three months ended March 31, 2026 from $14.0 million for the three months ended March 31, 2025.
- Other income, net for the three months ended March 31, 2026 was $4.901 million, a decrease of $0.654 million from $5.555 million for the three months ended March 31, 2025.
- Stock-based compensation included in adjusted EBITDA reconciliation was $2.211 million for the three months ended March 31, 2026 and $2.561 million for the three months ended March 31, 2025.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +2.8% | Selling expenses for the three months ended March 31, 2026 were $32.650 million, a decrease of $9.692 million, or 22.9%, from $42.342… |
| operating_income | positive | realized | +0.9% | General and administrative expenses for the three months ended March 31, 2026 were $27.861 million, a decrease of $3.341 million, or… |
| operating_income | negative | realized | -0.2% | Operating loss for the three months ended March 31, 2026 was $(0.582) million compared to operating income of $0.196 million for the three… |