LGI Homes, Inc.

Welcome to LGI Homes first quarter 2026 conference call. Today's call is being recorded and a replay will be available on the company's website at www.lgihomes.com. After management's prepared comments, there will be a question and answer opportunity. At this time, I'll turn the call over to Joshua Fatter, Executive Vice President of Investor Relations and Capital Markets. Please go ahead.

Thanks, and good afternoon. I'll remind listeners that this call contains forward-looking statements, including management's views on the company's business strategy, outlook, plans, objectives, and guidance for future periods. Such statements reflect management's current expectations and involve assumptions and estimates that are subject to risks and uncertainties that could cause those expectations to be incorrect. You should review our filings with the SEC for a discussion of the risks, uncertainties, and other factors that could cause actual results to differ from those presented today. All forward-looking statements must be considered in light of those related risks, and you shouldn't place undue reliance on such statements which reflect management's current viewpoints and are not guarantees of future performance. On this call, we'll discuss non-GAAP financial measures that are not intended to be considered in isolation or as substitutes for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP can be found in the press release we issued this morning And in our quarterly report on Form 10Q for the period ended March 31st, 2026, that will be filed with the SEC today. This filing will be accessible on LGI Homes and the SEC's websites. I'm joined today by Eric Lieber, LGI Homes Chief Executive Officer and Chairman of the Board, and Charles Murdian, Chief Financial Officer and Treasurer. I'll now turn the call over to Eric.

Thanks, Josh. Good afternoon and welcome to our earnings column. The first quarter played out largely as we expected, reflecting disciplined execution across the organization and steady demand for our homes. As the quarter progressed, sales activity improved across most of our markets, enabling continued backlog growth and providing a solid foundation as we have transitioned into the spring selling season. During the quarter, we delivered a total of 916 homes. Of this total, 881 homes contributed directly to our revenue of $320 million. The remaining 35 closings were currently or previously leased homes, the gains from which were reflected in other income. Notably, our average selling price increased nearly 3% to approximately $363,000, demonstrating our ability to preserve pricing while continuing to support affordability through targeted price discounts and financing strategies. We ended the quarter with 142 active communities and averaged 2.2 closings per community per month. This was consistent with the pace achieved last year and in line with our expectations for the period. During the first quarter, our top five markets on a closings per community basis were Charlotte with 4.6, Las Vegas with 3.2, Phoenix with 2.8, and Northern California and Seattle, each with 2.7 closings per community per month. Our gross margin before inventory-related charges of 20.2% and adjusted gross margin of 23.4% were both modestly above the high end of our full-year outlook, highlighting the benefits of self-development, the durability of our operating model, and the strategic choices we continue to make around pricing, incentives, and inventory management. Sales activity during the quarter was positive. Net orders were 1,221 homes, and our cancellation rate was 45.6% driven by buyers who were ultimately unable to qualify for financing. Our backlog at quarter end was 1,699 homes, which represents a 63% increase year over year a 22% increase sequentially, and marks the highest number of units in backlog since the first quarter of 2022. Before turning the call over to Charles, I want to emphasize our confidence in the long-term fundamentals of the housing market. The persistent undersupply of attainable housing, coupled with favorable demographic trends, continues to support a long runway of demand for homeownership. LGI Home's 100% SPAC entry-level focused business model centered on providing an affordable alternative to renting is purpose-built for this backdrop. Underpinning that model is a strong, low-cost land pipeline, which is nearly 100% on balance sheet, providing investors full transparency into our capital structure, driving margin durability by capturing the developer's economic value, and minimizing reliance on external partners whose priorities may not align with the long-term value creation we're focused on. These advantages underpin our confidence as we focus on execution today while investing to drive durable, long-term growth for many years to come. With that, I'll invite Charles to provide additional details on our financial results.