Revenue growth has contracted significantly, with the company reporting a 17.7% year-over-year decline in 2026Q1 alongside a compression in gross margins from 26.1% in 2024Q2 to 17.2%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 5.62B | 5.86B | 6.4B | 6.14B | 6.29B | 5.14B | 4.5B | 3.67B | 3.53B | 3.24B | 3.04B | 2.58B | 2.18B | 1.82B | 1.19B | 861.24M | 941.66M | 970.31M | 1.52B | 2.34B | 3.46B | 3B | 2.04B | 1.47B | 1.12B | 744.17M | 520.47M | 341.79M | 255.98M | 149.63M | 2.2M |
| Revenue Growth % | -10.63% | -8.4% | 4.18% | -2.45% | 22.38% | 14.22% | 22.75% | 3.92% | 8.87% | 6.55% | 17.92% | 18.34% | 19.72% | 52.43% | 38.69% | -8.54% | -2.95% | -36.29% | -35.01% | -32.29% | 15.33% | 47.11% | 38.68% | 31.36% | 50.48% | 42.98% | 52.28% | 33.52% | 71.08% | 6701.34% | -38.89% |
| Cost of Goods Sold | 4.56B | 4.69B | 4.8B | 4.62B | 4.49B | 3.7B | 3.5B | 2.96B | 2.87B | 2.65B | 2.48B | 2.06B | 1.71B | 1.41B | 964M | 720.14M | 773.96M | 966.26M | 1.56B | 2.33B | 2.75B | 2.29B | 1.63B | 1.27B | 970.21M | 628M | 444.33M | 296.53M | 218.7M | 124.59M | 0 |
| COGS % of Revenue | - | 80.04% | 75.01% | 75.25% | 71.35% | 72.04% | 77.76% | 80.71% | 81.3% | 81.63% | 81.69% | 80.05% | 78.32% | 77.3% | 80.71% | 83.62% | 82.19% | 99.58% | 102.42% | 99.44% | 79.41% | 76.44% | 79.98% | 86.43% | 86.64% | 84.39% | 85.37% | 86.76% | 85.44% | 83.27% | - |
| Gross Profit | 1.05B | 1.15B | 1.6B | 1.52B | 1.8B | 1.44B | 1B | 707.49M | 659.9M | 595.25M | 556.91M | 514.58M | 472.5M | 413.37M | 230.45M | 141.11M | 167.7M | 4.05M | -36.91M | 13.05M | 712.63M | 706.99M | 408.47M | 199.61M | 149.6M | 116.17M | 76.14M | 45.26M | 37.28M | 25.04M | 2.2M |
| Gross Margin % | 18.64% | 19.69% | 24.99% | 24.75% | 28.65% | 27.96% | 22.24% | 19.29% | 18.7% | 18.37% | 18.31% | 19.95% | 21.68% | 22.7% | 19.29% | 16.38% | 17.81% | 0.42% | -2.42% | 0.56% | 20.59% | 23.56% | 20.02% | 13.57% | 13.36% | 15.61% | 14.63% | 13.24% | 14.56% | 16.73% | 100% |
| Gross Profit Growth % | - | -27.82% | 5.22% | -15.75% | 25.43% | 43.61% | 41.47% | 7.21% | 10.86% | 6.88% | 8.23% | 8.91% | 14.3% | 79.37% | 63.32% | -15.85% | 4039.62% | 110.97% | -382.96% | -98.17% | 0.8% | 73.08% | 104.63% | 33.43% | 28.78% | 52.58% | 68.24% | 21.38% | 48.92% | 1037.99% | -38.89% |
| Operating Expenses | 515.85M | 616.17M | 639.92M | 616.63M | 516.25M | 466.85M | 446.92M | 392.82M | 380.38M | 345.69M | 338.89M | 301.27M | 261.34M | 218.23M | 177.36M | 139.1M | 136.58M | 141.83M | 205.09M | 302.63M | 380.82M | 285.09M | 195.78M | 53.93M | 41.5M | 35.72M | 21.21M | 15.1M | 10.63M | 15.11M | 1.7M |
| OpEx % of Revenue | - | 10.52% | 10.01% | 10.05% | 8.2% | 9.08% | 9.93% | 10.71% | 10.78% | 10.67% | 11.14% | 11.68% | 11.99% | 11.99% | 14.85% | 16.15% | 14.5% | 14.62% | 13.47% | 12.91% | 11% | 9.5% | 9.6% | 3.67% | 3.71% | 4.8% | 4.08% | 4.42% | 4.15% | 10.1% | 77.27% |
| Selling, General & Admin | 515.85M | 211.76M | 639.92M | 616.63M | 516.25M | 466.85M | 446.92M | 392.82M | 380.38M | 345.69M | 338.89M | 301.27M | 261.34M | 218.23M | 163.02M | 139.1M | 136.58M | 141.83M | 205.09M | 302.63M | 380.82M | 285.09M | 195.78M | 53.93M | 41.5M | 35.72M | 21.21M | 15.1M | 10.63M | 15.11M | 0 |
| SG&A % of Revenue | - | 3.62% | 10.01% | 10.05% | 8.2% | 9.08% | 9.93% | 10.71% | 10.78% | 10.67% | 11.14% | 11.68% | 11.99% | 11.99% | 13.65% | 16.15% | 14.5% | 14.62% | 13.47% | 12.91% | 11% | 9.5% | 9.6% | 3.67% | 3.71% | 4.8% | 4.08% | 4.42% | 4.15% | 10.1% | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 404.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.7M |
| Operating Income | 453.98M | 537.48M | 958.35M | 902.39M | 1.29B | 970.58M | 553.98M | 314.67M | 279.52M | 249.57M | 218.02M | 213.31M | 211.16M | 195.15M | 67.44M | 2.01M | 31.11M | -133.77M | -242.01M | -289.58M | 331.81M | 421.9M | 212.69M | 145.68M | 108.11M | 80.45M | 54.92M | 30.16M | 26.65M | 9.93M | 500K |
| Operating Margin % | 8.08% | 9.18% | 14.99% | 14.7% | 20.45% | 18.88% | 12.31% | 8.58% | 7.92% | 7.7% | 7.17% | 8.27% | 9.69% | 10.72% | 5.65% | 0.23% | 3.3% | -13.79% | -15.89% | -12.36% | 9.59% | 14.06% | 10.43% | 9.9% | 9.65% | 10.81% | 10.55% | 8.82% | 10.41% | 6.64% | 22.73% |
| Operating Income Growth % | - | -43.92% | 6.2% | -29.87% | 32.57% | 75.2% | 76.05% | 12.58% | 12% | 14.47% | 2.21% | 1.02% | 8.2% | 189.38% | 3251.69% | -93.53% | 123.26% | 44.73% | 16.43% | -187.27% | -21.35% | 98.37% | 45.99% | 34.76% | 34.38% | 46.48% | 82.13% | 13.15% | 168.4% | 1885.91% | -75% |
| EBITDA | 478.69M | 562.76M | 984.3M | 927.72M | 1.31B | 996.82M | 585.03M | 342.6M | 306.49M | 266.27M | 234M | 227.55M | 222.77M | 205.08M | 75.63M | 9.19M | 39.09M | -124.92M | -226.34M | -271.76M | 355.54M | 439.1M | 225.92M | 154.22M | 114.89M | 86.19M | 58.33M | 32.69M | 28.29M | 10.36M | 500K |
| EBITDA Margin % | 8.52% | 9.61% | 15.39% | 15.11% | 20.84% | 19.39% | 13% | 9.34% | 8.69% | 8.22% | 7.69% | 8.82% | 10.22% | 11.26% | 6.33% | 1.07% | 4.15% | -12.87% | -14.86% | -11.6% | 10.27% | 14.63% | 11.07% | 10.48% | 10.26% | 11.58% | 11.21% | 9.56% | 11.05% | 6.92% | 22.73% |
| EBITDA Growth % | -47.39% | -42.83% | 6.1% | -29.26% | 31.56% | 70.39% | 70.76% | 11.78% | 15.1% | 13.79% | 2.83% | 2.15% | 8.63% | 171.16% | 722.98% | -76.49% | 131.29% | 44.81% | 16.71% | -176.44% | -19.03% | 94.36% | 46.49% | 34.23% | 33.29% | 47.77% | 78.46% | 15.54% | 173.01% | 1972.33% | -75% |
| D&A (Non-Cash Add-back) | 24.71M | 25.29M | 25.96M | 25.33M | 24.75M | 26.25M | 31.05M | 27.92M | 26.97M | 16.7M | 15.98M | 14.24M | 11.61M | 9.93M | 8.2M | 7.18M | 7.97M | 8.84M | 15.67M | 17.82M | 23.73M | 17.21M | 13.23M | 8.54M | 6.78M | 5.74M | 3.41M | 2.53M | 1.64M | 432.08K | 0 |
| EBIT | 478.9M | 537.48M | 958.35M | 902.39M | 1.29B | 970.58M | 553.98M | 314.67M | 279.52M | 249.57M | 218.02M | 213.31M | 211.16M | 195.15M | 67.44M | 10.02M | 36.21M | -118.27M | -252.31M | -289.58M | 331.81M | 421.9M | 212.69M | 145.68M | 108.11M | 80.45M | 54.92M | 30.16M | 27M | 9.93M | 500K |
| Net Interest Income | -587K | 0 | 0 | 0 | -41K | -318K | -2.18M | -8.37M | -785K | -3.85M | -5.17M | -15.96M | -5.16M | -15.09M | -24.24M | -30.4M | -33.72M | -36.53M | -23.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 587K | 0 | 0 | 0 | 41K | 318K | 2.18M | 8.37M | 785K | 3.85M | 5.17M | 15.96M | 5.16M | 15.09M | 24.24M | 30.4M | 33.72M | 36.53M | 23.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 42.99M | 47.12M | 44.52M | 47.04M | 2.67M | -15.74M | -20.41M | -11.73M | 3.73M | -2.05M | 41K | -23.85M | -2.74M | -17.47M | -38.58M | -22.39M | -28.63M | -20.71M | -37.4M | -166.9M | -183.5M | -5.67M | 12.07M | -87.13M | 5.43M | 2.88M | 1.84M | 2.06M | 3.85M | 5.27M | -500K |
| Pretax Income | 496.96M | 584.6M | 1B | 949.43M | 1.29B | 954.83M | 533.57M | 302.94M | 283.25M | 247.52M | 218.06M | 189.46M | 208.42M | 177.67M | 28.85M | -20.38M | 2.48M | -154.8M | -275.97M | -456.48M | 364.01M | 416.23M | 224.76M | 151.46M | 113.54M | 83.34M | 56.76M | 32.21M | 30.5M | 15.2M | 0 |
| Pretax Margin % | 8.85% | 9.98% | 15.68% | 15.47% | 20.49% | 18.57% | 11.85% | 8.26% | 8.03% | 7.64% | 7.17% | 7.35% | 9.56% | 9.76% | 2.42% | -2.37% | 0.26% | -15.95% | -18.12% | -19.48% | 10.52% | 13.87% | 11.02% | 10.3% | 10.14% | 11.2% | 10.91% | 9.43% | 11.91% | 10.16% | - |
| Income Tax | 111.45M | 131.59M | 216.68M | 210.68M | 297.13M | 217.39M | 110.09M | 53.28M | 55.92M | 104.26M | 68.52M | 60.73M | 66.18M | 53.21M | -76.31M | 730K | -4.67M | -88.34M | 15.97M | -167.63M | 138.66M | 160.56M | 85.79M | 57.05M | 43.61M | 32.44M | 21M | 13.27M | 6.5M | 961.92K | -200K |
| Effective Tax Rate % | 22.43% | 22.51% | 21.61% | 22.19% | 23.05% | 22.77% | 20.63% | 17.59% | 19.74% | 42.12% | 31.42% | 32.05% | 31.75% | 29.95% | -264.47% | -3.58% | -187.84% | 57.07% | -5.79% | 36.72% | 38.09% | 38.58% | 38.17% | 37.67% | 38.41% | 38.93% | 37% | 41.19% | 21.3% | 6.33% | - |
| Net Income | 385.52M | 453.01M | 786.19M | 738.75M | 992.19M | 737.44M | 423.48M | 249.66M | 227.33M | 143.25M | 149.54M | 128.74M | 142.24M | 124.46M | 105.16M | -21.11M | 7.15M | -66.46M | -291.94M | -288.85M | 225.35M | 255.66M | 138.97M | 94.41M | 69.94M | 50.66M | 35.76M | 18.95M | 24M | 14.24M | 200K |
| Net Margin % | 6.86% | 7.73% | 12.29% | 12.04% | 15.77% | 14.34% | 9.41% | 6.81% | 6.44% | 4.42% | 4.92% | 4.99% | 6.53% | 6.84% | 8.8% | -2.45% | 0.76% | -6.85% | -19.17% | -12.33% | 6.51% | 8.52% | 6.81% | 6.42% | 6.25% | 6.81% | 6.87% | 5.54% | 9.38% | 9.52% | 9.09% |
| Net Income Growth % | -46.68% | -42.38% | 6.42% | -25.54% | 34.54% | 74.14% | 69.62% | 9.82% | 58.69% | -4.2% | 16.16% | -9.49% | 14.28% | 18.35% | 598.26% | -395.19% | 110.76% | 77.24% | -1.07% | -228.18% | -11.86% | 83.97% | 47.2% | 34.99% | 38.05% | 41.66% | 88.76% | -21.07% | 68.59% | 7018.72% | -81.82% |
| Net Income (Continuing) | 385.52M | 453.01M | 786.19M | 738.75M | 992.19M | 737.44M | 423.48M | 249.66M | 227.33M | 143.25M | 149.54M | 128.74M | 142.24M | 124.46M | 105.16M | -21.11M | 7.15M | -66.46M | -291.94M | -288.85M | 225.35M | 255.66M | 138.97M | 94.41M | 69.94M | 50.89M | 35.76M | 18.95M | 24M | 14.24M | 300K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 0 | 0 | 0 | 0 | 0 | 110.92K | 0 | 0 |
| EPS (Diluted) | 5.72 | 6.40 | 10.72 | 9.97 | 13.37 | 9.65 | 5.50 | 3.21 | 2.79 | 1.71 | 1.78 | 1.55 | 1.73 | 1.63 | 1.50 | -0.33 | 0.11 | -1.06 | -4.98 | -5.51 | 4.16 | 4.44 | 2.52 | 1.71 | 1.33 | 1.08 | 0.79 | 0.40 | 0.49 | 0.34 | 0.01 |
| EPS Growth % | -44.84% | -40.3% | 7.52% | -25.43% | 38.55% | 75.45% | 71.34% | 15.05% | 63.64% | -3.94% | 14.89% | -10.69% | 6.46% | 8.33% | 561.54% | -395.45% | 110.38% | 78.69% | 9.63% | -232.33% | -6.31% | 76.54% | 47.08% | 28.57% | 23.72% | 36.94% | 98.73% | -19.39% | 46.27% | - | -63.64% |
| EPS (Basic) | - | 6.40 | 10.85 | 10.09 | 13.52 | 9.81 | 5.62 | 3.28 | 2.84 | 1.78 | 1.87 | 1.63 | 1.83 | 1.73 | 1.55 | -0.33 | 0.11 | -1.06 | -4.98 | -5.51 | 4.26 | 4.74 | 2.67 | 1.81 | 1.41 | 1.20 | 0.87 | 0.44 | 0.57 | 0.37 | 0.01 |
| Diluted Shares Outstanding | 67.37M | 70.82M | 73.33M | 74.14M | 74.2M | 76.47M | 76.97M | 77.78M | 81.46M | 84.46M | 85.17M | 84.33M | 83.23M | 77.6M | 70.34M | 64.76M | 64.64M | 62.7M | 58.66M | 52.45M | 54.2M | 57.57M | 55.22M | 55.21M | 52.68M | 47.12M | 45.7M | 48.27M | 48.99M | 42.46M | 40M |
| Basic Shares Outstanding | 67.37M | 70.82M | 72.48M | 73.24M | 73.39M | 75.22M | 75.44M | 76.2M | 80.21M | 80.57M | 79.95M | 79.19M | 78.03M | 72.21M | 68.11M | 64.76M | 64.12M | 62.7M | 58.66M | 52.45M | 52.9M | 53.95M | 52.13M | 52.16M | 49.6M | 42.39M | 41.34M | 43.3M | 42.58M | 38.91M | 40M |
| Dividend Payout Ratio | - | 26.73% | 13.81% | 5.35% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 1.36% | 150% |
Cyclical demand and margin compression
As reported in recent financial statements, MTH experienced a 17.7% year-over-year revenue decline in 2026Q1, marking a continuation of the negative growth trend that has persisted since 2024Q3, suggesting that the company's spec-heavy delivery model is struggling to maintain volume in the current interest rate environment.
The consistent deceleration in top-line growth indicates that the company's absorption rates are likely under pressure, potentially due to the sensitivity of their entry-level buyer demographic to sustained high mortgage rates. Investors should monitor whether this contraction reflects a strategic choice to prioritize margin over volume or a fundamental loss of market share in key Sunbelt regions.
Based on the provided income statement data, gross margins have compressed significantly from a peak of 26.1% in 2024Q2 to 17.2% in 2026Q1, reflecting the increased reliance on sales incentives and mortgage rate buy-downs necessary to move inventory in a cooling residential construction market.
The steady decline in gross profitability suggests that the company's standardized, spec-built product suite lacks the pricing power to offset rising input costs or the competitive pressure from other builders. This margin compression warrants further investigation into whether the current levels represent a new structural floor or if further deterioration is likely as inventory ages.
According to the latest quarterly filings, operating margins have contracted to 5.8% in 2026Q1 from a high of 16.8% in 2024Q2, demonstrating that the company is failing to achieve the necessary operating leverage to protect profitability as revenue volumes continue to trend downward across the portfolio.
The inability to scale SG&A expenses efficiently relative to the declining gross profit suggests that the company's fixed cost base is becoming a drag on bottom-line performance. This trend implies that management may need to implement more aggressive cost-rationalization measures if the current revenue contraction persists into future quarters.
While the company maintains a conservative debt-to-equity ratio of 0.36%, the persistent decline in EPS from $3.16 in 2024Q2 to $0.82 in 2026Q1 suggests that the spec-heavy inventory model may be creating a hidden liability in the form of aging, unsold homes requiring deeper discounting.
Short-sellers would likely focus on the potential for future inventory impairments if the current absorption rates do not improve, as the company's reliance on spec-building leaves it vulnerable to sudden shifts in regional demand. The market may be underestimating the risk that these assets could require significant price concessions to clear, further pressuring future earnings quality.
Quick answers to the most common questions about buying MTH stock.
For fiscal year 2025, Meritage Homes Corporation (MTH) reported total revenue of $5.86B. This represents a 266156.2% increase compared to $2.2M in 1996.
Meritage Homes Corporation (MTH) is profitable, generating $453.0M in net income for the fiscal year ending 2025 with a net profit margin of 7.7%.
Meritage Homes Corporation (MTH) reported an operating income of $537.5M, resulting in an operating profit margin of 9.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Meritage Homes Corporation (MTH) generated $1.15B in gross profit for the year, representing a gross profit margin of 19.7%. This demonstrates the company's core pricing power and production efficiency.