Green Brick 10-Q: Q3 EPS Down 24% to $1.35, Margins Compress 410 bps, Cash Burn Turns Negative
GRBK is trading near its 52-week low of $59.12 (6.4% above the low).
Summary
Green Brick's Q3 10-Q confirms EPS of $1.35 (down 24%) on 9.7% lower homebuilding revenue, with gross margin down 410 bps to 28.0%. The fuller filing shows negative operating cash flow and a $105 million revolver draw funding inventory growth.
Key Events · Earnings and Guidance · GRBK
-
Q3 EPS Falls 24% on Margin Compression
Net income attributable to Green Brick was $59.2 million, or $1.35 per diluted share, versus $77.9 million, or $1.77, a year earlier. Residential units revenue fell 9.7% to $437.0 million and gross margin dropped 410 bps to 28.0% as average sales price declined 12.1% to $446.7 thousand on higher incentives and product mix.
-
Operating Cash Flow Turns Negative
Operating activities used $5.1 million in the first nine months versus $133.3 million provided a year earlier, as inventory rose $238.3 million. Unrestricted cash fell to $100.0 million from $154.6 million at December 31, 2025.
-
Revolver Drawn to Fund Inventory and Debt Paydown
The company drew $105.0 million on its $330.0 million unsecured revolver (none outstanding at year-end 2025) and repaid the remaining $50.0 million of 2026 notes on August 10, 2026. Senior unsecured notes fell to $187.2 million net from $262.0 million; debt to total capitalization was 13.1%.
-
Orders Up 3.1%, Backlog Down 17%
Net new home orders rose 3.1% to 926 with an 8.2% cancellation rate, while backlog revenue fell 17.0% to $379.3 million across 629 homes, pointing to lower closings ahead.
Analysis · GRBK · Real Estate & Construction
The headline numbers were already out this morning, but the full 10-Q shows the deterioration is broader than the EPS print. Gross margin fell 410 basis points to 28.0% as average sales price dropped 12.1% to $446.7 thousand, and the company swung to $5.1 million of cash used in operations for the first nine months versus $133.3 million generated a year earlier, driven by a $238.3 million inventory build. It funded that with a $105.0 million draw on its revolver while retiring the $50.0 million 2026 notes, so unrestricted cash fell to $100.0 million from $154.6 million. Offsets: net new orders rose 3.1% to 926, the cancellation rate stayed low at 8.2%, and the Financial Services segment's pre-tax income jumped 68.9% to $5.6 million. Leverage remains modest at 13.1% debt to total capitalization.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.7% of the 1698 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, GRBK was trading at $62.92 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $59.12 to $83.18. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.