Lennar brought in less revenue and kept less of it over nine months. Revenue fell 8.7% to $8.0 billion, while net income dropped 52% to $283.9 million.
The squeeze reached the margin line. Net margin fell from 6.7% to 3.5%, and management pointed to two operating details: lower revenue per square foot and higher land costs. Construction costs fell, but not enough to offset them.
"During the nine months ended August 31, 2026, gross margins decreased primarily due to lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives."
Lennar, 10-Q, October 2, 2026
That points to lower revenue per square foot and higher land costs in the same sentence. The company’s East region grew 4.4%, but West revenue fell 12.5%, and the smaller lines were mostly weaker.
Cash offers the filing’s more complicated receipt. Operating cash flow improved from negative $1.5 billion to negative $822.2 million, but it was still negative. Capital spending fell 60.5%, from $103.4 million to $40.8 million, so the cash improvement came alongside a much smaller investment bill.
The balance sheet adds a financing wrinkle. Lennar said homebuilding debt was higher at August 31 than at November 30, 2025, primarily because of borrowings under its revolving credit facility, partly offset by earnings and debt paydowns.
"At August 31, 2026, Homebuilding debt to total capital was higher compared to November 30, 2025, primarily as a result of an increase in Homebuilding debt due to outstanding borrowings under our unsecured revolving Credit Facility, partially offset by net earnings and debt paydowns."
Lennar, 10-Q, October 2, 2026
In plain English, the business used less operating cash than it did a year earlier, while also spending less on construction-related capital and carrying higher homebuilding debt. Lennar’s net debt is $2.1 billion.
The latest nine-month figures also show the changes visible in the company’s annual record. Revenue fell 3.5% in 2025 to $34.2 billion, and net margin was 6.1%, down from the stronger levels recorded earlier in the period. Diluted shares also fell 7.0% year over year in the latest filing, to 237.8 million, which means the per-share decline was smaller than the net-income decline: diluted EPS fell 48% to $1.19.
The stock closed at $82.14 on October 1, up 0.7% that day. Over 12 months, it was down 34.8%. Those are market facts, not an explanation for them. The filing itself leaves a simpler tension: Lennar’s cash use improved, while revenue and net margin were lower.
Lennar’s next report can be read against the same receipts: revenue per square foot, land and construction costs, operating cash flow, and borrowings under the revolving facility.
Lennar’s capex is lower while revenue and margins have also declined.