Recent News
Dec. 29, 2025 — Dream Finders Homes published its 2024 Annual Shareholder Letter, authored by Founder, CEO and Chairman Patrick Zalupski. Nov. 2025 — the company posted an investor presentation summarizing strategy and operational highlights from the third quarter and the company’s expansion activity.
Technical Analysis
ADX at 20.2 indicates an emerging trend strength rather than a well-established directional move; that emerging strength amplifies the relevance of short-term momentum signals for near-term price direction.
DI+ shows a dip-and-reverse, a bullish directional development, while DI– is decreasing, which also reads bullish; together these directional indicators imply buyers regained control over recent sellers and support a near-term positive price bias.
MACD sits negative at -0.04 but has dip-and-reversed and currently trades above its signal line (MACD signal -0.37), which represents a fresh bullish momentum cross despite the negative absolute value.
MRO at 27.2 with a dip-and-reverse indicates the price currently registers above a model target and has recently reversed upward; that combination signals near-term momentum but also introduces mean-reversion pressure if momentum fades.
RSI at 43.78 with a dip-and-reverse points to a recovery off lower readings rather than an overbought condition, supporting short-term upside while leaving room before hitting traditional overbought levels.
Price sits above short-term averages — the 20‑day average ($18.08), 12‑day EMA ($18.65), and 50‑day average ($18.67) — while remaining below the 200‑day average ($23.24). That configuration favors short-term continuation but flags medium-term resistance near the 200‑day average.
Bollinger placement shows the last close ($19.66) above the 1x upper band ($19.37) but below the 2x upper band ($20.66), signaling momentum has pushed price toward the upper volatility envelope and increases the potential for a near-term reversion if buying eases.
Fundamental Analysis
Profitability: EBIT of $59.3M and operating margin 6.11% reflect positive operating profitability, but that margin falls below the industry peer mean of 14.25% and the industry peer median of 14.12%, placing DFH on the lower side of peer operating performance. Operating margin improved QoQ by +21.49% but declined YoY by -35.70%.
Revenue and earnings trends: Total revenue $969.8M. Reported EPS came in at $0.47 versus an estimate of $0.50, an EPS surprise of -6.00%. Revenue growth shows mixed periodic signals: the trailing metric registers -15.71% while the reported year-over-year figure equals 239.22%; quarter-over-quarter revenue changed by -196.78% (all values presented as supplied).
Cash flow and liquidity: Cash and short-term investments total $251.0M while operating cash flow registered negative $130.98M and free cash flow equaled negative $135.73M; free cash flow yield stands at -5.76%. The company’s cash conversion cycle is long at 185.41 days but improved slightly QoQ (-9.56%). The cash conversion ratio reads 1.05x.
Leverage and balance sheet: Total debt $1.766B with net debt $1.515B. Debt-to-assets of 46.05% and debt-to-equity of 128.60% underline material leverage on the balance sheet; interest coverage remains extremely high at 5,927.90x (driven by low interest expense in reported period). Net working capital totals $926.85M.
Efficiency and returns: Asset turnover 0.259 (below the industry peer mean of 0.2897), return on assets 1.26%, and return on equity 3.42% show modest capital efficiency and low returns on capital relative to typical growth expectations.
Valuation multiples: Trailing PE about 54.01x (slightly above the industry peer mean of 53.20x), P/B of 1.71x sits below the industry peer mean of 2.46x and below the industry peer median of 1.93x. Enterprise multiple equals 58.81x. WMDST values the stock as over-valued given cash flow deficits, elevated enterprise multiples, and leverage levels combined with the company’s current profitability profile.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-30 |
| NEXT REPORT DATE: | 2026-01-29 |
| CASH FLOW | Begin Period Cash Flow | $ 258.4 M |
| Operating Cash Flow | $ -130.98 M | |
| Capital Expenditures | $ -4.75 M | |
| Change In Working Capital | $ -201.35 M | |
| Dividends Paid | $ -3.38 M | |
| Cash Flow Delta | $ 31.8 M | |
| End Period Cash Flow | $ 290.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 969.8 M | |
| Forward Revenue | $ 226.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 801.0 M | |
| Depreciation | $ 6.5 M | |
| Depreciation and Amortization | $ 6.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 910.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 168.8 M | |
| EBITDA | $ 65.8 M | |
| EBIT | $ 59.3 M | |
| Operating Income | $ 59.3 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ 60.8 M | |
| Tax Provision | $ 13.7 M | |
| Tax Rate | 22.542 % | |
| Net Income | $ 47.0 M | |
| Net Income From Continuing Operations | $ 47.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.50 | |
| EPS Actual | $ 0.47 | |
| EPS Difference | $ -0.03 | |
| EPS Surprise | -6.0 % | |
| Forward EPS | $ 0.47 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.8 B | |
| Intangible Assets | $ 375.1 M | |
| Net Tangible Assets | $ 1.1 B | |
| Total Current Assets | $ 2.6 B | |
| Cash and Short-Term Investments | $ 251.0 M | |
| Cash | $ 251.0 M | |
| Net Receivables | $ 53.0 M | |
| Inventory | $ 2.1 B | |
| Long-Term Investments | $ 294.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 165.3 M | |
| Short-Term Debt | $ 1.2 B | |
| Total Current Liabilities | $ 1.7 B | |
| Net Debt | $ 1.5 B | |
| Total Debt | $ 1.8 B | |
| Total Liabilities | $ 2.3 B | |
| EQUITY | ||
| Total Equity | $ 1.4 B | |
| Retained Earnings | $ 1.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 14.81 | |
| Shares Outstanding | 92.755 M | |
| Revenue Per-Share | $ 10.46 | |
| VALUATION | Market Capitalization | $ 2.4 B |
| Enterprise Value | $ 3.9 B | |
| Enterprise Multiple | 58.812 | |
| Enterprise Multiple QoQ | 0.946 % | |
| Enterprise Multiple YoY | 46.545 % | |
| Enterprise Multiple IPRWA | DFH: 58.812 high: 56.389 median: 43.224 mean: 39.521 low: 26.861 |
|
| EV/R | 3.99 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.793 | |
| Asset To Liability | 1.68 | |
| Debt To Capital | 0.563 | |
| Debt To Assets | 0.461 | |
| Debt To Assets QoQ | 6.358 % | |
| Debt To Assets YoY | 31.828 % | |
| Debt To Assets IPRWA | high: 0.48 DFH: 0.461 mean: 0.182 median: 0.17 low: 0.002 |
|
| Debt To Equity | 1.286 | |
| Debt To Equity QoQ | 8.562 % | |
| Debt To Equity YoY | 23.475 % | |
| Debt To Equity IPRWA | high: 1.452 DFH: 1.286 mean: 0.319 median: 0.249 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.715 | |
| Price To Book QoQ | -6.499 % | |
| Price To Book YoY | -37.092 % | |
| Price To Book IPRWA | high: 5.472 mean: 2.463 median: 1.935 DFH: 1.715 low: 0.571 |
|
| Price To Earnings (P/E) | 54.015 | |
| Price To Earnings QoQ | 20.921 % | |
| Price To Earnings YoY | 16.291 % | |
| Price To Earnings IPRWA | high: 92.96 DFH: 54.015 mean: 53.197 median: 52.279 low: 30.727 |
|
| PE/G Ratio | -3.361 | |
| Price To Sales (P/S) | 2.428 | |
| Price To Sales QoQ | 14.185 % | |
| Price To Sales YoY | -19.561 % | |
| Price To Sales IPRWA | high: 14.419 mean: 5.631 median: 4.836 DFH: 2.428 low: 1.863 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 32.218 | |
| Forward PE/G | -2.005 | |
| Forward P/S | 5.858 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.154 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.259 | |
| Asset Turnover Ratio QoQ | -19.618 % | |
| Asset Turnover Ratio YoY | -18.807 % | |
| Asset Turnover Ratio IPRWA | high: 0.437 mean: 0.29 median: 0.269 DFH: 0.259 low: 0.073 |
|
| Receivables Turnover | 20.015 | |
| Receivables Turnover Ratio QoQ | -34.926 % | |
| Receivables Turnover Ratio YoY | -37.179 % | |
| Receivables Turnover Ratio IPRWA | DFH: 20.015 high: 14.207 mean: 6.213 median: 4.799 low: 1.737 |
|
| Inventory Turnover | 0.387 | |
| Inventory Turnover Ratio QoQ | -22.302 % | |
| Inventory Turnover Ratio YoY | -5.296 % | |
| Inventory Turnover Ratio IPRWA | high: 2.707 mean: 0.599 DFH: 0.387 median: 0.292 low: 0.085 |
|
| Days Sales Outstanding (DSO) | 4.559 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 185.412 | |
| Cash Conversion Cycle Days QoQ | -9.561 % | |
| Cash Conversion Cycle Days YoY | -5.342 % | |
| Cash Conversion Cycle Days IPRWA | high: 889.05 mean: 222.148 DFH: 185.412 median: 80.111 low: 46.208 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.046 | |
| CapEx To Revenue | -0.005 | |
| CapEx To Depreciation | -0.728 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.1 B | |
| Net Invested Capital | $ 3.1 B | |
| Invested Capital | $ 3.1 B | |
| Net Tangible Assets | $ 1.1 B | |
| Net Working Capital | $ 926.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.15 | |
| Current Ratio | 1.553 | |
| Current Ratio QoQ | 16.007 % | |
| Current Ratio YoY | 2.286 % | |
| Current Ratio IPRWA | high: 17.394 mean: 9.463 median: 6.11 low: 1.865 DFH: 1.553 |
|
| Quick Ratio | 0.273 | |
| Quick Ratio QoQ | 9.69 % | |
| Quick Ratio YoY | 2.022 % | |
| Quick Ratio IPRWA | high: 4.511 median: 3.154 mean: 2.628 low: 0.47 DFH: 0.273 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 26.841 | |
| Cost Of Debt | 0.0 % | |
| Interest Coverage Ratio | 5927.9 | |
| Interest Coverage Ratio QoQ | 2.422 % | |
| Interest Coverage Ratio YoY | -38.068 % | |
| Interest Coverage Ratio IPRWA | DFH: 5927.9 high: 601.482 mean: 57.819 median: 28.941 low: 1.167 |
|
| Operating Cash Flow Ratio | -0.071 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 16.16 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 13.925 | |
| Dividend Payout Ratio | 0.072 | |
| Dividend Rate | $ 0.04 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.073 % | |
| Revenue Growth | -15.706 % | |
| Revenue Growth QoQ | -196.783 % | |
| Revenue Growth YoY | 239.222 % | |
| Revenue Growth IPRWA | high: 7.522 % median: 2.354 % mean: 2.054 % DFH: -15.706 % low: -19.304 % |
|
| Earnings Growth | -16.071 % | |
| Earnings Growth QoQ | -533.882 % | |
| Earnings Growth YoY | 18.343 % | |
| Earnings Growth IPRWA | high: 9.896 % median: -2.31 % mean: -3.481 % DFH: -16.071 % low: -41.667 % |
|
| MARGINS | ||
| Gross Margin | 17.404 % | |
| Gross Margin QoQ | 3.979 % | |
| Gross Margin YoY | -11.317 % | |
| Gross Margin IPRWA | high: 41.838 % mean: 24.309 % median: 22.682 % DFH: 17.404 % low: 16.745 % |
|
| EBIT Margin | 6.112 % | |
| EBIT Margin QoQ | 21.487 % | |
| EBIT Margin YoY | -35.704 % | |
| EBIT Margin IPRWA | high: 23.986 % mean: 14.248 % median: 14.12 % DFH: 6.112 % low: 5.417 % |
|
| Return On Sales (ROS) | 6.112 % | |
| Return On Sales QoQ | 21.487 % | |
| Return On Sales YoY | -35.704 % | |
| Return On Sales IPRWA | high: 23.986 % median: 14.12 % mean: 14.022 % DFH: 6.112 % low: 5.214 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -135.73 M | |
| Free Cash Flow Yield | -5.764 % | |
| Free Cash Flow Yield QoQ | 78.951 % | |
| Free Cash Flow Yield YoY | -21.278 % | |
| Free Cash Flow Yield IPRWA | high: 5.211 % mean: 3.213 % median: 2.654 % low: -1.138 % DFH: -5.764 % |
|
| Free Cash Growth | 72.258 % | |
| Free Cash Growth QoQ | 11.884 % | |
| Free Cash Growth YoY | -26.23 % | |
| Free Cash Growth IPRWA | high: 250.563 % median: 157.39 % mean: 122.417 % DFH: 72.258 % low: -254.593 % |
|
| Free Cash To Net Income | -2.888 | |
| Cash Flow Margin | -12.286 % | |
| Cash Flow To Earnings | -2.535 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 1.256 % | |
| Return On Assets QoQ | -20.757 % | |
| Return On Assets YoY | -43.904 % | |
| Return On Assets IPRWA | high: 5.723 % mean: 3.184 % median: 2.585 % DFH: 1.256 % low: 0.49 % |
|
| Return On Capital Employed (ROCE) | 2.746 % | |
| Return On Equity (ROE) | 0.034 | |
| Return On Equity QoQ | -19.311 % | |
| Return On Equity YoY | -45.991 % | |
| Return On Equity IPRWA | high: 0.086 mean: 0.047 median: 0.044 DFH: 0.034 low: 0.009 |
|
| DuPont ROE | 3.472 % | |
| Return On Invested Capital (ROIC) | 1.463 % | |
| Return On Invested Capital QoQ | -3.496 % | |
| Return On Invested Capital YoY | -81.14 % | |
| Return On Invested Capital IPRWA | high: 7.144 % mean: 3.888 % median: 3.27 % DFH: 1.463 % low: 0.412 % |
|