MHO

OVERVIEW M/I Homes, Inc. and subsidiaries (the “Company” or “we”) is one of the nation’s leading builders of single-family homes having sold over 172,900 homes since commencing homebuilding activities in 1976. The Company’s homes are marketed and sold primarily under the M/I Homes brand. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Ft. Myers/Naples, Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and Nashville, Tennessee. Included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are the following topics relevant to the Company’s performance and financial condition: •Information Relating to Forward-Looking Statements; •Application of Critical Accounting Estimates and Policies; •Results of Operations; •Discussion of Our Liquidity and Capital Resources; and •Impact of Interest Rates and Inflation. FORWARD-LOOKING STATEMENTS Certain information included in this report or in other materials we have filed or will file with the Securities and Exchange Commission (the “SEC”) (as well as information included in oral statements or other written statements made or to be made by us) contains or may contain forward-looking statements, including, but not limited to, statements regarding our future financial performance and financial condition. Words such as “expects,” “anticipates,” “envisions,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties. Any forward-looking statements that we make herein and in future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various risk factors, including, without limitation, factors relating to the economic environment, interest rates, availability of resources, competition, market concentration, land development activities, construction defects, product liability and warranty claims and various governmental rules and regulations including changes in trade policy affecting business such as new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties. See “Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”), as the same may be updated from time to time in our subsequent filings with the SEC, for more information regarding those risk factors. Any forward-looking statement speaks only as of the date made. Except as required by applicable law, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent reports on Forms 10-K, 10-Q and 8-K should be consulted. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section. 23 APPLICATION OF CRITICAL ACCOUNTING ESTIMATES AND POLICIES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Management bases its estimates and assumptions on historical experience and various other factors that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. On an ongoing basis, management evaluates such estimates and assumptions and makes adjustments as deemed necessary. Actual results could differ from these estimates using different estimates and assumptions, or if conditions are significantly different in the future. See Note 1 (Summary of Significant Accounting Policies) to our consolidated financial statements included in our 2025 Form 10-K for additional information about our accounting policies. We believe that there have been no significant changes to our critical accounting policies during the quarter ended June 30, 2026 as compared to those disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2025 Form 10-K. RESULTS OF OPERATIONS Our reportable segments are: Northern homebuilding; Southern homebuilding; and financial services operations. The homebuilding operating segments that comprise each of our reportable segments are as follows: Northern Southern Chicago, Illinois Ft. Myers/Naples, Florida Cincinnati, Ohio Orlando, Florida Columbus, Ohio Sarasota, Florida Indianapolis, Indiana Tampa, Florida Minneapolis/St. Paul, Minnesota Austin, Texas Detroit, Michigan Dallas/Fort Worth, Texas Houston, Texas San Antonio, Texas Charlotte, North Carolina Raleigh, North Carolina Nashville, Tennessee Overview Housing market conditions remained challenging due to persistent affordability pressures driven by elevated mortgage interest rates, inflation, rising lot costs, limited affordable housing inventory, and ongoing economic and geopolitical uncertainty. Mortgage interest rates remained in the mid-to-upper 6% range throughout the second quarter of 2026, while inflationary pressures and broader economic concerns continued to negatively impact consumer confidence. To support affordability and stimulate demand, we continued to offer targeted sales incentives, including mortgage interest rate buydowns, consistent with our approach in 2025. These incentives contributed to improved contract activity compared to the prior year and resulted in a record number of second quarter new contracts. Despite stronger sales activity, home closings declined compared to the second quarter of 2025. Overall profitability decreased from the prior year, primarily reflecting higher lot costs and mortgage rate buydown incentives that continue to be an important part of our sale strategy. Nevertheless, we remain encouraged by the underlying fundamentals of our business, as demand for attainable housing continues to be supported by a structural undersupply of homes. Additionally, housing affordability remains a key focus for federal policymakers, with continued attention on initiatives aimed at increasing housing availability and improving access to homeownership. Our results during the second quarter and first half of 2026 in comparison to the second quarter and first half of 2025 were as follows: 24 •New contracts increased 15% to a record 2,387 from 2,078 and increased 8% to 4,737 from 4,370, respectively •Number of homes delivered decreased 6% to 2,206 homes and decreased 5% to 4,120 homes, respectively •Revenue decreased 9% to $1.06 billion and decreased 7% to $1.98 billion, respectively •Income before income taxes decreased 35% to $104.6 million and decreased 37% to $193.7 million, respectively •Gross margin decreased 260 basis points to 22.1% and decreased 310 basis points to 22.1%, respectively •Net income decreased 35% to $79.1 million and decreased 37% to $146.9 million, respectively •Shareholders’ equity of $3.2 billion, a 5% increase from a year ago, with book value per common share increasing to a record high $128 per share •Homebuilding debt to capital ratio was 18% for both periods Additionally, our financial services segment achieved its highest revenue in a second quarter and improved capture rate to 96% from 92% in second quarter 2025. Our company-wide absorption pace of sales per community for the second quarter of 2026 was 3.4 per month compared to 3.0 for the prior year’s second quarter. We plan to open additional new communities during the remainder of 2026 and increase our average community count by about 5% from 2025. Summary of Company Financial Results Income before income taxes for the second quarter of 2026 decreased $55.5 million from $160.1 million in the second quarter of 2025 to $104.6 million in 2026. Net income was $79.1 million, or $3.02 per diluted share, in 2026's second quarter, compared to $121.2 million, or $4.42 per diluted share, in 2025's second quarter. Our effective tax rate was 24.4% and 24.3% in the second quarter of 2026 and 2025, respectively. For the first half of 2026, income before income taxes decreased $112.5 million from $306.2 million in the first half of 2025 to $193.7 million in 2026. We achieved net income of $146.9 million, or $5.57 per diluted share, during the first half of 2026 compared to net income of $232.5 million, or $8.40 per diluted share, in the six months ended June 30, 2025. Our effective tax rate was 24.2% in 2026's first half compared to 24.1% in the same period in 2025. During the quarter ended June 30, 2026, our total revenue was $1.06 billion, of which $1.03 billion was from homebuilding and $32.3 million was from our financial services operations. Revenue from homebuilding decreased 9% in 2026's second quarter compared to the same period in 2025 driven primarily by a 4% decrease in the average sales price of homes delivered ($20,000 per home delivered) and a 6% decrease in the number of homes delivered (142 units) offset in part by a $12.3 million increase in land sales. Our revenue and average sales price reflect a $63.2 million reduction for sales incentives and closing costs in the second quarter of 2026 compared to a $47.1 million reduction for sales incentives and closing costs in 2025's second quarter. Revenue from our financial services segment increased 3% to $32.3 million in the second quarter of 2026 as a result of slightly higher margins on loans sold and an improved capture rate, partially offset by a decrease in loans originated during the period compared to the second quarter of 2025. For the first half of 2026, we recorded year-to-date total revenue of $1.98 billion, of which $1.92 billion was from homes delivered and $63.6 million was from our financial services operations. Revenue from homebuilding decreased 8% in the first half of 2026 compared to the same period in 2025 driven primarily by decreases in the number of homes delivered (204 units) and the average sales price of homes delivered ($19,000 per home delivered). Our revenue and average sales price reflect a $115.9 million reduction for incentives and closing costs in 2026’s first six months compared to an $87.1 million reduction for incentives and closing costs in 2025’s first six months. Revenue from our financial services segment increased 1% to $63.6 million in the first half of 2026 compared to the first half of 2025 as a result of an increase in loans originated during the period and an improved capture rate, offset by a decrease in the average loan amount during the period. Total gross margin (total revenue less total land and housing costs) decreased $51.1 million in the second quarter of 2026 compared to the second quarter of 2025 as a result of a $52.0 million decline in the gross margin of our homebuilding operations, partially offset by a $0.9 million increase in the gross margin of our financial services operations. Our homebuilding gross margin percentage declined by 290 basis points to 19.7% in the second quarter of 2026 from 22.6% in the second quarter of 2025. The decline in homebuilding gross margin dollars primarily resulted from the decrease in average sales price of homes delivered, an $8.7 million increase in lot costs, a $22.0 million increase in mortgage interest rate buydowns offered, a 6% decrease in homes delivered and $4.2 million in inventory charges in 2026. Our homebuilding gross margin may fluctuate from quarter to quarter depending on the mix of communities delivering homes due to the variation in margin between different communities, number of homes under construction and sales incentives. During the second quarter of 2026, homebuilding gross margin was compressed primarily due to mix of inventory homes delivered, incentives offered and increased lot costs. The gross margin of our financial services operations increased $0.9 million in the second quarter of 2026 compared to the second quarter of 2025 as a result of higher margins on loans sold, an improved capture rate, partially offset by a decrease in the number of loan originations. Total gross margin decreased $101.3 million in the first half of 2026 compared to the same period in 2025 as a result of a $101.9 million decline in the gross margin of our homebuilding operations offset, in part, by a $0.6 million improvement in the gross margin of our financial services operations. This decline in the gross margin of our 25 homebuilding operations is primarily due to a decrease in the number of homes delivered, a decrease in the average sales price of homes delivered ($19,000 per home delivered), a $14.5 million increase in lot costs, and $4.2 million in inventory charges. The gross margin of our financial services operations increased $0.6 million in the first half of 2026 compared to the same period in 2025 as a result of an increase in loans originated during the period and an improved capture rate, partially offset by a decrease in the average loan amount during the period. We opened 49 new communities during the first half of 2026 and closed 47 communities. We sell a variety of home types in various communities and markets, each of which yields a different gross margin. The timing of the openings of new replacement communities as well as underlying lot costs varies from year to year. The mix of communities delivering homes may cause fluctuations in our new contracts, absorption pace and housing gross margin from year to year. For the three months ended June 30, 2026, selling, general and administrative expense increased $3.3 million, and increased as a percentage of revenue from 11.3% in the second quarter of 2025 to 12.6% in the second quarter of 2026. Selling expense increased $0.4 million from 2025's second quarter and increased as a percentage of revenue to 6.0% in 2026's second quarter from 5.5% for the same period in 2025. The dollar increase in selling expense is related to a $1.2 million increase in advertising expenses and a $2.1 million increase in expenses related to model homes and sales offices, including compensation related expenses, partially offset by a $2.9 million decrease in realtor and sales commissions in the second quarter of 2026. General and administrative expense increased $2.9 million in the second quarter of 2026 compared to the second quarter of 2025 and increased as a percentage of revenue to 6.6% in the second quarter 2026 from 5.8% in the second quarter of 2025. The dollar increase in general and administrative expense was primarily due to a $1.3 million increase in compensation-related expenses due to increased head count, a $0.6 million increase in costs associated with information systems, a $0.2 million increase in land-related expenses and a $0.8 million increase in miscellaneous expenses. For the six months ended June 30, 2026, selling, general and administrative expense increased $8.0 million, and increased as a percentage of revenue from 11.4% in the six months ended June 30, 2025 to 12.6% in the first six months of 2026. Selling expense increased $2.9 million from the first half of 2025 and increased as a percentage of revenue to 6.0% in 2026's first half from 5.4% for the same period in 2025. The dollar increase in selling expense in the second quarter of 2026 related to a $4.8 million increase in costs associated with our sales offices, including compensation-related and advertising expenses, offset by a $1.9 million decrease in realtor and sales commissions. General and administrative expense increased $5.1 million compared to the first half of 2025 and increased as a percentage of revenue from 5.9% in the six months ended June 30, 2025 to 6.6% in the first six months of 2026. The increase in general and administrative expense was primarily due to a $2.0 million increase in compensation-related expenses due to higher average headcount and equity incentives offset in part by bonus expense, a $0.9 million increase in costs associated with information systems, a $0.8 million increase in land-related expenses, and a $1.4 million increase in various other expenses, including advertising expenses. Outlook The housing market continues to face macroeconomic challenges, including elevated mortgage interest rates, affordability constraints, inflationary pressures, evolving trade and tariff policies, labor market uncertainty, recession concerns, and ongoing geopolitical volatility, which have continued to affect consumer confidence and homebuying activity. While we remain confident in the long-term prospects of our business, we believe these market conditions may persist through the remainder of 2026. In response, we remain focused on executing strategies designed to navigate this environment, including disciplined overhead management, prudent land acquisition and development spending, pricing discipline, and the selective use of sales incentives, including mortgage interest rate buydowns, to improve affordability, support demand, increase sales activity, and reduce contract cancellations. Despite these challenges, we believe the long-term fundamentals supporting the housing market remain favorable. Demand continues to be driven by demographic trends, household formation, and an undersupply of both new and existing homes, particularly in the affordable housing segment. We also believe that any future moderation in mortgage interest rates could improve affordability and further support housing demand. However, the timing and magnitude of such changes remain uncertain and will depend on economic conditions, monetary policy, capital markets, and geopolitical developments. Additionally, housing affordability and supply remain important policy priorities at the federal level, with continued focus on initiatives intended to expand housing availability and improve access to homeownership. We believe we are well positioned to operate successfully in the current environment. Although our backlog at the end of the second quarter of 2026 was lower than the prior-year period, it remained healthy, with an average sales price approximately 3% below the comparable prior-year level, reflecting our continued focus on affordability. Our strong balance sheet, liquidity, and disciplined capital allocation provide the financial flexibility to respond to changing market conditions and pursue opportunities as they arise. Nevertheless, the operating environment remains dynamic, and our future performance will depend on our ability to adapt to evolving economic and market conditions. Accordingly, there can be no assurance that our current strategies will fully offset the effects of continued market volatility and uncertainty. 26 In 2026, as we celebrate our 50th year of delivering high quality communities and homes, we expect to prioritize the following business strategies: •Employ incentives to promote sales •Manage inventory home levels to meet homebuyer demand •Manage land spend and maintain disciplined cost management •Open new communities aligned with our long‑term growth objectives •Maintain a strong balance sheet and liquidity levels, and low leverage •Continue emphasizing product quality, customer service, and premier community locations During the first six months of 2026, we invested $210.3 million in land acquisitions and $259.1 million in land development compared to $247.7 million and $240.6 million, respectively, during the first six months of 2025. We invested in fewer land acquisitions in the first half of 2026 compared to the first half of 2025 as a result of the land supply needs of our divisions. We continue to closely review our land acquisition and land development spending and monitor our ongoing pace of home sales and deliveries, and we will adjust our land acquisition and development spend accordingly. We ended the second quarter of 2026 with approximately 49,100 lots under control, which represents an approximately five-year supply of lots based on the past twelve months of homes delivered, including certain lots that we anticipate selling to third parties. This represents a 3% decrease from our approximately 50,500 lots under control at the end of last year’s second quarter. We opened 49 communities and closed 47 communities in the first half of 2026, ending the second quarter with 234 active communities, the same as at the end of last year’s second quarter. Although the timing of opening new communities and closing existing communities is subject to substantial variation, we expect to grow our average community count by approximately 5% in 2026 compared to 2025. 27 The following table shows, by segment: revenue; cost of sales; selling, general and administrative expense; operating income; and interest (income) expense - net for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 2026 2025 Revenue: Northern homebuilding $ 452,640 $ 488,250 $ 829,546 $ 898,627 Southern homebuilding 578,282 642,892 1,090,852 1,177,088 Financial services (a) 32,336 31,450 63,567 62,970 Total revenue $ 1,063,258 $ 1,162,592 $ 1,983,965 $ 2,138,685 Cost of Sales: Northern homebuilding $ 356,896 $ 376,979 $ 660,347 $ 696,438 Southern homebuilding 470,863 498,994 885,528 902,845 Financial services (a) — — — — Total cost of sales (b) $ 827,759 $ 875,973 $ 1,545,875 $ 1,599,283 General and Administrative Expense: Northern homebuilding $ 11,733 $ 10,823 $ 21,401 $ 19,959 Southern homebuilding 20,154 21,004 38,393 39,812 Financial services (a) 15,310 13,908 29,817 26,661 Segment general and administrative expense $ 47,197 $ 45,735 89,611 $ 86,432 Corporate and unallocated general administrative expense 23,001 21,512 41,773 39,888 Total general and administrative expense $ 70,198 $ 67,247 $ 131,384 $ 126,320 Selling Expense Northern homebuilding $ 25,856 $ 24,434 $ 46,720 $ 45,624 Southern homebuilding 37,353 38,594 71,128 69,700 Financial services (a) — — — — Segment selling expense $ 63,209 $ 63,028 $ 117,848 $ 115,324 Corporate and unallocated selling expense 814 627 1,515 1,117 Total selling expense: $ 64,023 $ 63,655 $ 119,363 $ 116,441 Operating income: Northern homebuilding $ 58,155 $ 76,014 $ 101,078 $ 136,606 Southern homebuilding 49,912 84,300 95,803 164,731 Financial services (a) 17,026 17,542 33,750 36,309 Segment operating income $ 125,093 $ 177,856 $ 230,631 $ 337,646 Corporate selling, general and administrative expense (23,815) (22,139) (43,288) (41,005) Total operating income (b) $ 101,278 $ 155,717 $ 187,343 $ 296,641 Interest (income) expense - net: Northern homebuilding $ — $ (24) $ (10) $ (46) Southern homebuilding (345) (1) (539) (3) Financial services (a) 2,603 3,066 5,230 5,727 Segment Interest (income) expense - net $ 2,258 $ 3,041 $ 4,681 $ 5,678 Corporate Interest (income) expense - net (5,544) (7,418) (11,072) (15,252) Total interest (income) expense - net $ (3,286) $ (4,377) $ (6,391) $ (9,574) Income before income taxes $ 104,564 $ 160,094 $ 193,734 $ 306,215 (a)Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuyers, with the exception of a small amount of mortgage refinancing. (b)For the three and six months ended June 30, 2026, total cost of sales and operating income were impacted by $4.2 million in inventory charges taken during the period. $0.4 million and $3.8 million of these charges were attributable to the Northern homebuilding operating segment and the Southern homebuilding operating segment, respectively. Additionally, total cost of sales and operating income in the Southern homebuilding operating segment were impacted by $4.0 million and $5.5 million, respectively, for warranty charges in two of our Florida communities primarily relating to attic ventilation issues (See Note 6). 28 The following tables show total assets by segment at June 30, 2026 and December 31, 2025: At June 30, 2026 (In thousands) Northern Southern Financial Services Segment Total Corporate and unallocated Total Deposits on real estate under option or contract $ 19,766 $ 63,189 $ — $ 82,955 $ — $ 82,955 Inventory (a) 1,186,269 2,236,074 — 3,422,343 — 3,422,343 Investments in joint venture arrangements — 62,018 — 62,018 — 62,018 Other assets 43,317 151,372 (b) 375,767 570,456 718,271 1,288,727 Total assets $ 1,249,352 $ 2,512,653 $ 375,767 $ 4,137,772 $ 718,271 $ 4,856,043 At December 31, 2025 (In thousands) Northern Southern Financial Services Segment Total Corporate and unallocated Total Deposits on real estate under option or contract $ 14,319 $ 60,226 $ — $ 74,545 $ — $ 74,545 Inventory (a) 1,164,647 2,144,748 — 3,309,395 — 3,309,395 Investments in joint venture arrangements — 106,299 — 106,299 — 106,299 Other assets 35,087 122,223 (b) 375,682 532,992 753,894 1,286,886 Total assets $ 1,214,053 $ 2,433,496 $ 375,682 $ 4,023,231 $ 753,894 $ 4,777,125 (a)Inventory includes: single-family lots; land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned. (b)Includes development reimbursements from local municipalities. 29 Reportable Segments The following table presents, by reportable segment, selected operating and financial information as of and for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Northern Region Homes delivered 892 967 1,644 1,793 New contracts, net 1,016 873 2,042 1,938 Backlog at end of period 1,234 1,281 1,234 1,281 Average sales price of homes delivered $ 507 $ 501 $ 503 $ 498 Average sales price of homes in backlog $ 567 $ 563 $ 567 $ 563 Aggregate sales value of homes in backlog $ 699,177 $ 720,914 $ 699,177 $ 720,914 Housing revenue $ 452,599 $ 484,853 $ 826,204 $ 893,000 Land sale revenue $ 41 $ 3,397 $ 3,342 $ 5,627 Operating income homes (a)(b) $ 58,114 $ 74,151 $ 100,969 $ 134,695 Operating income land $ 41 $ 1,863 $ 109 $ 1,911 Number of average active communities 93 99 93 96 Number of active communities, end of period 94 99 94 99 Southern Region Homes delivered 1,314 1,381 2,476 2,531 New contracts, net 1,371 1,205 2,695 2,432 Backlog at end of period 1,192 1,296 1,192 1,296 Average sales price of homes delivered $ 426 $ 463 $ 430 $ 463 Average sales price of homes in backlog $ 508 $ 543 $ 508 $ 543 Aggregate sales value of homes in backlog $ 606,071 $ 704,225 $ 606,071 $ 704,225 Housing revenue $ 559,375 $ 639,622 $ 1,064,380 $ 1,171,506 Land sale revenue $ 18,907 $ 3,270 $ 26,472 $ 5,582 Operating income homes (a)(b) $ 46,817 $ 82,961 $ 90,576 $ 162,654 Operating income land $ 3,095 $ 1,339 $ 5,227 $ 2,077 Number of average active communities 139 131 139 131 Number of active communities, end of period 140 135 140 135 Total Homebuilding Regions Homes delivered 2,206 2,348 4,120 4,324 New contracts, net 2,387 2,078 4,737 4,370 Backlog at end of period 2,426 2,577 2,426 2,577 Average sales price of homes delivered $ 459 $ 479 $ 459 $ 478 Average sales price of homes in backlog $ 538 $ 553 $ 538 $ 553 Aggregate sales value of homes in backlog $ 1,305,248 $ 1,425,138 $ 1,305,248 $ 1,425,138 Housing revenue $ 1,011,974 $ 1,124,475 $ 1,890,584 $ 2,064,506 Land sale revenue $ 18,948 $ 6,667 $ 29,814 $ 11,209 Operating income homes (a) (b) $ 104,931 $ 157,112 $ 191,545 $ 297,349 Operating income land $ 3,136 $ 3,202 $ 5,336 $ 3,988 Number of average active communities 232 230 232 227 Number of active communities, end of period 234 234 234 234 (a)Includes the effect of total homebuilding general and administrative expense and selling expense for the region as disclosed in the first table set forth in this “Outlook” section. (b)Includes $4.2 million in inventory charges taken during the period. $0.4 million and $3.8 million of these charges were attributable to the Northern homebuilding operating segment and the Southern homebuilding operating segment, respectively. Additionally, total cost of sales and operating income in the Southern homebuilding operating segment were impacted by $4.0 million and $5.5 million, respectively, for warranty charges in two of our Florida communities primarily relating to attic ventilation issues (See Note 6). 30 Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Financial Services Number of loans originated 1,817 1,865 3,396 3,395 Value of loans originated $ 736,410 $ 750,692 $ 1,370,096 $ 1,371,660 Revenue $ 32,336 $ 31,450 $ 63,567 $ 62,970 Less: General and administrative expenses 15,310 13,908 29,817 26,661 Less: Interest expense 2,603 3,066 5,230 5,727 Income before income taxes $ 14,423 $ 14,476 $ 28,520 $ 30,582 A home is included in “new contracts” when our standard sales contract is executed. “Homes delivered” represents homes for which the closing of the sale has occurred. “Backlog” represents homes for which the standard sales contract has been executed, but which are not included in homes delivered because closings for these homes have not yet occurred as of the end of the period specified. The composition of our homes delivered, new contracts, net and backlog is constantly changing and may be based on a dissimilar mix of communities between periods as new communities open and existing communities wind down. Further, home types and individual homes within a community can range significantly in price due to differing square footage, option selections, lot sizes and quality and location of lots. These variations may result in a lack of meaningful comparability between homes delivered, new contracts, net and backlog due to the changing mix of communities between periods. Cancellation Rates The following table sets forth the cancellation rates for each of our homebuilding segments for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Northern 9.3 % 10.7 % 7.9 % 9.1 % Southern 7.8 % 14.0 % 8.8 % 12.9 % Total cancellation rate 8.4 % 12.7 % 8.4 % 11.3 % Seasonality Typically, our homebuilding operations experience significant seasonality and quarter-to-quarter variability in homebuilding activity levels. In general, homes delivered increase in the second half of the year compared to the first half of the year. We believe that this seasonality reflects the tendency of homebuyers to shop for a new home in the spring with the goal of closing in the fall or winter, as well as the scheduling of construction to accommodate seasonal weather conditions. Our financial services operations also experience seasonality because loan originations correspond with the delivery of homes in our homebuilding operations. Additionally, seasonality may, from time to time, be affected by short-term volatility in the homebuilding industry and in the overall economy. Year Over Year Comparison Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 Northern Region. During the three months ended June 30, 2026, revenue in our Northern region decreased $35.7 million, from $488.3 million in the second quarter of 2025 to $452.6 million in the second quarter of 2026. This decrease in revenue was primarily the result of an 8% decrease in the number of homes delivered, partially offset by a 1% increase in the average sales price of homes delivered. Operating income in our Northern region decreased $17.8 million from $76.0 million in the second quarter of 2025 to $58.2 million during the quarter ended June 30, 2026. This decrease in operating income was the result of a $15.5 million decline in our gross margin and a $2.3 million increase in selling, general and administrative expense. Our gross margin percentage declined 160 basis points to 21.2% from 22.8% in the prior year’s second quarter primarily due to an increase in homebuyer incentives and a $7.0 million increase in lot costs compared to prior year. The average sales price in 2026 reflects a reduction of $8,600 per home when compared to 2025 due to increased homebuyer incentive costs including mortgage interest rate buydowns. Selling, general and administrative expense increased $2.3 million, from $35.3 million for the quarter ended June 30, 2025 to $37.6 million for the quarter ended June 30, 2026 and increased 110 basis points as a percentage of revenue to 8.3% in 2026's 31 second quarter from 7.2% in 2025's second quarter. The increase in selling, general and administrative expense was attributable to a $0.9 million increase in general and administrative expense and a $1.4 million increase in selling expense. The increase in general and administrative expense was due to a $0.6 million increase in compensation-related expenses and a $0.3 million increase in miscellaneous expense, including costs associated with research, design and development. The increase in selling expense was due to a $0.5 million increase in advertising expense, a $0.4 million increase in expenses related to our model homes and a $0.5 million increase in costs associated with our sales offices, including compensation-related expenses. During the three months ended June 30, 2026, we experienced a 16% increase in new contracts in our Northern region from 873 in the second quarter of 2025 to 1,016 in the second quarter of 2026. Homes in backlog decreased 4% from 1,281 homes at June 30, 2025 to 1,234 homes at June 30, 2026 as a result of more inventory homes sold in the second quarter of 2026 compared to prior year. The average sales price in backlog increased approximately 1% to $567,000 at June 30, 2026 compared to $563,000 at June 30, 2025 primarily due to the mix of homes being sold. During the three months ended June 30, 2026, we opened twelve new communities in our Northern region compared to opening eight during 2025's second quarter. Our monthly absorption rate in our Northern region was 3.7 per community in the second quarter of 2026 compared to 3.0 in the second quarter of 2025 due to an increase in new contracts and a decrease in average community count. Southern Region. During the three month period ended June 30, 2026, revenue in our Southern region decreased $64.6 million, from $642.9 million in the second quarter of 2025 to $578.3 million in the second quarter of 2026. This 10% decrease in revenue was the result of an 8% decrease in the average sales price of homes delivered ($37,000 per home delivered) and a 5% decrease in the number of homes delivered (67 units), offset in part by a $15.6 million increase in land sale revenue. Operating income in our Southern region decreased $34.4 million from $84.3 million in the second quarter of 2025 to $49.9 million in the second quarter of 2026. This decrease in operating income was the result of a $36.5 million decline in our gross margin, partially offset by a $2.1 million decrease in selling, general, and administrative expense. Our gross margin percentage declined 380 basis points from 22.4% in prior year’s second quarter to 18.6% in the second quarter of 2026. The decline in our homebuilding gross margin was primarily due to the decrease in the number of homes delivered, a decrease in the average sales price of homes delivered, and a $1.8 million increase in lot costs offset in part by increase in land sales. Increased homebuyer incentive costs, including mortgage interest rate buydowns, decreased the average sales price of homes delivered by $8,500 per home when compared to 2025. Selling, general and administrative expense decreased $2.1 million from $59.6 million in the second quarter of 2025 to $57.5 million in the second quarter of 2026 but increased 60 basis points as a percentage of revenue to 9.9% in the second quarter of 2026 from 9.3% in the second quarter of 2025. The decrease in selling, general and administrative expense was attributable to a $1.2 million decrease in selling expense and a $0.9 million decrease in general administrative expense. The decrease in selling expense was due to a $2.9 million decrease in realtor and sales commissions, partially offset by a $1.7 million increase in costs related to our sales office, including compensation and advertising expenses. The decrease in general and administrative expense was due to a $0.6 million decrease in compensation-related expenses, and a $0.3 million decrease of miscellaneous expenses. During the three months ended June 30, 2026, our new contracts in our Southern region increased 14% from 1,205 in the second quarter of 2025 to 1,371 in the second quarter of 2026. Homes in backlog decreased by 8% from 1,296 homes at June 30, 2025 to 1,192 homes at June 30, 2026, primarily as a result of a shift in demand to inventory homes which offer incentives compared to last year offset in part by improved sales in current quarter. Average sales price in backlog decreased to $508,000 at June 30, 2026 from $543,000 at June 30, 2025 primarily due to the mix of homes being sold, including an increase in inventory homes. During the three months ended June 30, 2026, we opened 15 new communities in our Southern region compared to opening 15 communities during 2025's second quarter. Our monthly absorption rate in our Southern region improved to 3.3 per community in the second quarter of 2026 from 3.1 in the second quarter of 2025. Financial Services. Revenue from our mortgage and title operations increased 3% to $32.3 million in the second quarter of 2026 from $31.5 million in the second quarter of 2025 due to higher margins on loans sold, an increase in the average loan amount from $403,000 in the quarter ended June 30, 2025 to $405,000 in the quarter ended June 30, 2026 and a higher capture rate during the period compared to prior year’s second quarter, partially offset by a 3% decrease in the number of loan originations from 1,865 in 2025's second quarter to 1,817 in the second quarter of 2026. Our financial services segment experienced a $0.5 million decrease in operating income in the second quarter of 2026 compared to 2025's second quarter, which was primarily due to a $1.4 million increase in general and administrative expense, which was primarily the result of a $0.9 million increase in compensation-related expenses, and a $0.5 million increase in miscellaneous expenses relating to information systems compared to the second quarter of 2025. 32 At June 30, 2026, M/I Financial provided financing services in all of our markets. Approximately 96% of our homes delivered during the second quarter of 2026 were financed through M/I Financial, compared to approximately 92% in the second quarter of 2025. Capture rate is influenced by financing availability and competition in the mortgage market and can fluctuate from quarter to quarter. Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased $1.7 million from $22.1 million for the second quarter of 2025 to $23.8 million for the second quarter of 2026. This increase resulted from a $0.3 million increase in compensation-related expenses, a $0.3 million increase in depreciation, a $0.3 million increase in computer related expense, a $0.3 million increase in advertising expenses and a $0.5 million increase in miscellaneous expenses. Interest Income, net of Interest Expense. The Company earned $3.3 million of interest income - net for the three months ended June 30, 2026 compared to $4.4 million for the three months ended June 30, 2025. This decrease was primarily due to a lower average cash balance on hand compared to prior year. Income Taxes. Our overall effective tax rate was 24.4% for the three months ended June 30, 2026 and 24.3% for the three months ended June 30, 2025. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Northern Region. During the first half of 2026, homebuilding revenue in our Northern region decreased $69.1 million, from $898.6 million in the first six months of 2025 to $829.5 million in the first six months of 2026. This 8% decrease in revenue was primarily the result of a $2.3 million decrease in land sale revenue and an 8% decrease in the number of homes delivered, partially offset by an increase in the average sales price of homes delivered ($5,000 per home delivered). Operating income in our Northern region decreased $35.5 million, from $136.6 million during the first half of 2025 to $101.1 million during the six months ended June 30, 2026. The decrease in operating income was primarily the result of a $33.0 million decrease in our gross margin and a $2.5 million increase in selling, general and administrative expense. Our gross margin declined $33.0 million, and our gross margin percentage declined 210 basis points from 22.5% in the first six months of 2025 to 20.4% for the same period in 2026, primarily due to a decrease in the number of homes delivered, a $9.1 million increase in lot costs and a decrease in land sales. The average sales price in 2026 reflects a reduction of $8,600 per home when compared to 2025 due to increased homebuyer incentive costs including mortgage interest rate buydowns. Selling, general and administrative expense increased $2.5 million, from $65.6 million for the six months ended June 30, 2025 to $68.1 million for the six months ended June 30, 2026, and increased 90 basis points to 8.2% in 2026's second quarter from 7.3% in 2025's second quarter. The increase in selling, general and administrative expense was attributable to a $1.4 million increase in general and administrative expense and a $1.1 million increase in selling expense. The increase in general and administrative expense related to a $0.8 million increase in compensation-related expenses, a $0.4 million increase in land-related expenses and a $0.2 million increase in miscellaneous expenses. The increase in selling expenses was attributable to a $1.0 million increase in compensation-related expenses and advertising expenses and a $0.6 million increase in miscellaneous expense partially offset by a $0.5 million decrease in sales and realtor commissions. During the six months ended June 30, 2026, we experienced a 5% increase in new contracts in our Northern region, from 1,938 in the six months ended June 30, 2025 to 2,042 in the first half of 2026. Homes in backlog decreased 4% from 1,281 at June 30, 2025 to 1,234 homes at June 30, 2026. Average sales price in backlog increased to $567,000 at June 30, 2026 compared to $563,000 at June 30, 2025 primarily due to the mix of homes being sold. During the six months ended June 30, 2026, we opened 20 new communities in our Northern region compared to 24 new communities opened during the first half of 2025. Our monthly absorption rate in our Northern region improved to 3.7 per community in the six months ended June 30, 2026 from 3.4 per community in the same period in 2025 as a result of an increase in new contracts and reduced average community count. Southern Region. During the six months ended June 30, 2026, homebuilding revenue in our Southern region decreased $86.2 million from $1.18 billion in the first half of 2025 to $1.09 billion in the first half of 2026. This 7% decrease in homebuilding revenue was the result of a 2% decrease in the number of homes delivered (55 units) and a 7% decrease in the average sales price of homes delivered ($33,000 per home delivered) primarily due to the mix of homes delivered and incentives, partially offset by a $20.9 million increase in land sales. Operating income in our Southern region decreased 42% from $164.7 million in the first half of 2025 to $95.8 million during the six months ended June 30, 2026. This decrease in operating income was the result of a $68.9 million decline in our gross margin. Our gross margin percentage declined 450 basis points from 23.3% in the six months ended June 30, 2025 to 18.8% in the same period in 2026 primarily due to the decrease in average sales price for homes delivered, a $5.4 million increase in lot costs and a decrease in the number of homes delivered. 33 Increased homebuyer incentive costs, including mortgage interest rate buydowns, decreased the average sales price of homes delivered by $7,400 per home when compared to 2025. Selling, general and administrative expense remained at $109.5 million in the first half of 2025 and first half of 2026 but increased as a percentage of revenue to 10.0% compared to 9.3% in the first six months of 2025. General and administrative expense decreased $1.4 million primarily due to a $1.2 million decrease in compensation-related expenses as a result of a decrease in bonus expense and a $0.4 million decrease in other miscellaneous expenses related to professional fees, partially offset by a $0.2 million increase in land-related expense. Selling expense increased $1.4 million primarily due to a $2.8 million increase related to costs associated with our sales offices, partially offset by a $1.4 million decrease in realtor and sales commissions. During the six months ended June 30, 2026, we experienced an 11% increase in new contracts in our Southern region, from 2,432 in the six months ended June 30, 2025 to 2,695 in the first half of 2026. Homes in backlog decreased 8% from 1,296 homes at June 30, 2025 to 1,192 homes at June 30, 2026 primarily as a result of a shift in demand to inventory homes which offer incentives compared to last year. Average sales price in backlog decreased from $543,000 at June 30, 2025 to $508,000 at June 30, 2026 primarily due to the mix of homes delivered, including inventory homes and locations of communities. During the six months ended June 30, 2026, we opened 29 communities in our Southern region, compared to opening 26 during the first half of 2025. Our monthly absorption rate in our Southern region improved to 3.2 per community in the first half of 2026 from 3.1 per community in the first half of 2025 as a result of increased new contracts. Financial Services. Revenue from our mortgage and title operations increased 1% from $63.0 million in the first half of 2025 to $63.6 million in the first half of 2026 due to an improved capture rate compared to 2025's first half, a slight increase in the number of loan originations from 3,395 in the first half of 2025 to 3,396 in the first half of 2026, partially offset by a decrease in the average loan amount from $404,000 in the six months ended June 30, 2025 to $403,000 in the six months ended June 30, 2026 resulting in lower margins on loans sold. Our financial services segment experienced a $2.6 million decrease in operating income in the first half of 2026 compared to the same period in 2025, which was primarily due to a $3.2 million increase in selling, general and administrative expense compared to the first half of 2025, partially offset by the increase in revenue discussed above. The increase in selling, general and administrative expense was primarily attributable to a $2.3 million increase in compensation-related expenses and a $0.9 million increase in other miscellaneous expenses. At June 30, 2026, M/I Financial provided financing services in all of our markets. Approximately 96% of our homes delivered during the first half of 2026 were financed through M/I Financial, compared to 92% during the six months ended June 30, 2025. Capture rate is influenced by financing availability and can fluctuate from quarter to quarter. Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased $2.3 million from $41.0 million for the six months ended June 30, 2025 to $43.3 million for the six months ended June 30, 2026, primarily due to a $0.3 million increase in computer-related costs and a $1.3 million increase in miscellaneous expenses incurred during the period, $0.1 million increase in compensation-related expenses and a $0.6 million increase in advertising expenses. Interest Income, net of Interest Expense. The Company earned $6.4 million of interest income - net for the six months ended June 30, 2026 compared to $9.6 million for the six months ended June 30, 2025. This decrease was primarily due to a lower average cash balance on hand compared to prior year. Income Taxes. Our overall effective tax rate was 24.2% for the six months ended June 30, 2026 and 24.1% for the six months ended June 30, 2025. The increase in the effective rate from the six months ended June 30, 2025 was primarily attributable to a $1.0 million decrease in tax benefit from equity compensation in 2026. LIQUIDITY AND CAPITAL RESOURCES Overview of Capital Resources and Liquidity. At June 30, 2026, we had $735.9 million of cash, cash equivalents and restricted cash, with approximately $735.7 million of this amount comprised of unrestricted cash and cash equivalents, which represents a $46.5 million increase in unrestricted cash and cash equivalents from December 31, 2025. This increase in cash was primarily due to the timing of land spend, lower inventory investment and the proceeds from mortgage loan sales exceeding originations, partially offset by a decline in home deliveries compared to prior year. Our principal uses of cash for the six months ended June 30, 2026 were investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, 34 short-term working capital, debt service requirements, including the repayment of amounts outstanding under our credit facilities, and the repurchase of $100.1 million of our outstanding common shares under our share repurchase program. In order to fund these uses of cash, we used proceeds from home deliveries, the sale of mortgage loans, the sale of mortgage servicing rights, excess cash balances, borrowings under our MIF Mortgage Repurchase Facility and MIF Master Repurchase Facility (as defined below), and other sources of liquidity. The Company is a party to three primary credit agreements: (1) a $900 million unsecured revolving credit facility, dated July 18, 2013, as amended (the “Credit Facility”), with M/I Homes, Inc. as borrower and guaranteed by the Company’s wholly owned homebuilding subsidiaries; (2) a $200 million mortgage repurchase agreement, dated October 24, 2023, as amended most recently on April 16, 2026 (the “MIF Mortgage Repurchase Facility”), with M/I Financial as borrower; and (3) an uncommitted $100 million mortgage repurchase agreement, dated October 21, 2025 (the “MIF Master Repurchase Facility”), with M/I Financial as borrower. As of June 30, 2026, we had outstanding notes payable (consisting primarily of notes payable for our financial services operations, the 2030 Senior Notes and the 2028 Senior Notes) with varying maturities in an aggregate principal amount of $952.4 million, with $252.4 million payable within 12 months. Future interest payments associated with these notes payable totaled $87.2 million as of June 30, 2026, with $31.9 million payable within 12 months. As of June 30, 2026, there were no borrowings outstanding and $82.5 million of letters of credit outstanding under our Credit Facility, leaving $817.5 million available. We expect to continue to manage our balance sheet and liquidity carefully during the remainder of 2026 by managing our spending on land acquisition and development and construction of inventory homes, as well as overhead expenditures, relative to our ongoing volume of home deliveries, and we expect to meet our current and anticipated cash requirements in 2026 from cash receipts, excess cash balances and availability under our credit facilities. During the first half of 2026, we delivered 4,120 homes, started 4,773 homes, ended the quarter with approximately 5,100 homes under construction consistent with the end of last year’s second quarter, and spent $210.3 million on land purchases and $259.1 million on land development. We are actively acquiring and developing lots in our markets to replenish our lot supply and will continue to monitor market conditions and our pace of home sales and deliveries and adjust our land spending accordingly. Pursuant to our land option agreements, as of June 30, 2026, we had a total of 25,668 lots under contract, with an aggregate purchase price of approximately $1.71 billion, to be acquired during the remainder of 2026 through 2031. Our off-balance sheet arrangements relating to our homebuilding operations include joint venture arrangements, land option agreements, guarantees and indemnifications associated with acquiring and developing land, and the issuance of letters of credit and completion bonds. We use these arrangements to secure the most desirable lots on which to build homes for our homebuyers in a manner that we believe reduces the overall risk to the Company. Operating Cash Flow Activities. During the six-month period ended June 30, 2026, we generated $172.5 million of cash from operating activities, compared to $102.6 million during the first half of 2025. The cash provided by operating activities in the first half of 2026 was primarily a result of net income of $146.9 million, a $78.8 million increase in accounts payable, customer deposits and other liabilities, proceeds from the sale of mortgage loans exceeding mortgage loan originations by $47.2 million, a decrease in other assets of $11.6 million, offset, in part, by a $76.0 million increase in inventory and a $33.1 million decrease in accrued compensation. The cash provided by operating activities during the first half of 2025 was primarily a result of net income of $232.5 million, a $96.7 million increase in accounts payable, customer deposits and other liabilities, and proceeds from the sale of mortgage loans exceeding mortgage loan originations by $8.1 million, offset, in part, by a $183.6 million increase in inventory, a $22.0 million increase in other assets and a $35.8 million decrease in accrued compensation. Investing Cash Flow Activities. During the first half of 2026, we used $6.8 million of cash in investing activities, compared to using $15.2 million of cash in investing activities during the first half of 2025. The cash used in investing activities in the first half of 2026 was primarily a result of a $10.3 million contribution in our investment in joint venture arrangements and a $5.5 million increase in property and equipment, offset, in part, by $9.1 million in proceeds from the sale of a portion of our mortgage servicing rights. The cash used in investing activities during the first half of 2025 was primarily a result of a $18.4 million increase in our investment in joint venture arrangements and a $3.9 million increase in property and equipment, offset, in part, by $7.1 million in proceeds from the sale of a portion of our mortgage servicing rights. Financing Cash Flow Activities. During the six months ended June 30, 2026, we used $119.0 million of cash in financing activities, compared to using $108.6 million of cash in financing activities during the first six months of 2025. The cash used in financing activities in 2026 was primarily due to the repurchase of $100.1 million of our outstanding common shares during the 35 first half of 2026, and repayments (net of borrowings) under our MIF Mortgage Repurchase Facility and MIF Master Repurchase Facility of $24.5 million offset partially by $5.6 million in proceeds from the exercise of stock options during the first half of 2026. The cash used in financing activities in 2025 was primarily due to the repurchase of $100.2 million of our outstanding common shares during the first half of 2025, and repayments (net of borrowings) under our MIF Mortgage Repurchase Facility of $10.2 million offset partially by $1.9 million in proceeds from the exercise of stock options during the first half of 2025. On November 12, 2025, the Company announced that its Board of Directors authorized a new share repurchase program pursuant to which the Company may purchase up to $250 million of its outstanding common shares (the “2025 Share Repurchase Program”), which replaced the Company’s previous share repurchase program. During the first half of 2026, the Company repurchased 0.7 million outstanding common shares for an aggregate purchase price of $100.1 million under the 2025 Share Repurchase Program which was funded with cash on hand. As of June 30, 2026, the Company was authorized to repurchase an additional $120.3 million of outstanding common shares under the 2025 Share Repurchase Program (see Note 12 to our financial statements for more information). Based on current market conditions, expected capital needs and availability, and the current market price of the Company’s common shares, we expect to continue repurchasing common shares during the remainder of 2026. The timing and amount of any future purchases under the 2025 Share Repurchase Program will be based on a variety of factors, including the market price of the Company’s common shares, business considerations, general market and economic conditions and legal requirements. At both June 30, 2026 and December 31, 2025, our ratio of homebuilding debt to capital was 18%, calculated as the carrying value of our outstanding homebuilding debt (which consists of borrowings under our Credit Facility, our 2030 Senior Notes and our 2028 Senior Notes) divided by the sum of the carrying value of our outstanding homebuilding debt plus shareholders’ equity. We believe that this ratio provides useful information for understanding our financial position and the leverage employed in our operations, and for comparing us with other homebuilders. We fund our operations with cash flows from operating activities, including proceeds from home deliveries, land sales and the sale of mortgage loans. We believe that these sources of cash, along with our balance of unrestricted cash and borrowings available under our credit facilities, will be sufficient to fund our currently anticipated working capital needs, investment in land and land development, construction of homes, operating expenses, planned capital spending, and debt service requirements for at least the next twelve months. In addition, we routinely monitor current and anticipated operational and debt service requirements, financial market conditions, and credit relationships, and we may choose to seek additional capital by issuing new debt and/or equity securities or engaging in other financial transactions to strengthen our liquidity or our long-term capital structure. The financing needs of our homebuilding and financial services operations depend on anticipated sales and home delivery volume in the current year as well as future years, inventory levels and related turnover, forecasted land and lot purchases, debt maturity dates, and other factors. If we seek such additional capital or engage in such other financial transactions, there can be no assurance that we would be able to obtain such additional capital or consummate such other financial transactions on terms acceptable to us, if at all, and such additional equity or debt financing or other financial transactions could dilute the interests of our existing shareholders, add operational limitations and/or increase our interest costs. Included in the table below is a summary of our available sources of cash from the Credit Facility and the MIF Mortgage Repurchase Facility as of June 30, 2026: (In thousands) Expiration Date Outstanding Balance Available Amount Notes payable – homebuilding (a) (a) $ — $ 817,528 Notes payable – financial services (b) (b) $ 252,366 $ 3,430 (a)The available amount under the Credit Facility is computed in accordance with the borrowing base calculation under the Credit Facility, which applies various advance rates for different categories of inventory and totaled $2.49 billion of availability for additional senior debt at June 30, 2026. As a result, the full $900 million commitment amount of the facility was available, less any borrowings and letters of credit outstanding. There were no borrowings outstanding and $82.5 million of letters of credit outstanding at June 30, 2026, leaving $817.5 million available. The Credit Facility has an expiration date of September 18, 2030. (b)The available amount is computed in accordance with the borrowing base calculations under the MIF Mortgage Repurchase Facility, which may be increased by pledging additional mortgage collateral, not to exceed the maximum aggregate commitment amount of the MIF Mortgage Repurchase Facility as of June 30, 2026, which is $200 million. The MIF Mortgage Repurchase Facility has an expiration of October 20, 2026. In addition, the MIF Master Repurchase Facility provides an uncommitted maximum borrowing availability of $100 million to expire on October 20, 2026. 36 Notes Payable - Homebuilding. Homebuilding Credit Facility. The Credit Facility provides for an aggregate commitment amount of $900 million and also includes an accordion feature pursuant to which the maximum borrowing availability may be increased to an aggregate of $1.05 billion, subject to obtaining additional commitments from lenders. The Credit Facility matures on September 18, 2030. Interest on amounts borrowed under the Credit Facility is payable at an adjusted term SOFR plus a margin of 150 basis points (subject to adjustment in subsequent quarterly periods based on the Company’s leverage ratio). Borrowings under the Credit Facility constitute senior, unsecured indebtedness and availability is subject to, among other things, a borrowing base calculated using various advance rates for different categories of inventory. The Credit Facility also provides for a $250 million sub-facility for letters of credit. The Credit Facility contains various representations, warranties and covenants which require, among other things, that the Company maintain (1) a minimum level of Consolidated Tangible Net Worth of $2.24 billion at June 30, 2026 (subject to increase over time based on earnings and proceeds from equity offerings), (2) a leverage ratio not in excess of 60%, and (3) either a minimum Interest Coverage Ratio of 1.5 to 1.0 or a minimum amount of available liquidity. In addition, the Credit Facility contains covenants that limit the amount of Investments in Unrestricted Subsidiaries and Joint Ventures (each as defined in the Credit Facility). The Company’s obligations under the Credit Facility are guaranteed by all of the Company’s subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries (as defined in the Credit Facility), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries. The guarantors for the Credit Facility are the same subsidiaries that guarantee our 2030 Senior Notes and our 2028 Senior Notes. As of June 30, 2026, the Company was in compliance with all covenants of the Credit Facility, including financial covenants. The following table summarizes the most significant restrictive covenant thresholds under the Credit Facility and our compliance with such covenants as of June 30, 2026: Financial Covenant Covenant Requirement Actual (Dollars in millions) Consolidated Tangible Net Worth ≥ $ 2,235.2 $ 3,101.5 Leverage Ratio ≤ 0.60 0.02 Interest Coverage Ratio ≥ 1.5 to 1.0 15.42 to 1.0 Investments in Unrestricted Subsidiaries and Joint Ventures ≤ $ 930.4 $ 9.5 Notes Payable - Financial Services. MIF Mortgage Repurchase Facility. The MIF Mortgage Repurchase Facility is used to finance eligible residential mortgage loans originated by M/I Financial. The MIF Mortgage Repurchase Facility provides for a maximum borrowing availability of $200 million and expires on October 20, 2026. M/I Financial pays interest on each advance under the MIF Mortgage Repurchase Facility at a per annum rate based on Daily Simple SOFR plus a margin as defined in the MIF Mortgage Repurchase Facility. The MIF Mortgage Repurchase Facility provides for limits with respect to certain loan types that can secure outstanding borrowings. The MIF Mortgage Repurchase Facility also contains certain financial covenants each of which is defined in the MIF Mortgage Repurchase Facility. There are no guarantors of the MIF Mortgage Repurchase Facility. As is typical for similar credit facilities in the mortgage origination industry, at closing, the expiration of the MIF Mortgage Repurchase Facility was set at approximately one year and is under consideration for extension annually by the participating lenders. We expect to extend the MIF Mortgage Repurchase Facility on or prior to the current expiration date of October 20, 2026, but we cannot provide any assurance that we will be able to obtain such an extension. As of June 30, 2026, there was approximately $172.2 million outstanding under the MIF Mortgage Repurchase Facility and M/I Financial was in compliance with all covenants thereunder. The financial covenants, as more fully described and defined in the MIF Mortgage Repurchase Facility, are summarized in the following table, which also sets forth M/I Financial’s compliance with such covenants as of June 30, 2026: 37 Financial Covenant Covenant Requirement Actual (Dollars in millions) Leverage Ratio ≤ 12.0 to 1.0 6.78 to 1.0 Liquidity ≥ $ 10.0 $ 88.1 Adjusted Net Income > $ 0.0 $ 41.0 Tangible Net Worth ≥ $ 25.0 $ 46.0 MIF Master Repurchase Facility. The MIF Master Repurchase Facility provides for an uncommitted maximum borrowing availability of $100 million and expires on October 20, 2026 or upon agent demand with a 30 day notice. The MIF Master Repurchase Facility is used to finance eligible residential mortgage loans originated by M/I Financial. As of June 30, 2026, there was approximately $80.2 million outstanding under the MIF Master Repurchase Facility. M/I Financial pays interest on each advance under the MIF Master Repurchase Facility at a per annum rate based on Daily Simple SOFR plus a margin as defined in the MIF Master Repurchase Facility. The MIF Master Repurchase Facility contains the same financial covenants as the MIF Mortgage Repurchase Facility and, as of June 30, 2026, M/I Financial was in compliance with all such covenants. Senior Notes. 3.95% Senior Notes. On August 23, 2021, the Company issued $300 million aggregate principal amount of 3.95% Senior Notes due 2030. The 2030 Senior Notes contain certain covenants, as more fully described and defined in the indenture governing the 2030 Senior Notes, which limit the ability of the Company and the restricted subsidiaries to, among other things: incur certain liens securing indebtedness without equally and ratably securing the 2030 Senior Notes and the guarantees thereof; enter into certain sale and leaseback transactions; and consolidate or merge with or into other companies, liquidate or sell or otherwise dispose of all or substantially all of the Company’s assets. These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2030 Senior Notes. As of June 30, 2026, the Company was in compliance with all terms, conditions, and covenants under the indenture. 4.95% Senior Notes. On January 22, 2020, the Company issued $400 million aggregate principal amount of 4.95% Senior Notes due 2028. The 2028 Senior Notes contain certain covenants, as more fully described and defined in the indenture governing the 2028 Senior Notes, which limit the ability of the Company and the restricted subsidiaries to, among other things: incur additional indebtedness; make certain payments, including dividends, or repurchase any shares, in an aggregate amount exceeding our “restricted payments basket”; make certain investments; and create or incur certain liens, consolidate or merge with or into other companies, or liquidate or sell or transfer all or substantially all of our assets. These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2028 Senior Notes. As of June 30, 2026, the Company was in compliance with all terms, conditions, and covenants under the indenture. See Note 8 to our financial statements for more information regarding the 2030 Senior Notes and the 2028 Senior Notes. Supplemental Financial Information. As of June 30, 2026, M/I Homes, Inc. had $300 million aggregate principal amount of its 2030 Senior Notes and $400 million aggregate principal amount of its 2028 Senior Notes outstanding. The 2030 Senior Notes and the 2028 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by all of M/I Homes, Inc.’s subsidiaries (the “Subsidiary Guarantors”) with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by M/I Homes, Inc. or another subsidiary, and other subsidiaries designated as Unrestricted Subsidiaries (as defined in the indentures governing the 2030 Senior Notes and the 2028 Senior Notes), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the indentures governing the 2030 Senior Notes and the 2028 Senior Notes (the “Non-Guarantor Subsidiaries”). The Subsidiary Guarantors of the 2030 Senior Notes, the 2028 Senior Notes and the Credit Facility are the same. Each Subsidiary Guarantor is a direct or indirect 100%-owned subsidiary of M/I Homes, Inc. The guarantees are senior unsecured obligations of each Subsidiary Guarantor and rank equally in right of payment with all existing and future unsecured senior indebtedness of such Subsidiary Guarantor. The guarantees are effectively subordinated to any existing and future secured indebtedness of such Subsidiary Guarantor with respect to any assets comprising security or collateral for such indebtedness. 38 The guarantees are “full and unconditional,” as those terms are used in Regulation S-X, Rule 3-10(b)(3), except that the indentures governing the 2030 Senior Notes and the 2028 Senior Notes provide that a Subsidiary Guarantor’s guarantee will be released if: (1) all of the assets of such Subsidiary Guarantor have been sold or otherwise disposed of in a transaction in compliance with the terms of the applicable indenture; (2) all of the Equity Interests (as defined in the applicable indenture) held by M/I Homes, Inc. and the Restricted Subsidiaries (as defined in the applicable Indenture) of such Subsidiary Guarantor have been sold or otherwise disposed of to any person other than M/I Homes, Inc. or a Restricted Subsidiary in a transaction in compliance with the terms of the applicable indenture; (3) the Subsidiary Guarantor is designated an Unrestricted Subsidiary (or otherwise ceases to be a Restricted Subsidiary (including by way of liquidation or merger)) in compliance with the terms of the applicable indenture; (4) M/I Homes, Inc. exercises its legal defeasance option or covenant defeasance option under the applicable indenture; or (5) all obligations under the applicable indenture are discharged in accordance with the terms of the applicable indenture. The enforceability of the obligations of the Subsidiary Guarantors under their guarantees may be subject to review under applicable federal or state laws relating to fraudulent conveyance or transfer, voidable preference and similar laws affecting the rights of creditors generally. In certain circumstances, a court could void the guarantees, subordinate amounts owing under the guarantees or order other relief detrimental to the holders of the 2030 Senior Notes and the 2028 Senior Notes. The following tables present summarized financial information on a combined basis for M/I Homes, Inc. and the Subsidiary Guarantors. Transactions between M/I Homes, Inc. and the Subsidiary Guarantors have been eliminated and the summarized financial information does not reflect M/I Homes, Inc.’s or the Subsidiary Guarantors’ investment in, and equity in earnings from, the Non-Guarantor Subsidiaries. Summarized Balance Sheet Data (In thousands) As of June 30, 2026 As of December 31, 2025 Assets: Cash $ 645,586 $ 648,844 Investment in joint venture arrangements $ 52,860 $ 99,891 Amounts due from Non-Guarantor Subsidiaries $ 50,627 $ 37,529 Total assets $ 4,468,964 $ 4,388,098 Liabilities and Shareholders’ Equity: Total liabilities $ 1,299,727 $ 1,267,890 Shareholders’ equity $ 3,169,237 $ 3,120,208 Summarized Statement of Income Data Six Months Ended (In thousands) June 30, 2026 Revenues $ 1,920,398 Land and housing costs $ 1,541,675 Selling, general and administrative expense $ 219,920 Income before income taxes $ 166,224 Net income $ 124,943 Weighted Average Borrowings. For the three months ended June 30, 2026 and 2025, our weighted average borrowings outstanding were $720.9 million and $722.7 million, respectively, with a weighted average interest rate of 5.60% and 5.29%, respectively. The increase in weighted average interest rate is primarily due to the amendments to the Credit Facility implemented in the third quarter of 2025. At both June 30, 2026 and December 31, 2025, we had no borrowings outstanding under the Credit Facility. To the extent we elect to borrow under the Credit Facility during the remainder of 2026, the actual amount borrowed and the related timing will be subject to numerous factors, which are subject to significant variation as a result of the timing and amount of land and house construction expenditures, payroll and other general and administrative expenses, and cash receipts from home deliveries. The amount borrowed will also be impacted by other cash receipts and payments, any capital markets transactions or other additional financings by the Company, any repayments or redemptions of outstanding debt, any additional share repurchases under the 2025 Share Repurchase Program and any other extraordinary events or transactions. The Company may also experience significant variation in cash and Credit Facility balances from week to week due to the timing of such receipts and payments. 39 There were $82.5 million of letters of credit issued and outstanding under the Credit Facility at June 30, 2026. During the six months ended June 30, 2026, the average daily amount of letters of credit outstanding under the Credit Facility was $87.0 million and the maximum amount of letters of credit outstanding under the Credit Facility was $93.2 million. At June 30, 2026, M/I Financial had $172.2 million outstanding under the MIF Mortgage Repurchase Facility. During the six months ended June 30, 2026, the average daily amount outstanding under the MIF Mortgage Repurchase Facility was $16.4 million and the maximum amount outstanding was $198.2 million, which occurred during January. At June 30, 2026, M/I Financial also had $80.2 million outstanding under the MIF Master Repurchase Facility. During the six months ended June 30, 2026 average daily amount outstanding under the MIF Master Repurchase Facility was $11.2 million and the maximum amount outstanding was $94.9 million, which occurred during March. INTEREST RATES AND INFLATION Our business is significantly affected by general economic conditions within the United States and, particularly, by the impacts of interest rates and inflation. These macroeconomic trends have pressured housing affordability, negatively impacted homebuyer sentiment and increased the costs of financing land development activities and housing construction. The annual rate of inflation in the United States was 3.5% in June 2026, as measured by the Consumer Price Index, up from the prior quarter and from 2.7% in June 2025. However, continued increases in inflation rates could impact our costs, reduce our gross margins, reduce the purchasing power of potential homebuyers, and negatively impact their ability and desire to buy a home. Elevated mortgage interest rates have also made it more difficult for homebuyers to qualify for mortgages or obtain financing on terms that are acceptable to them. Although mortgage interest rates reached a three-year low during the first quarter, they began to rise in March and remain unpredictable. We plan to continue to address these elevated rates in 2026 by offering mortgage interest rate buydowns to potential homebuyers. We believe that offering mortgage interest rate buydown incentives may cause otherwise hesitant potential homebuyers to decide to enter the homebuying market due to the improved affordability of obtaining a mortgage, and we believe we are well prepared to address increased demand in our markets with our current land position and open communities. 40