For purposes of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the terms “the Company,” “we,” “us,” or “our” refer to Taylor Morrison Home Corporation (“TMHC”) and its subsidiaries. This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited Condensed consolidated financial statements included elsewhere in this quarterly report. Forward-Looking Statements This quarterly report includes certain forward-looking statements within the meaning of the federal securities laws regarding, among other things, our intentions, plans, beliefs, expectations or predictions of future events, which are considered forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business and operations strategy. These statements often include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “can,” “could,” “might,” “project” or similar expressions. These statements are based upon assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. As you read this quarterly report, you should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions, including those described under the heading “Risk Factors” in the Company's Annual Report and in our subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”). Although we believe that these forward-looking statements are based upon reasonable assumptions and currently available information, you should be aware that many factors, including those described under the heading “Risk Factors” in the Annual Report and in our subsequent filings with the SEC, could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. Our forward-looking statements made herein are made only as of the date of this quarterly report. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based, except as required by applicable law. TAYLOR MORRISON HOME CORPORATION 10-Q 22 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Business Overview Our principal business is residential homebuilding and the development of lifestyle communities with operations across 12 states. We provide a collection of homes across a wide range of price points to appeal to a variety of consumer groups. We design, build and sell single and multi-family detached and attached homes in traditionally high growth markets for entry-level, move-up, and resort lifestyle buyers. Our homebuilding segments operate under the Taylor Morrison and Esplanade brand names. We also have a “Build-to-Rent” homebuilding business which operates under the Yardly brand name. In addition, we provide financial services to customers through our wholly owned mortgage subsidiary, TMHF, title services through our wholly owned title services subsidiary, Inspired Title, and homeowner’s insurance policies through our insurance agency, TMIS. For reporting purposes, TMHC and Taylor Morrison Communities, Inc. are substantially similar, with no material differences. Our business is organized into multiple homebuilding operating components, and a financial services component, all of which are organized as four reportable segments: East, Central, West and Financial Services, as follows: East Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa Central Austin, Dallas, Denver, Houston, and Indianapolis West Bay Area, Las Vegas, Pacific Northwest, Phoenix, Sacramento, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title, and Taylor Morrison Insurance Services As of March 31, 2026, we employed approximately 2,800 full-time equivalent persons. Of these, approximately 2,350 were engaged in corporate and homebuilding operations, and the remaining approximately 450 were engaged in financial services. Factors Affecting Comparability of Results For the three months ended March 31, 2026 and 2025, we recognized $8.2 million and $14.9 million in inventory impairment charges, respectively. Inventory impairment charges are recorded to Cost of home closings on the unaudited Condensed consolidated statements of operations. For the three months ended March 31, 2026 and 2025, we recognized $5.6 million and $0.9 million in pre-acquisition abandonment charges, respectively for projects we are no longer pursuing. These charges are recorded to Other expense, net on the unaudited Condensed consolidated statements of operations. Regulatory Update With housing reform rising to the forefront of both the Administration's and Congress’ agendas, the regulatory landscape affecting the homebuilding industry continues to evolve. During the first quarter, the Senate proposed legislation aimed at limiting institutional ownership of single-family homes. While it is unclear whether this legislation is intended to include ownership of single-parcel horizontal apartment communities similar to our Yardly projects, we have engaged in active conversations with policymakers in an effort to clarify the exclusion of such communities from any final legislation and/or rulemaking. We remain committed to working constructively with policymakers at all levels to support housing supply and availability; however, there can be no assurance that such engagement will result in favorable policy outcomes or prevent the adoption of measures that could adversely affect our business. First Quarter 2026 Highlights (all comparisons are of the current quarter to the prior year quarter, unless otherwise indicated): •Home closings revenue, net of $1.3 billion ◦2,268 closings at an average sales price of $578,000 •Home closings gross margin of 20.0%; adjusted home closings gross margin of 20.6% •SG&A ratio of 11.4% of home closings revenue •Net sales orders of 2,914 at an average selling price of $603,000 ◦Monthly net sales pace of 2.7 per community ◦Sales order backlog of 3,465 homes with a sales value of $2.3 billion •75,626 homebuilding lots owned and controlled; 51% controlled off balance sheet •Homebuilding land and development investment during the first quarter of $503 million •Repurchased approximately 2.5 million common shares for $150 million •Total liquidity of approximately $1.6 billion, inclusive of $653 million of cash TAYLOR MORRISON HOME CORPORATION 10-Q 23 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations The following table sets forth our results of operations for the periods presented: Three Months Ended March 31, (Dollars in thousands) 2026 2025 Statements of Operations Data: Home closings revenue, net $ 1,311,421 $ 1,830,068 Land closings revenue 14,479 4,261 Financial services revenue, net 49,264 51,193 Amenity and other revenue 11,928 10,497 Total revenue 1,387,092 1,896,019 Cost of home closings 1,049,700 1,391,360 Cost of land closings 12,002 3,489 Financial services expenses 24,451 28,321 Amenity and other expenses 10,301 9,575 Total cost of revenue 1,096,454 1,432,745 Gross margin 290,638 463,274 Sales, commissions and other marketing costs 89,876 109,076 General and administrative expenses 58,971 67,548 Net income from unconsolidated entities (2,877) (1,975) Interest expense, net 11,155 8,499 Other expense, net 2,831 1,557 Income before income taxes 130,682 278,569 Income tax provision 30,253 64,838 Net income before allocation to non-controlling interests 100,429 213,731 Net income attributable to non-controlling interests (1,804) (265) Net income $ 98,625 $ 213,466 Home closings gross margin 20.0 % 24.0 % Sales, commissions and other marketing costs as a percentage of home closings revenue, net 6.9 % 6.0 % General and administrative expenses as a percentage of home closings revenue, net 4.5 % 3.7 % TAYLOR MORRISON HOME CORPORATION 10-Q 24 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Non-GAAP Measures In addition to the results reported in accordance with GAAP, we have provided information in this quarterly report relating to: (i) adjusted net income and adjusted earnings per common share, (ii) adjusted income before income taxes and related margin, (iii) adjusted home closings gross margin, (iv) EBITDA and adjusted EBITDA and (v) net homebuilding debt to capitalization ratio. Adjusted net income, adjusted earnings per common share and adjusted income before income taxes and related margin are non-GAAP financial measures that reflect the net income/(loss) available to the Company excluding, to the extent applicable in a given period, the impact of real estate and inventory impairment charges, impairment of investments in unconsolidated entities, pre-acquisition abandonment charges, unique and unusual warranty charges, gains/losses on land transfers to joint ventures, extinguishment of debt, net, and legal reserves or settlements that the Company deems not to be in the ordinary course of business and in the case of adjusted net income and adjusted earnings per common share, the tax impact due to such items. EBITDA and adjusted EBITDA are non-GAAP financial measures that measure performance by adjusting net income before allocation to non-controlling interests to exclude, as applicable, interest expense/(income), net, amortization of capitalized interest, income tax provision, depreciation and amortization to calculate EBITDA. Adjusted EBITDA further excludes non-cash compensation expense, if any, real estate and inventory impairment charges, impairment of investments in unconsolidated entities, pre-acquisition abandonment charges, unique and unusual warranty charges, gains/losses on land transfers to joint ventures, extinguishment of debt, net and legal reserves or settlements that the Company deems not to be in the ordinary course of business, in each case, as applicable in a given period. Net homebuilding debt to capitalization ratio is a non-GAAP financial measure we calculate by dividing (i) total debt, plus unamortized debt issuance costs/(premium), net, and less mortgage warehouse borrowings, net of unrestricted cash and cash equivalents (“net homebuilding debt”), by (ii) total capitalization (the sum of net homebuilding debt and total stockholders’ equity). Adjusted home closings gross margin is a non-GAAP financial measure based on GAAP home closings gross margin (which is inclusive of capitalized interest), excluding inventory impairment charges and unique and unusual warranty charges. Management uses these non-GAAP financial measures to evaluate our performance on a consolidated basis, as well as the performance of our segments, and to set targets for performance-based compensation. We also use the ratio of net homebuilding debt to total capitalization ratio as an indicator of overall financial leverage and to evaluate our performance against other companies in the homebuilding industry. In the future, we may include additional adjustments in the above-described non-GAAP financial measures to the extent we deem them appropriate and useful to management and investors. We believe that adjusted net income, adjusted earnings per common share, adjusted income before income taxes and related margin, as well as EBITDA and adjusted EBITDA, are useful for investors in order to allow them to evaluate our operations without the effects of various items we do not believe are characteristic of our ongoing operations or performance and also because such metrics assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted EBITDA also provides an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, or unusual items. Because we use the net homebuilding debt to total capitalization ratio to evaluate our performance against other companies in the homebuilding industry, we believe this measure is also relevant and useful to investors for that reason. We believe that adjusted home closings gross margin is useful to investors because it allows investors to evaluate the performance of our homebuilding operations without the varying effects of items or transactions we do not believe are characteristic of our ongoing operations or performance. These non-GAAP financial measures should be considered in addition to, rather than as a substitute for, the comparable U.S. GAAP financial measures of our operating performance or liquidity. Although other companies in the homebuilding industry may report similar information, their definitions may differ. We urge investors to understand the methods used by other companies to calculate similarly-titled non-GAAP financial measures before comparing their measures to ours. A reconciliation of adjusted net income, adjusted earnings per common share, adjusted income before income taxes and related margin, adjusted home closings gross margin, EBITDA, adjusted EBITDA, and ratio of net homebuilding debt to total capitalization to the comparable GAAP measures follows. For purposes of our presentation of our non-GAAP financial measures for the quarter ended March 31, 2025, such measures have been recast to include certain adjustments being presented in the quarter ended March 31, 2026 that were previously deemed immaterial in the prior period. TAYLOR MORRISON HOME CORPORATION 10-Q 25 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Adjusted Net Income and Adjusted Earnings Per Common Share Three Months Ended March 31, (Dollars in thousands, except per share data) 2026 2025 Net income $ 98,625 $ 213,466 Inventory impairment charges 8,182 14,878 Pre-acquisition abandonment charges 5,591 927 Tax impact of non-GAAP reconciling items (3,189) (3,679) Adjusted net income $ 109,209 $ 225,592 Basic weighted average number of shares 96,033 101,245 Adjusted earnings per common share - Basic $ 1.14 $ 2.23 Diluted weighted average number of shares 97,530 103,017 Adjusted earnings per common share - Diluted $ 1.12 $ 2.19 Adjusted Income Before Income Taxes and Related Margin Three Months Ended March 31, (Dollars in thousands) 2026 2025 Income before income taxes $ 130,682 $ 278,569 Inventory impairment charges 8,182 14,878 Pre-acquisition abandonment charges 5,591 927 Adjusted income before income taxes $ 144,455 $ 294,374 Total revenue $ 1,387,092 $ 1,896,019 Income before income taxes margin 9.4 % 14.7 % Adjusted income before income taxes margin 10.4 % 15.5 % Adjusted Home Closings Gross Margin Three Months Ended March 31, (Dollars in thousands) 2026 2025 Home closings revenue, net $ 1,311,421 $ 1,830,068 Cost of home closings 1,049,700 1,391,360 Home closings gross margin $ 261,721 $ 438,708 Inventory impairment charges 8,182 14,878 Adjusted home closings gross margin $ 269,903 $ 453,586 Home closings gross margin as a percentage of home closings revenue 20.0 % 24.0 % Adjusted home closings gross margin as a percentage of home closings revenue 20.6 % 24.8 % TAYLOR MORRISON HOME CORPORATION 10-Q 26 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS EBITDA and Adjusted EBITDA Reconciliation Three Months Ended March 31, (Dollars in thousands) 2026 2025 Net income before allocation to non-controlling interests $ 100,429 $ 213,731 Interest expense, net 11,155 8,499 Amortization of capitalized interest 18,672 24,773 Income tax provision 30,253 64,838 Depreciation and amortization 2,535 1,696 EBITDA $ 163,044 $ 313,537 Non-cash compensation expense 6,560 7,785 Inventory impairment charges 8,182 14,878 Pre-acquisition abandonment charges 5,591 927 Adjusted EBITDA $ 183,377 $ 337,127 Total revenue $ 1,387,092 $ 1,896,019 Net income before allocation to non-controlling interests as a percentage of total revenue 7.2 % 11.3 % EBITDA as a percentage of total revenue 11.8 % 16.5 % Adjusted EBITDA as a percentage of total revenue 13.2 % 17.8 % Debt to Capitalization Ratios Reconciliation (Dollars in thousands) As of March 31, 2026 As of December 31, 2025 As of March 31, 2025 Total debt $ 2,341,781 $ 2,291,107 $ 2,083,599 Plus: unamortized debt issuance costs, net 11,135 11,667 6,177 Less: mortgage warehouse facilities borrowings (90,855) (82,605) (175,741) Total homebuilding debt $ 2,262,061 $ 2,220,169 $ 1,914,035 Total stockholders' equity 6,248,154 6,309,289 5,957,524 Total capitalization $ 8,510,215 $ 8,529,458 $ 7,871,559 Total homebuilding debt to capitalization ratio 26.6 % 26.0 % 24.3 % Total homebuilding debt 2,262,061 2,220,169 1,914,035 Less: cash and cash equivalents (652,933) (850,037) (377,815) Net homebuilding debt $ 1,609,128 $ 1,370,132 $ 1,536,220 Total stockholders' equity $ 6,248,154 $ 6,309,289 $ 5,957,524 Total capitalization $ 7,857,282 $ 7,679,421 $ 7,493,744 Net homebuilding debt to capitalization ratio 20.5 % 17.8 % 20.5 % TAYLOR MORRISON HOME CORPORATION 10-Q 27 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Three months ended March 31, 2026 compared to three months ended March 31, 2025 Ending Active Selling Communities As of March 31, Change 2026 2025 East 148 137 8.0 % Central 97 94 3.2 % West 111 113 (1.8 %) Total 356 344 3.5 % The total ending active selling communities increased 3.5% at March 31, 2026 when compared to March 31, 2025, primarily driven by our East and Central segments. The East and Central segments had multiple community openings, including master planned communities, whereas the West closed-out several higher paced communities in certain markets. Net Sales Orders Three Months Ended March 31, Net Sales Orders (1) Sales Value (1) Average Selling Price (Dollars in thousands) 2026 2025 Change 2026 2025 Change 2026 2025 Change East 1,155 1,391 (17.0) % $ 652,435 $ 721,027 (9.5) % $ 565 $ 518 9.1 % Central 736 867 (15.1 %) 342,865 449,363 (23.7 %) 466 518 (10.0) % West 1,023 1,116 (8.3 %) 762,348 828,905 (8.0 %) 745 743 0.3 % Total 2,914 3,374 (13.6 %) $ 1,757,648 $ 1,999,295 (12.1 %) $ 603 $ 593 1.7 % (1) Net sales orders and sales value represent the number and dollar value, respectively, of new sales contracts executed with customers, net of cancellations. Net sales orders decreased 13.6% for the three months ended March 31, 2026 compared to the same period in the prior year. Net sales orders for the three months ended March 31, 2024 and 2025 were the highest first quarter net orders in the Company's history. We believe since the second quarter of 2025, macro economic factors such as tariffs, elevated mortgage interest rates, and inflation, have increased consumer apprehension, and negatively impacted net sales orders. The more recent geopolitical events in the first quarter of 2026 such as the war with Iran and potential increase in the prices of petroleum-based products further contributed to homebuyer apprehension. Entry-level and move-up buyers are typically impacted more by such events compared to our resort lifestyle buyers. Net sales orders from entry-level and move-up buyers decreased in the three months ended March 31, 2026 compared to the three months ended March 31, 2025, whereas net sales orders for the resort lifestyle buyers increased during the same comparative period. Furthermore, our communities across all segments saw a decline in community traffic. In response to these challenges, we continue to offer our buyers various incentives, discounts, and financing programs to drive sales orders. The decrease in average selling price in our Central region is primarily due to higher spec home sales compared to to-be-built home sales. Sales Order Cancellations Cancellation Rate(1) Three Months Ended March 31, 2026 2025 East 10.2 % 10.4 % Central 10.5 % 9.2 % West 9.5 % 13.0 % Total Company 10.0 % 11.0 % (1) Cancellation rate represents the number of canceled sales orders divided by gross sales orders. The total company cancellation rate decreased for the three months ended March 31, 2026 compared to the same period in the prior year. We believe our sales incentives and financing programs which cater to each buyer's individual needs contributed the overall stable cancellation rate. We believe the decrease in the West region was partially due to a 7% TAYLOR MORRISON HOME CORPORATION 10-Q 28 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS increase in the average customer deposit. A higher deposit can deter a homebuyer from canceling as they are generally non-refundable. Sales Order Backlog As of March 31, Sold Homes in Backlog (1) Sales Value Average Selling Price (Dollars in thousands) 2026 2025 Change 2026 2025 Change 2026 2025 Change East 1,432 2,018 (29.0) % $ 930,791 $ 1,286,197 (27.6) % $ 650 $ 637 2.0 % Central 675 1,082 (37.6) % 358,424 640,443 (44.0) % 531 592 (10.3) % West 1,358 1,968 (31.0 %) 1,013,612 1,434,734 (29.4) % 746 729 2.3 % Total 3,465 5,068 (31.6) % $ 2,302,827 $ 3,361,374 (31.5) % $ 665 $ 663 0.3 % (1) Sales order backlog represents homes under contract for which revenue has not yet been recognized at the end of the period (including homes sold but not yet started). Some of the contracts in our sales order backlog are subject to contingencies including mortgage loan approval and buyers selling their existing homes, which can result in cancellations. Total sold homes in backlog and total sales value decreased by 31.6% and 31.5% at March 31, 2026 compared to March 31, 2025, respectively. Overall, we had lower opening backlog in 2026 compared to the prior year as well as fewer net sales orders in the current quarter compared to prior year quarter. In addition, more quick move-in homes sold and closed during the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, which further contributed to the decrease in company-wide sales order backlog. All operating segments improved construction cycle times in the current quarter which further contributed to the decrease in sales order backlog. Despite the decrease year over year, sales order backlog of 3,465 units increased approximately 23% from 2,819 units in backlog at December 31, 2025. Home Closings Revenue, Net Three Months Ended March 31, Homes Closed Home Closings Revenue, Net Average Selling Price (Dollars in thousands) 2026 2025 Change 2026 2025 Change 2026 2025 Change East 869 1,110 (21.7) % $ 469,061 $ 625,714 (25.0) % $ 540 $ 564 (4.3 %) Central 558 883 (36.8) % 271,158 477,494 (43.2) % 486 541 (10.2) % West 841 1,055 (20.3) % 571,202 726,860 (21.4) % 679 689 (1.5) % Total 2,268 3,048 (25.6) % $ 1,311,421 $ 1,830,068 (28.3) % $ 578 $ 600 (3.7) % The number of homes closed and home closings revenue, net decreased by 25.6% and 28.3%, respectively, for the three months ended March 31, 2026 compared to the same period in the prior year. The decrease was generally due to lower opening backlog in 2026 compared to the prior year which unfavorably impacted home closing units. In addition, in the prior year, our percentage of homes closed favored quick move-in homes compared to to-be-built homes, however, we have recently shifted our strategy to decrease our quick move-in units and increase our to-be-built units. This strategy shift further contributed to the decrease in the number of homes closed as we rebalanced our sales mix. Segment Home Closings Gross Margins and Adjusted Gross Margins The following table sets forth a reconciliation of adjusted home closings gross margin to GAAP home closings gross margin on a segment basis (see “Non-GAAP Measures” above for additional information about our use of non-GAAP measures). TAYLOR MORRISON HOME CORPORATION 10-Q 29 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Three Months Ended March 31, East Central West Consolidated (Dollars in thousands) 2026 2025 2026 2025 2026 2025 2026 2025 Home closings revenue, net $ 469,061 $ 625,714 $ 271,158 $ 477,494 $ 571,202 $ 726,860 $ 1,311,421 $ 1,830,068 Cost of home closings 365,950 473,553 217,030 361,657 466,720 556,150 1,049,700 1,391,360 Home closings gross margin $ 103,111 $ 152,161 $ 54,128 $ 115,837 $ 104,482 $ 170,710 $ 261,721 $ 438,708 Inventory impairment charges 768 14,878 — — 7,414 — 8,182 14,878 Adjusted home closings gross margin $ 103,879 $ 167,039 $ 54,128 $ 115,837 $ 111,896 $ 170,710 $ 269,903 $ 453,586 Home closings gross margin % 22.0 % 24.3 % 20.0 % 24.3 % 18.3 % 23.5 % 20.0 % 24.0 % Adjusted home closings gross margin % 22.1 % 26.7 % 20.0 % 24.3 % 19.6 % 23.5 % 20.6 % 24.8 % Consolidated home closings gross margin was 20.0% for the three months ended March 31, 2026 and 24.0% for the three months ended March 31, 2025. The decrease in home closings gross margin in the current quarter compared to the same period in the prior year is primarily due to an increase in discounts and financing incentives, coupled with a decrease in lot premium revenue for all segments. As a percentage of base home closings revenue, discounts and incentives increased 330 basis points in the current year period compared to the prior year period. Furthermore, quick move-in homes represented 69% of the homes closed in the first quarter of 2026 compared to 58% in the first quarter of 2025. Such homes typically provide a lower gross margin compared to to-be-built homes. Similar to quick move-in homes, multi-family units provide a lower gross margin than single family units and the gross margin on multi-family units also decreased in the three months ended March 31, 2026 compared to the same period in 2025. In addition, for the three months ended March 31, 2026, the East and West regions were negatively impacted by approximately $0.8 million and $7.4 million of inventory impairment charges across certain communities, respectively. The East segment was negatively impacted by $14.9 million of inventory impairment charges for the three months ended March 31, 2025. Financial Services The following is a summary for the periods presented of our financial services income before income taxes as well as supplemental data: Three Months Ended March 31, (Dollars in thousands) 2026 2025 Change Mortgage services revenue $ 40,669 $ 40,357 0.8 % Title services and other revenues 8,595 10,836 (20.7) % Total financial services revenue 49,264 51,193 (3.8 %) Financial services net income from unconsolidated entities 4,578 3,096 47.9 % Total revenue 53,842 54,289 (0.8 %) Financial services expenses 24,451 28,321 (13.7 %) Financial services income before income taxes $ 29,391 $ 25,968 13.2 % Total originations: Number of Loans 1,513 2,121 (28.7 %) Principal $ 698,205 $ 992,299 (29.6 %) TAYLOR MORRISON HOME CORPORATION 10-Q 30 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Three Months Ended March 31, 2026 2025 Supplemental data: Average FICO score 750 751 Funded origination breakdown: Government (FHA,VA,USDA) 28.2 % 23.7 % Other agency 69.2 % 73.4 % Total agency 97.4 % 97.1 % Non-agency 2.6 % 2.9 % Total funded originations 100.0 % 100.0 % Total financial services revenue decreased by 3.8% to $49.3 million for the three months ended March 31, 2026 compared to the same period in the prior year. The decrease was primarily due to a decrease in the number of loans originated, offset by an increase in revenue earned on the sale of loans. Sales, Commissions and Other Marketing Costs Sales, commissions and other marketing costs as a percentage of home closings revenue, net increased to 6.9% from 6.0% for the three months ended March 31, 2026 compared to the same period in the prior year. Variable expenses such as commission costs decreased in the current quarter compared to the same period in the prior year, but total sales commissions and other marketing costs as a percentage of home closings revenue, net increased as a result of fixed marketing costs and less leverage from home closings revenue, net. General and Administrative Expenses General and administrative expenses as a percentage of home closings revenue, net, increased to 4.5% from 3.7% for the three months ended March 31, 2026 compared to the same period in the prior year. The increase was primarily due to the deleverage from home closings revenue, net. Net Income from Unconsolidated Entities Net income from unconsolidated entities was $2.9 million and $2.0 million for the three months ended March 31, 2026 and 2025, respectively. The increase in net income from unconsolidated entities was primarily due to increases in income from our joint ventures related to our financial services segment. This increase was partially offset by decreases in income from our joint venture related to our Build-to-Rent operations which is still in the ramp-up phase. Interest Expense, Net Interest expense, net was $11.2 million and $8.5 million for the three months ended March 31, 2026 and 2025, respectively. The increase in interest expense, net was primarily due to an increase in the number and size of our land banking arrangements. At March 31, 2026 we had approximately ten thousand lots in land banking arrangements related to our home building operations compared to approximately seven thousand at March 31, 2025. Lots acquired through land banking arrangements typically incur more non-capitalizable interest than lots acquired through other means. Income Tax Provision The effective tax rate for the three months ended March 31, 2026 was 23.2%, compared to 23.3% for the same period in 2025. For the three months ended March 31, 2026, the effective tax rate differed from the U.S. federal statutory income tax rate primarily due to state income taxes, excess tax benefits from share-based compensation, and non-deductible executive compensation. Our income tax rate for the first quarter of 2026 was marginally lower than the same period last year primarily due to an increase in excess tax benefits from share-based compensation, offset by an increase in state taxes. Net Income Net income and diluted earnings per share for the three months ended March 31, 2026 were $98.6 million and $1.01, respectively. Net income and diluted earnings per share for the three months ended March 31, 2025 were $213.5 million and $2.07, respectively. The decreases in net income and diluted earnings per share from the prior year were primarily attributable to lower home closings revenue, net and lower gross margin dollars driven by fewer homes closed. TAYLOR MORRISON HOME CORPORATION 10-Q 31 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources Liquidity We finance our operations through the following: •Cash generated from operations;•Borrowings under our Revolving Credit Facility;•Various series of senior notes; •Mortgage warehouse facilities;•Project-level real estate financing (including non-recourse loans, land banking arrangements, and joint ventures); and •Performance, payment and completion surety bonds, and letters of credit. Cash flows for each of our communities depend on the status of the development cycle and can differ substantially from reported earnings. Early stages of development or expansion require significant cash expenditures for land acquisitions, on and off-site development, construction of homes, general landscaping and other amenities. Because these costs are a component of our inventory and are not recognized in our unaudited Condensed consolidated statement of operations until a home closes, we incur significant cash outflows prior to recognition of earnings. The table below summarizes our total cash and liquidity as of the dates indicated (in thousands): As of (Dollars in thousands) March 31, 2026 December 31, 2025 Total cash, excluding restricted cash $ 652,933 $ 850,037 Revolving Credit Facility availability 1,000,000 1,000,000 Letters of credit outstanding (94,803) (72,109) Revolving Credit Facility availability 905,197 927,891 Total liquidity $ 1,558,130 $ 1,777,928 We believe we have adequate capital resources from cash generated from operations and sufficient access to external financing sources from borrowings under our Revolving Credit Facility to conduct our operations for the next twelve months. Beyond the next twelve months, our primary demand for funds will be for payments of our long-term debt as it becomes due, land purchases, lot development, home and amenity construction, long-term capital investments, investments in our joint ventures, payments of ongoing operating expenses, and repurchases of our Common Stock. We believe we will generate sufficient cash from our operations to meet the demands for such funds, however we may also access the capital markets to obtain additional liquidity through debt and equity offerings or refinance debt to secure capital for such long-term demands. As part of our operations, we may also from time to time purchase our outstanding debt or equity through open market purchases, privately negotiated transactions or otherwise. Purchases or retirements of debt and/or purchases of equity, if any, will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. Cash Flow Activities Operating Cash Flow Activities Our net cash used in operating activities was $10.4 million for the three months ended March 31, 2026 compared to net cash provided by operating activities of $77.2 million for the three months ended March 31, 2025. The increase in cash used in operating activities was primarily due to a decrease in net income, an increase in spend in real estate inventory and land deposits, as well as a decrease in income taxes payable. These items were partially offset by the change in accounts payable, accrued expenses and other liabilities. Investing Cash Flow Activities Net cash used in investing activities was $18.1 million for the three months ended March 31, 2026 compared to $45.1 million for the three months ended March 31, 2025. The decrease in cash used in investing activities was due to a decrease in investments of capital into unconsolidated entities, partially offset by a net increase in purchases of fixed-maturity and equity securities. Financing Cash Flow Activities Net cash used in financing activities was $169.2 million for the three months ended March 31, 2026 compared to $141.2 million for the three months ended March 31, 2025. The increase in cash used in financing activities was primarily due to an increase in the repurchase of our Common Stock and higher repayments on loans payable and other borrowings. TAYLOR MORRISON HOME CORPORATION 10-Q 32 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Debt Instruments For information regarding our debt instruments, including the terms governing our senior notes and our Revolving Credit Facility, see Note 7 - Debt to the unaudited Condensed consolidated financial statements included in this quarterly report. Off-Balance Sheet Arrangements as of March 31, 2026 Investments in Land Development and Homebuilding Joint Ventures or Unconsolidated Entities We participate in strategic land development and homebuilding joint ventures with related and unrelated third parties. Our participation with these entities, in some instances, enables us to acquire land to which we could not otherwise obtain access, or could not obtain access on terms that are as favorable. Our partners in these joint ventures historically have been land owners/developers, other homebuilders and financial or strategic partners. Joint ventures with land owners/developers have given us access to sites owned or controlled by our partners. Joint ventures with other homebuilders have provided us with the ability to bid jointly with our partners for large or expensive land parcels. Joint ventures with financial or strategic partners have allowed us to combine our homebuilding expertise with access to our partners’ capital. For the three months ended March 31, 2026 and 2025, total cash investments of capital into unconsolidated joint ventures were $6.5 million and $36.6 million, respectively, which are carried on our balance sheet. Land Option Contracts and Land Banking Agreements We are subject to the usual obligations associated with entering into contracts (including land option contracts and land banking arrangements) for the purchase, development, and sale of real estate in our routine business. We have a number of land purchase option contracts and land banking agreements, generally through cash deposits, for the right to purchase land or lots at a future point in time with predetermined terms. We do not have title to the property and the creditors of the property owner generally have no recourse to the Company. Our obligations with respect to such contracts are generally limited to the forfeiture of the related non-refundable cash deposits and/or letters of credit provided to obtain the options. The aggregate purchase price for land under these contracts was $3.4 billion at both March 31, 2026 and December 31, 2025. Seasonality Our business is seasonal. We have historically experienced, and in the future expect to continue to experience, variability in our results on a quarterly basis. We generally have more homes under construction, close more homes and have greater revenue and operating income in the third and fourth quarters of the year. Therefore, although new home contracts are obtained throughout the year, a higher portion of our home closings occur during the third and fourth calendar quarters. Our revenue therefore may fluctuate significantly on a quarterly basis, and we must maintain sufficient liquidity to meet short-term operating requirements. Factors expected to contribute to these fluctuations include, but are not limited to: •the timing of the introduction and start of construction of new projects; •the timing of sales orders; •the timing of closings of homes, lots and parcels; •the condition of the real estate market and general economic conditions in the areas in which we operate; •mix of homes closed; •construction timetables; •the timing of receipt of regulatory approvals for development and construction; •the cost and availability of materials and labor; and •weather conditions in the markets in which we build. As a result of seasonal activity, our quarterly results of operations and financial position are not necessarily representative of the results we expect for the full year. Inflation We and the homebuilding industry in general may be adversely affected during periods of high inflation, primarily because of higher land, financing, labor and construction material costs. In addition, higher mortgage interest rates can significantly affect the affordability of mortgage financing to prospective homebuyers. We attempt to pass through to our buyers increases in our costs through increased sales prices. However, during periods of soft housing market conditions, we may not be able to offset our cost increases with higher selling prices. TAYLOR MORRISON HOME CORPORATION 10-Q 33 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Critical Accounting Policies and Estimates There have been no significant changes to our critical accounting policies and estimates during the three months ended March 31, 2026 compared to those disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report. TAYLOR MORRISON HOME CORPORATION 10-Q 34 Table of Contents ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK