AI Takeaway
NVR reported a significant revenue decline of 21.7% YoY to $1.88B in Q1 2026, with net income falling 33.8% to $198.4M, though operating cash flow surged 63.5% to $339.7M as the company continued aggressive share buybacks of $632M.
Revenue
$1.88B
-21.72% YoY
EPS (Basic)
$71.33
-28.96% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue fell 21.7% YoY from $2.40B to $1.88B in Q1 2026, reflecting a challenging homebuilding environment with reduced closings compared to the prior year period. This top-line contraction is the most significant financial development of the quarter.
Source: Source: 10-Q Financial Data, Income Statement
Net income declined 33.8% YoY to $198.4M, with net margin contracting to approximately 10.5% from an implied ~12.5% in Q1 2025. The earnings decline outpaced the revenue decline, indicating cost pressures or unfavorable mix shifts impacting profitability.
Source: Source: 10-Q Financial Data, Income Statement & Key Ratios
Despite weaker earnings, operating cash flow surged 63.5% YoY to $339.7M (vs. $207.8M in Q1 2025), suggesting improved working capital management, potentially from reduced land and inventory investment in a slower demand environment.
Source: Source: 10-Q Financial Data, Cash Flow Statement
2 more insights available
Upgrade to unlockRevenue declined 21.7% and net income fell 33.8% YoY in Q1 2026, highlighting NVR's sensitivity to housing market cycles. If demand conditions do not improve, further earnings compression could occur in subsequent quarters.
Source: Source: 10-Q Financial Data, Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $67.76 versus the $77.14 analyst consensus — a -12.2% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.88B | $2.4B | -21.72% |
Net Income | $198.36M | $299.58M | -33.79% |
EPS (Basic) | $71.33 | $100.41 | -28.96% |
EPS (Diluted) | $67.76 | $94.83 | -28.55% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $5.59B | $6.2B | -9.84% |
Total Liabilities | $2.09B | $2.24B | -6.65% |
Stockholders' Equity | $3.49B | $3.95B | -11.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $339.69M | $207.78M | +63.48% |
Investing Cash Flow | $12.46M | $-15.02M | +183.01% |
Financing Cash Flow | $-579.35M | $-569.52M | -1.72% |
Share Buybacks | $631.96M | $583.39M | +8.32% |
D&A | $6.74M | $5.78M | +16.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 10.5% | — | — |
ROE | 5.7% | — | — |
ROA | 3.6% | — | — |
Debt to Equity | $0.599 | — | — |
Other companies in Homebuilding
NVR's revenue declined sharply by 21.7% year-over-year to $1.88B in Q1 2026, down from $2.40B in Q1 2025. This decline reflects a weaker homebuilding environment with fewer home closings compared to the prior year period.
The key takeaways from NVR's Q1 2026 report are a significant revenue decline of 21.7% to $1.88B, a 33.8% drop in net income to $198.4M, and a 63.5% surge in operating cash flow to $339.7M. Despite weaker earnings, NVR continued its aggressive share buyback program, repurchasing $632M in stock during the quarter.
Yes, NVR's diluted EPS fell 28.5% YoY to $67.76 in Q1 2026, down from $94.83 in Q1 2025. The decline was slightly less severe than the 33.8% drop in net income, as the ongoing share buyback program reduced the share count and partially cushioned the per-share impact.
NVR spent $632.0M on share repurchases in Q1 2026, an increase of 8.3% from the $583.4M spent in Q1 2025. This aggressive capital return program continued despite the significant decline in revenue and net income during the quarter.
NVR maintains a solid financial position with total assets of $5.59B, stockholders' equity of $3.49B, and a moderate debt-to-equity ratio of 0.60. Operating cash flow was strong at $339.7M, though the 21.7% revenue decline and 33.8% net income drop signal near-term earnings pressure in a challenging housing market.