Form type: 10-Q
Period end: 2026-04-30
| Three Months Ended April 30, 2026 | Three Months Ended April 30, 2025 | Six Months Ended April 30, 2026 | Six Months Ended April 30, 2025 | |
|---|---|---|---|---|
| Revenue | 2,531,230,000.00 | 2,739,077,000.00 | ||
| Total Revenue | ||||
| Cost of revenue | 1,926,340,000.00 | 2,033,639,000.00 | ||
| Total COGS | ||||
| Gross Profit | ||||
| Income tax expense (benefit) | 89,767,000.00 | 125,056,000.00 | ||
| Net income attributable to noncontrolling interests | 39,000.00 | 240,000.00 | ||
| Operating expenses | 258,253,000.00 | 255,760,000.00 | ||
| Other income statement items (derived) | 16,681,000.00 | -11,729,000.00 | ||
| Other nonoperating income (expense), net | -20,441,000.00 | -16,336,000.00 | ||
| Total Expenses | ||||
| Net Income | ||||
| Basic earnings per share |
| April 30, 2026 | October 31, 2025 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 1,105,511,000.00 | 1,258,997,000.00 |
| Inventory | 11,377,712,000.00 | 10,678,460,000.00 |
| Mortgage loans held for investment, net | 141,482,000.00 | 200,816,000.00 |
| Operating lease right-of-use assets | 117,258,000.00 | 109,013,000.00 |
| Other assets (derived) | 1,440,747,000.00 | 1,919,242,000.00 |
| Property, plant and equipment | 283,878,000.00 | 273,397,000.00 |
| Restricted cash and equivalents | 66,588,000.00 | 79,941,000.00 |
| Total Assets | ||
| Liabilities | ||
| Borrowings under credit facilities | 2,588,387,000.00 | 2,326,236,000.00 |
| Deferred revenue | 472,098,000.00 | 418,897,000.00 |
| Operating lease liabilities | 139,766,000.00 | 128,340,000.00 |
| Other liabilities (derived) | 1,104,779,000.00 | 1,352,951,000.00 |
| Secured borrowings, net | 0.00 | 249,087,000.00 |
| Taxes payable | 0.00 | 16,766,000.00 |
| Unsecured and other notes, net | 1,742,154,000.00 | 1,741,525,000.00 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | 8,475,155,000.00 | 8,270,663,000.00 |
| Total stockholders equity attributable to parent | ||
| Noncontrolling interests | 10,837,000.00 | 15,401,000.00 |
| Total Equity | ||
| Six Months Ended April 30, 2026 | Six Months Ended April 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | 471,523,000.00 | 530,150,000.00 |
| Depreciation and amortization | 33,495,000.00 | 37,940,000.00 |
| Stock-based compensation | 23,328,000.00 | 22,795,000.00 |
| Changes in operating assets and liabilities, net | -386,628,000.00 | -648,814,000.00 |
| Net cash from operating activities | - | |
| Investing activities | ||
| Investing activities, net | 142,804,000.00 | -187,757,000.00 |
| Net cash from investing activities | - | |
| Financing activities | ||
| Financing activities, net | -451,361,000.00 | -363,074,000.00 |
| Net cash from financing activities | - | - |
| Net change in cash | - | - |
| Cash at beginning of period | 1,370,435,000.00 | |
| Cash at end of period | 761,675,000.00 | |
| Six Months Ended April 30, 2026 | Six Months Ended April 30, 2025 | |
|---|---|---|
| Balance at beginning of period | 8,286,064,000.00 | 7,686,715,000.00 |
| Net income | 471,523,000.00 | 530,150,000.00 |
| Other equity movements | -271,595,000.00 | -252,450,000.00 |
| Balance at end of period | 8,485,992,000.00 | 7,964,415,000.00 |
Toll Brothers, Inc. is a public reporting company classified under Operative Builders, and references to "we," "us," "our," and the "Company" refer to Toll Brothers, Inc. and its subsidiaries; references to fiscal year refer to our fiscal years ended or ending October 31. The accompanying condensed consolidated financial statements as of and for the period ended April 30, 2026 are unaudited and have been prepared from the Company's accounting records, and the results of operations for the interim period are not necessarily indicative of the results that may be expected for the full fiscal year. In the opinion of management, all adjustments considered necessary for a fair presentation of the interim results have been included.
Revenue for the period was $2,531,230,000, a decrease of 7.6% from $2,739,077,000 in the prior period, while cost of revenue was $1,926,340,000, down 5.3% from $2,033,639,000. Operating expenses were $258,253,000 compared with $255,760,000 in the prior period, an increase of 1.0%, and income tax expense was $89,767,000, a decrease of 28.2% from $125,056,000. Net income for the period was $260,591,000. Net income attributable to noncontrolling interests was $39,000, compared with $240,000 in the prior period. Basic earnings per share was $2.74, computed using weighted-average basic shares outstanding of 95,144,000. [COMPLETE: diluted earnings per share and weighted-average diluted shares outstanding]
Total debt at April 30, 2026 was $6,047,184,000. Borrowings under credit facilities were $2,588,387,000, a decrease of 20.0% from $3,235,982,000, and unsecured and other notes, net were $1,742,154,000, an increase of 9.1% from $1,597,544,000. Secured borrowings, net were $0 at the balance sheet date. Operating lease liabilities were $139,766,000 at April 30, 2026, up 8.1% from $129,307,000, and the related operating lease right-of-use assets were $117,258,000, up 7.0% from $109,555,000. [COMPLETE: maturity schedule of long-term debt and lease obligations]
Total equity at April 30, 2026 was $8,485,992,000. Stockholders' equity was $8,475,155,000, an increase of 6.6% from $7,948,725,000, and noncontrolling interests were $10,837,000 compared with $15,690,000 in the prior period. Cash and cash equivalents increased 61.0% to $1,105,511,000 from $686,466,000, and restricted cash and equivalents were $66,588,000, compared with $75,209,000 in the prior period. [COMPLETE: details of dividends declared, share repurchase activity, and other changes in components of stockholders' equity during the period]
| Current | Prior | |
|---|---|---|
| Borrowings under credit facilities | 2,588,387,000.00 | 2,326,236,000.00 |
| Operating lease liabilities | 139,766,000.00 | 128,340,000.00 |
| Secured borrowings, net | 0.00 | 249,087,000.00 |
| Unsecured and other notes, net | 1,742,154,000.00 | 1,741,525,000.00 |
| Total debt | 4,470,307,000.00 | 4,445,188,000.00 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | 283,878,000.00 | 273,397,000.00 |
| Total property and equipment | 283,878,000.00 | 273,397,000.00 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 8,475,155,000.00 | 8,270,663,000.00 |
| Total stockholders' equity | 8,475,155,000.00 | 8,270,663,000.00 |
This discussion and analysis is based on, should be read together with, and is qualified in its entirety by, the accompanying unaudited condensed consolidated financial statements and related notes, as well as our consolidated financial statements, notes thereto, and the related MD&A contained in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025, and should also be read in conjunction with the disclosure under "Statement on Forward-Looking Information" and "Risk Factors" in this report and in our 2025 Form 10-K. At October 31, 2025, we had 1,137 communities in various stages of planning, development or operations containing approximately 76,100 home sites that we owned or controlled through options, and at fiscal year-end we were selling from 446 of these communities. We operate our own architectural, engineering, mortgage, title, land development, insurance, smart home technology and landscaping subsidiaries, and we also develop master-planned and golf course communities as well as operate, in certain regions, our own lumber distribution, house component assembly and component manufacturing operations. In addition to our residential for-sale business, we have also developed and, in some cases operated, for-rent apartments generally through joint ventures, and in September 2025 we announced plans to exit this business over time.
Revenue for the period was $2,531,230,000, a decrease of 7.6% from $2,739,077,000 in the comparable prior-year period, driven primarily by [COMPLETE: drivers of revenue decline, such as changes in homes delivered and average delivered price]. Cost of revenue decreased 5.3% to $1,926,340,000 from $2,033,639,000, generally consistent with the lower revenue base, while operating expenses increased 1.0% to $258,253,000 from $255,760,000. Other income statement items reflected a net expense of $16,681,000 in the current period compared to net income of $11,729,000 in the prior-year period, and other nonoperating income, net, increased to $20,441,000 from $16,336,000. Income tax expense decreased 28.2% to $89,767,000 from $125,056,000, and net income attributable to noncontrolling interests declined to $39,000 from $240,000. Net income was $260,591,000, and basic earnings per share was $2.74 based on weighted-average basic shares outstanding of 95,144,000.
At April 30, 2026, cash and cash equivalents were $1,105,511,000, an increase of 61.0% from $686,466,000 at the end of the prior-year period, and restricted cash and equivalents were $66,588,000, compared to $75,209,000 in the prior period. Borrowings under credit facilities decreased 20.0% to $2,588,387,000 from $3,235,982,000, while unsecured and other notes, net, increased 9.1% to $1,742,154,000 from $1,597,544,000. Inventory increased 3.5% to $11,377,712,000 from $10,994,873,000, reflecting continued investment in our communities, and stockholders' equity increased 6.6% to $8,475,155,000 from $7,948,725,000. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Based on our cash position, available borrowing capacity, and expected cash flows from operations, management believes that our liquidity and capital resources are sufficient to meet our anticipated operating requirements, capital expenditures, and debt service obligations for at least the next twelve months.
Our primary exposure to market risk is interest rate risk on our cash, cash equivalents, and short-term investments. Primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. At April 30, 2026, cash and cash equivalents were $1,105,511,000, an increase of 61.0% from $686,466,000 in the prior period, and restricted cash and equivalents were $66,588,000, a decrease of 11.5% from $75,209,000. Changes in prevailing interest rates affect the interest income we earn on these balances, and a hypothetical change in market interest rates would correspondingly increase or decrease the income earned on our invested cash. [COMPLETE: quantified sensitivity of interest income to a hypothetical change in interest rates]
We are also subject to interest rate considerations in connection with our outstanding borrowings. Total debt at April 30, 2026 was $6,047,184,000, consisting of borrowings under credit facilities of $2,588,387,000, operating lease liabilities of $139,766,000, secured borrowings, net of $0, and unsecured and other notes, net of $1,742,154,000. Borrowings under credit facilities decreased 20.0% from $3,235,982,000 in the prior period, while unsecured and other notes, net increased 9.1% from $1,597,544,000. [COMPLETE: breakdown of fixed-rate versus variable-rate borrowings and the estimated impact of a hypothetical change in interest rates on interest expense and the fair value of debt]
We do not have material foreign currency or commodity price exposure. Accordingly, we do not currently use derivative financial instruments to hedge foreign currency or commodity price risk. We will continue to monitor our market risk exposures and may adjust our practices as conditions warrant.
Our management, with the participation of our [COMPLETE: titles of principal executive officer and principal financial officer], evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of April 30, 2026. Based on that evaluation, management concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report at the reasonable assurance level. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
There were no changes in our internal control over financial reporting during the fiscal quarter ended April 30, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
[COMPLETE: Management to review and formally adopt the conclusion language above prior to filing.]
From time to time, we are involved in various legal proceedings arising in the ordinary course of our business. These matters may include claims and disputes incidental to the normal conduct of our operations. We do not currently believe that the outcome of any pending matter will be material to our financial statements.
Based on management's current assessment, no pending legal proceeding is expected to have a material effect on our financial condition, results of operations, or cash flows. We will continue to monitor and evaluate these matters as they develop and will make additional disclosures as circumstances warrant.
Toll Brothers, Inc. is a public reporting company classified under Operative Builders, and our business, financial condition, and results of operations are subject to a variety of risks and uncertainties, including those inherent in the homebuilding industry. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Changes in interest rates could affect the returns we earn on our invested balances as well as demand for our homes and the cost and availability of financing for our homebuyers, any of which could adversely affect our results of operations. The classification of our company under Operative Builders means our performance remains sensitive to conditions in the housing market generally, including consumer confidence, mortgage availability, and broader economic trends.
Our recent operating results reflect the potential impact of these market conditions. For the period ended April 30, 2026, we reported revenue of $2,531,230,000 and net income of $260,591,000. Revenue declined 7.6% from the prior period, while inventory increased 3.5% to $11,377,712,000. A sustained decline in revenue combined with growth in inventory could increase our exposure to impairments and carrying costs if housing demand weakens further. In addition, mortgage loans held for investment, net decreased 27.7% to $141,482,000, and continued volatility in mortgage markets could affect the value of these assets and the demand for our mortgage-related services.
We are also subject to risks associated with our indebtedness and liquidity position. Borrowings under credit facilities decreased 20.0% to $2,588,387,000, while unsecured and other notes, net increased 9.1% to $1,742,154,000, and total debt was $6,047,184,000 against total equity of $8,485,992,000. Our cash and cash equivalents increased 61.0% to $1,105,511,000, but our ability to service our obligations and fund land acquisition, development, and construction activities depends on our future operating performance and access to capital markets, which may be affected by factors beyond our control. We are involved in legal proceedings arising in the ordinary course of business from time to time, and although management does not currently believe any pending matter is material to the financial statements, adverse outcomes in litigation could result in losses that harm our financial condition or results of operations. Except as described above, there have been no material changes to the risk factors previously disclosed in our most recent Annual Report on Form 10-K [COMPLETE: reference to fiscal year of most recent Form 10-K and any additional updated risk factors].
The following disclosure is provided pursuant to Item 408(a) of Regulation S-K regarding Rule 10b5-1 trading arrangements of directors and officers of Toll Brothers, Inc. during the fiscal quarter ended April 30, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]