Item 1. Financial Statements

NVR, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
						September 30, 2025						December 31, 2024
ASSETS
Homebuilding:
Cash and cash equivalents						$	1,932,167					$	2,561,339
Restricted cash						44,034						42,172
Receivables						41,377						32,622
Inventory:
Lots and housing units, covered under sales agreements with customers						1,758,906						1,727,243
Unsold lots and housing units						313,971						237,177
Land under development						38,017						65,394
Building materials and other						20,531						28,893
						2,131,425						2,058,707
Contract land deposits, net						868,308						726,675
Property, plant and equipment, net						102,479						95,619
Operating lease right-of-use assets						87,116						78,340
Reorganization value in excess of amounts allocable to identifiable assets, net						41,580						41,580
Other assets						291,748						251,178
						5,540,234						5,888,232
Mortgage Banking:
Cash and cash equivalents						39,280						49,636
Restricted cash						8,123						11,520
Mortgage loans held for sale, net						341,579						355,209
Property and equipment, net						8,081						7,373
Operating lease right-of-use assets						25,252						23,482
Reorganization value in excess of amounts allocable to identifiable assets, net						7,347						7,347
Other assets						65,562						38,189
						495,224						492,756
Total assets						$	6,035,458					$	6,380,988

See notes to condensed consolidated financial statements.

NVR, Inc.
Condensed Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
						September 30, 2025						December 31, 2024
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable						$	361,209					$	332,772
Accrued expenses and other liabilities						344,658						441,300
Customer deposits						277,351						322,926
Operating lease liabilities						93,191						83,939
Senior notes						909,654						911,118
						1,986,063						2,092,055
Mortgage Banking:
Accounts payable and other liabilities						55,249						53,433
Operating lease liabilities						27,384						25,428
						82,633						78,861
Total liabilities						2,068,696						2,170,916
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both September 30, 2025 and December 31, 2024						206						206
Additional paid-in capital						3,131,980						3,031,637
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both September 30, 2025 and December 31, 2024						(16,710)						(16,710)
Deferred compensation liability						16,710						16,710
Retained earnings						16,022,954						15,046,953
Less treasury stock at cost – 17,694,431 and 17,543,686 shares as of September 30, 2025 and December 31, 2024, respectively						(15,188,378)						(13,868,724)
Total shareholders' equity						3,966,762						4,210,072
Total liabilities and shareholders' equity						$	6,035,458					$	6,380,988

See notes to condensed consolidated financial statements.

NVR, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Homebuilding:
Revenues						$	2,560,343					$	2,677,640					$	7,459,055					$	7,511,708
Other income						22,000						33,746						73,800						110,796
Cost of sales						(2,021,398)						(2,051,087)						(5,856,756)						(5,724,916)
Selling, general and administrative						(142,736)						(149,777)						(457,023)						(443,493)
Interest expense						(6,855)						(6,855)						(20,721)						(20,214)
Homebuilding income						411,354						503,667						1,198,355						1,433,881
Mortgage Banking:
Mortgage banking fees						49,162						55,311						152,296						167,163
Interest income						4,881						4,728						13,180						13,492
Other income						1,400						1,414						3,794						3,918
General and administrative						(22,397)						(26,317)						(73,515)						(75,026)
Interest expense						(327)						(191)						(900)						(556)
Mortgage banking income						32,719						34,945						94,855						108,991
Income before taxes						444,073						538,612						1,293,210						1,542,872
Income tax expense						(101,385)						(109,289)						(317,209)						(318,376)
Net income						$	342,688					$	429,323					$	976,001					$	1,224,496
Basic earnings per share						$	119.26					$	139.65					$	333.86					$	391.37
Diluted earnings per share						$	112.33					$	130.50					$	315.33					$	367.20
Basic weighted average shares outstanding						2,874						3,074						2,923						3,129
Diluted weighted average shares outstanding						3,051						3,290						3,095						3,335

See notes to condensed consolidated financial statements.

NVR, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

						Nine Months Ended September 30,
						2025						2024
Cash flows from operating activities:
Net income						$	976,001					$	1,224,496
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization						17,567						13,422
Equity-based compensation expense						53,695						54,465
Contract land deposit impairments (recoveries), net						40,138						(4,868)
Gain on sale of loans, net						(121,975)						(135,799)
Mortgage loans closed						(4,532,399)						(4,568,806)
Mortgage loans sold and principal payments on mortgage loans held for sale						4,646,571						4,538,919
Distribution of earnings from unconsolidated joint ventures						—						1,500
Net change in assets and liabilities:
Increase in inventory						(72,718)						(307,247)
Increase in contract land deposits						(181,771)						(87,017)
(Increase) decrease in receivables						(10,899)						46,993
Decrease in accounts payable and accrued expenses						(81,116)						(59,417)
(Decrease) increase in customer deposits						(45,575)						24,168
Other, net						(5,927)						(3,397)
Net cash provided by operating activities						681,592						737,412
Cash flows from investing activities:
Investments in and advances to unconsolidated joint ventures						(37,281)						(1,640)
Distribution of capital from unconsolidated joint ventures						—						2,715
Purchase of property, plant and equipment						(20,808)						(23,621)
Proceeds from the sale of property, plant and equipment						715						2,749
Net cash used in investing activities						(57,374)						(19,797)
Cash flows from financing activities:
Purchase of treasury stock						(1,331,212)						(1,493,362)
Principal payments on finance lease liabilities						(3,412)						(1,808)
Proceeds from the exercise of stock options						69,343						130,778
Net cash used in financing activities						(1,265,281)						(1,364,392)
Net decrease in cash, restricted cash, and cash equivalents						(641,063)						(646,777)
Cash, restricted cash, and cash equivalents, beginning of the period						2,664,667						3,215,444
Cash, restricted cash, and cash equivalents, end of the period						$	2,023,604					$	2,568,667
Supplemental disclosures of cash flow information:
Interest paid during the period, net of interest capitalized						$	15,546					$	15,094
Income taxes paid during the period, net of refunds						$	354,638					$	307,263

See notes to condensed consolidated financial statements.

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

1. Significant Accounting Policies

Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. and its subsidiaries (“NVR”, the “Company”, "we", "us" or "our") and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 2 and 3 to the accompanying condensed consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. The statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Because the accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP, they should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024. In the opinion of management, all adjustments (consisting only of normal recurring accruals except as otherwise noted herein) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

For the three and nine months ended September 30, 2025 and 2024, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying condensed consolidated financial statements.

Revenue Recognition

Homebuilding revenue is recognized on the settlement date at the contract sales price, when control is transferred to our customers. Our contract liabilities, which consist of deposits received from customers on homes not settled, were $277,351 and $322,926 as of September 30, 2025 and December 31, 2024, respectively. Customer deposits held as of the reporting dates are expected to be recognized in revenue within twelve months of recording the deposit. Our contract assets consist of prepaid sales compensation and totaled approximately $20,400 and $21,700 as of September 30, 2025 and December 31, 2024, respectively. Prepaid sales compensation is included in homebuilding “Other assets” on the accompanying condensed consolidated balance sheets.

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses," requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes - Improvements to Income Tax Disclosures." The amendments in the ASU require disclosure of specific categories in the rate reconciliation and for the entity to provide additional information for reconciling items that meet a quantitative threshold. The ASU will be effective for annual periods beginning with our fiscal year ending December 31, 2025. The amendments in the

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

ASU are to be applied on a prospective basis and early adoption is permitted. We do not expect the adoption of ASU 2023-09 to have a material impact on our consolidated financial statements and related disclosures.

2. Variable Interest Entities ("VIEs")

We generally do not engage in land development. Instead, we typically acquire finished building lots at market prices from various third party land development entities under lot purchase agreements ("LPAs"). The LPAs require deposits that may be forfeited if we fail to perform under the LPAs. The deposits required under the LPAs are in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the aggregate purchase price of the finished lots.

The deposit placed by us pursuant to the LPA is deemed to be a variable interest in the respective development entities. Those development entities are deemed to be VIEs. Therefore, the development entities with which we enter into LPAs, including the joint venture limited liability corporations discussed below, are evaluated for possible consolidation by us. We have concluded that we are not the primary beneficiary of the development entities with which we enter into LPAs, and therefore, we do not consolidate any of these VIEs.

As of September 30, 2025, we controlled approximately 166,050 lots under LPAs with third parties through deposits in cash and letters of credit totaling approximately $907,600 and $4,000, respectively. Our sole legal obligation and economic loss for failure to perform under these LPAs is limited to the amount of the deposit pursuant to the liquidated damage provisions contained in the LPAs and, in very limited circumstances, specific performance obligations. For the three and nine months ended September 30, 2025, we incurred pre-tax impairment charges on lot deposits of approximately $18,900 and $40,100, respectively. For the three months ended September 30, 2024, we recorded pre-tax impairment charges on lot deposits of approximately $3,900. For the nine months ended September 30, 2024, we recorded a net expense reversal of approximately $4,900 related to previously impaired lot deposits. Our contract land deposit asset is shown net of a $85,368 and $58,597 impairment allowance as of September 30, 2025 and December 31, 2024, respectively.

In addition, we have certain properties under contract with land owners that are expected to yield approximately 47,100 lots, which are not included in the number of total lots controlled. Some of these properties may require rezoning or other approvals to achieve the expected yield. These properties are controlled with cash deposits totaling approximately $46,100 as of September 30, 2025, of which approximately $10,400 is refundable if certain contractual conditions are not met. We generally expect to assign the raw land contracts to a land developer and simultaneously enter into an LPA with the assignee if the project is determined to be feasible.

Our total risk of loss related to contract land deposits is limited to the amount of the deposits pursuant to the liquidated damages provision of the LPAs. As of September 30, 2025 and December 31, 2024, our total risk of loss was as follows:

						September 30, 2025						December 31, 2024
Contract land deposits						$	953,676					$	785,272
Allowance for losses on contract land deposits						(85,368)						(58,597)
Contract land deposits, net						868,308						726,675
Contingent obligations in the form of letters of credit						4,015						8,722
Total risk of loss						$	872,323					$	735,397

3. Joint Ventures

On a limited basis, we obtain finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that we are a non-controlling member and are at risk only for the amount we have invested, or have committed to invest, in addition to any deposits placed under LPAs with the joint venture. We are

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

not a borrower, guarantor or obligor on any debt of the JVs, as applicable. We enter into LPAs to purchase lots from these JVs, and as a result have a variable interest in these JVs. We determined that we are not the primary beneficiary in any of the JVs because we and the other JV partner either share power or the other JV partner has the controlling financial interest.

As of September 30, 2025, we had an aggregate investment totaling approximately $66,500 in five JVs that are expected to produce approximately 7,300 finished lots, of which approximately 6,950 lots were controlled by us and the remaining approximately 350 lots were either under contract with unrelated parties or not currently under contract. We had additional JV funding commitments totaling approximately $11,700 as of September 30, 2025. As of December 31, 2024, our aggregate investment in JVs totaled approximately $29,300. Investments in JVs for the respective periods are reported in the homebuilding "Other assets" line item on the accompanying condensed consolidated balance sheets. None of the JVs had any indicators of impairment as of September 30, 2025.

We recognize income from the JVs as a reduction to the lot cost of the lots purchased from the respective JVs when the homes are settled, based on the expected total profitability and the total number of lots expected to be produced by the respective JVs.

We classify distributions received from unconsolidated JVs using the cumulative earnings approach. As a result, distributions received up to the amount of cumulative earnings recognized by us are reported as distributions of earnings and those in excess of that amount are reported as a distribution of capital. These distributions are classified within the accompanying condensed consolidated statements of cash flows as cash flows from operating activities and investing activities, respectively.

4. Land Under Development

On a limited basis, we directly acquire raw land parcels already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes.

During the second quarter of 2025, we sold a land parcel to a developer for approximately $32,700. In conjunction with the sale, we entered into an LPA with the developer for the option to purchase the finished lots expected to be developed from the parcel.

As of September 30, 2025, we owned land with a carrying value of $38,017 that we intend to develop into approximately 2,300 finished lots. As of December 31, 2024, the carrying value of land under development was $65,394. None of the raw parcels had any indicators of impairment as of September 30, 2025.

5. Capitalized Interest

We capitalize interest costs to land under development during the active development of finished lots. In addition, we capitalize interest costs to our joint venture investments while the investments are considered qualified assets pursuant to ASC Topic 835-20 - Interest. Capitalized interest is transferred to inventory as the development of finished lots is completed, then charged to cost of sales upon our settlement of homes and the respective lots. Interest incurred in excess of the interest capitalizable based on the level of qualified assets is expensed in the period incurred.

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

The following table reflects the changes in our capitalized interest during the three and nine months ended September 30, 2025 and 2024:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Interest capitalized, beginning of period						$	556					$	206					$	333					$	151
Interest incurred						7,288						7,121						22,277						20,963
Interest charged to interest expense						(7,182)						(7,046)						(21,621)						(20,770)
Interest charged to cost of sales						(3)						(14)						(330)						(77)
Interest capitalized, end of period						$	659					$	267					$	659					$	267

6. Earnings per Share

The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share ("EPS") for the three and nine months ended September 30, 2025 and 2024:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Weighted average number of shares outstanding used to calculate basic EPS						2,873,501						3,074,230						2,923,371						3,128,709
Dilutive securities:
Stock options and restricted share units						177,219						215,694						171,816						205,984
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS						3,050,720						3,289,924						3,095,187						3,334,693

The following non-qualified stock options ("Options") and restricted share units ("RSUs") issued under equity incentive plans were outstanding during the three and nine months ended September 30, 2025 and 2024, but were not included in the computation of diluted EPS because the effect would have been anti-dilutive.

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Anti-dilutive securities						8,128						4,520						8,488						5,060

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

7. Shareholders’ Equity

A summary of changes in shareholders’ equity for the three months ended September 30, 2025 is presented below:

						Common Stock						Additional Paid-In Capital						Retained Earnings						Treasury Stock						Deferred Compensation Trust						Deferred Compensation Liability						Total
Balance, June 30, 2025						$	206					$	3,085,904					$	15,680,266					$	(14,921,245)					$	(16,710)					$	16,710					$	3,845,131
Net income						—						—						342,688						—						—						—						342,688
Purchase of common stock for treasury						—						—						—						(278,094)						—						—						(278,094)
Equity-based compensation						—						17,356						—						—						—						—						17,356
Proceeds from Options exercised						—						39,681						—						—						—						—						39,681
Treasury stock issued upon Option exercise and RSU vesting						—						(10,961)						—						10,961						—						—						—
Balance, September 30, 2025						$	206					$	3,131,980					$	16,022,954					$	(15,188,378)					$	(16,710)					$	16,710					$	3,966,762

A summary of changes in shareholders’ equity for the nine months ended September 30, 2025 is presented below:

						Common Stock						Additional Paid-In Capital						Retained Earnings						Treasury Stock						Deferred Compensation Trust						Deferred Compensation Liability						Total
Balance, December 31, 2024						$	206					$	3,031,637					$	15,046,953					$	(13,868,724)					$	(16,710)					$	16,710					$	4,210,072
Net income						—						—						976,001						—						—						—						976,001
Purchase of common stock for treasury						—						—						—						(1,342,349)						—						—						(1,342,349)
Equity-based compensation						—						53,695						—						—						—						—						53,695
Proceeds from Options exercised						—						69,343						—						—						—						—						69,343
Treasury stock issued upon Option exercise and RSU vesting						—						(22,695)						—						22,695						—						—						—
Balance, September 30, 2025						$	206					$	3,131,980					$	16,022,954					$	(15,188,378)					$	(16,710)					$	16,710					$	3,966,762

We repurchased 35,224 and 178,178 shares of our outstanding common stock during the three and nine months ended September 30, 2025, respectively. We settle Option exercises and vesting of RSUs by issuing shares of treasury stock. We issued 12,908 and 27,433 shares from the treasury account during the three and nine months ended September 30, 2025, respectively, in settlement of Option exercises and vesting of RSUs. Shares are relieved from the treasury account based on the weighted average cost basis of treasury shares.

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

A summary of changes in shareholders’ equity for the three months ended September 30, 2024 is presented below:

						Common Stock						Additional Paid-In Capital						Retained Earnings						Treasury Stock						Deferred Compensation Trust						Deferred Compensation Liability						Total
Balance, June 30, 2024						$	206					$	2,935,053					$	14,160,198					$	(12,961,549)					$	(16,710)					$	16,710					$	4,133,908
Net income						—						—						429,323						—						—						—						429,323
Purchase of common stock for treasury						—						—						—						(359,520)						—						—						(359,520)
Equity-based compensation						—						19,223						—						—						—						—						19,223
Proceeds from Options exercised						—						48,314						—						—						—						—						48,314
Treasury stock issued upon Option exercise						—						(12,814)						—						12,814						—						—						—
Balance, September 30, 2024						$	206					$	2,989,776					$	14,589,521					$	(13,308,255)					$	(16,710)					$	16,710					$	4,271,248

A summary of changes in shareholders’ equity for the nine months ended September 30, 2024 is presented below:

						Common Stock						Additional Paid-In Capital						Retained Earnings						Treasury Stock						Deferred Compensation Trust						Deferred Compensation Liability						Total
Balance, December 31, 2023						$	206					$	2,848,528					$	13,365,025					$	(11,849,034)					$	(16,710)					$	16,710					$	4,364,725
Net income						—						—						1,224,496						—						—						—						1,224,496
Purchase of common stock for treasury						—						—						—						(1,503,216)						—						—						(1,503,216)
Equity-based compensation						—						54,465						—						—						—						—						54,465
Proceeds from Options exercised						—						130,778						—						—						—						—						130,778
Treasury stock issued upon Option exercise and RSU vesting						—						(43,995)						—						43,995						—						—						—
Balance, September 30, 2024						$	206					$	2,989,776					$	14,589,521					$	(13,308,255)					$	(16,710)					$	16,710					$	4,271,248

We repurchased 42,629 and 192,655 shares of our outstanding common stock during the three and nine months ended September 30, 2024, respectively. We issued 17,153 and 61,939 shares from the treasury account during the three and nine months ended September 30, 2024, respectively, in settlement of Option exercises and vesting of RSUs. Shares are relieved from the treasury account based on the weighted average cost basis of treasury shares.

8. Product Warranties

We establish warranty and product liability reserves (“Warranty Reserve”) to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to our homebuilding business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the estimated current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with our general counsel and outside counsel retained to handle specific product liability cases. The Warranty Reserve for the respective periods is reported in the homebuilding “Accrued expenses and other liabilities” line item on the accompanying condensed consolidated balance sheets.

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

The following table reflects the changes in our Warranty Reserve during the three and nine months ended September 30, 2025 and 2024:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Warranty Reserve, beginning of period						$	127,440					$	143,341					$	133,095					$	146,283
Provision						20,989						26,270						58,888						68,491
Payments						(23,578)						(25,672)						(67,132)						(70,835)
Warranty Reserve, end of period						$	124,851					$	143,939					$	124,851					$	143,939

9. Segment Disclosures

We disclose four homebuilding operating and reportable segments that aggregate geographically our homebuilding divisions, and we present our mortgage banking operations as a single reportable segment. The homebuilding reportable segments are comprised of divisions in the following geographic areas:

Mid Atlantic:						Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East:						New Jersey and Eastern Pennsylvania
Mid East:						New York, Ohio, Western Pennsylvania, Indiana and Illinois
South East:						North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky

The Company's Chief Operating Decision Maker ("CODM"), identified as the Chief Executive Officer, utilizes segment profit to evaluate the performance of the Company's homebuilding and mortgage banking operating segments against the annual plan to make resource allocation decisions.

Homebuilding segment profit includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses and a corporate capital allocation charge. The corporate capital allocation charge is eliminated in consolidation and is based on the segment’s average net assets employed. The corporate capital allocation charged to the operating segment allows the CODM to determine whether the operating segment’s results are providing the desired rate of return after covering our cost of capital.

Assets not allocated to the operating segments are not included in either the operating segment’s corporate capital allocation charge or the CODM’s evaluation of the operating segment’s performance. We record charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are charged to the operating segment upon the termination of an LPA with the developer, or the restructuring of an LPA resulting in the forfeiture of the deposit.

Mortgage banking segment profit before tax consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs, including certain corporate overhead functions. Mortgage banking operations are not charged a corporate capital allocation charge.

In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before taxes include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest income and expense. Our overhead functions such as accounting, treasury and human resources are centrally performed and the costs are not allocated to our operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to our operating segments. External corporate interest expense primarily consists of interest charges on our 3.00% Senior Notes due 2030 (the “Senior Notes”), which are not charged to the operating segments because the charges are included in the corporate capital allocation discussed above.

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

The following tables present certain segment financial data with reconciliations to the amounts reported for the consolidated company, where applicable:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Revenues:
Homebuilding Mid Atlantic						$	1,039,957					$	1,147,893					$	3,251,066					$	3,299,047
Homebuilding North East						291,753						300,448						889,508						843,452
Homebuilding Mid East						508,798						501,190						1,371,160						1,352,137
Homebuilding South East						719,835						728,109						1,947,321						2,017,072
Mortgage Banking						49,162						55,311						152,296						167,163
Total consolidated revenues						$	2,609,505					$	2,732,951					$	7,611,351					$	7,678,871

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Segment cost of sales:
Homebuilding Mid Atlantic						$	(796,238)					$	(859,762)					$	(2,481,372)					$	(2,468,953)
Homebuilding North East						(215,063)						(222,197)						(655,666)						(621,623)
Homebuilding Mid East						(398,371)						(387,102)						(1,082,109)						(1,049,160)
Homebuilding South East						(590,149)						(568,679)						(1,582,472)						(1,557,935)

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Segment selling, general & administrative expense:
Homebuilding Mid Atlantic						$	(37,832)					$	(38,448)					$	(112,559)					$	(113,287)
Homebuilding North East						(12,373)						(11,477)						(34,907)						(34,180)
Homebuilding Mid East						(21,215)						(20,917)						(61,645)						(59,185)
Homebuilding South East						(40,598)						(36,797)						(119,526)						(102,426)
Mortgage Banking						(21,910)						(25,106)						(70,633)						(71,971)

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Corporate capital allocation charge:
Homebuilding Mid Atlantic						$	(38,204)					$	(35,976)					$	(112,350)					$	(104,872)
Homebuilding North East						(12,383)						(10,578)						(34,275)						(30,456)
Homebuilding Mid East						(12,917)						(11,929)						(36,157)						(32,850)
Homebuilding South East						(33,058)						(28,006)						(93,305)						(77,866)
Total						$	(96,562)					$	(86,489)					$	(276,087)					$	(246,044)

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Other segment items, net:
Homebuilding Mid Atlantic						$	458					$	425					$	1,579					$	1,327
Homebuilding North East						30						50						379						283
Homebuilding Mid East						136						143						520						432
Homebuilding South East						842						462						2,102						2,091
Mortgage Banking (1)						5,954						5,951						16,074						16,854

(1) This item relates primarily to interest income received on mortgage loans closed and mortgage loans held for sale.

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Segment profit:
Homebuilding Mid Atlantic						$	168,141					$	214,132					$	546,364					$	613,262
Homebuilding North East						51,964						56,246						165,039						157,476
Homebuilding Mid East						76,431						81,385						191,769						211,374
Homebuilding South East						56,872						95,089						154,120						280,936
Mortgage Banking						33,206						36,156						97,737						112,046
Total segment profit						386,614						483,008						1,155,029						1,375,094
Reconciling items:
Contract land deposit allowance adjustment (2)						(18,634)						(3,079)						(39,904)						5,712
Equity-based compensation expense (3)						(17,356)						(19,223)						(53,695)						(54,465)
Corporate capital allocation (4)						96,562						86,489						276,087						246,044
Unallocated corporate overhead						(26,359)						(36,780)						(116,692)						(122,300)
Consolidation adjustments and other (5)						10,433						2,575						27,903						6,666
Corporate interest income						19,654						32,409						65,129						106,173
Corporate interest expense						(6,841)						(6,787)						(20,647)						(20,052)
Reconciling items sub-total						57,459						55,604						138,181						167,778
Consolidated profit before taxes						$	444,073					$	538,612					$	1,293,210					$	1,542,872

(2) This item represents changes to the contract land deposit impairment allowance, which are not allocated to the reportable segments. See further discussion of lot deposit impairment charges in Note 2.

(3) This item represents compensation expense for all Option and RSU grants.

(4) This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments. The corporate capital allocation charge is based on the segment’s monthly average asset balance.

(5) The consolidation adjustments and other in each period are primarily attributable to changes in units under construction period over period, and any significant changes in material costs, primarily lumber. Our reportable segments' results include the intercompany profits of our production facilities for home packages delivered to our homebuilding divisions. Costs related to homes not yet settled are reversed through the consolidation adjustment and recorded in inventory. These costs are subsequently recorded through the consolidation adjustment when the respective homes are settled.

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

						September 30, 2025						December 31, 2024
Assets:
Homebuilding Mid Atlantic						$	1,374,865					$	1,337,659
Homebuilding North East						414,759						368,300
Homebuilding Mid East						442,667						396,854
Homebuilding South East						1,068,526						914,318
Mortgage Banking						487,877						485,409
Total segment assets						3,788,694						3,502,540
Reconciling items (1):
Cash and cash equivalents						1,932,167						2,561,339
Deferred taxes						150,262						142,192
Reorganization value and goodwill						49,368						49,368
Operating lease right-of-use assets						87,116						78,340
Finance lease right-of-use assets						38,516						37,638
Contract land deposit allowance						(85,368)						(58,597)
Consolidation adjustments and other						74,703						68,168
Reconciling items sub-total						2,246,764						2,878,448
Consolidated assets						$	6,035,458					$	6,380,988

(1) All reconciling items except for the "Reorganization value and goodwill" are related to the Homebuilding Segment only.

10. Fair Value

GAAP assigns a fair value hierarchy to the inputs used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs.

Financial Instruments

The estimated fair values of our Senior Notes as of September 30, 2025 and December 31, 2024 were $850,950 and $811,161, respectively. The estimated fair value is based on recent market prices of similar transactions, which is classified as Level 2 within the fair value hierarchy. The carrying values as of September 30, 2025 and December 31, 2024 were $909,654 and $911,118, respectively.

Due to the short term nature of our cash equivalents, we believe that the differences between their carrying value and fair value are insignificant.

Derivative Instruments and Mortgage Loans Held for Sale

In the normal course of business, our wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”), enters into contractual commitments to extend credit to our homebuyers with fixed expiration dates. The commitments become effective when the borrowers "lock-in" a specified interest rate within time frames established by NVRM, and some of these commitments include a prepaid float down option. All borrowers are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the "lock-in" of rates by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to investors. The forward sales contracts lock-in a range of interest rates and price for the sale of loans similar to the specific rate lock commitments. NVRM does not engage in speculative or trading derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to investors are undesignated derivatives and, accordingly, are marked to fair value through earnings. As of September 30, 2025, there were contractual

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

commitments to extend credit to borrowers aggregating $1,714,602 and open forward delivery contracts aggregating $1,728,830, which hedge both the rate lock commitments and closed loans held for sale.

The fair value of NVRM’s rate lock commitments to borrowers and the related input levels include, as applicable:

i)the assumed gain/loss of the expected resultant loan sale (Level 2);

ii)the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and

iii)the value of the servicing rights associated with the loan (Level 2).

The assumed gain/loss considers the excess servicing to be received or buydown fees to be paid upon securitization of the loan. The excess servicing and buydown fees are calculated pursuant to contractual terms with investors. To calculate the effects of interest rate movements, NVRM utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount. NVRM sells its loans primarily on a servicing released basis, and receives a servicing released premium upon sale. Thus, the value of the servicing rights is included in the fair value measurement and is based upon contractual terms with investors and varies depending on the loan type. NVRM assumes a fallout rate when measuring the fair value of rate lock commitments. Fallout is defined as locked loan commitments for which NVRM does not close a mortgage loan and is based on historical experience and market conditions.

The fair value of NVRM’s forward sales contracts to investors solely considers the market price movement of the same type of security between the trade date and the balance sheet date (Level 2). The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value.

Mortgage loans held for sale are recorded at fair value when closed, and thereafter are carried at the lower of cost or fair value, net of deferred origination costs, until sold. Fair value is measured using Level 2 inputs. As of September 30, 2025, the fair value of loans held for sale of $341,579 included on the accompanying condensed consolidated balance sheet was increased by $8,899 from the aggregate principal balance of $332,680. As of December 31, 2024, the fair value of loans held for sale of $355,209 was increased by $2,720 from the aggregate principal balance of $352,489.

The fair value measurement of NVRM's undesignated derivative instruments was as follows:

						September 30, 2025						December 31, 2024
Rate lock commitments:
Gross assets						$	38,740					$	34,935
Gross liabilities						1,098						25,739
Net rate lock commitments						$	37,642					$	9,196
Forward sales contracts:
Gross assets						$	1,734					$	6,822
Gross liabilities						3,728						1,122
Net forward sales contracts						$	(1,994)					$	5,700

As of September 30, 2025, the net rate lock commitments are reported in mortgage banking "Other assets" and the net forward sales contracts are reported in mortgage banking "Accounts payable and other liabilities" on the

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

accompanying condensed consolidated balance sheets. As of December 31, 2024, the net rate lock commitments and the net forward sales contracts are reported in mortgage banking "Other assets".

The fair value measurement as of September 30, 2025 was as follows:

						Notional or Principal Amount						Assumed Gain From Loan Sale						Interest Rate Movement Effect						Servicing Rights Value						Security Price Change						Total Fair Value Measurement
Rate lock commitments						$	1,714,602					$	4,693					$	11,660					$	21,289					$	—					$	37,642
Forward sales contracts						$	1,728,830					—						—						—						(1,994)						(1,994)
Mortgages held for sale						$	332,680					793						3,461						4,645						—						8,899
Total fair value measurement												$	5,486					$	15,121					$	25,934					$	(1,994)					$	44,547

The total fair value measurement as of December 31, 2024 was a net gain of $17,616. NVRM recorded a fair value adjustment to expense of $1,043 for the three months ended September 30, 2025, and recorded a fair value adjustment to income of $26,930 for the nine months ended September 30, 2025. NVRM recorded a fair value adjustment to income of $17,529 and $14,027 for the three and nine months ended September 30, 2024, respectively. Unrealized gains/losses from the change in the fair value measurements are included in earnings as a component of mortgage banking fees in the accompanying condensed consolidated statements of income. The fair value measurement will be impacted in the future by the change in the value of the servicing rights, interest rate movements, security price fluctuations, and the volume and product mix of NVRM’s closed loans and locked loan commitments.

11. Debt

As of September 30, 2025, we had the following debt instruments outstanding:

Senior Notes

Our outstanding Senior Notes have an aggregate principal balance of $900,000, mature on May 15, 2030 and bear interest at 3.00%, payable semi-annually in arrears on May 15 and November 15. The Senior Notes are senior unsecured obligations and rank equally in right of payment with any of our existing and future unsecured senior indebtedness. The Senior Notes were issued in three separate issuances, $600,000 issued at a discount to yield 3.02%, and the two additional issuances totaling $300,000 issued at a premium to yield 2.00%. The Senior Notes have been reflected net of the unamortized discount or premium, as applicable, and the unamortized debt issuance costs in the accompanying condensed consolidated balance sheet.

The indenture governing the Senior Notes does not contain any financial covenants; however, it does contain, among other items, and subject to certain exceptions, covenants that restrict our ability to create, incur, assume or

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

guarantee secured debt, enter into sale and leaseback transactions and conditions related to mergers and/or the sale of assets. We were in compliance with all covenants under the Senior Notes as of September 30, 2025.

Credit Agreement

On March 11, 2025, we entered into the Second Amended and Restated Credit Agreement ("Amended Credit Agreement") providing for a $300,000 senior unsecured revolving credit facility among the lenders and Bank of America, N.A. as Administrative Agent. The Amended Credit Agreement replaced the Company's previous credit agreement dated February 12, 2021 and most recently amended December 9, 2022, that contained substantially similar terms, and extends the maturity date from February 11, 2026 to March 11, 2030. The Amended Credit Agreement has an uncommitted accordion feature allowing the Company to increase the commitment by an additional $300,000, subject to certain conditions and availability of additional Lender commitments. Additionally, the Amended Credit Agreement provides for a $100,000 sublimit for the issuance of letters of credit, of which approximately $10,200 was outstanding as of September 30, 2025.

The Amended Credit Agreement contains financial covenants that are substantially similar to those set forth in the prior Credit Agreement, including a maximum leverage ratio, interest coverage ratio/minimum liquidity and a minimum tangible net worth. There were no borrowings outstanding under the Facility as of September 30, 2025.

Repurchase Agreement

NVRM provides for its mortgage origination and other operating activities using cash generated from its operations, borrowings from its parent company, NVR, as well as a revolving mortgage repurchase agreement (the “Repurchase Agreement”), which is non-recourse to NVR. The Repurchase Agreement provides for loan purchases up to $150,000, subject to certain sub-limits. Amounts outstanding under the Repurchase Agreement are collateralized by the Company’s mortgage loans held for sale.

Effective July 14, 2025, NVRM entered into the Fourth Amendment to Second Amended and Restated Master Repurchase Agreement with U.S. Bank National Association, as Agent and a Buyer, which extended the term of the Repurchase Agreement through July 10, 2026. All other terms and conditions under the amended Repurchase Agreement remained materially consistent. As of September 30, 2025, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement and there were no borrowings outstanding.

12. Commitments and Contingencies

We are involved in various litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a material adverse effect on our financial position, results of operations or cash flows. Legal costs incurred in connection with outstanding litigation are expensed as incurred.

13. Leases

We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for certain production equipment and facilities which are recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets. Our finance lease right-of-use ("ROU") assets and finance lease liabilities were $38,516 and $41,709, respectively, as of September 30, 2025, and $37,638 and $40,036, respectively, as of December 31, 2024. Our leases have remaining lease terms of up to 14.9 years, some of which include options to extend the lease for up to 20 years, and some of which include options to terminate the lease.

We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis.

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities.

The components of lease expense were as follows:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Lease expense
Operating lease expense						$	10,835					$	10,078					$	31,699					$	28,939
Finance lease expense:
Amortization of ROU assets						1,457						983						4,207						2,313
Interest on lease liabilities						469						350						1,391						703
Short-term lease expense						7,979						8,320						24,666						24,399
Total lease expense						$	20,740					$	19,731					$	61,963					$	56,354

Other information related to leases was as follows:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2025						2024						2025						2024
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	8,342					$	8,153					$	24,659					$	23,466
Operating cash flows from finance leases						469						350						1,391						703
Financing cash flows from finance leases						1,193						752						3,412						1,808
ROU assets obtained in exchange for lease obligations:
Operating leases						$	8,786					$	9,060					$	32,204					$	22,551
Finance leases						$	2,658					$	2,184					$	5,085					$	20,041
																		September 30, 2025						December 31, 2024
Weighted-average remaining lease term (in years):
Operating leases																		5.6						6.0
Finance leases																		8.8						9.6
Weighted-average discount rate:
Operating leases																		4.6		%				4.5		%
Finance leases																		4.8		%				4.7		%

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

14. Income Taxes

Our effective tax rate for the three and nine month periods ended September 30, 2025 was 22.8% and 24.5%, respectively, compared to 20.3% and 20.6% for the three and nine months ended September 30, 2024, respectively. The increase in the effective tax rate in each period in 2025 is primarily attributable to recognizing a lower income tax benefit related to excess tax benefits from stock option exercises, which totaled $13,436 and $19,655 for the three and nine months ended September 30, 2025, respectively, compared to $23,128 and $73,736 for the three and nine months ended September 30, 2024, respectively.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law, implementing several changes to U.S. federal tax law. The Company has evaluated the provisions of the Act and does not expect the Act to have a material impact on its consolidated financial statements.