Episode Details

KB Home (KBH) Q3 FY2026 — Reference price $48.59 from the saved September 22 quote; a post-print reaction is not verified. Backlog grew, but demand per community weakened. KB Home’s sequential margin recovery meets rising net debt and a book value dominated by inventory. THE CALL: HOLD (3/5, MODERATE) — base-case value ~$50.00 vs ~$48.59 today. KEY METRICS: - Revenue $1,297.101M, down 19.96% YoY - GAAP diluted EPS $1.05 versus $1.61 - Net orders 2,604, down 11.73% - Monthly orders per community 3.1 versus 3.8 - Backlog 4,398 homes, up 1.50% YoY but down 2.83% sequentially - Housing gross margin 16.5%; adjusted 16.8% - Defined net debt $1,950.127M, up $485.764M from fiscal year-end - Book value $62.56 per share; base fair value $50 What to watch: Orders per community ≥3.5, housing gross margin ≥16.6% without larger charges, leverage stabilizing and verified cash improvement; reconsider near $40 only with fundamentals intact. Full research packet: https://chargedalpha.com/research/kbh-q3-fy2026 Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.