0001104659-26-027133
SEC filingLegacy Housing Corporation reported total net revenue of $164.6M for FY 2025, a decrease from $184.2M in FY 2024. Net income was $41.8M, down from $61.6M in the prior year. The decline was primarily driven by lower product sales of $116.9M (down from $129.3M) and a significant reduction in other revenue to $4.0M (from $13.7M), partially offset by stable interest income from consumer, MHP, and dealer loans at $43.7M. Operating income was $48.4M, with an operating margin of 29.4%. The company generated $37.2M in operating cash flow and ended the period with $8.5M in cash and total assets of $580.3M. Key strategic moves included the $19.0M acquisition of AmeriCasa Solutions in November 2025, expanding the company's retail footprint and adding a SaaS platform.
Legacy Housing Corporation's FY 2025 financial performance showed a decline from the prior year. Total net revenue decreased 10.6% to $164.6M from $184.2M in FY 2024. This was driven by a 9.6% decrease in product sales to $116.9M and a 71.0% decrease in other revenue to $4.0M, while interest income from consumer, MHP, and dealer loans remained relatively stable at $43.7M. Net income declined 32.2% to $41.8M from $61.6M. The company maintained profitability with operating income of $48.4M (29.4% operating margin) and generated $37.2M in operating cash flow. Basic EPS was $1.74 compared to $2.55 in the prior year. The balance sheet remained strong with total assets of $580.3M and stockholders' equity of $528.6M.
Revenue composition shifted in FY 2025 with product sales representing 71.0% of total revenue ($116.9M), down from 70.2% in FY 2024. Interest income from financing activities contributed 26.5% ($43.7M), up from 22.4% in the prior year. Other revenue declined significantly to 2.4% ($4.0M) from 7.4% ($13.7M) in FY 2024. The document indicates sales distribution by channel: approximately 44% to independent retail distributors, 21% to company-owned retail locations, and 35% directly to manufactured housing community owners. Geographically, Texas remained the largest market at 52% of product sales, followed by Georgia at 8%. The company sold 1,703 units (2,253 floors) in FY 2025 compared to 2,129 units (2,471 floors) in FY 2024.
Gross profit decreased to $78.0M in FY 2025 from $92.6M in FY 2024, with gross margin declining to 47.4% from 49.1%. Cost of product sales was $84.8M (72.5% of product sales) compared to $90.1M (69.7% of product sales) in the prior year. Selling, general and administrative expenses increased to $29.6M from $22.3M, representing 18.0% of total revenue versus 12.1% in FY 2024. Operating income was $48.4M with an operating margin of 29.4%, down from 34.5% in the prior year. The decline in profitability was attributed to lower sales volume, increased SG&A expenses, and pressure from higher input costs including tariffs on goods imported from China.
The company generated $37.2M in operating cash flow for FY 2025, slightly higher than the $36.0M in FY 2024. Investing activities used $22.1M, primarily for the $19.0M AmeriCasa acquisition and $9.0M in property, plant and equipment purchases. Financing activities used $7.7M, mainly for $7.6M in treasury stock purchases. Free cash flow (operating cash flow minus capital expenditures) was $15.1M. The balance sheet shows total assets of $580.3M, including $164.7M in current assets and $60.5M in net property, plant and equipment. Total liabilities were $51.7M, resulting in a debt-to-equity ratio of approximately 0.10. The company had $8.5M in cash and $1.2M in lines of credit outstanding.
The company's growth strategy focuses on expanding financing solutions, continuing innovation and customization, seeking agreements with manufactured home community owners, pursuing selective development opportunities, and focusing on the retail process. Management noted that inflation and higher interest rates could impact material costs and consumer financing affordability. The company acquired AmeriCasa Solutions in November 2025 for $19.9M, adding retail locations, a SaaS platform, and consumer loans. The document discloses material weaknesses in internal control over financial reporting related to control activities, qualified accounting personnel, and information technology general controls. The company continues to monitor tariff impacts on imported materials and is taking steps to mitigate effects through supplier diversification and selective price adjustments.