GRBK-PA · Green Brick Partners, Inc.

The Audit Committee of Green Brick Partners, Inc. identified an accounting error in the recognition of residential units revenue across multiple prior periods. Specifically, closing cost incentives provided to homebuyers, such as interest-rate buy-downs, were previously included in cost of residential units rather than reducing revenue as required under ASC 606, Revenue from Contracts with Customers. This misclassification led to overstated revenue and costs by equal amounts, artificially lowering reported gross margins. The restatement will reclassify these incentives as reductions to both revenue and cost of revenues, resulting in higher gross margins without altering gross profit, net income, diluted EPS, cash flows, or balance sheet positions. Investors should note the impact on certain operating metrics, including reduced average sales price and SG&A leverage, which may affect peer comparisons or historical trend analysis. The Company plans to file a Form 10-K/A restating audited financials for fiscal years 2023, 2024, and 2025, along with unaudited interim statements for quarters ended March 31, June 30, and September 30, 2025. This disclosure, discussed with independent auditors RSM US LLP, underscores proactive governance but highlights the need for caution when reviewing prior-period metrics not directly tied to profitability.