Dream Finders reports growth despite challenging economics

Dream Finders Homes touted recent mergers and continued growth momentum in an unsettled economic environment, as its revenues accelerated but profits stalled in the first quarter. 

The Jacksonville, Florida-based homebuilder and lender posted net income of $54.9 million for the three-month period ending March 31, inching up 0.8% on a year-over-year basis from $54.5 million. Compared to the fourth quarter of 2024, though, the bottom line receded 57.5% from $129.3 million. 

The company made no mention of potential tariff headwinds that recently led other new-home construction businesses to advise of price hikes at the end of the 2025. Instead, the company's CEO gave a favorable assessment of where Dream Finders stood, maintaining expectations for growth this year.

"All in all, given the continued challenging environment from a mortgage rate and affordability perspective, I am pleased with the performance of the team and our results," said Dream Finders Chairman and CEO Patrick Zalupski in a press release. The company did not offer a formal earnings call.

Although net income stayed near its level of a year ago, revenue across both its building and mortgage lending units surged 19.6% to $989.9 million from $827.8 million in the equivalent period last year. The latest number reflected a 36.5% pullback from fourth quarter's $1.56 billion.

Home building accounted for $970.1 million of first-quarter 2025 revenue, with financial services providing $19.8 million. In the same three months of 2024, totals were $825.2 million and $2.6 million. Home building and mortgage lending brought in $1.53 billion and $26.6 million, respectively, in fourth quarter 2024. 

New orders picked up by 17.8% year over year to 2,032 from 1,724 in the first quarter. Order numbers also were higher from fourth quarter's 1,611.

Home closings also grew to 1,925 from 1,655 one year prior but decreased from 3,008 reported between October and December. The average price of closed homes in the first quarter clocked in at $498,284 compared to $494,995 and $507,477 three and 12 months earlier.  

While sales of existing homes stagnated for much of the past two years, builders of new properties maintained much of their growth, generating interest thanks to pent-up consumer demand. Threats of a trade war and macroeconomic challenges are throwing cold water on previous optimism, as builders plan the rest of their year. 

Dream Finders, though, still expects the number of closed units to increase in 2025 to an estimated 9,250, up almost 8% from 2024's 8,253.       

Dream Finders' acquisition activity

Growth is likely to come as recent merger-and-acquisition activity bears fruit for the company. Profits flattened last quarter despite higher revenue, as Dream Finders simultaneously pushed forward on closing key deals and wrapping up others that stand to expand homebuilding, mortgage lending and title capabilities. 

To start the year, it completed its purchase of fellow homebuilder Liberty Communities. 

"Liberty provides us a great opportunity to expand into the Atlanta market, which is the largest housing market in the Southeast and the only major Southeastern market where DFH was lacking a presence," Zalupski said. 

In March, Dream Finders subsequently closed on its purchase of lending-related assets previously belonging to Cherry Creek Mortgage, folding them into its subsidiary Jet Homeloans. 

Since first-quarter's end, the homebuilder announced the completion of two new mergers, expanding the financial services side of the business with the addition of title insurance provider Alliant National. In early May, the company also closed on the acquisition of assets of Green River Builders, opening up further access to the Atlanta market. 

With the two latest transactions, Dream Finders has completed ten acquisitions in six years. It now owns and operates communities in 10 states in the Mid Atlantic, Southeast and Southwest. At the end of 2024, it counted 242 active communities in its portfolio. 

"We are confident all of these transactions will provide significant growth opportunities in our homebuilding and financial services segments, allowing us to continue to grow our earnings and deliver above-average shareholder returns," Zalupski remarked.