How did Beizhe House's revenue and expenses trend in Q1 2025?

Beazer Homes USA Inc. experienced a challenging first quarter in 2025 with notable declines in profitability despite positive revenue growth.

1. **Revenue Growth**: The company's homebuilding revenue increased by 20.9% year-over-year, reaching $460.4 million in Q1 2025, up from the previous year's $380.4 million. This growth was driven by a 22.1% rise in home closings, which reached 907 units. However, this was partially offset by a 1.0% decrease in the average selling price to $507.6 thousand.
2. **Expense Trends**: Beazer Homes faced significant challenges in maintaining profitability. The company's gross margin decreased to 15.2%, a 470 basis point drop from the previous year, primarily due to increased price concessions and closing cost incentives. Additionally, the net income from continuing operations plummeted to $3.1 million, down from $21.7 million in the same quarter last year. The adjusted EBITDA also fell by 39.4%.
3. **Liquidity and Financial Position**: The company's total liquidity stood at $335.4 million, including $80.4 million in unrestricted cash, reflecting a decrease from $404.2 million at the same time last year. The total debt to total capitalization ratio remained stable at 46.5% year-over-year, but the net debt to net capitalization ratio increased to 44.5% at the end of the quarter, up from 43.7% a year ago.

In conclusion, while Beazer Homes saw a positive trend in revenue, the increase in expenses and a decrease in gross margin led to a significant drop in net income. The company's liquidity also showed a decline compared to the previous year. These factors contributed to a challenging financial performance in Q1 2025.