Lennar reported Q1 2025 results in a challenging housing backdrop characterized by elevated mortgage rates, tempered consumer confidence, and persistent affordability constraints. Revenue of $7.63 billion and GAAP gross margin of 11.3% reflect a market where incentives and pricing strategies have become pivotal to sustaining volume. Management reaffirmed two core operating tenets: (1) build and deliver consistent volume to maximize efficiencies, and (2) advance an asset-light, land-light model with just-in-time home-site delivery, leveraging the Millrose spin-off and the Rausch Coleman acquisition to accelerate transition. Despite near-term margin pressure, the company maintained a strong liquidity position (cash on hand of $2.3 billion and total liquidity around $5.3 billion) and demonstrated strategic capital allocation through a $703 million share repurchase and a dividend framework tied to Millrose. Guidance for 2025 contemplates delivering 86,000–88,000 homes with Q2-specific targets of 22,500–23,500 new orders and 19,500–20,500 deliveries, with an expected gross margin near 18% (before purchase accounting) and SG&A around 8%–8.2%. Lennar emphasizes that normalized margins could move toward the mid-20s once incentives normalize to historically more typical levels, supported by an accelerating asset-light platform and tighter land-management discipline. The company remains exposed to macro housing risk, but its capital structure, land-bank strategy, and ongoing optimization of operating costs could yield meaningful cash flow improvement and shareholder returns as conditions stabilize.