Hovnanian Enterprises (HOVVB) reported Q2 2025 revenue of $686.5 million, flat to down modestly versus the prior year, with adjusted gross margin of 17.3% that was slightly below the guided range due to higher mortgage-rate incentives. Management indicated an active shift toward pace (contracts per community) over price in a challenging housing backdrop, aided by a higher use of mortgage-rate buydowns (75% of buyers) and a strong emphasis on QMIs (quick move-ins). Key operational highlights included 8.6 QMIs per community at quarter-end, 39% of homes delivered during the quarter contracted in the same quarter, and an elevated backlog conversion of 80%. Net income was $19.7 million, or $2.64 per basic share and $2.43 per diluted share, with QoQ improvements in operating income (+92.4% QoQ) but sharp year-over-year declines in profitability (YoY net income down 61% and EBIT down 41%). Management reaffirmed Q3 guidance with revenue expected between $750 million and $850 million and adjusted gross margin guidance of 17%–18%, underscoring ongoing sensitivity to incentives, land costs, and sales pace. The company highlighted meaningful balance-sheet progress, including $1.3 billion of equity growth since 2020, a $742 million debt reduction, and a net-debt-to-net-capital ratio of 51.4% (toward the 30% target), supported by ~$202 million of liquidity and sizable deferred tax assets that shield ~$700 million of future pretax earnings from federal taxes. Strategic initiatives such as land-light positioning (85%–91% of lots controlled via options), Saudi Arabia JV expansion, and an ongoing cost-reduction program continue to anchor the longer-term growth trajectory. Overall, the QQ2 2025 results demonstrate resilience in a difficult macro backdrop, with clear catalysts for improving returns as land positions are optimized and land acquisitions are re-underwritten under current market conditions.