Lennar reported QQ2 2025 revenue of $8.378 billion, a 4.4% year-over-year decline but a 9.8% quarter-over-quarter increase. Gross profit was $804.4 million for a gross margin of 9.60%, with operating income of $648.6 million and net income of $477.4 million, translating to an EPS of $1.81. Despite solid profitability on an absolute basis, year-over-year earnings deteriorated markedly (net income and EPS down about 50% versus the prior-year period) as input costs and operating expenses remained elevated and the company faced a sharp swing in working capital dynamics. Free cash flow was negative at roughly $(1.11) billion, driven by a large working capital outflow (change in working capital of about $(2.09) billion) despite a modest capital expenditure load of $15.2 million. The balance sheet shows a substantial asset base ($34.37 billion) and a strong equity cushion ($22.58 billion) with net debt of approximately $(2.80) billion, suggesting ample balance sheet firepower but ongoing cash-generation challenges from operating activities. Management commentary on the call was not included in the supplied data; as a result, accompanying qualitative insights are limited to reported numbers and typical homebuilding cycle drivers. Investors should monitor housing demand signals, mortgage rate trajectories, and the company’s ability to translate earnings into positive operating cash flow in the second half of 2025.