Toll Brothers is the largest luxury homebuilder in the U.S., designing, building, and selling single-family detached homes, attached homes, and urban condominiums. The company targets affluent buyers — primarily move-up buyers trading into larger homes, empty nesters downsizing, and affluent first-time buyers — in suburban locations near major employment centers, with a particular focus on the Northeast corridor and Coastal California. Homes average roughly $960K, with about 32% of deliveries priced above $1M. A key revenue driver is design studio upgrades, where buyers customize finishes, structural options, and lot premiums — these averaged ~$202K per home in FY25, or about 24.5% of the base price, and carry above-average margins. Toll Brothers has shifted meaningfully toward spec homes (roughly 54% of FY25 deliveries, up from ~10-15% historically), improving capital efficiency and inventory turns, though spec homes carry slightly lower margins than build-to-order homes. The company also operates Toll Brothers Mortgage, which finances roughly 43% of buyer settlements before selling those loans to third parties. Toll Brothers is exiting its multifamily apartment development business, agreeing to sell roughly half the portfolio to Kennedy Wilson for ~$380M, with remaining assets to be sold over time. On capital allocation, Toll Brothers invests heavily in land (~$2.9B in FY25), targets a mix of ~60% optioned lots to reduce balance sheet risk, and has repurchased roughly half of its shares outstanding since 2016.