KB Home is one of the largest U.S. homebuilders, focused primarily on entry-level and first move-up buyers. The company builds single-family homes, townhomes, and condominiums across 49 markets in nine states, organized into four segments: West Coast, Southwest, Central, and Southeast. First-time and first move-up buyers have consistently represented over 75% of annual deliveries. KB Home sells directly to buyers through sales associates working out of model homes, supplemented by digital marketing and outside brokers. KB Home's defining operational feature is its "Built to Order" (BTO) model, under which buyers select their lot, floor plan, and structural options before construction begins, then visit a KB Home Design Studio to personalize finishes and upgrades. Construction only starts after a signed contract and credit approval. This reduces inventory risk, improves production scheduling, and generates gross margins management estimates at 250-500 bps higher than spec homes. KB Home makes money by acquiring and developing land, constructing homes entirely through independent subcontractors, and selling to buyers. Revenue is driven by homes delivered and average selling price, which was roughly $483,000 in FY2025. Land cost is the primary input, and KB Home manages land risk through option contracts, which covered roughly 43% of its approximately 65,000 controlled lots as of FY2025. KB Home also operates a small financial services segment and a mortgage joint venture, KBHS Home Loans, which captures roughly 80-90% of KB Home buyers who finance.