Lennar is one of the largest homebuilders in the U.S., building and selling single-family attached and detached homes to first-time, move-up, active adult, and luxury buyers across most major U.S. markets. Lennar's core business is straightforward: build homes and sell them, with profitability driven by the number of homes delivered, the average sales price, and the gross margin between price and construction cost. A defining feature of Lennar's current model is its land-light strategy — rather than owning land outright, Lennar controls nearly all of its homesites through options with third-party land banks, most notably Millrose, a publicly traded land bank that Lennar spun off in early FY25. This reduces balance sheet inventory and limits land write-down risk, at the cost of roughly 100 bps of gross margin. Lennar also operates a Financial Services segment that originates residential mortgages for its homebuyers, capturing about 84% of buyers who used financing, then sells those mortgages into the secondary market. Lennar's strategy centers on maintaining high, consistent production volume to extract supply chain cost efficiencies and improve inventory turns, while using price reductions and mortgage rate buydowns as a shock absorber to sustain sales pace rather than cutting production to protect margin. Lennar is also investing in AI and data-driven tools, including a digital marketing and dynamic pricing platform and a land management system developed with Palantir, with the goal of reducing customer acquisition costs over time.