cvco-20250628

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 000-08822

CAVCO INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Delaware

56-2405642

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

3636 North Central Ave, Ste 1200

Phoenix

Arizona

85012

(Address of principal executive offices, including zip code)

(602) 256-6263

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01	CVCO	The Nasdaq Stock Market LLC
		(Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 24, 2025, 7,917,647 shares of the registrant's Common Stock, $0.01 par value, were outstanding.

CAVCO INDUSTRIES, INC.

FORM 10-Q

June 28, 2025

TABLE OF CONTENTS


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of June 28, 2025 (unaudited) and March 29, 2025			1
Consolidated Statements of Comprehensive Income (unaudited) for the three months ended June 28, 2025 and June 29, 2024			2
Consolidated Statements of Cash Flows (unaudited) for the three months ended June 28, 2025 and June 29, 2024			3
Notes to Consolidated Financial Statements (unaudited)			4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			16
Item 3. Quantitative and Qualitative Disclosures About Market Risk			21
Item 4. Controls and Procedures			22
PART II. OTHER INFORMATION
Item 1. Legal Proceedings			23
Item 1A. Risk Factors			23
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			23
Item 3. Not applicable
Item 4. Not applicable
Item 5. Other Information			23
Item 6. Exhibits			24
SIGNATURES			25

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CAVCO INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)


	June 28, 2025		March 29, 2025
ASSETS	(Unaudited)
Current assets
Cash and cash equivalents	$	344,626	$	356,225
Restricted cash, current	23,213		18,535
Accounts receivable, net	116,261		105,849
Short-term investments	17,821		19,842
Current portion of consumer loans receivable, net	37,795		35,852
Current portion of commercial loans receivable, net	47,102		43,492
Current portion of commercial loans receivable from affiliates, net	1,850		2,881
Inventories	258,068		252,695
Prepaid expenses and other current assets	68,536		74,815
Total current assets	915,272		910,186
Restricted cash	585		585
Investments	19,362		18,067
Consumer loans receivable, net	20,152		20,685
Commercial loans receivable, net	53,403		48,605
Commercial loans receivable from affiliates, net	5,247		4,768
Property, plant and equipment, net	231,880		227,620
Goodwill	121,969		121,969
Other intangibles, net	16,359		16,731
Operating lease right-of-use assets	34,118		35,576
Deferred income taxes	1,270		1,853
Total assets	$	1,419,617	$	1,406,645
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	42,077	$	37,195
Accrued expenses and other current liabilities	275,203		265,971
Total current liabilities	317,280		303,166
Operating lease liabilities	30,188		31,538
Other liabilities	7,316		7,359

Total liabilities	354,784		342,063
Stockholders' equity
Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding	—		—
Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,453,363 and 9,436,732 shares, respectively; Outstanding 7,916,350 and 8,008,012 shares, respectively	95		94
Treasury stock, at cost; 1,537,013 and 1,428,720 shares, respectively	(474,993)		(424,624)
Additional paid-in capital	289,821		290,940
Retained earnings	1,249,805		1,198,163
Accumulated other comprehensive income	105		9
Total stockholders' equity	1,064,833		1,064,582
Total liabilities and stockholders' equity	$	1,419,617	$	1,406,645

See accompanying Notes to Consolidated Financial Statements

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CAVCO INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per share amounts)

(Unaudited)


	Three Months Ended
		June 28, 2025		June 29, 2024
Net revenue		$	556,857	$	477,599
Cost of sales		427,351		374,197
Gross profit		129,506		103,402
Selling, general and administrative expenses		69,148		64,851
Income from operations		60,358		38,551
Interest income		5,103		5,511
Interest expense		(164)		(90)
Other (expense), net		—		(111)
Income before income taxes		65,297		43,861
Income tax expense		(13,655)		(9,432)
Net income		$	51,642	$	34,429

Comprehensive income
Net income		$	51,642	$	34,429
Reclassification adjustment for securities sold		117		9
Applicable income tax expense		(24)		(2)
Net change in unrealized position of investments held		4		65
Applicable income tax expense		(1)		(14)
Comprehensive income		$	51,738	$	34,487

Net income per share
Basic		$	6.49	$	4.15
Diluted		$	6.42	$	4.11
Weighted average shares outstanding
Basic		7,953,720		8,286,476
Diluted		8,041,008		8,372,254

See accompanying Notes to Consolidated Financial Statements

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CAVCO INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)


	Three Months Ended
	June 28, 2025		June 29, 2024
OPERATING ACTIVITIES
Net income	$	51,642	$	34,429
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	5,169		4,761
Provision for credit losses	(64)		89
Deferred income taxes	558		7
Stock-based compensation expense	3,564		2,195
Non-cash interest income, net	(239)		(286)
Loss on sale or retirement of property, plant and equipment, net	80		11
Gain on investments and sale of loans, net	(1,054)		(177)

Changes in operating assets and liabilities, net of acquisitions
Accounts receivable	(10,390)		(7,977)
Consumer loans receivable originated	(15,231)		(20,833)
Proceeds received on consumer loans receivable	13,774		14,504


Inventories	(5,373)		(3,505)
Prepaid expenses and other current assets	7,561		5,648
Commercial loans receivable originated	(42,378)		(26,750)
Principal payments received on commercial loans receivable	34,532		22,356
Accounts payable, accrued expenses and other liabilities	13,372		22,921
Net cash provided by operating activities	55,523		47,393
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(9,138)		(4,975)
Proceeds from sale of property, plant and equipment	—		10
Purchases of investments	(6,438)		(4,547)
Proceeds from sale of investments	7,861		4,163

Net cash used in investing activities	(7,715)		(5,349)
FINANCING ACTIVITIES
Payments for taxes on stock option exercises and releases of equity awards	(4,709)		(2,349)
Proceeds from exercise of stock options	29		—

Payments on finance leases and other secured financings	(49)		(51)
Payments for common stock repurchases	(50,000)		(29,463)
Net cash used in financing activities	(54,729)		(31,863)
Net (decrease) increase in cash, cash equivalents and restricted cash	(6,921)		10,181
Cash, cash equivalents and restricted cash at beginning of the fiscal year	375,345		368,753
Cash, cash equivalents and restricted cash at end of the period	$	368,424	$	378,937
Supplemental disclosures of cash flow information
Cash paid for income taxes	$	5,419	$	4,720
Cash paid for interest	$	68	$	22
Supplemental disclosures of noncash activity
Change in GNMA loans eligible for repurchase	$	563	$	76
Right-of-use assets recognized and operating lease obligations incurred	$	—	$	1,315

See accompanying Notes to Consolidated Financial Statements

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CAVCO INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Basis of Presentation

The accompanying unaudited Consolidated Financial Statements of Cavco Industries, Inc. and its subsidiaries (collectively, "we," "us," "our," the "Company" or "Cavco") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. In addition, references throughout to numbered "Notes" refer to these Notes to Consolidated Financial Statements (Unaudited), unless otherwise stated.

In the opinion of management, these financial statements include all adjustments, including normal recurring adjustments, which are necessary to fairly state the interim results for the periods presented. We have evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC, and there were no disclosable subsequent events other than those mentioned in Note 19. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K for the year ended March 29, 2025, filed with the SEC ("Form 10-K").

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Due to uncertainties, actual results could differ from the estimates and assumptions used in preparation of the Consolidated Financial Statements. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows for the interim periods are not necessarily indicative of the results or cash flows for the full year. The Company operates on a 52-53 week fiscal year ending on the Saturday nearest to March 31st of each year. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest March 31st. The current fiscal year will end on March 28, 2026 and will include 52 weeks.

For a description of significant accounting policies used in the preparation of our Consolidated Financial Statements, please refer to Note 1 of the Notes to Consolidated Financial Statements included in the Form 10-K.

2. Recent Accounting Pronouncements

The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB"). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's Consolidated Financial Statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires companies to enhance the disclosures about segment expenses. The new standard requires the identification and disclosure of the Company’s Chief Operating Decision Maker ("CODM"), expanded incremental line-item disclosures of significant segment expenses used by the CODM for decision-making, and the inclusion of previous annual only segment disclosure requirements on a quarterly basis. This ASU should be applied retrospectively for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 effective for the annual period beginning March 31, 2024, and for interim periods beginning March 30, 2025. ASU 2023-07 is applied retrospectively to all prior periods presented in the accompanying Consolidated Financial Statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures, which requires greater disaggregation of income tax disclosures. The new standard requires additional information to be disclosed with respect to the income tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This ASU should be applied prospectively for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is currently evaluating the impacts of this guidance on the Company's Consolidated Financial Statements.

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In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"), and in January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Both early adoption and retrospective application are permitted. The Company is currently evaluating the impact that the adoption of these standards will have on its Consolidated Financial Statements.

3. Revenue from Contracts with Customers

The following table summarizes Net revenue disaggregated by reportable segment and source (in thousands):


	Three Months Ended
		June 28, 2025		June 29, 2024
Factory-built housing
Home sales		$	509,736	$	436,429
Delivery, setup and other revenues		25,958		21,619
		535,694		458,048
Financial services
Insurance agency commissions received from third-party insurance companies		1,410		1,406
All other sources		19,753		18,145
		21,163		19,551
		$	556,857	$	477,599

4. Cash and Cash Equivalents and Restricted Cash

The following table provides a reconciliation of Cash and cash equivalents and Restricted cash reported within the Consolidated Balance Sheets to the combined amounts shown in the Consolidated Statements of Cash Flows (in thousands):


	June 28, 2025		March 29, 2025
Cash and cash equivalents	$	344,626	$	356,225
Restricted cash, current	23,213		18,535
Restricted cash	585		585
	$	368,424	$	375,345

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5. Investments

Investments consisted of the following (in thousands):


	June 28, 2025		March 29, 2025
Available-for-sale debt securities	$	20,359	$	21,415
Marketable equity securities	11,805		11,425
Non-marketable equity investments	5,019		5,069
	37,183		37,909
Less short-term investments	(17,821)		(19,842)
	$	19,362	$	18,067

The amortized cost and fair value of our investments in available-for-sale debt securities, by security type, are shown in the table below (in thousands):


	June 28, 2025				March 29, 2025
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Residential mortgage-backed securities	$	5,175	$	5,226	$	4,122	$	4,120
State and political subdivision debt securities	6,483		6,531		6,955		6,976
Corporate debt securities	8,568		8,602		10,326		10,319
	$	20,226	$	20,359	$	21,403	$	21,415

The amortized cost and fair value of our investments in available-for-sale debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities may differ from contractual maturities as borrowers at times have the right to call or prepay obligations, with or without penalties.


	June 28, 2025
	Amortized Cost		Fair Value
Due in less than one year	$	5,697	$	5,674
Due after one year through five years	7,100		7,180
Due after five years through ten years	1,931		1,949
Due after ten years	323		330
Mortgage-backed securities	5,175		5,226
	$	20,226	$	20,359

Net investment gains and losses on marketable equity securities were as follows (in thousands):


	Three Months Ended
		June 28, 2025		June 29, 2024
Marketable equity securities
Net gain (loss) recognized during the period		$	599	$	(454)
Less: Net loss (gain) recognized on securities sold during the period		56		(552)
Unrealized gain (loss) recognized during the period on securities still held		$	655	$	(1,006)

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6. Inventories

Inventories consisted of the following (in thousands):


	June 28, 2025		March 29, 2025
Raw materials	$	78,964	$	79,098
Work in process	32,368		29,808
Finished goods	146,736		143,789
	$	258,068	$	252,695

7. Consumer Loans Receivable

The following table summarizes consumer loans receivable (in thousands):


	June 28, 2025		March 29, 2025
Loans held for investment, previously securitized	$	13,030	$	13,775
Loans held for investment	12,122		12,196
Loans held for sale	30,155		27,981
Construction advances	4,257		4,210
	59,564		58,162
Deferred financing fees and other, net	(709)		(686)
Allowance for loan losses	(908)		(939)
	57,947		56,537
Less current portion	(37,795)		(35,852)
	$	20,152	$	20,685

The consumer loans held for investment had the following characteristics:


	June 28, 2025		March 29, 2025
Weighted average contractual interest rate	7.8	%	7.9	%
Weighted average effective interest rate	7.9	%	10.3	%
Weighted average months to maturity	225		221

The following table is a consolidated summary of the delinquency status of the outstanding principal balance of consumer loans receivable (in thousands):


	June 28, 2025		March 29, 2025
Current	$	58,034	$	56,401
31 to 60 days	284		1,082
61 to 90 days	141		4
91+ days	1,105		675
	$	59,564	$	58,162

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The following table disaggregates the outstanding principal balance of consumer loans receivable by credit quality indicator and fiscal year of origination (in thousands):


	June 28, 2025
	2026		2025		2024		2023		2022		Prior		Total
Prime- FICO score 680 and greater	$	5,204	$	13,661	$	9,045	$	322	$	91	$	13,386	$	41,709
Near Prime- FICO score 620-679	1,659		3,401		1,205		—		—		9,836		16,101
Sub-Prime- FICO score less than 620	14		322		—		—		—		651		987
No FICO score	—		65		440		—		—		262		767
	$	6,877	$	17,449	$	10,690	$	322	$	91	$	24,135	$	59,564


	March 29, 2025
	2025		2024		2023		2022		2021		Prior		Total
Prime- FICO score 680 and greater	$	18,133	$	9,209	$	323	$	92	$	761	$	13,197	$	41,715
Near Prime- FICO score 620-679	2,948		1,210		—		—		1,026		9,000		14,184
Sub-Prime- FICO score less than 620	537		—		—		—		17		680		1,234
No FICO score	317		441		—		—		—		271		1,029
	$	21,935	$	10,860	$	323	$	92	$	1,804	$	23,148	$	58,162

As of June 28, 2025, 53% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas. As of March 29, 2025, 54% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 11% was concentrated in Florida. Other than Texas and Florida, no state had concentrations in excess of 10% of the outstanding principal balance of the consumer loans receivable as of June 28, 2025 or March 29, 2025.

8. Commercial Loans Receivable

The commercial loans receivable balance consists of direct financing arrangements for the home product needs of our independent distributors, community owners and developers.

Commercial loans receivable, net consisted of the following (in thousands):


	June 28, 2025		March 29, 2025
Loans receivable (including from affiliates)	$	108,143	$	100,297
Allowance for loan losses	(338)		(361)
Deferred financing fees, net	(203)		(190)
	107,602		99,746
Less current portion of commercial loans receivable (including from affiliates), net	(48,952)		(46,373)
	$	58,650	$	53,373

The commercial loans receivable balance had the following characteristics:


	June 28, 2025		March 29, 2025
Weighted average contractual interest rate	8.0	%	8.3	%
Weighted average months outstanding	10		10

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Nonperforming status includes loans accounted for on a non-accrual basis and accruing loans with principal payments 90 days or more past due. As of June 28, 2025 and March 29, 2025, there were no commercial loans considered nonperforming. The following table disaggregates the outstanding principal balance of our commercial loans receivable by fiscal year of origination (in thousands):


	June 28, 2025
	2026		2025		2024		2023		2022		Prior		Total
Performing	$	33,246	$	49,507	$	19,163	$	4,910	$	998	$	319	$	108,143


	March 29, 2025
	2025		2024		2023		2022		2021		Prior		Total
Performing	$	66,843	$	24,215	$	7,006	$	1,014	$	1,219	$	—	$	100,297

As of June 28, 2025 and March 29, 2025, approximately 16% of our outstanding commercial loans receivable principal balance was concentrated in California. As of June 28, 2025 and March 29, 2025, approximately 14% and 17%, respectively, was concentrated in New York. As of June 28, 2025, Arizona and North Carolina each had approximately 12% concentrations.

We had concentrations with one independent third-party and its affiliates that equaled 12% and 10% of the net commercial loans receivable principal balance outstanding, all of which was secured, as of June 28, 2025 and March 29, 2025, respectively. The risks created by these concentrations have been considered in the determination of the adequacy of the allowance for loan losses.

9. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	June 28, 2025		March 29, 2025
Salaries, wages and benefits	$	47,431	$	45,640
Customer deposits	47,145		46,934
Estimated warranties	34,383		33,189
Unearned insurance premiums	34,322		33,863
Accrued volume rebates	27,660		21,208
Accrued insurance	13,239		13,094
Insurance loss reserves	13,118		16,201







Other	57,905		55,842
	$	275,203	$	265,971

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10. Warranties

Activity in the liability for estimated warranties was as follows (in thousands):


	Three Months Ended
		June 28, 2025		June 29, 2024
Balance at beginning of period		$	33,189	$	31,718

Charged to costs and expenses		16,625		12,091

SEC Form 10-Q filed by Cavco Industries Inc.