Beazer Homes USA (BZH) saw its stock price plummet 7.23% in after-hours trading on Thursday following the release of its fiscal third-quarter results for 2025. The homebuilder reported disappointing financials that fell short of Wall Street expectations, including a surprising net loss.

For the quarter ended June 30, 2025, Beazer Homes reported a net loss from continuing operations of $0.3 million, or $0.01 per share, compared to a net income of $27.2 million, or $0.88 per share, in the same period last year. This result significantly missed the analyst consensus estimate of $0.42 earnings per share. The company's revenue also disappointed, coming in at $545.4 million, below the expected $559 million and representing an 8.45% decrease from the previous year.

The weak performance was attributed to several factors. Homebuilding revenue declined 9.2% year-over-year to $535.4 million, primarily due to an 11.3% drop in home closings, which totaled 1,035 units. Although the average selling price increased by 2.4% to $517,300, it wasn't enough to offset the lower volume. Additionally, the company's gross margin contracted by 380 basis points to 13.5%, further impacting profitability. Beazer Homes also reported inventory impairment and abandonment charges of $10.3 million, which contributed to the quarterly loss. Despite these challenges, the company remains focused on its long-term goals, including reaching 200 active communities by fiscal 2027 and improving its financial metrics.