KB Home (NYSE: KBH) reported third-quarter financial results after the market close on Tuesday, and the homebuilder managed something increasingly rare in this housing market: a double beat.

KB Home Q3 Earnings Highlights

KB Home reported third-quarter revenue of $1.297 billion, beating analyst estimates of $1.294 billion, according to market data. The company reported third-quarter earnings of $1.05 per share, beating estimates of 89 cents per share.

The headline numbers look good. The underlying ones tell a more complicated story.

KB Home delivered 2,732 homes in the quarter, down 19% on a year-over-year basis. The average selling price declined to $473,000 from $475,700, and net orders fell 12% year-over-year to 2,604. Ending backlog value increased for the first time in four years, with homes in backlog up 2% to 4,398 and backlog value up 3% to $2.05 billion.

KB Home said it repurchased approximately $50 million of its common stock during the quarter. The company ended the period with $159 million of total cash and cash equivalents and $942.4 million of total liquidity.

"We are operating in a housing market that continues to be challenging, with conditions weakening since our June earnings report. Higher mortgage interest rates have further pressured affordability and, together with geopolitical uncertainty and broader economic headwinds, have caused many prospective buyers to be more cautious on purchasing a home," said Jeffrey Mezger, executive chairman of KB Home.

"Against this backdrop, we produced third-quarter financial results that reflected solid sequential improvement."

KB Home expects $1.45 billion to $1.65 billion in housing revenue in the fourth quarter. The company also guided for full-year 2026 housing revenue of $4.90 billion to $5.10 billion.

KB Home management will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.

KBH Shares Climb After The Bell

KBH Price Action: KB Home shares were up 1.87% in after-hours on Tuesday, trading at $49.50 at the time of publication, according to market data.