How does Toll Brothers (TOL) make money?

Toll Brothers (TOL) generates revenue primarily from Home Building, which accounted for 96.5% of total revenue in TTM through Q2 2026. The company reported $11B in revenue and converted 11.7% of it into net profit, equivalent to roughly $1.29B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Toll Brothers (TOL)?

Toll Brothers (TOL) reported a gross profit margin of 24.9% in TTM through Q2 2026, equivalent to $2.75B in gross profit on $11B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Toll Brothers (TOL)?

Toll Brothers (TOL) reported an operating profit margin of 14.6% in TTM through Q2 2026, equivalent to $1.62B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Toll Brothers (TOL)?

Toll Brothers (TOL) reported a net profit margin of 11.7% in TTM through Q2 2026, equivalent to $1.29B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Toll Brothers (TOL) profitable?

Yes. Toll Brothers (TOL) reported $1.29B in net income for TTM through Q2 2026, with a net profit margin of 11.7%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Toll Brothers (TOL) spend on capital expenditures?

Toll Brothers (TOL) spent $96.6M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 0.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Toll Brothers (TOL) generate?

Toll Brothers (TOL) generated $1.22B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 11.0%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Toll Brothers (TOL)?

Toll Brothers (TOL) had an effective tax rate of 25% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Toll Brothers (TOL)?

Toll Brothers (TOL) reports revenue across 2 reportable product segments, led by Home Building at 96.5% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Toll Brothers (TOL) generate most of its revenue?

Mountain is the largest geographic market for Toll Brothers (TOL), accounting for 29.4% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Toll Brothers Makes Money: 2026 Visual Revenue Map

Toll Brothers (TOL) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending April 30, 2026 (reported May 29, 2026).

Toll Brothers (TOL) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Toll Brothers (TOL), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Home Building	$10.7B	96.5%
Land	$383M	3.5%
Total	$11B	100%

Home Building$10.7B
Land$383M
Total$11B

Toll Brothers (TOL) Revenue by Geography — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Toll Brothers (TOL), TTM through Q2 2026
Region	Revenue (USD)	% of total
Mountain	$4.03B	29.4%
South	$3.85B	28.2%
Pacific	$3B	21.9%
Mid-Atlantic	$2.12B	15.5%
North	$677M	4.9%
Corporate and Other	$253K	0%
Total	$13.7B	100%

Mountain
South
Pacific
Mid-Atlantic
North
Corporate and Other
Total

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Toll Brothers (TOL) reports revenue across 2 reportable product segments; the largest segment was Home Building at 96.5%, followed by Land (3.5%). Geographically, Mountain accounted for 29.4% of revenue, followed by South (28.2%) and Pacific (21.9%).

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