Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 61

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 61
---
 decrease in loss before taxes for Raleigh for the three months ended June 30, 2025 compared to the same period in the prior year was primarily due to a reduction in severance expense in the prior period of $1.1 million and a decrease in selling, general, and administrative expense of $0.4 million.

Income tax (benefit) expense: Income tax (benefit) expense for the three months ended June 30, 2025 was a benefit of $0.3 million compared to an expense of $0.1 million for the three months ended June 30, 2024. The Company estimates the effective tax rate expected to be applicable for the full fiscal year and this rate is applied to the results for the year-to-date period, and then adjusted for any discrete period items. The Company's estimated annual effective tax rate for the June 30, 2025 is 33.1% as compared to 15.3% as of June 30, 2024.

Net new orders: Net new orders for a period is gross sales of homes less any customer cancellations received during the same period. Sales are recognized when a customer signs a contract and UHG approves such contract. Net new orders for the three months ended June 30, 2025 were 304 units, a decrease of 19 units, or 5.9%, from 323 units for the three months ended June 30, 2024.

Cancellation rate: The cancellation rate is the total cancellations during the period divided by the total number of new sales for homes during the period. The cancellation rate for the three months ended June 30, 2025 was 11.4%, a decrease of 1.3%, from 12.7% for the three months ended June 30, 2024.

Backlog: Backlog consists of homes sold but not yet closed with customers. Backlog represents the number of homes in backlog from the previous period plus sales of homes during the current period less cancellations of existing sales contracts and home closings during the current period. A portion of the homes in backlog will not result in homes delivered due to cancellations. 

28

Backlog as of June 30, 2025 was 202 units, a decrease of 46 units, or 18.5%, from 248 units as of June 30, 2024. The following table provides a summary of the Company’s backlog inventory, backlog value, and