Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 90

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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 the three months ended March 31, 2025 decreased 22.9% compared to the prior year period.

In response to this demand environment, the Company continues to utilize various sales incentives, primarily in the form of buyer financing incentives such as mortgage rate buy downs, mortgage forward commitments, or cash incentives applied against closing costs. Furthermore, UHG is continuing to execute on key operational improvements that began in 2024, including revising its portfolio of house plans, offering more customization to buyers, and a strategic rebidding of supplier contracts to reduce direct construction costs and address inflationary pressures, including potential tariffs. This strategy is expected to accelerate sales activity and improve profitability. Management believes that the Company’s proactive approach, coupled with its adaptable land-light business model, will enable the Company to effectively navigate these multifaceted macroeconomic conditions.

UHG revenues decreased from approximately $100.8 million for the three months ended March 31, 2024 to $87.0 million for the three months ended March 31, 2025. For the three months ended March 31, 2025, UHG generated net income of approximately $18.2 million, which included $21.2 million related to the change in fair value of derivative liabilities, gross profit of 16.2%, adjusted gross profit of 18.8%, and adjusted EBITDA margin of 3.3%, representing a decrease of $6.7 million, and percentage changes of an increase of 0.2%, a decrease of 1.6%, and a decrease of 3.9%, respectively, from the three months ended March 31, 2024. 

Adjusted gross profit, EBITDA, adjusted EBITDA, and EBITDA margin are not financial measures under generally accepted accounting principles in the United States of America (“GAAP”). See “Non-GAAP Financial Measures” for an explanation of how UHG computes these non-GAAP financial measures and for reconciliations to the most directly comparable GAAP financial measure.

23

Results of Operations 

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

The following table presents summary results of operations for the periods indicated (dollar amounts in thousands except average sales price):

Three Months Ended March 31,20252024Change ($)Change (%)Statements of operationsRevenue, net of sales discounts$87,001 $100,838 $(13,837)(13.7)%Cost of sales72,