Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 94

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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20.4% for the three months ended March 31, 2024. The decrease in adjusted gross profit as a percentage of revenue was attributable to higher incentives in cost of sales. Adjusted gross profit is a non-GAAP financial measure. For the definition of adjusted gross profit and a reconciliation to UHG’s most directly comparable financial measure calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures.”

Selling, general and administrative expense: Selling, general and administrative expense for the three months ended March 31, 2025 was $16.2 million, a decrease of $0.9 million, or 5.3%, from $17.1 million for the three months ended March 31, 2024. The decrease in selling, general and administrative expense was primarily attributable to a decrease in commissions expense of $1.3 million due to a decrease in home closings, and a decrease in transaction costs of $1.2 million, partially offset by an increase of $0.8 million in salaries, wages, and related expenses, an increase of $0.4 million in stock compensation expense, and an increase of $0.2 million related to ERP implementation costs.

Other expense, net: Total other expense, net for the three months ended March 31, 2025 was $2.5 million, an increase of $0.5 million, from $2.0 million for the three months ended March 31, 2024. The increase in other expense, net was primarily attributable to an increase in interest expense of $0.3 million and a decrease of $0.1 million in investment income.

Equity in net earnings from investment in joint venture: Equity in net earnings from investment in joint venture for the three months ended March 31, 2025 was $0.2 million, a decrease of $0.1 million, from $0.3 million for the three months ended March 31, 2024.

Change in fair value of derivative liabilities: Change in fair value of derivative liabilities for the three months ended March 31, 2025 was a gain of $21.2 million as compared to $26.4 million for the three months ended March 31, 2024. Under ASC 815, derivative liabilities are marked to market each reporting period with changes recognized as gains or losses on the Condensed Consolidated Statement of Operations. The overall decrease is primarily attributable to changes in the fair value of the Earnout Shares