Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 133

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 30, 2025 was $0.7 million, a decrease of $0.4 million, from $1.1 million for the nine months ended September 30, 2024.

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Change in Fair Value of Derivative Liabilities: Change in fair value of derivative liabilities for the nine months ended September 30, 2025 was a loss of $12.2 million as compared to a gain of $50.7 million for the nine months ended September 30, 2024. Under ASC 815, derivative liabilities are marked to market each reporting period with changes recognized on the Condensed Consolidated Statements of Operations. The overall increase is primarily attributable to changes in the fair value of the earnout shares, which fluctuates each period due primarily to changes in the Company's stock price.

Income Tax Benefit: Income tax benefit for the nine months ended September 30, 2025 was $1.0 million as compared to $1.1 million for the nine months ended September 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, adjusted for any discrete period items. The Company's estimated annual effective tax rate as of September 30, 2025 is 11.7% as compared to 17.0% as of September 30, 2024.

(Loss) income before taxes: The following table provides a summary of the Company’s (loss) income before taxes by reportable segment (in thousands, except percentage change):

Nine Months Ended September 30, Period over period20252024Change ($)Change (%)GSH South Carolina$8,563 $22,370 $(13,807)(61.7)%Rosewood(324)(456)132 (28.9)%Other1(337)(2,402)2,065 (86.0)%Segment total$7,902 $19,512 $(11,610)(59.5)%Corporate2(16,865)(26,070)9,205 (35.3)%Equity in net earnings from investment in joint venture715 1,076 (361)(33.6)%Change in fair value of derivative liabilities(12,170)50,650 (62,820)(124.0)%Consolidated (loss) income before taxes$(20,418)$45,168 $(65,586)(145.