Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 147

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 147
---
 earnings from investment in joint venture497 657 (160)(24.4)%Change in fair value of derivative liabilities15,038 58,435 (43,397)(74.3)%Consolidated income before taxes$10,279 $52,551 $(42,272)(80.4)%

___________________

1 Other consists of UHG’s homebuilding operations in Raleigh, NC.

2 Corporate items included within consolidated income before taxes includes unallocated corporate overhead, stock-based compensation, corporate interest income and expense, and other corporate level items not allocated to the segments.

Income before taxes for the six months ended June 30, 2025 decreased $42.3 million, or 80.4%, from the six months ended June 30, 2024. The decrease was primarily due to a decrease in change in fair value of derivative liabilities of $43.4 million and a decrease in gross profit of $1.6 million, partially offset by a decrease in selling, general, and administrative expense of $2.5 million.

GSH South Carolina: The $6.5 million decrease in income before taxes for the six months ended June 30, 2025 compared to the same period in the prior year was primarily due to a decrease in the number of homes closed of 18.2%, which resulted in lower gross profit and higher operating costs as a percentage of revenue coupled with increased interest expense.

Rosewood: The $0.6 million decrease in pre-tax profitability for the six months ended June 30, 2025 compared to the same period in the prior year was primarily due to a decrease in the change in fair value of contingent consideration related to the acquisition of Rosewood Communities, Inc. in 2023 of $0.9 million, partially offset by an increase in home closings of 30.1%.

Other: The $1.7 million decrease in loss before taxes for Raleigh for the six months ended June 30, 2025 compared to the same period in the prior year was primarily due to a decrease in severance expense of $1.1 million and a decrease in selling, general, and administrative expense of $0.5 million due to reductions in salaries and wages and advertising and marketing costs, partially offset by increased commissions as a result of increased closings.

Net New Orders: Net new orders for the six months ended June 30, 2025 was 600 units, a decrease of 107