Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 83

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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Stock-based compensation expense1,936 1,568 5,304 4,918 Transaction cost expense669 686 1,376 2,428 Amortization in homebuilding cost of sales(a)598 573 2,161 2,434 Severance expense— — 125 1,504 Abandoned project costs9 — 67 320 Change in fair value of derivative liabilities27,208 7,785 12,170 (50,650)Non-recurring remediation costs— — — 109 Adjusted EBITDA$3,815 $8,978 $13,925 $23,922 EBITDA margin(b)(29.3)%(1.4)%(2.6)%19.1 %Adjusted EBITDA margin(b)4.2 %7.6 %4.9 %7.3 %

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(a) Represents expense recognized resulting from purchase accounting adjustments.

(b) Calculated as a percentage of revenue.

Liquidity and Capital Resources

Overview

UHG funds its operations from its current cash holdings and cash flows generated by operating activities, as well as borrowings under the revolving credit facility (“Syndicated Line”), as further described below. As of September 30, 2025, UHG had approximately $25.6 million in cash and cash equivalents, an increase of $3.0 million, from $22.6 million as of December 31, 2024. As of September 30, 2025 and December 31, 2024, UHG had approximately $57.5 million and $96.4 million, respectively, in unused committed capacity, calculated in accordance with the Syndicated Line. 

UHG believes that its current cash holdings including cash generated from continuing operations and cash available under the Syndicated Line will be sufficient to satisfy its short term and long term cash requirements for working capital to support its daily operations and meet current commitments under its contractual obligations. The Company’s liquidity and profitability could be adversely impacted by continued operational headwinds. 

Cash flows used in and generated by UHG’s projects can differ materially in timing from its results of operations, as these depend upon the stage in the life cycle of each project. UHG generally relies upon its syndicated line of credit to fund building costs, and timing of draws is such that UHG may from time to time be in receipt of