Company: UHG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001830188-25-000012
Chunk: 90

Company: United Homes Group, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 90
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 especially of finished inventory, and higher costs of sales which was driven by higher incentives. 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 year ended December 31, 2024 was $74.7 million, an increase of $9.6 million, or 14.7%, from $65.1 million for the year ended December 31, 2023. The increase in selling, general and administrative expense was primarily attributable to an increase of $4.4 million in commission expense due to an increase in home closings and additional broker incentives, an increase of $3.9 million in salaries, wages, and related expenses due to increased headcount from corporate personnel as a public company and acquisitions, an increase of $1.2 million related to severance costs associated with the June 2024 workforce reduction, and an increase of $1.0 million in advertising costs, partially offset by a decrease in insurance expense.

Other Expense, Net: Total other expense, net for the year ended December 31, 2024 was an expense of $12.5 million, an increase of $8.7 million as compared to an expense of $3.8 million for the year ended December 31, 2023. The increase in other expense, net was primarily attributable to an increase in interest expense of $6.4 million partially from the issuance of the Convertible Notes in March 2023, a decrease in investment income of $1.8 million primarily from lower cash balances, and an increase of $0.4 million in amortization expense.

Equity in Net Earnings from Investment in Joint Venture: Equity in net earnings from investment in joint venture for the year ended December 31, 2024 was $1.5 million, an increase of $0.3 million, as compared to $1.2 million for the year ended December 31, 2023. 

Loss on extinguishment of Convertible Notes: Loss on extinguishment of Convertible Notes for the year ended December 31, 2024 was $45.6 million and is a result of the redemption of the Convertible Notes that occurred in December 2024. As a result of the redemption, the