Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 165

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 165
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’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 nine months ended September 30, 2025 was $51.7 million, a decrease of $3.6 million, from $55.4 million for the nine months ended September 30, 2024. The decrease in selling, general and administrative expense was primarily attributable to a $4.5 million decrease in commission expense due to less broker incentives and fewer closings, a $1.1 million reduction in severance expense related to the June 2024 RIF, and a decrease in transaction costs of $1.1 million, partially offset by an increase in salaries and wages of $3.2 million.

Other Expense, Net: Total other expense, net for the nine months ended September 30, 2025 was $7.3 million, a decrease of $1.9 million, from $9.3 million for the nine months ended September 30, 2024. The decrease was primarily driven by a $2.3 million reduction in interest expense due to the refinance of the Company’s corporate debt, partially offset by a loss on litigation of $0.2 million related to Rosewood’s proceedings and a decrease in investment income of $0.1 million.

Equity in Net Earnings from Investment in Joint Venture: Equity in net earnings from investment in joint venture for the nine months ended September 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