Company: SDHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001982518-25-000064
Chunk: 114

Company: Smith Douglas Homes Corp.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 114
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, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin of other companies. We present EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin because we believe they provide useful information regarding the factors and trends affecting our business.

The following table presents a reconciliation of EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin to the GAAP financial measure of net income and net income margin for each of the periods indicated:

Three months ended June 30,Six months ended June 30,2025202420252024Net income$16,435$24,734$35,145$45,220Capitalized interest charged to cost of home closings3653335211,054Interest expense7725911,4381,289Interest income(98)(290)(224)(368)Provision for income taxes7441,1321,6012,053Depreciation5803681,066709EBITDA$18,798$26,868$39,547$49,957Share-based payment expense9691,0371,5811,929Purchase accounting adjustments included in cost of home closings34(379)(118)(260)Remeasurement of contingent consideration liability—1,245—1,308Real estate inventory impairment and lot option contract abandonment charges——1,358—Adjusted EBITDA$19,801$28,771$42,368$52,934Net income margin(1)7.3%11.2%7.8%11.0%EBITDA margin(1)8.4%12.2%8.8%12.2%Adjusted EBITDA margin(1)8.8%13.0%9.4%12.9%

(1)Calculated as a percentage of home closing revenue.

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Our EBITDA and EBITDA margin decreased from the three and six months ended June 30, 2024 to the same periods in 2025, primarily as a result of decreases in net income of $8.3 million and $10.1 million, respectively. Our adjusted EBITDA and adjusted EBITDA margin decreased from the three and six months ended June 30, 2024 to the same periods in 2025, primarily as a result of remeasurement of contingent consideration liability [related to the Devon Street Homes Acquisition] during the three and six months ended June