Company: SDHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001982518-25-000064
Chunk: 41

Company: Smith Douglas Homes Corp.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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ited condensed consolidated statements of income.The unamortized compensation cost related to RSUs of approximately $10.1 million as of June 30, 2025 is expected to be recognized over a weighted-average period of approximately 2.02 years.Market-based Performance Restricted Stock UnitsIn March 2025, the compensation committee granted awards of market-based performance RSUs (PSUs) under the 2024 Plan to certain members of senior management. The PSUs vest based on the Company’s total shareholder return (TSR) relative to a selected peer group over a three-year performance period and will be settled in shares of the Company’s Class A common stock. The number of PSUs that may vest and be settled ranges from 0% to 200% of the target amount of PSUs for each award, based on actual Company TSR results as compared to the selected peer group for the performance period. Since the PSUs contain market conditions as defined by ASC 718, compensation expense associated with the PSU grants is determined using the grant date fair value, based on a third-party valuation analysis, and is expensed over the applicable period. To the extent earned based on actual performance, the PSUs vest on the last day of the three-year performance period, subject to the employee's continued service through the vesting date. Additionally, vesting is subject to certain change in control and qualifying termination provisions as provided in the award agreements.

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The following table summarizes information about our PSUs during the six months ended June 30, 2025: Period GrantedMeasurement PeriodTarget PSUs Outstanding as of December 31, 2024Target PSUs GrantedTarget PSUs ForfeitedTarget PSUs VestedTarget PSUs Outstanding as of June 30, 2025Weighted Average Grant Date Fair Value20252025 - 2027— 55,619 — — 55,619 $25.24 Total— 55,619 — — 55,619 During the three and six months ended June 30, 2025, the Company recognized compensation expense for PSUs of approximately $116,000 and $131,000, respectively, which is included in selling, general and administrative costs in the accompanying unaudited condensed consolidated statements of income. The unamortized compensation cost related to PSUs of approximately $1.3 million as of June 30, 2025 is expected to be recognized over a weighted-average period of approximately 2.72 years. There were