Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 52

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 was a gain of $21.2 million as compared to $26.4 million for the three months ended March 31, 2024. Under ASC 815, derivative liabilities are marked to market each reporting period with changes recognized as gains or losses on the Condensed Consolidated Statement of Operations. The overall decrease is primarily attributable to changes in the fair value of the Earnout Shares, which fluctuates each period due to changes in the Company's stock price.

Income before taxes: The following table provides a summary of the Company’s income (loss) before taxes by reportable segment (in thousands, except percentage change):

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Three Months Ended March 31,Period over period20252024Change ($)Change (%)GSH South Carolina$1,823 $6,751 $(4,928)(73.0)%Rosewood(374)568 (942)(165.9)%Other1(134)(428)294 (68.7)%Segment total$1,315 $6,891 $(5,576)(80.9)%Corporate2(5,857)(9,814)3,957 (40.3)%Equity in net earnings from investment in joint venture222 318 (96)(30.2)%Change in fair value of derivative liabilities21,209 26,380 (5,171)(19.6)%Consolidated income before taxes$16,889 $23,775 $(6,886)(29.0)%

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1 Other consists of UHG’s homebuilding operations in Raleigh, NC.

2 Corporate items included within consolidated income before taxes includes unallocated corporate overhead, stock-based compensation, corporate interest income and expense, and other corporate level items not allocated to the segments.

Income before taxes for the three months ended March 31, 2025 decreased $6.9 million, or 29.0%, from the three months ended March 31, 2024. The decrease was primarily due to a decrease in gross profit of $2.0 million and a decrease in the change in fair value of derivative liabilities of $5.2 million, partially offset by a decrease in selling, general, and administrative expense of $0.9 million.

GSH South Carolina: The $4.9 million decrease in income before taxes for the three months ended March 31, 2025 compared to the same period in the prior year was primarily due to a decrease in the number of homes closed