Company: SDHC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049591
Chunk: 150

Company: Smith Douglas Homes Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 150
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 used in investing activities(5,573)(3,780)Net cash provided by (used in) financing activities39,079(5,936)Net (decrease) increase in cash and cash equivalents(7,588)3,939Cash and cash equivalents, beginning of period22,36319,777Cash and cash equivalents, end of period$14,775$23,716

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Operating activities

We used $41.1 million and generated $13.7 million in net cash in operating activities for the nine months ended September 30, 2025 and 2024, respectively. Operating cash flows for the nine months ended September 30, 2025 benefited from cash generated by net income of $51.4 million and non-cash operating expenses of $9.5 million, which were more than offset by a $61.0 million increase in real estate inventory, $34.4 million increase in deposits on real estate under option or contract, and a $7.5 million decrease in accrued expenses and other liabilities. Operating cash flows for the nine months ended September 30, 2024 benefited from cash generated by net income of $83.0 million, non-cash operating expenses of $7.9 million, and a $6.2 million increase in accounts payable, which were partially offset by a $61.5 million increase in real estate inventory and a $23.1 million increase in deposits on real estate under option or contract. 

Investing activities

We used $5.6 million and $3.8 million in net cash in investing activities for the nine months ended September 30, 2025 and 2024, respectively. The net cash used in investing activities during the nine months ended September 30, 2025 was primarily due to $4.5 million in purchases of property and equipment and $1.1 million in investments in unconsolidated entities. The net cash used in investing activities during the nine months ended September 30, 2024 was primarily due to $3.2 million in purchases of property and equipment and $0.6 million in investments in unconsolidated entities. 

Financing activities

We generated $39.1 million and used $5.9 million in net cash from financing activities for the nine months ended September 30, 2025 and 2024, respectively. The net cash provided by financing activities during the nine months ended September 30, 2025 was primarily due to $49