Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 168

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 168
---
 as a supplement to gross profit information as a measure of the Company’s performance.

The following table presents a reconciliation of adjusted gross profit to the GAAP financial measure of gross profit for each of the periods indicated (in thousands, except percentages).

Three Months Ended September 30, Nine Months Ended September 30, 2025202420252024Revenue, net of sales discounts$90,794 $118,644 $283,301 $328,902 Cost of sales74,746 96,261 233,206 270,847 Gross profit$16,048 $22,383 $50,095 $58,055 Interest expense in cost of sales1,159 1,525 4,292 6,697 Amortization in homebuilding cost of sales(a)598 573 2,161 2,434 Abandoned project costs9 — 67 320 Severance expense in cost of sales— — — 325 Non-recurring remediation costs— — — 109 Adjusted gross profit$17,814 $24,481 $56,615 $67,940 Gross margin(b)17.7 %18.9 %17.7 %17.7 %Adjusted gross margin(b)19.6 %20.6 %20.0 %20.7 %

______________________________

(a) Represents expense recognized resulting from purchase accounting adjustments. 

(b) Calculated as a percentage of revenue.

EBITDA and Adjusted EBITDA

Earnings before interest, taxes, depreciation and amortization, or EBITDA, and adjusted EBITDA are supplemental non-GAAP financial measures used by management of the Company. The Company defines EBITDA as net income before (i) capitalized interest expensed in cost of sales, (ii) interest expensed in other (expense) income, net, (iii) depreciation and amortization, and (iv) taxes. The Company defines adjusted EBITDA as EBITDA before stock-based compensation expense, transaction cost expense, amortization included in homebuilding cost of sales, severance expense, abandoned project costs, change in fair value of derivative liabilities, non-recurring remediation costs, and loss on extinguishment of Convertible Notes. Management of the Company believes EBITDA and adjusted EBITDA are useful because they provide a more effective evaluation of UHG’s operating performance and