Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 159

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 159
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 expense, net: Total other expense, net for the three months ended September 30, 2025 was $2.2 million, a decrease of $1.5 million, from $3.7 million for the three months ended September 30, 2024. The decrease was primarily driven by a $1.4 million reduction in interest expense due to the Company’s refinance of corporate debt in December 2024.

Equity in net earnings from investment in joint venture: Equity in net earnings from investment in joint venture for the three months ended September 30, 2025 was $0.2 million, a decrease of $0.2 million, from $0.4 million for the three months ended September 30, 2024.

Change in fair value of derivative liabilities: Change in fair value of derivative liabilities for the three months ended September 30, 2025 was a loss of $27.2 million as compared to a loss of $7.8 million for the three months ended September 30, 2024. Under ASC 815, derivative liabilities are marked to market each reporting period with changes recognized as gains or losses on the Condensed Consolidated Statements of Operations. The overall decrease is primarily attributable to changes in the fair value of the earnout shares, which fluctuates each period due primarily to changes in the Company's stock price.

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

Three Months Ended September 30, Period over period20252024Change ($)Change (%)GSH South Carolina$1,723 $9,004 $(7,281)(80.9)%Rosewood223 (475)698 (146.9)%Other1(191)(531)340 (64.0)%Segment total$1,755 $7,998 $(6,243)(78.1)%Corporate2(5,462)(8,015)2,553 (31.9)%Equity in net earnings from investment in joint venture218 419 (201)(48.0)%Change in fair value of derivative liabilities(27,208)(7,785)(19,423)249.5 %Consolidated loss before taxes$(30,697)$(7,383)$(23,314)315.8 %

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