Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 95

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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, 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 of 23.5% and an increase in the average cost of homes closed of 5.6%, partially offset by a decrease in selling, general, and administrative expense of 10.1%.

Rosewood: The $0.9 million decrease in (loss) income before taxes for the three months ended March 31, 2025 compared to the same period in the