Company: SDHC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049591
Chunk: 44

Company: Smith Douglas Homes Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 44
---
 Founder Fund. Concurrently with closing of the building purchase, the Company borrowed $3.0 million in the form of a secured promissory note from The BF Holding Trust, an entity affiliated with the Founder Fund. The promissory note was used to partially fund the building purchase, bears interest at 8.5% per annum, and matures in May 2030. Subsequent to the purchase of the office building, there are no longer any leasing arrangements with JBB Cherokee Holdings LLC. 

Note 14 ‑ Segment information:

The Company operates one principal homebuilding business that is organized, managed and reported by geographic division. Management of the ten geographic divisions report to the Company's chief operating decision maker (CODM), which consists of the Chief Executive Officer and Chief Financial Officer of the Company. The CODM is regularly provided operating results of individual operating segments. These operating results include key operating metrics which inform the CODM's decisions regarding the allocation of resources and the assessment of the Company's overall operational performance. These operating results are reviewed against actual and budgeted figures, with income before income taxes (segment profit) being the key operating metric used to measure segment profit or loss. The Company's operating segments are aggregated into two reportable segments: Southeast and Central. The Southeast segment consists of the Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. The Central segment consists of the Alabama, Dallas-Fort Worth, Houston, Nashville, and the Alabama Gulf Coast divisions. Each reportable segment follows the 

28

accounting policies described in Note 1, Description of business and summary of significant accounting policies. As the Central Georgia division was formed in the fourth quarter of 2024 and the Dallas-Fort Worth and Alabama Gulf Coast divisions were formed in 2025, segment information disclosed for the three and nine months ended September 30, 2024 does not include these divisions.The following tables summarize financial information by segment (in thousands):Three months endedSeptember 30, 2025SoutheastCentralTotalHome closing revenue$166,625 $95,416 $262,041 Cost of home closings128,631 78,440 207,071 Home closing gross profit37,994 16,976 54,970 Less:(1)Selling, general, and administrative expenses(2)17,106 9,748 26,854 Other segment items(3)34 1,835 1,869 Segment profit20,854 5,393