Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 93

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 93
---
,976 4 719,045 145.5 %275.0 %(32.3)%Total$87,001 252 $344,784 $100,838 311 $335,057 (13.7)%(19.0)%2.9 %

___________________

1 Average sales price of homes closed, excluding the impact of percentage of completion revenues and build to rent revenues.

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

Cost of sales and Gross profit: Cost of sales for the three months ended March 31, 2025 was $72.9 million, a decrease of $11.8 million, or 13.9%, from $84.7 million for the three months ended March 31, 2024. The decrease in Cost of sales was largely attributable to a decrease in home closings of 19.0% compared to the same period in 2024.

Gross profit for the three months ended March 31, 2025 was $14.1 million, a decrease of $2.0 million, or 12.4%, from $16.1 million for the three months ended March 31, 2024. Gross profit as a percentage of revenue for the three months ended March 31, 2025 was 16.2%, an increase of 0.2%, as compared 16.0% for the three months ended March 31, 2024. The increase is attributable to a reduction in interest expense in cost of sales as a percentage of revenue, partially offset by an increase in incentive costs to accelerate the sales of finished inventory. Gross margins remained under pressure in the first quarter of 2025 related to the Company’s strategy of selling lower margin, aged finished inventory, including offering significant incentives to buyers consistent with the current market environment. The focus is on improving gross margins with new product designs, growing the percentage of pre-sales, and the direct cost rebidding initiative.

Adjusted gross profit: Adjusted gross profit for the three months ended March 31, 2025 was $16.4 million, a decrease of $4.2 million, or 20.4%, as compared to $20.6 million for the three months ended March 31, 2024. Adjusted gross profit as a percentage of revenue for the three months ended March 31, 2025 was 18.8%, a decrease of 1.6%, as compared to