Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 65

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 or 9.2%, from $174.6 million for the six months ended June 30, 2024. The decrease in Cost of sales was largely attributable to a decrease in home closings of 14.4% compared to the same period in 2024.

Gross profit for the six months ended June 30, 2025 was $34.0 million, a decrease of $1.6 million, or 4.8%, from $35.7 million for the six months ended June 30, 2024. Gross margin for the six months ended June 30, 2025 was 17.7%, an increase of 0.7%, as compared 17.0% for the six months ended June 30, 2024. Gross margin increased primarily due to a large number of home closings featuring redesigned floor plans, which carry higher margins, coupled with lower interest expense as a percentage of revenue within cost of sales, partially offset by higher incentive costs.

Adjusted Gross Profit: Adjusted gross profit for the six months ended June 30, 2025 was $38.8 million, a decrease of $4.7 million, or 10.8%, as compared to $43.5 million for the six months ended June 30, 2024. Adjusted gross margin for the six months ended June 30, 2025 was 20.2%, a decrease of 0.5%, as compared to 20.7% for the six months ended June 30, 2024. Adjusted gross margin declined, primarily due to increased incentive costs, partially offset by home closings with redesigned floor plans in 2025, which generate stronger margins. Adjusted gross profit is a non-GAAP financial measure. For the definition of adjusted gross profit and a reconciliation to UHG’s most directly comparable financial measure calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures.”

Selling, General and Administrative Expense: Selling, general and administrative expense for the six months ended June 30, 2025 was $34.2 million, a decrease of $2.5 million, or 6.8%, from $36.7 million for the six months ended June 30, 2024. The decrease in selling, general and administrative expense was primarily attributable to a $2.3 million decrease in commission expense due to less broker incentives and fewer closings and a $1.1 million reduction in severance expense