Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 166

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 166
---
 nine months ended September 30, 2024. The Company estimates the effective tax rate expected to be applicable for the full fiscal year and this rate is applied to the results for the year-to-date period, adjusted for any discrete period items. The Company's estimated annual effective tax rate as of September 30, 2025 is 11.7% as compared to 17.0% as of September 30, 2024.

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

Nine Months Ended September 30, Period over period20252024Change ($)Change (%)GSH South Carolina$8,563 $22,370 $(13,807)(61.7)%Rosewood(324)(456)132 (28.9)%Other1(337)(2,402)2,065 (86.0)%Segment total$7,902 $19,512 $(11,610)(59.5)%Corporate2(16,865)(26,070)9,205 (35.3)%Equity in net earnings from investment in joint venture715 1,076 (361)(33.6)%Change in fair value of derivative liabilities(12,170)50,650 (62,820)(124.0)%Consolidated (loss) income before taxes$(20,418)$45,168 $(65,586)(145.2)%

___________________

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 nine months ended September 30, 2025 decreased $65.6 million, from the nine months ended September 30, 2024. The decrease was primarily due to a decrease in change in fair value of derivative liabilities of $62.8 million and a decrease in gross profit of $8.0 million, partially offset by a decrease in selling, general, and administrative expense of $3.6 million.

GSH South Carolina: The $13.8 million decrease in income before taxes for the nine months ended September 30, 2025 compared to the same period in the prior year was primarily due to a decrease in the number of homes closed of