Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 138

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 138
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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 June 30, 2025 was $85.6 million, a decrease of $4.2 million, or 4.7%, from $89.8 million for the three months ended June 30, 2024. The decrease in Cost of sales was largely attributable to a decrease in home closings of 10.1% compared to the same period in 2024.

Gross profit for the three months ended June 30, 2025 was $19.9 million, an increase of $0.3 million, or 1.5%, from $19.6 million for the three months ended June 30, 2024. Gross margin for the three months ended June 30, 2025 was 18.9%, an increase of 1.0%, as compared 17.9% for the three months ended June 30, 2024. Gross margins improved in the second quarter of 2025, driven by closing a large number of homes featuring redesigned floor plans, direct construction cost savings as a result of the rebid initiative, and less non-recurring expenses compared to the same quarter in 2024.

Adjusted gross profit: Adjusted gross profit for the three months ended June 30, 2025 was $22.4 million, a decrease of $0.4 million, or 1.8%, as compared to $22.8 million for the three months ended June 30, 2024. Adjusted gross margin for the three months ended June 30, 2025 was 21.3%, an increase of 0.4%, as compared to 20.9% for the three months ended June 30, 2024. The increase in adjusted gross margin was attributable to the closings associated with redesigned floor plans, which generate stronger margins, and direct construction cost savings. 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 three months ended June 30, 2025 was $