Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 140

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 140
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ity in net earnings from investment in joint venture275 339 (64)(18.9)%Change in fair value of derivative liabilities(6,171)32,055 (38,226)(119.3)%Consolidated (loss) income before taxes$(6,610)$28,776 $(35,386)(123.0)%

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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 three months ended June 30, 2025 decreased $35.4 million, or 122.9%, from the three months ended June 30, 2024. The decrease was primarily due to a decrease in the change in fair value of derivative liabilities of $38.3 million, partially offset by an decrease in other expense, net of $1.0 million and a decrease in selling, general, and administrative expense of $1.6 million.

GSH South Carolina: The $1.6 million decrease in income before taxes for the three months ended June 30, 2025 compared to the same period in the prior year was primarily due to a decrease in closings of 13.4%, which resulted in lower gross profit, higher operating costs as a percentage of revenue and higher interest costs as a percentage of revenue, partially offset by an increase in gross margin. 

Rosewood: The $0.4 million decrease in loss before taxes for the three months ended June 30, 2025 compared to the same period in the prior year was primarily attributable to doubling the number of closings from 8 to 16 coupled with a 5.4% increase in gross margin, partially offset by an increase in commission expense due to additional closings and higher interest costs.

Other: The $1.4 million decrease in loss before taxes for Raleigh for the three months ended June 30, 2025 compared to the same period in the prior year was primarily due to a reduction in severance expense in the prior period of $1.1 million and a decrease in selling, general, and administrative expense of $0.4 million.

Income tax (benefit) expense: Income tax (benefit) expense for the three months ended June 30, 2025 was a benefit of $0.3