Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 146

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 146
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30, 2024. The decrease was primarily driven by a $0.9 million reduction in interest expense due to the refinance of the Company’s corporate debt, partially offset by a decrease in investment income.

Equity in Net Earnings from Investment in Joint Venture: Equity in net earnings from investment in joint venture for the six months ended June 30, 2025 was $0.5 million, a decrease of $0.2 million, from $0.7 million for the six months ended June 30, 2024.

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Change in Fair Value of Derivative Liabilities: Change in fair value of derivative liabilities for the six months ended June 30, 2025 was a gain of $15.0 million as compared to a gain of $58.4 million for the six months ended June 30, 2024. Under ASC 815, derivative liabilities are marked to market each reporting period with changes recognized on the Condensed Consolidated Statements of Operations. The overall increase is primarily attributable to changes in the fair value of the earnout shares, which fluctuates each period due to changes in the Company's stock price.

Income Tax Benefit: Income tax benefit for the six months ended June 30, 2025 was $1.6 million as compared to $1.0 million for the six months ended June 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, and then adjusted for any discrete period items. The Company's estimated annual effective tax rate for the June 30, 2025 is 33.1% as compared to 15.3% as of June 30, 2024.

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

Six Months Ended June 30,Period over period20252024Change ($)Change (%)GSH South Carolina$6,840 $13,366 $(6,526)(48.8)%Rosewood(547)19 (566)(2978.9)%Other1(146)(1,871)1,725 (92.2)%Segment total$6,147 $11,514 $(5,367)(46.6)%Corporate2(11,403)(18,055)6,652 (36.8)%Equity in net