Company: SDHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001982518-25-000064
Chunk: 107

Company: Smith Douglas Homes Corp.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 of home closings while the ASP of homes closed remained constant.

35

Selling, general, and administrative costs

Selling, general, and administrative costs for the three months ended June 30, 2025 were $34.7 million, an increase of $2.9 million, or 9%, from $31.8 million for the three months ended June 30, 2024. Selling, general, and administrative costs for the six months ended June 30, 2025 were $67.7 million, an increase of $8.4 million, or 14%, from $59.4 million for the six months ended June 30, 2024.

The increase for the three and six months ended June 30, 2025 compared to the same periods of the prior year was for each period primarily due to an increase in sales commissions, advertising costs, and division overhead associated with our increase in homes closed and related home closing revenue and increased payroll and performance-based bonus compensation expenses attributable to higher employee headcount.

Equity in income from unconsolidated entities

Equity in income from unconsolidated entities consists primarily of our portion of income from our interest in the title company in which we hold a 49% interest and which operates in certain of our markets to provide title insurance to our homebuyers and our portion of income from our interest in the company engaged in providing mortgage broker services to our homebuyers. For each of the three and six months ended June 30, 2025, equity in income from unconsolidated entities increased $0.4 million from the three and six months ended June 30, 2024, in each case primarily due to higher title insurance revenue generated by the title company.

Interest expense

Interest expense is comprised of interest incurred, but not capitalized on our Prior Credit Facility, Amended Credit Facility, other borrowings, and amortization of debt issuance costs. For the three and six months ended June 30, 2025, interest expense increased $0.2 million and $0.1 million, respectively, from the three and six months ended June 30, 2024, in each case primarily due to higher outstanding borrowings on our Amended Credit Facility.

Other (income) expense, net

Other (income) expense, net primarily consists of interest income, credit card rebates, insurance settlements, changes in fair value of contingent consideration related to the Devon Street Homes Acquisition, and other miscellaneous income and expenses.