Company: SDHC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001982518-25-000020
Chunk: 132

Company: Smith Douglas Homes Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 132
---
):

Three months ended March 31,20252024Net cash used in operating activities$(34,905)$(9,273)Net cash used in investing activities(2,106)(430)Net cash provided by financing activities27,29922,704Net (decrease) increase in cash and cash equivalents(9,712)13,001Cash and cash equivalents, beginning of period22,36319,777Cash and cash equivalents, end of period$12,651$32,778

Operating activities

We used $34.9 million and $9.3 million in net cash in operating activities for the three months ended March 31, 2025 and 2024, respectively. Operating cash flows for the three months ended March 31, 2025 benefited from cash generated by net income of $18.7 million, non-cash operating expenses of $3.3 million, and a $2.7 million increase in 

41

accounts payable, which were more than offset by a $19.5 million increase in real estate inventory, $17.0 million increase in deposits on real estate under option or contract, $11.5 million increase in other assets, and $11.9 million decrease in accrued expenses and other liabilities. Operating cash flows for the three months ended March 31, 2024 benefited from cash generated by net income of $20.5 million and non-cash operating expenses of $2.5 million, which were more than offset by a $17.8 million increase in real estate inventory, $7.7 million increase in deposits on real estate under option or contract, and $7.2 million decrease in accrued expenses and other liabilities. 

Investing activities

We used $2.1 million and $0.4 million in net cash in investing activities for the three months ended March 31, 2025 and 2024, respectively. The net cash used in investing activities during the three months ended March 31, 2025 was primarily due to $1.0 million in purchases of property and equipment and $1.1 million in investments in unconsolidated entities. The net cash used in investing activities during the three months ended March 31, 2024 was primarily due to purchases of property and equipment.

Financing activities

We generated $27.3 million and $22.7 million in net cash from financing activities for the three months ended March 31, 2025 and 2024, respectively. The net cash