Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 110

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 110
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, Nine Months Ended September 30, 2025202420252024Warranty reserves at beginning of the period$2,073 $1,426 $1,866 $1,302 Reserves provided238 311 738 869 Payments for warranty costs(352)(173)(645)(607)Warranty reserves at end of the period$1,959 $1,564 $1,959 $1,564 

Note 9 - Commitments and contingencies LeasesThe Company leases several office spaces in South Carolina under operating lease agreements with related parties, and one office space in North Carolina with a third party. In addition, the Company leases certain model homes from related parties and third parties. The leases have a remaining lease terms of up to four years, some of which include options to extend on a month-to-month basis, and some of which include options to terminate the lease. These options are excluded from the calculation of the right-of-use asset (“ROU asset”) and lease liability until it is reasonably certain that the option will be exercised. The Company recognized an operating lease expense of $0.3 million and $0.2 million within Selling, 

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general, and administrative expense on the Condensed Consolidated Statements of Operations for the three months ended September 30, 2025 and 2024, respectively, which includes operating lease expense of $0.2 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively, associated with related party leases. For the nine months ended September 30, 2025 and 2024, the Company recognized an operating lease expense of $0.9 million and $1.0 million, which includes operating lease expense of $0.6 million and $0.9 million associated with related party leases. Variable lease expense included within operating lease expense was de minimis for the three and nine months ended September 30, 2025 and 2024. The weighted-average discount rate for the operating leases was 9.28% and 9.41% during the nine months ended September 30, 2025 and 2024, respectively. The weighted-average remaining lease term was 2.63 years and 3.74 years for the nine months ended September 30, 2025 and 2024, respectively.The maturity of the contractual, undiscounted operating lease liabilities as of September 30, 2025 are