Company: SDHC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049591
Chunk: 107

Company: Smith Douglas Homes Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 calculated as home closing gross profit divided by home closing revenue, was 21.0% in the three months ended September 30, 2025 compared to 26.5% in the same period in 2024. Home closing gross profit for the 

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nine months ended September 30, 2025 was $160.4 million, a decrease of $21.8 million, or 12%, from $182.2 million for the nine months ended September 30, 2024. Home closing gross margin, expressed as a percentage and calculated as home closing gross profit divided by home closing revenue, was 22.6% in the nine months ended September 30, 2025 compared to 26.5% in the same period in 2024. 

The decrease in home closing gross margin for each of the three and nine months ended September 30, 2025 compared to the same periods of the prior year was for each period primarily driven by increases of 5% and 4%, respectively, in the average cost of home closings and decreases of 3% and 1%, respectively, in the ASP of homes closed.

Selling, general, and administrative costs

Selling, general, and administrative costs for the three months ended September 30, 2025 were $36.1 million, an increase of $2.0 million, or 6%, from $34.1 million for the three months ended September 30, 2024. Selling, general, and administrative costs for the nine months ended September 30, 2025 were $103.8 million, an increase of $10.3 million, or 11%, from $93.5 million for the nine months ended September 30, 2024.

The increase for the three and nine months ended September 30, 2025 compared to the same periods of the prior year was for each period primarily due to an increase in division overhead associated with our increased active community count and newly formed divisions, including Central Georgia, Greenville, Alabama Gulf Coast, and Dallas-Fort Worth.

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