Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 54

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 months ended June 30, 2025 and 2024, UHG had 600 and 707 net new orders, and generated approximately $192.5 million and $210.3 million in revenue on 555 and 648 closings, respectively.

UHG intends to grow organically, both arising out of its historical operations which may include entry into new markets and growth in community count, and through expansion of its mortgage joint venture Homeowners Mortgage, LLC (the “Joint Venture”). UHG expects that continued operation of the Joint Venture will add to UHG’s revenue and EBITDA growth, improve buyer traffic conversion, and reduce backlog cancellation rates. In the second quarter of 2025, UHG announced that it had initiated a review of strategic alternatives in order to explore ways to maximize shareholder value. There is not a set deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this process will result in any transaction or particular outcome.

In the second quarter of 2025, market conditions in the homebuilding industry continued to be impacted by persistently elevated mortgage rates, macro-economic and geopolitical uncertainty, and housing affordability concerns that have negatively affected consumer confidence. As a result of these challenging conditions, demand remained subdued as net new orders for the three and six months ended June 30, 2025 decreased by 5.9% and 15.1%, respectively, when compared to the respective prior year periods. However, the undersupply of homes in the United States continues to drive demand for affordable housing. In response to the current environment, the Company continues to provide discounts on base home prices, when necessary, and utilize various sales incentives, primarily in the form of buyer financing incentives such as mortgage rate buy downs, mortgage forward commitments, or cash incentives applied against closing costs. 

Despite the softening demand and slower sales pace, the Company has seen improvement in gross margin for the three and six months ended June 30, 2025 of 100 basis points and 70 basis points, respectively, as compared to the respective prior periods. This is largely the result of continued, focused, execution of several key operational improvements targeted at accelerating sales and improving gross margins. These operational improvements included refreshing the Company’s portfolio of house plans, expanding customization options for buyers, and a strategic rebidding of supplier contracts to reduce direct construction costs. Management believes that the Company’s proactive approach, position within high growth markets, and adaptable land-light business model will enable the Company to effectively navigate