Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 78

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 78
---
 September 30, 2024. Gross margin for the nine months ended September 30, 2025 was consistent with the relative prior period at 17.7%, which was impacted by higher discounting, offset by a reduction in direct costs. 

Adjusted Gross Profit: Adjusted gross profit for the nine months ended September 30, 2025 was $56.6 million, a decrease of $11.3 million, as compared to $67.9 million for the nine months ended September 30, 2024. Adjusted gross margin for the nine months ended September 30, 2025 was 20.0%, a decrease of 0.7%, as compared to 20.7% for the nine months ended September 30, 2024. Adjusted gross margin declined, primarily due to increased discounting, partially offset by reduced direct construction costs. Adjusted gross profit is a non-GAAP financial measure. For the definition of adjusted gross profit and a reconciliation to UHG’s most directly comparable financial measure calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures.”

Selling, General and Administrative Expense: Selling, general and administrative expense for the nine months ended September 30, 2025 was $51.7 million, a decrease of $3.6 million, from $55.4 million for the nine months ended September 30, 2024. The decrease in selling, general and administrative expense was primarily attributable to a $4.5 million decrease in commission expense due to less broker incentives and fewer closings, a $1.1 million reduction in severance expense related to the June 2024 RIF, and a decrease in transaction costs of $1.1 million, partially offset by an increase in salaries and wages of $3.2 million.

Other Expense, Net: Total other expense, net for the nine months ended September 30, 2025 was $7.3 million, a decrease of $1.9 million, from $9.3 million for the nine months ended September 30, 2024. The decrease was primarily driven by a $2.3 million reduction in interest expense due to the refinance of the Company’s corporate debt, partially offset by a loss on litigation of $0.2 million related to Rosewood’s proceedings and a decrease in investment income of $0.1 million.

Equity in Net Earnings from Investment in Joint Venture: Equity in net earnings from investment in joint venture for