Company: SDHC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001982518-25-000020
Chunk: 48

Company: Smith Douglas Homes Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 48
---
671$335$189,209566$33419%19%—%

Cost of home closings

Cost of home closings for the three months ended March 31, 2025, was $171.2 million, an increase of $31.4 million, or 22%, from $139.7 million for the three months ended March 31, 2024, which was primarily driven by a 19% increase in home closings and an 3% increase in the average cost of home closings. 

Home closing gross profit

Home closing gross profit for the three months ended March 31, 2025 was $53.5 million, an increase of $4.1 million, or 8%, from $49.5 million for the three months ended March 31, 2024. Home closing gross margin, expressed as a percentage and calculated as home closing gross profit divided by home closing revenue, was 23.8% in the three months ended March 31, 2025 compared to 26.1% in the same period in 2024. 

The decrease in home closing gross margin for the three months ended March 31, 2025 compared to the same period of the prior year was primarily driven by an increase of 3% in the average cost of home closings while the ASP of homes closed remained constant.

Selling, general, and administrative costs

Selling, general, and administrative costs for the three months ended March 31, 2025 were $33.0 million, an increase of $5.5 million, or 20%, from $27.5 million for the three months ended March 31, 2024.

The increase for the three months ended March 31, 2025 compared to the same periods of the prior year was primarily due to an increase in sales commissions and advertising costs associated with our increase in homes closed and related home closing revenue and increased payroll and performance-based bonus compensation expenses on higher employee headcount.

Equity in income from unconsolidated entities

Equity in income from unconsolidated entities consists 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. For the three months ended March 31, 2025, equity in income from un