Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 68

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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, 2025 compared to the same period in the prior year was primarily due to a decrease in severance expense of $1.1 million and a decrease in selling, general, and administrative expense of $0.5 million due to reductions in salaries and wages and advertising and marketing costs, partially offset by increased commissions as a result of increased closings.

Net New Orders: Net new orders for the six months ended June 30, 2025 was 600 units, a decrease of 107 units, or 15.1%, from 707 units for the  six months ended June 30, 2024.

Cancellation Rate: The cancellation rate for the six months ended June 30, 2025 was 12.0%, an increase of 0.9%, from 11.1% for the six months ended June 30, 2024.

31

Non-GAAP Financial Measures

Adjusted Gross Profit

Adjusted gross profit is a non-GAAP financial measure used by management of the Company as a supplemental measure in evaluating operating performance. The Company defines adjusted gross profit as gross profit excluding the effects of capitalized interest expensed in cost of sales, amortization included in homebuilding cost of sales, abandoned project costs, severance expense in cost of sales, and non-recurring remediation costs. The Company’s management believes this information is meaningful because it separates the impact that capitalized interest and non-recurring costs directly expensed in cost of sales have on gross profit to provide a more specific measurement of the Company’s gross profits. However, because adjusted gross profit information excludes certain balances expensed in cost of sales, which have real economic effects and could impact the Company’s results of operations, the utility of adjusted gross profit information as a measure of the Company’s operating performance may be limited. Other companies may not calculate adjusted gross profit information in the same manner that the Company does. Accordingly, adjusted gross profit information should be considered only as a supplement to gross profit information as a measure of the Company’s performance.

The following table presents a reconciliation of adjusted gross profit to the GAAP financial measure of gross profit for each of the periods indicated (in thousands, except percentages).

Three Months Ended June 30,Six Months Ended June 30,2025202420252024Revenue, net of sales discounts$105,506 $109,420 $192,507 $210,258 Cost of sales85,587 89,842 158,460 174,586 Gross profit$