Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 139

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 139
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18.0 million, a decrease of $1.6 million, or 8.2%, from $19.6 million for the three months ended June 30, 2024. The decrease is primarily due to a $1.0 million decrease in commission expense due to less broker incentives and fewer closings and a $1.0 million reduction in severance expense related to the June 2024 reduction in force (“RIF”), partially offset by an increase of $0.2 million in ERP implementation costs.

Other expense, net: Total other expense, net for the three months ended June 30, 2025 was $2.6 million, a decrease of $1.0 million, from $3.6 million for the three months ended June 30, 2024. The decrease was primarily driven by a $1.2 million reduction in interest expense due to the Company’s refinance of corporate debt in December 2024.

Equity in net earnings from investment in joint venture: Equity in net earnings from investment in joint venture for the three months ended June 30, 2025 was $0.3 million, remaining consistent with the prior period.

Change in fair value of derivative liabilities: Change in fair value of derivative liabilities for the three months ended June 30, 2025 was a loss of $6.2 million as compared to a gain of $32.1 million for the three months ended June 30, 2024. Under ASC 815, derivative liabilities are marked to market each reporting period with changes recognized as gains or losses on the Condensed Consolidated Statements of Operations. The overall decrease is primarily attributable to changes in the fair value of the earnout shares, which fluctuates each period due to changes in the Company's stock price.

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Income before taxes: The following table provides a summary of the Company’s income (loss) before taxes by reportable segment (in thousands, except percentage change):

Three Months Ended June 30,Period over period20252024Change ($)Change (%)GSH South Carolina$5,017 $6,615 $(1,598)(24.2)%Rosewood(173)(549)376 (68.5)%Other1(12)(1,443)1,431 (99.2)%Segment total$4,832 $4,623 $209 4.5 %Corporate2(5,546)(8,241)2,695 (32.7)%Equ