Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 73

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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 (in thousands, except percentage change):

Three Months Ended September 30, Period over period20252024Change ($)Change (%)GSH South Carolina$1,723 $9,004 $(7,281)(80.9)%Rosewood223 (475)698 (146.9)%Other1(191)(531)340 (64.0)%Segment total$1,755 $7,998 $(6,243)(78.1)%Corporate2(5,462)(8,015)2,553 (31.9)%Equity in net earnings from investment in joint venture218 419 (201)(48.0)%Change in fair value of derivative liabilities(27,208)(7,785)(19,423)249.5 %Consolidated loss before taxes$(30,697)$(7,383)$(23,314)315.8 %

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1 Other consists of UHG’s homebuilding operations in Raleigh, NC.

2 Corporate items included within consolidated income before taxes includes unallocated corporate overhead, stock-based compensation, corporate interest income and expense, and other corporate level items not allocated to the segments.

Loss before taxes for the three months ended September 30, 2025 increased $23.3 million, from the three months ended September 30, 2024. The decrease was primarily due to a decrease in the change in fair value of derivative liabilities of $19.4 million and a decrease in gross profit of $6.3 million.

GSH South Carolina: The $7.3 million decrease in income before taxes for the three months ended September 30, 2025 compared to the same period in the prior year was primarily due to a decrease in closings of 31.5%, which resulted in lower gross profit, higher operating costs as a percentage of revenue and higher interest costs as a percentage of revenue. 

Rosewood: The $0.7 million increase in income before taxes for the three months ended September 30, 2025 compared to the same period in the prior year was primarily attributable to an increase of 75.0% in home closings coupled with a 5.7% increase in gross margin. The increase in gross margin is primarily due to lower direct construction costs and less non-recurring costs as a percentage of revenue.

Other: The $0.3 million decrease in loss before taxes for Raleigh for the three months ended September 30, 202