Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 51

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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4 million, a decrease of $4.2 million, or 20.4%, as compared to $20.6 million for the three months ended March 31, 2024. Adjusted gross profit as a percentage of revenue for the three months ended March 31, 2025 was 18.8%, a decrease of 1.6%, as compared to 20.4% for the three months ended March 31, 2024. The decrease in adjusted gross profit as a percentage of revenue was attributable to higher incentives in cost of sales. 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 three months ended March 31, 2025 was $16.2 million, a decrease of $0.9 million, or 5.3%, from $17.1 million for the three months ended March 31, 2024. The decrease in selling, general and administrative expense was primarily attributable to a decrease in commissions expense of $1.3 million due to a decrease in home closings, and a decrease in transaction costs of $1.2 million, partially offset by an increase of $0.8 million in salaries, wages, and related expenses, an increase of $0.4 million in stock compensation expense, and an increase of $0.2 million related to ERP implementation costs.

Other expense, net: Total other expense, net for the three months ended March 31, 2025 was $2.5 million, an increase of $0.5 million, from $2.0 million for the three months ended March 31, 2024. The increase in other expense, net was primarily attributable to an increase in interest expense of $0.3 million and a decrease of $0.1 million in investment income.

Equity in net earnings from investment in joint venture: Equity in net earnings from investment in joint venture for the three months ended March 31, 2025 was $0.2 million, a decrease of $0.1 million, from $0.3 million for the three months ended March 31, 2024.

Change in fair value of derivative liabilities: Change in fair value of derivative liabilities for the three months ended March 31, 2025