Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 80

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 80
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,586)(145.2)%

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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.

Income before taxes for the nine months ended September 30, 2025 decreased $65.6 million, from the nine months ended September 30, 2024. The decrease was primarily due to a decrease in change in fair value of derivative liabilities of $62.8 million and a decrease in gross profit of $8.0 million, partially offset by a decrease in selling, general, and administrative expense of $3.6 million.

GSH South Carolina: The $13.8 million decrease in income before taxes for the nine months ended September 30, 2025 compared to the same period in the prior year was primarily due to a decrease in the number of homes closed of 23.1%, which resulted in lower gross profit and higher operating costs as a percentage of revenue coupled with increased interest expense.

Rosewood: The $0.1 million increase in pre-tax profitability for the nine months ended September 30, 2025 compared to the same period in the prior year was primarily due to higher gross profit as a result of more closings and better margins, partially offset by an increase in operating costs attributable to contingent consideration related to the 2023 acquisition of Rosewood Communities, Inc. and an increase in commission expense as a percentage of revenue.

Other: The $2.1 million increase in pre-tax profitability for the Raleigh market for the nine months ended September 30, 2025 compared to the same period in the prior year was primarily due to an increase in gross profit of $0.4 million and decreases in severance expense of $1.1 million and salaries and wages of $0.5 million.

Net New Orders: Net new orders for the nine months ended September 30, 2025 was 924 units, a decrease of 124 units, from 1,048 units for the nine months ended September 30, 2024.

Cancellation Rate: The cancellation rate for the nine months ended September 30, 2025 was 12.8%, an increase of 1.2%, from 11.6% for the nine months ended September 30, 2024.

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Non-GAAP Financial Measures

Adjusted