# EDGAR Filing Document

**Accession Number:** 0001982518
**File Stem:** 0001982518-25-000061
**Filing Date:** 2025-8
**Character Count:** 28141
**Document Hash:** efab5575c5c7175db1245c39a5d4297c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001982518-25-000061.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0001982518-25-000061

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250806

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Smith Douglas Homes Corp.
- **CENTRAL INDEX KEY:** 0001982518
- **STANDARD INDUSTRIAL CLASSIFICATION:** OPERATIVE BUILDERS [1531]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41917
- **FILM NUMBER:** 251187374

**BUSINESS ADDRESS:**
- **STREET 1:** 110 VILLAGE TRAIL, SUITE 215
- **CITY:** WOODSTOCK
- **STATE:** GA
- **ZIP:** 30188
- **BUSINESS PHONE:** (770) 213-8067

**MAIL ADDRESS:**
- **STREET 1:** 110 VILLAGE TRAIL, SUITE 215
- **CITY:** WOODSTOCK
- **STATE:** GA
- **ZIP:** 30188

?xml version='1.0' encoding='ASCII'? sdhc-20250806

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**_______________________________________________________________**

**FORM 8-K**

**_______________________________________________________________**

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

**August 6, 2025**

Date of Report (Date of earliest event reported)

**_______________________________________________________________**

**Smith Douglas Homes Corp.**

(Exact name of registrant as specified in its charter)

**_______________________________________________________________**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-41917** | **93-1969003** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

---

| |
|:---|
| **110 Village Trail, Suite 215**<br>**Woodstock, Georgia 30188**<br>(Address of principal executive offices) (Zip Code) |
| **(770) 213-8067**<br>(Registrant's telephone number, including area code) |
| **N/A**<br>(Former name or former address, if changed since last report) |

---

**_______________________________________________________________**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol</u> | <u>Name of each exchange on which registered</u> |
| **Class A common stock, $0.0001 par value per share** | **SDHC** | **The New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ⌧

------

**Item 2.02. Results of Operations and Financial Condition.**

On August 6, 2025, Smith Douglas Homes Corp. (the "Company") announced its financial results for the three and six months ended June 30, 2025. The full text of the press release issued by the Company in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K (the "Current Report").

The information contained in Item 2.02 of this Current Report (including Exhibit 99.1 attached hereto) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as expressly provided by specific reference in such a filing.

**Item 9.01. Financial Statements and Exhibits.**

(d)Exhibits

The following exhibit relates to Item 2.02 and shall be deemed to be furnished, and not filed:

---

| | |
|:---|:---|
| **Exhibit**<br>**No.** | **Description** |
| <u>[99.1](sdhc-20250807xexx991.htm)</u> | Press release dated August 6, 2025 |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: August 6, 2025 | **SMITH DOUGLAS HOMES CORP.** | **SMITH DOUGLAS HOMES CORP.** |
|  | By: | /s/ Russell Devendorf |
|  |  | Russell Devendorf |
|  |  | Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![picture2.jpg](picture2.jpg)

**Smith Douglas Homes Reports Second Quarter 2025 Results**

ATLANTA, August 6, 2025 (Business Wire) – Smith Douglas Homes Corp. (NYSE: SDHC) ("Smith Douglas" or the "Company") today announced second quarter results for the three and six months ended June 30, 2025.

**Q2 2025 Results as compared to Q2 2024:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Home closings increased 2% to 669

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Home closing revenue increased 1% to $223.9 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Home closing gross margin of 23.2% compared to 26.7%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net new home orders increased 2.9% to 736

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pretax income of $17.2 million compared to $25.9 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Earnings of $0.26 per diluted share compared to $0.40

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt-to-book capitalization of 15.2% compared to 0.8% at December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Active community count increased 23% to 92 at quarter end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total controlled lots increased 57% to 24,824

Greg Bennett, Vice Chairman and Chief Executive Officer, commented, "Smith Douglas Homes delivered strong results in the second quarter of 2025, driven by our disciplined approach to homebuilding and our team's solid execution. Home closings for the quarter came in above our stated guidance range, while our home closing gross margin of 23.2% was at the high end of the range. We generated pretax income of $17.2 million in the second quarter and posted earnings of $0.26 per diluted share. I am proud of the way our team members performed this quarter and feel we are well-positioned to continue to deliver on and improve our strong execution as we head into the second half of 2025."

Russ Devendorf, Executive Vice President and Chief Financial Officer added, "Throughout the second quarter, new home sales continued to be uneven in our markets due to affordability constraints and macroeconomic concerns among some potential buyers. We believe there is pent up demand for home ownership in our markets and continue to use financing incentives as a tool in driving traffic and converting sales."

Mr. Devendorf continued, "We ended the second quarter with 57% more lots under control and 23% more new communities open than we had in the same period last year, putting us in a great position to expand our operations and increase our market share. I am pleased we were able to make these investments and still maintain a strong balance sheet, as our net debt-to-net book capitalization ratio at the end of the quarter was 12.1%. This financial strength, coupled with our asset light strategy and quick-turn operational focus, gives me confidence in the long-term future of Smith Douglas Homes."

------

**Conference Call & Webcast Information**

Management will host a conference call to discuss the Company's results at 8:30 a.m. Eastern Time on August 6, 2025. Interested parties can dial in using the numbers below or access the call via a webcast link provided in the investor relations section of the company's website.

**Dial-in Numbers:**

Toll Free - North America (+1) 800-715-9871

International: (+1) 646-307-1963

Conference ID: 8459388

**Replay Numbers:**

Toll Free - North America: (+1) 800-770-2030

Playback Passcode: 8459388

Replay will expire 7 days following the event

**About Smith Douglas Homes**

Headquartered in Woodstock, Georgia, Smith Douglas Homes completed its initial public offering in January 2024. Since its inception, Smith Douglas has been entrusted by over 18,000 families to fulfill their new home dreams. Ranked a top 50 builder nationally for several years and with 2,867 closings in 2024, Smith Douglas currently holds the #32 position on the Builder Magazine Top 100 list. The Smith Douglas communities are primarily targeted to entry-level and empty-nest homebuyers looking to purchase a new home priced below the Federal Housing Administration loan limit in the metro areas of Atlanta, Birmingham, Central Georgia, Charlotte, Chattanooga, Greenville, Houston, Huntsville, Nashville, and Raleigh. Smith Douglas offers its homebuyers a personalized, affordable-luxury buying experience at attractive prices.

**Investor Relations**

Joe Thomas

investors@smithdouglas.com

------

**Forward-Looking Statements**

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the Company's performance, growth, market share, strategic plans and opportunities, financial position, ability to navigate the changing homebuilding landscape in the macroeconomic environment, ability to provide solutions to fit buyer needs, and the timing of any of the foregoing. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on management's current estimates and expectations. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

------

**Smith Douglas Homes**

**Condensed Consolidated Statements of Income**

**(Unaudited, in thousands, except share and per share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended June 30,** | **Three months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Home closing revenue | $223924 | $220933 | $448646 | $410142 |
| Cost of home closings | 171985 | 161875 | 343177 | 301624 |
| Home closing gross profit | 51939 | 59058 | 105469 | 108518 |
| Selling, general, and administrative costs | 34702 | 31809 | 67701 | 59350 |
| Equity in income from unconsolidated entities | (598) | (220) | (817) | (404) |
| Interest expense | 772 | 591 | 1438 | 1289 |
| Other (income) expense, net | (116) | 1012 | 401 | 1010 |
| Income before income taxes | 17179 | 25866 | 36746 | 47273 |
| Provision for income taxes | 744 | 1132 | 1601 | 2053 |
| Net income | 16435 | 24734 | 35145 | 45220 |
| Net income attributable to non-controlling interests and LLC members prior to IPO | 14070 | 21088 | 30097 | 38602 |
| Net income attributable to Smith Douglas Homes Corp. | $2365 | $3646 | $5048 | $6618 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended June 30,** | **Three months ended June 30,** | **Six months ended June 30, 2025** | **Period from January 11, <br>2024 to June 30, 2024** |
| | **2025** | **2024** | **Six months ended June 30, 2025** | **Period from January 11, <br>2024 to June 30, 2024** |
| Earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.26 | $0.41 | $0.56 | $0.75 |
| &nbsp;&nbsp;&nbsp;Diluted | $0.26 | $0.40 | $0.55 | $0.74 |
| Weighted average shares of common stock outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 8998470 | 8846154 | 8983328 | 8846154 |
| &nbsp;&nbsp;&nbsp;Diluted | 8998470 | 51431974 | 9160922 | 51414509 |

---

------

**Smith Douglas Homes**

**Condensed Consolidated Balance Sheets**

**(In thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | (unaudited) | |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $16777 | $22363 |
| &nbsp;&nbsp;&nbsp;Real estate inventory | 320848 | 277834 |
| &nbsp;&nbsp;&nbsp;Deposits on real estate under option or contract | 132372 | 103026 |
| &nbsp;&nbsp;&nbsp;Real estate not owned | 26127 | 5830 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 8858 | 3775 |
| &nbsp;&nbsp;&nbsp;Goodwill | 25726 | 25726 |
| &nbsp;&nbsp;&nbsp;Deferred tax asset, net | 10643 | 10906 |
| &nbsp;&nbsp;&nbsp;Other assets | 28868 | 26441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $570219 | $475901 |
| **Liabilities and Equity** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $15823 | $17234 |
| &nbsp;&nbsp;&nbsp;Customer deposits | 5903 | 5301 |
| &nbsp;&nbsp;&nbsp;Notes payable | 74088 | 3060 |
| &nbsp;&nbsp;&nbsp;Liabilities related to real estate not owned | 26127 | 5830 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 23045 | 32348 |
| &nbsp;&nbsp;&nbsp;Tax receivable agreement liability | 10401 | 10401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 155387 | 74174 |
| Commitments and contingencies (Note 9) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.0001 par value – 10,000,000 shares authorized; none issued and outstanding as of June 30, 2025 and December 31, 2024 |  |  |
| &nbsp;&nbsp;&nbsp;Class A common stock, $0.0001 par value – 250,000,000 shares authorized; 9,015,173 and 8,846,154 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Class B common stock, $0.0001 par value – 100,000,000 shares authorized; 42,435,897 shares issued and outstanding as of June 30, 2025 and December 31, 2024 | 4 | 4 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 59789 | 58208 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 20188 | 15419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity attributable to Smith Douglas Homes Corp. | 79982 | 73632 |
| &nbsp;&nbsp;&nbsp;Non-controlling interests attributable to Smith Douglas Holdings LLC | 334850 | 328095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 414832 | 401727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $570219 | $475901 |

---

------

**Smith Douglas Homes**

**Summary Cash Flow Information**

**(Unaudited, dollars in thousands)** 

---

| | | |
|:---|:---|:---|
| **Six months ended June 30,** | **2025** | **2024** |
| Net cash used in operating activities | $(63847) | $(9234) |
| Net cash used in investing activities | (4225) | (3153) |
| Net cash provided by financing activities | 62486 | 9908 |
| **Net (decrease) in cash and cash equivalents** | **(5586)** | **(2479)** |
| Cash and cash equivalents, beginning of period | 22363 | 19777 |
| **Cash and cash equivalents, end of period** | $**16777** | $**17298** |

---

**Smith Douglas Homes**

**Selected Other Operating Data**

**(Unaudited, dollars in thousands)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended June 30,** | **Three months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Home closings | 669 | 653 | 1340 | 1219 |
| ASP of homes closed | $335 | $338 | $335 | $336 |
| Net new home orders | 736 | 715 | 1504 | 1480 |
| Contract value of net new home orders | $247421 | $243842 | $506139 | $503282 |
| ASP of net new home orders | $336 | $341 | $337 | $340 |
| Cancellation rate<sup>(1)</sup> | 10.0% | 11.8% | 9.1% | 11.2% |
| Backlog homes (period end)<sup>(2)</sup> | 858 | 1173 | 858 | 1173 |
| Contract value of backlog homes (period end) | $292881 | $404750 | $292881 | $404750 |
| ASP of backlog homes (period end) | $341 | $345 | $341 | $345 |
| Active communities (period end)<sup>(3)</sup> | 92 | 75 | 92 | 75 |
| Controlled lots (period end): |  |  |  |  |
| Homes under construction | 1091 | 1088 | 1091 | 1088 |
| Owned lots | 834 | 587 | 834 | 587 |
| Optioned lots | 22899 | 14167 | 22899 | 14167 |
| Total controlled lots | 24824 | 15842 | 24824 | 15842 |

---

(1)The cancellation rate is the total number of cancellations during the period divided by the total gross new home orders during the period.

(2)Backlog homes (period end) is the number of homes in backlog from the previous period plus the number of net new home orders generated during the current period minus the number of homes closed during the current period.

(3)A community becomes active once the model is completed or the community has its first sale. A community becomes inactive when it has fewer than two homes remaining to sell.

------

**Smith Douglas Homes**

**Selected Financial Information by Segment**

**(Unaudited, dollars in thousands)** 

**<u>Home Closing Revenue</u>**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Three months ended June 30,** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **Period over period change** | **Period over period change** | **Period over period change** |
|  | **Home closing<br>revenue** | **Home closings** | **ASP of<br>homes closed** | **Home closing<br>revenue** | **Home closings** | **ASP of<br>homes closed** | **Home closing<br>revenue** | **Home closings** | **ASP of<br>homes closed** |
| Southeast | $141267 | 407 | $347 | $124393 | 355 | $350 | 14% | 15% | (1)% |
| Central | 82657 | 262 | 315 | 96540 | 298 | 324 | (14)% | (12)% | (3)% |
| Total | $223924 | 669 | $335 | $220933 | 653 | $338 | 1% | 2% | (1)% |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Six months ended June 30,** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **Period over period change** | **Period over period change** | **Period over period change** |
|  | **Home closing<br>revenue** | **Home closings** | **ASP of<br>homes closed** | **Home closing<br>revenue** | **Home closings** | **ASP of<br>homes closed** | **Home closing<br>revenue** | **Home closings** | **ASP of<br>homes closed** |
| Southeast | $279485 | 799 | $350 | $227887 | 652 | $350 | 23% | 23% | —% |
| Central | 169161 | 541 | 313 | 182255 | 567 | 321 | (7)% | (5)% | (2)% |
| Total | $448646 | 1340 | $335 | $410142 | 1219 | $336 | 9% | 10% | —% |

---

**<u>Backlog</u>**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **As of June 30,** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **Period over period change** | **Period over period change** | **Period over period change** |
|  | **Backlog<br>homes** | **Contract<br>value of<br>backlog<br>homes** | **ASP of<br>backlog<br>homes** | **Backlog<br>homes** | **Contract<br>value of<br>backlog<br>homes** | **ASP of<br>backlog<br>homes** | **Backlog<br>homes** | **Contract<br>value of<br>backlog<br>homes** | **ASP of<br>backlog<br>homes** |
| Southeast | 511 | $178409 | $349 | 752 | $269502 | $358 | (32)% | (34)% | (3)% |
| Central | 347 | 114472 | 330 | 421 | 135248 | 321 | (18)% | (15)% | 3% |
| Total | 858 | $292881 | $341 | 1173 | $404750 | $345 | (27)% | (28)% | (1)% |

---

**<u>Controlled Lots</u>**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **As of June 30,** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **Period over period change** | **Period over period change** | **Period over period change** |
|  | **Owned**<sup>(1)</sup> | **Optioned** | **Total Controlled** | **Owned**<sup>(1)</sup> | **Optioned** | **Total Controlled** | **Owned**<sup>(1)</sup>  | **Optioned** | **Total Controlled** |
| Southeast | 986 | 16005 | 16991 | 843 | 10537 | 11380 | 17% | 52% | 49% |
| Central | 939 | 6894 | 7833 | 832 | 3630 | 4462 | 13% | 90% | 76% |
| Total | 1925 | 22899 | 24824 | 1675 | 14167 | 15842 | 15% | 62% | 57% |

---

(1)Includes homes under construction and owned lots.

------

**<u>Net Income</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
| | **2025** | **2024** | **Period over** <br>**period change**  | **2025** | **2024** | **Period over** <br>**period change**  |
| Southeast | $21991 | $25598 | $(3607) | $45846 | $46603 | $(757) |
| Central | 6345 | 13336 | (6991) | 13355 | 23619 | (10264) |
| Segment total | 28336 | 38934 | (10598) | 59201 | 70222 | (11021) |
| Other<sup>(1)</sup> | (11901) | (14200) | 2299 | (24056) | (25002) | 946 |
| Total | $16435 | $24734 | $(8299) | $35145 | $45220 | $(10075) |

---

(1)Other primarily includes homebuilding operations in non-reportable segments, corporate overhead costs, such as payroll and benefits, business insurance, information technology, office costs, outside professional services and travel costs, and certain other amounts that are not allocated to the reportable segments.

**Non-GAAP Financial Measures**

In addition to our results determined in accordance with generally accepted accounting principles in the U.S. ("GAAP"), this press release includes net debt-to-net book capitalization and adjusted net income.

***Net debt-to-net book capitalization***

Net debt-to-net book capitalization is a supplemental measure of our leverage that is not required by, or presented in accordance with, GAAP and should not be considered as an alternative to debt-to-book capitalization or any other measure derived in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of net debt-to-net book capitalization may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate this non-GAAP financial measure in the same manner. We present this non-GAAP financial measure because we consider it to be an important supplemental measure of our leverage and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry.

We define net debt-to-net book capitalization as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total debt, less cash and cash equivalents, divided by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total debt, less cash and cash equivalents, plus equity.

This non-GAAP financial measure has limitations as an analytical tool in that it subtracts cash and cash equivalents and therefore may imply that the Company has less debt than the most comparable measure determined in accordance with GAAP. Because of this limitation, this non-GAAP financial measure should be considered along with other financial measures presented in accordance with GAAP. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We have reconciled this non-GAAP financial measure with the most directly comparable GAAP financial measure in the following table:

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| | | |
|:---|:---|:---|
| **As of<br>(in thousands, except percentages)** | **June 30,<br>2025** | **December 31,<br>2024** |
| Notes payable | $74088 | $3060 |
| Equity | 414832 | 401727 |
| Total capitalization | $488920 | $404787 |
| **Debt-to-book capitalization** | **15.2%** | **0.8%** |
| Notes payable | $74088 | $3060 |
| Less: cash and cash equivalents | 16777 | 22363 |
| Net debt | 57311 | (19303) |
| Equity | 414832 | 401727 |
| Total net capitalization | $472143 | $382424 |
| **Net debt-to-net book capitalization** | **12.1%** | **(5.0)%** |

---

***Adjusted net income***

Adjusted net income is not a measure of net income or net income margin as determined by GAAP. Adjusted net income is a supplemental non-GAAP financial measure used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies. We define adjusted net income as net income adjusted for the tax impact using a 24.9% federal and state blended tax rate (assuming 100% public ownership to adjust for the impact of taxes on earnings attributable to Smith Douglas Holdings LLC as if Smith Douglas Holdings LLC was a subchapter C corporation in the periods presented).

Management believes adjusted net income is useful because it allows management to more effectively evaluate our operating performance and comparability to industry peers who record income tax expense on their income before tax as opposed to the income of Smith Douglas Holdings LLC not being taxed at the entity level and, therefore, not reflecting a charge against earnings for income tax expense. Adjusted net income should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. Our computation of adjusted net income may not be comparable to adjusted net income of other companies. We present adjusted net income because we believe it provides useful information regarding our comparability to peers.

The following table presents a reconciliation of adjusted net income to the GAAP financial measure of net income for each of the periods indicated (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended June 30,** | **Three months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net income** | $**16435** | $**24734** | $**35145** | $**45220** |
| Provision for income taxes | 744 | 1132 | 1601 | 2053 |
| Income before income taxes | 17179 | 25866 | 36746 | 47273 |
| Tax-effected adjustments<sup>(1)</sup> | 4278 | 6467 | 9150 | 11818 |
| **Adjusted net income** | $**12901** | $**19399** | $**27596** | $**35455** |

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(1)For the three and six months ended June 30, 2025 and 2024, our tax expenses assumes a 24.9% and 25.0% federal and state blended tax rate, respectively, (assuming 100% public ownership to adjust for the impact of taxes on earnings attributable to Smith Douglas Holdings LLC as if Smith Douglas Holdings LLC was a subchapter C corporation in the periods presented).