United Homes Group Inc. reported a net loss of $31.3 million, or $0.53 per diluted share, for the quarter ended September 30 2025. The loss was driven largely by a $27.2 million fair‑value adjustment related to earn‑out liabilities, a one‑time charge that erased the $9.0 million adjusted EBITDA reported in the same quarter a year earlier. Revenue fell 23.5 % to $90.8 million, reflecting a 29 % drop in home closings to 262 units from 369 a year earlier. The company’s average selling price rose to $346,000, up 8.1 % from $320,000, indicating that pricing power helped offset the volume decline.
Gross margin contracted to 17.7 % from 18.9 % year‑over‑year, while adjusted gross margin fell to 19.6 % from 20.6 %. Management attributed the compression to aggressive discounting to support sales and to pricing pressure in a high‑interest‑rate environment. The company’s cost‑control initiatives, such as direct‑cost reductions and construction‑efficiency programs, were insufficient to counterbalance the discounting and the higher cost of land and materials.
The nine‑month results echoed the quarterly trend: revenue of $283.3 million was down 13.8 % from $328.9 million, and adjusted EBITDA fell to $13.9 million from $23.9 million. Home closings for the first nine months dropped to 817 units from 1,017, while the average selling price increased to $347,000, up 4.8 % from $331,000. Although the company did not disclose a segment‑by‑segment breakdown, the overall mix shift toward higher‑priced homes in the GSH South Carolina and Rosewood segments helped lift the ASP.
Beyond the financials, United Homes Group announced that its special committee of independent directors had concluded a comprehensive review of strategic alternatives on October 20 2025, deciding that remaining an independent public company was the best path forward. The company also disclosed that several board members, including former U.S. Ambassador Nikki Haley, will resign effective November 14 2025, and that the company is actively seeking new directors to maintain Nasdaq listing compliance. In addition, multiple law firms have initiated investigations into the company’s disclosures, raising concerns about potential shareholder misrepresentation.
Management emphasized the need to navigate a challenging housing market. CEO Jack Micenko said the quarter’s results “reflect the affordability challenges and overall market conditions impacting the broader home‑building industry.” CFO Keith Feldman noted that the fair‑value adjustment was a non‑cash charge tied to the company’s contingent earn‑out and warrant liabilities. He also highlighted that aggressive discounting was necessary to support sales in a market where mortgage rates remain elevated.
Investors reacted negatively to the earnings, citing the sharp revenue decline, the net loss, and the lack of forward guidance. The company’s focus on cost discipline and sequential improvement in later months suggests a cautious outlook, but the absence of a clear guidance package leaves uncertainty about the trajectory of revenue and profitability in the coming quarters.
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