United Homes Group, Inc.

For Q3 2025, revenue was $90.8 million, down $27.8 million from $118.6 million in Q3 2024. Net loss was $31.3 million, including a $27.2 million loss from the change in fair value of derivative liabilities. Gross profit was $16 million, gross margin was 17.7% versus 18.9% a year ago, and adjusted gross margin was 19.6% versus 20.6%. Home closings were 262, down from 369, and net new orders were 324, down from 341; average sales price for production-built homes was about $346,000, up 8.1% from $320,000. Backlog was 264 homes worth about $94.3 million. Management did not give formal next-quarter or full-year financial guidance on the call, but said new community openings and a 58-community footprint should help increase sales and closings.

Jack Micenko emphasized that the board’s strategic review concluded that remaining an independent public company is the best path forward in the current macro environment. He said the quarter saw uneven demand, but September was the company’s best order month year-to-date and traffic improved meaningfully. His tone was cautious but constructive, pointing to housing fundamentals, new community openings, and a larger footprint as reasons for optimism despite affordability pressure and weak consumer confidence.

Keith Feldman walked through the financial decline and the main drivers behind it: lower closings reduced revenue, while higher incentives and discounting pressured margin. He cited Q3 gross profit of $16 million, gross margin of 17.7%, adjusted gross margin of 19.6%, and adjusted SG&A of $15 million, or 16.5% of revenue. He also noted approximately $83.1 million of liquidity at quarter end, about 7,700 controlled lots, and explained that the $27.2 million derivative liability loss does not create a cash expense because the earn-out is settled in common shares.

There was no analyst Q&A segment in the transcript. The main issues addressed by management were the strategic review, the decision to stay independent, and concerns around board resignations and NASDAQ compliance. Management said departing directors’ letters acknowledged the current management team’s ability to handle market and operational challenges, and the company plans to appoint new independent directors promptly.