Wed, May 14, 8:40 PM (37 days ago)
**United Homes Group, Inc. (UHG, Ticker: UHG) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $87.0 million, down 13.7% YoY due to fewer home closings and lower sales activity. - **Gross Profit:** $14.1 million, down 12.4% YoY, with a gross margin of 16.2%. - **Net Income:** $18.2 million, down 26.9% YoY, including $21.2 million from derivative liabilities. - **EPS:** Basic $0.31, Diluted $0.31, down from $0.52 and $0.44 respectively. - **Cash Flow:** Positive operating cash flow of $1.2 million, a significant improvement from a negative $17.9 million in Q1 2024. **Key Metrics:** - **Home Closings:** 252, down 19.0% YoY. - **Net New Orders:** 296, down 22.9% YoY. - **Cancellation Rate:** 12.7%, up from 9.6%. - **Backlog:** 201 units, down 23.3% YoY. **Operational Trends & Uncertainties:** - **Market Conditions:** Challenging due to high mortgage rates, economic uncertainty, and weather impacts. - **Strategic Initiatives:** Focus on sales incentives, operational improvements, and cost reductions. - **Future Operations:** Plans to grow organically and through acquisitions, with a focus on the mortgage joint venture. **Liquidity & Capital Resources:** - **Cash & Equivalents:** $25.0 million, up from $22.6 million. - **Debt:** $53.2 million outstanding on the syndicated line of credit, $67.2 million on the term loan. - **Liquidity:** $61.9 million available under the syndicated line, with compliance on all debt covenants. **Segment Performance:** - **GSH South Carolina:** Revenue down 19.7%, gross profit down 12.4%. - **Rosewood:** Revenue down 5.4%, gross profit down 12.4%. - **Other (Raleigh):** Revenue up 145.5%, gross profit up 12.4%. **Outlook:** - UHG faces macroeconomic headwinds but aims to navigate through strategic initiatives and a flexible land-light model. - The company expects to leverage its mortgage joint venture and potential acquisitions for growth.