United Homes Group (NASDAQ:UHG) saw its bottom line bolstered by non-cash accounting gains in the final quarter of 2025, even as the homebuilder navigated a cooling market for new orders and production.
The Columbia, South Carolina-based builder reported fourth-quarter net income of $3.2 million, or $0.05 per diluted share, a marked increase from the $0.7 million recorded a year earlier.
The results were heavily influenced by a $22.1 million gain tied to the fluctuating market price of the company’s warrants.
This paper gain was largely countered by a $20.4 million deferred tax expense related to a valuation allowance against its tax assets.
Operational metrics reflected a broader industry trend of buyer hesitation.
Revenue for the quarter fell to $123.4 million, down from $134.8 million in the same period in 2024.
The company closed on 375 homes during the quarter, compared to 414 previously, while net new orders—a key indicator of future revenue—slipped to 303 from 351.
Despite the volume drop, the average selling price of production-built homes rose slightly to approximately $329,000.
Efficiency gains provided a silver lining for the builder.
Gross margins improved to 17.5%, up from 16.2% a year ago, driven primarily by lower direct construction costs.
On an adjusted basis, EBITDA rose to $8.6 million from $7.7 million, suggesting that the company is successfully squeezing more profit out of each home built despite higher land costs and increased sales discounting.
United Homes continues to lean into its land-light strategy to manage risk, ending the year with an adjusted book value of $78.3 million.
While transaction-related expenses and stock-based compensation weighed on overhead, adjusted SG&A as a percentage of revenue remained relatively stable at 13.2%.