United Homes Group, Inc.UHG
United Homes Group, Inc. Segments Disclosure
Note 3 - Segment Reporting
An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the Company’s Chief Operating Decision Maker (“CODM”). The Company’s CODM is identified as the Executive Management Team, comprised of the Company’s Chief Executive Officer and President, Chief Financial Officer, and Co-Chief Operating Officers. Together, these individuals assess the performance of the Company’s operating segments and allocate resources. The CODM functions collectively rather than as individuals, ensuring that decisions reflect a balanced and strategic approach to managing operations.
UHG primarily operates in the homebuilding business and is organized and reported by division. The identification of reporting segments is based primarily on similarities in economic and geographic characteristics, product
types, regulatory environments, and methods used to sell and construct homes. The Company has three reportable segments: GSH South Carolina, Rosewood Communities, Inc. (“Rosewood”), and Other. Each segment represents distinct geographical and operational aspects of UHG’s business.
GSH South Carolina represents the homebuilding operations of the Company primarily across the state of South Carolina. The main products for GSH South Carolina include entry-level homes and first-move-up homes, catering to a wide range of buyers transitioning into homeownership or seeking to upgrade from their initial purchase. South Carolina operations span the Upstate, Midlands, and Coastal regions, with a smaller presence in Georgia.
Rosewood, which also operates in South Carolina, encompasses UHG’s operations focused on delivering second and third move-up homes in the South Carolina market. These homes cater to buyers seeking more luxurious and customized living spaces, and typically feature larger floor plans, high-end finishes, and premium amenities.
Other consists of UHG’s homebuilding operations in Raleigh, NC and mortgage operations conducted through a mortgage banking joint venture, Homeowners Mortgage, which do not meet the quantitative thresholds to be disclosed separately. Raleigh offers a similar product line to GSH South Carolina in a different geographic market, serving North Carolina, primarily in and around Raleigh. Homeowners Mortgage is primarily engaged in brokering residential mortgage loans and enhances the Company’s ability to offer integrated homebuying experiences by providing financing solutions directly to customers while generating additional income streams.
The accounting policies of the segments are consistent with those outlined in the summary of significant accounting policies. The CODM evaluates performance and allocates resources for GSH South Carolina, Rosewood, and Other based on both segment gross profit and segment income or loss before taxes. These financial metrics are used to view operating trends, perform analytical comparisons and benchmark performance between periods and to monitor budget-to-actual variances on a monthly basis. Segment gross profit is used to evaluate product pricing strategies, monitor margins, and assess return on inventory, while segment income or loss before taxes is utilized to assess overall segment profitability and performance of each market and product type on a consistent and comparable basis.
The following tables summarize revenues, gross profit, income or loss before taxes and total assets by segment, with reconciliations to the amounts reported for the consolidated company, where applicable (in thousands):
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| GSH South Carolina | Rosewood | Other | Corporate(3) | Totals | |||||||||||||||||||||||||
Segment revenue, net(1) | $ | 358,745 | $ | 32,847 | $ | 15,100 | $ | — | $ | 406,692 | |||||||||||||||||||
| Cost of sales | 290,480 | 29,297 | 13,545 | 1,633 | 334,955 | ||||||||||||||||||||||||
| Segment gross profit (loss) | 68,265 | 3,550 | 1,555 | (1,633) | 71,737 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 45,524 | 2,924 | 1,897 | 21,421 | 71,766 | ||||||||||||||||||||||||
| Goodwill impairment | — | 647 | 500 | — | 1,147 | ||||||||||||||||||||||||
Other expense (income), net(2) | 8,179 | 1,082 | 363 | (298) | 9,326 | ||||||||||||||||||||||||
| Total segment income (loss) before taxes | $ | 14,562 | $ | (1,103) | $ | (1,205) | $ | (22,756) | $ | (10,502) | |||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||
| Reconciling items from equity method investments | 1,057 | ||||||||||||||||||||||||||||
| Change in fair value of derivative liabilities | 9,940 | ||||||||||||||||||||||||||||
| Consolidated income before taxes | $ | 495 | |||||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| GSH South Carolina | Rosewood | Other | Corporate(3) | Totals | |||||||||||||||||||||||||
Segment revenue, net(1) | $ | 419,453 | $ | 25,750 | $ | 18,511 | $ | — | $ | 463,714 | |||||||||||||||||||
| Cost of sales | 337,568 | 24,389 | 17,026 | 4,901 | 383,884 | ||||||||||||||||||||||||
| Segment gross profit (loss) | 81,885 | 1,361 | 1,485 | (4,901) | 79,830 | ||||||||||||||||||||||||
| Severance expense | 171 | — | 1,126 | — | 1,297 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 48,142 | 1,906 | 3,002 | 20,353 | 73,403 | ||||||||||||||||||||||||
Other expense, net(2) | 3,418 | 930 | 296 | 7,839 | 12,483 | ||||||||||||||||||||||||
| Total segment income (loss) before taxes | $ | 30,154 | $ | (1,475) | $ | (2,939) | $ | (33,093) | $ | (7,353) | |||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||
| Reconciling items from equity method investments | 1,529 | ||||||||||||||||||||||||||||
| Loss on extinguishment of Convertible Notes | (45,642) | ||||||||||||||||||||||||||||
| Change in fair value of derivative liabilities | 88,653 | ||||||||||||||||||||||||||||
| Consolidated income before taxes | $ | 37,187 | |||||||||||||||||||||||||||
| As of December 31, 2025 | |||||||||||||||||||||||||||||
| GSH South Carolina | Rosewood | Other | Corporate(3) | Totals | |||||||||||||||||||||||||
| Investment in joint venture | $ | — | $ | — | $ | — | $ | 182 | $ | 182 | |||||||||||||||||||
| Goodwill | 3,573 | 4,560 | — | — | 8,133 | ||||||||||||||||||||||||
| Other assets | 208,548 | 24,689 | 12,357 | 22,723 | 268,317 | ||||||||||||||||||||||||
| Total segment assets | $ | 212,121 | $ | 29,249 | $ | 12,357 | $ | 22,905 | $ | 276,632 | |||||||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||||||||
| GSH South Carolina | Rosewood | Other | Corporate(3) | Totals | |||||||||||||||||||||||||
| Investment in joint venture | $ | — | $ | — | $ | — | $ | 691 | $ | 691 | |||||||||||||||||||
| Goodwill | 3,573 | 5,207 | 500 | — | 9,280 | ||||||||||||||||||||||||
| Other assets | 163,997 | 27,913 | 21,379 | 42,121 | 255,410 | ||||||||||||||||||||||||
| Total segment assets | $ | 167,570 | $ | 33,120 | $ | 21,879 | $ | 42,812 | $ | 265,381 | |||||||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Other segment disclosures | GSH South Carolina | Rosewood | Other | Corporate(3) | Totals | ||||||||||||||||||||||||
| Equity in net earnings from investment in joint venture | $ | — | $ | — | $ | — | $ | 1,057 | $ | 1,057 | |||||||||||||||||||
| Depreciation and amortization | 2,118 | 264 | 19 | 19 | 2,420 | ||||||||||||||||||||||||
Interest expense(4) | 11,312 | 1,317 | 566 | 1,633 | 14,828 | ||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Other segment disclosures | GSH South Carolina | Rosewood | Other | Corporate(3) | Totals | ||||||||||||||||||||||||
| Equity in net earnings from investment in joint venture | $ | — | $ | — | $ | — | $ | 1,529 | $ | 1,529 | |||||||||||||||||||
| Depreciation and amortization | 1,652 | 262 | 13 | 18 | 1,945 | ||||||||||||||||||||||||
Interest expense(4) | 6,192 | 960 | 570 | 13,280 | 21,002 | ||||||||||||||||||||||||
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(1)Segment revenues include revenue recognized at a point in time from speculative home closings and revenue recognized over time from construction activities on land owned by customers, in accordance with the Company's revenue recognition policy.
(2)Other expense (income), net includes, among other items, interest expense not attributable to homebuilding activities, investment income, and amortization expense.
(3)Corporate items included within consolidated income before taxes include unallocated corporate overhead, stock-based compensation, corporate interest income and expense, and other corporate level items not allocated to the segments. Similarly, corporate items included within consolidated assets include corporate cash and cash equivalents, deferred tax assets attributable to the corporate entity, operating lease right-of-use assets, and other corporate level items.
(4)Interest expense includes amounts recognized as interest expense in cost of sales and interest expense in other expense, net in the consolidated statements of operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 15, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.