United Homes Group, Inc. (UHG) experienced a notable increase in net new orders and home closings in Q4 2024, despite a decline in revenue and gross margins due to competitive pressures and incentives offered to homebuyers12.
- Revenue Trend:
- UHG's revenue for Q4 2024 was $666.718 million5.
- This represents a decrease from the previous year's revenue of $875.6 million in Q4 20232.
- The decline in revenue can be attributed to a softer January that negatively impacted February and March closings, despite a high backlog conversion rate each quarter1.
UHG Net Income YoY, Net Income
- Expense Trend:
- UHG's net income for Q4 2024 was $0.7 million, or $0.01 per diluted share1.
- This included a non-cash loss on extinguishment of Convertible Notes of $45.6 million and a change in fair value of derivative liabilities of $38.0 million1.
- The company's gross margin contracted to 18.9% in Q4 2024, down from 20.6% in the previous year, primarily due to continuing incentives offered to homebuyers23.
- Selling, general, and administrative expenses increased by 37.1% year-over-year to $18.7 million2.
- Insider Activity:
- Twine Ray Shelton III, a 10% owner of UHG, purchased 10,000 shares in December 2024, indicating confidence in the company's prospects6.
- This insider buying, along with other insider activity, suggests a general trend of optimism among company insiders regarding UHG's future performance.
- Strategic Initiatives:
- UHG launched initiatives in October 2024 focused on increasing revenue or lowering costs to improve profitability1.
- The company's efforts to compete effectively and drive growth in net new orders and closings are positive signs, despite the challenges in revenue growth and gross margins.
In conclusion, UHG faced challenges in revenue growth and gross margins in Q4 2024 due to competitive pressures and incentives offered to homebuyers. However, the company's strategic initiatives and insider confidence suggest a potential for improvement in the future.
5/8/2025 06:27pm
