United Homes 2025 Q3 Earnings Sharp Net Loss Worsens by 326%

United Homes Group (UHG) reported its fiscal 2025 Q3 earnings on November 8, 2025, with results falling significantly below expectations. The company posted a net loss of $31.3 million, or $0.53 per share, compared to a $7.34 million loss in the prior-year period. Revenue declined 23.5% to $90.79 million, reflecting broader industry headwinds and operational challenges.

Revenue

Total revenue of $90.79 million in Q3 2025 marked a 23.5% year-over-year decline, driven by a 29% drop in home closings to 262 units. While average sales prices rose 8.1% to $346,000, the sharp reduction in volume and margin pressures offset gains.

Earnings/Net Income

United Homes’s losses deepened to $0.53 per share in Q3 2025, a 253.3% wider loss compared to $0.15 per share in Q3 2024. The net loss surged to $31.3 million, a 326.4% increase from $7.34 million a year earlier, underscoring deteriorating profitability amid aggressive discounting and elevated costs. This significant deterioration highlights operational fragility.

Post-Earnings Price Action Review

The strategy of buying UHG shares on quarterly report dates and holding for 30 days yielded cumulative returns of 63.2% over three years, peaking at 25.8% in 2023. However, recent performance has faltered, with the stock plummeting 68.15% month-to-date. Volatility reflects UHG’s exposure to housing market volatility and operational challenges, as investors weigh near-term risks against long-term fundamentals.

CEO Commentary

CEO John Micenko emphasized resilience amid affordability challenges and elevated inventory levels, noting improved traffic trends and September’s best order month year-to-date. He outlined cost-cutting measures, including headcount reductions, to stabilize operations. Micenko acknowledged market uncertainty but expressed confidence in housing demand fundamentals, such as demographic growth and construction needs.

Guidance

Management did not provide explicit forward-looking financial guidance but highlighted plans to leverage 58 active communities (up from 46 at year-start) to boost sales. The focus remains on operational efficiency and navigating near-term affordability pressures, though long-term growth hinges on market recovery and strategic execution.

Additional News

United Homes announced a board transition following a special committee’s review, with several directors resigning by November 14 to align with NASDAQ compliance. CEO Micenko noted improved buyer engagement, including 350–400 weekly traffic in Q3 compared to 200 in earlier months. The company also reiterated cost-saving initiatives and community expansion as key priorities to address industry challenges.