Financial Data and Key Metrics Changes - Home sales revenue for Q2 2025 was $105.5 million, a decrease of $3.9 million or 3.6% from $109.4 million in Q2 2024 [10] - The company reported a net loss of $6.3 million for Q2 2025, influenced by a fair value adjustment of $6.2 million related to contingent earn-out liabilities [9] - Gross profit for Q2 2025 was $19.9 million, up $300,000 or 1.5% from $19.6 million in the prior year [11] - Gross margin improved by 100 basis points to 18.9% compared to the same period last year [11] Business Line Data and Key Metrics Changes - Home closings for Q2 2025 totaled 303 homes, down from 337 homes in the prior year [10] - Net new orders for Q2 2025 were 304 homes, down from 323 homes in the prior year [10] - The average sales price for homes was $349,000, significantly lower than the U.S. median sales price of $402,000 [5] Market Data and Key Metrics Changes - Demand trends were inconsistent due to high mortgage rates and affordability concerns, but traffic patterns remained resilient [5] - The company maintained home prices below the industry average to address affordability [5] Company Strategy and Development Direction - The company is focused on rolling out updated home designs, which have shown positive responses and improved profitability [6] - An asset-light strategy is being adhered to in land acquisition, with a focus on stabilizing or lowering direct construction costs [8] - The company aims to drive margin expansion and maintain cost discipline while supporting growth through strategic community openings [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for the second half of the year, despite challenges in the market [8] - The company believes gross margins will be higher in 2025 compared to 2024 due to product transitions [7] Other Important Information - As of June 30, 2025, the company controlled approximately 7,300 lots, positioning it for future growth [13] - The company had approximately $95.2 million in liquidity as of Q2 2025 [13] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [15][16]
United Homes (UHG) - 2025 Q2 - Earnings Call Transcript