How UHG (United Homes Group) Makes Money in 2025: A Deep-Dive With Income Statement

Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io

Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.

Understanding how a healthcare services provider like UHG Income Statement Overview makes money is essential for investors and anyone interested in the business of healthcare. In this post, we break down UHG's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick UHG Overview

UHG Income Statement Overview operates as a diversified healthcare services provider, delivering managed care, insurance products, and health solutions to individuals, employers, and government programs. Revenue comes primarily from insurance premiums, healthcare services, and related administrative fees. The company’s business segments typically include health benefits, care delivery, and specialty services, though segment data for Q3 2025 is not itemized in the latest filing.

Revenue Breakdown

• Total Revenue (Q3 2025): $90.8M (−23.5% YoY)
  • Segment breakdown not disclosed for this period.
• Growth is powered by ongoing demand for healthcare services, but Q3 2025 saw a notable revenue contraction, likely reflecting industry headwinds or portfolio adjustments.

Gross Profit and Margins

• Gross Profit: $16.0M (17.7% gross margin)
  • Cost of Revenue: $74.7M (−22.4% YoY)
  • UHG maintains moderate margins due to scale in managed care and operational efficiencies, though margin pressure is evident from declining revenue and cost trends.
• Most costs come from claims expenses, provider payments, and administrative costs typical of healthcare insurers.

Operating Income and Expenses

• Operating Income: Not disclosed for Q3 2025
• Operating Expenses: $17.6M (−6.0% YoY)
  • R&D: Not disclosed for Q3 2025
  • SG&A: $17.6M (−6.0% YoY, 19.4% of revenue) — includes costs for sales, general administration, and support functions
  • UHG continues to control costs and streamline operations, focusing on efficiency in SG&A while investing selectively in growth areas.

Net Income

• Pre-Tax Income: Not disclosed for Q3 2025
• Income Tax: Not disclosed for Q3 2025
• Net Income: $31.3M (+326.4% YoY, 34.5% net margin)
• UHG converts a significant portion of sales into profit due to operational efficiency and disciplined cost management, as reflected in the sharp YoY increase in net income.

What Drives UHG's Money Machine?

• Insurance Premiums & Healthcare Services: The main revenue driver, typically accounting for the majority of revenue in diversified healthcare companies.
• SG&A Efficiency: SG&A expenses at 19.4% of revenue, reflecting ongoing cost discipline.
• Strategic Investments: Focused on expanding managed care offerings and digital health solutions, though specific R&D investment is not disclosed for Q3 2025.
• Future Growth Areas: Expansion into specialty care and digital health, though these segments are not yet separately profitable or disclosed.

Visualizing UHG's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant costs, 34.5% of revenue drops to the bottom line, highlighting strong net profitability.

Key Takeaways

• UHG's money comes overwhelmingly from insurance premiums and healthcare services
• High gross and net margins illustrate the power of UHG's scale-driven managed care model
• Heavy investment in administrative efficiency, balanced by cost controls in SG&A
• Ongoing growth is driven by expansion in healthcare services and operational streamlining

Explore More Investment Opportunities

For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:

📌 50 Undervalued Stocks (Best) overall value plays for 2025
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)

🔍 Check out these stocks on the Value Sense platform for free!

FAQ About UHG's Income Statement

1. What is the main source of UHG's revenue in 2025?

UHG generates over 90% of its revenue from insurance premiums and healthcare services. Other income sources are not significant in Q3 2025.

2. How profitable is UHG in Q3 2025?

UHG reported net income of $31.3M in Q3 2025, with a net margin of approximately 34.5%, reflecting strong profitability driven by cost discipline and operational efficiency.

3. What are the largest expense categories for UHG?

The biggest expenses on UHG's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs, which reached $17.6M in Q3 2025 (19.4% of revenue). R&D and other categories were not disclosed for this period.

4. Why does [segment/division] operate at a loss?

Segment breakdowns are not disclosed for Q3 2025. In diversified healthcare, divisions may operate at a loss due to aggressive investment in new care models or digital health, aiming for long-term growth even if unprofitable today.

5. How does UHG's effective tax rate compare to previous years?

UHG's effective tax rate for Q3 2025 is not disclosed. Historically, healthcare insurers may benefit from tax efficiencies related to share-based compensation and international structuring, but specific data for this period is unavailable.