How UHG (United Homes Group) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a financial services company like UHG makes money is essential for investors and anyone interested in the business of finance. 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 operates as a financial entity focused on generating revenue through core operations and other income sources. Revenue comes primarily from its main revenue stream, supplemented by significant other income items. Limited segment details are available, but the business model emphasizes profitability amid revenue fluctuations.

Revenue Breakdown

• Total Revenue (Q3 2025): $90.8M (-23.5% YoY)
  • Revenue: $90.8M (100% of total)
  • Growth is powered by core operations, though facing headwinds reflected in the YoY decline.

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 a lean cost structure relative to revenue, with cost reductions outpacing revenue decline.
• Most costs come from cost of revenue, which dominates at over 82% of total revenue.

Operating Income and Expenses

• Operating Income: Not specified (implied negative based on flows)
• Operating Expenses: $17.6M (-6.0% YoY)
  • R&D: Not available
  • SG&A: $17.6M (-6.0% YoY, 19.4% of revenue) — Covers sales, general, and administrative functions, showing controlled spending amid revenue pressures.
  • UHG continues to control costs while managing operational efficiency.

Net Income

• Pre-Tax Income: Not specified
• Income Tax: Not specified (0% effective tax rate implied)
• Net Income: $31.3M (+326.4% YoY, 34.5% net margin)
• UHG converts a significant portion of sales into profit due to other income boosts and low tax impact.

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What Drives UHG's Money Machine?

• Revenue: 100% of revenue from core operations
• Other Income: $31.3M income item, driving net profitability
• Cost Control: Reductions in cost of revenue (-22.4% YoY) and operating expenses (-6.0% YoY)
• Future growth areas: Potential in other income streams, though core revenue faces challenges

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, boosted by other income.

Key Takeaways

• UHG's money comes overwhelmingly from core revenue
• High gross and net margins illustrate the power of UHG's cost control
• Heavy investment in efficiency, balanced by other income sources
• Ongoing growth is driven by non-operating income despite revenue decline

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FAQ About UHG's Income Statement

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

UHG generates over 100% of its revenue from core Revenue. Additional boosts come from other income items totaling $31.3M.

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 other income and cost reductions.

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. SG&A investment reached $17.6M in Q3 2025, as UHG prioritizes operational efficiency.

4. Why does the core business face revenue pressure?

Core revenue, despite generating $90.8M, saw a -23.5% YoY decline in Q3 2025. This is because UHG navigates market challenges, with cost reductions providing some offset.

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

UHG's effective tax rate in Q3 2025 was 0% (implied), consistent with structures benefiting from non-taxable other income. This low rate is primarily due to the composition of net income sources.