Cash flow generation is highly volatile, evidenced by a sharp swing from a $27.4M inflow in 2024Q4 to a $24.8M outflow in 2025Q3, largely driven by unpredictable working capital requirements.
| Cash from Operations | -19.75M | 15.44M | 28.22M | 34.62M | 58.32M | 71.78M |
| Operating CF Margin % | -4.86% | 3.33% | 6.7% | 7.26% | 13.47% | 21.93% |
| Operating CF Growth % | -227.87% | -45.28% | -18.46% | -40.64% | -18.76% | - |
| Net Income | -16.25M | 46.91M | 125.06M | 69.49M | 62.41M | 38.98M |
| Depreciation & Amortization | 999K | 1.82M | 1.33M | 881K | 358.59K | 182.79K |
| Stock-Based Compensation | 6.56M | 6.48M | 7.02M | 1.42M | 0 | 0 |
| Deferred Taxes | 15.25M | -12.84M | -2.62M | 0 | 0 | 0 |
| Other Non-Cash Items | -5.36M | -39.47M | -114.13M | 274.03K | 436.19K | 423.04K |
| Working Capital Changes | -20.95M | 12.55M | 11.56M | -37.45M | -4.89M | 32.2M |
| Change in Receivables | -3.17M | -2.61M | 1.5M | -1.33M | -1.18M | -563.11K |
| Change in Inventory | -33.22M | 45.57M | 22.25M | -26.67M | -12.73M | 29.29M |
| Change in Payables | 5.17M | -21.15M | 11.67M | -6.66M | 9.94M | 3.87M |
| Cash from Investing | -1.89M | -12.59M | -24.3M | -206.88K | -394.05K | -785.29K |
| Capital Expenditures | -2.05M | -31.75K | -162.33K | -171.69K | -404.24K | -805.29K |
| CapEx % of Revenue | 0.5% | 0.01% | 0.04% | 0.04% | 0.09% | 0.25% |
| Acquisitions | 0 | -12.74M | -24.3M | -49K | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 162K | 188.4K | 159.39K | 13.81K | 10.19K | 20K |
| Cash from Financing | 21.81M | -33.98M | 40.51M | -73.68M | -35.6M | -51.42M |
| Debt Issued (Net) | 28M | -37.89M | 38.98M | 18.32M | 27.69M | -10.17M |
| Equity Issued (Net) | 129K | 74.47K | 4.72M | 0 | 346.76M | 0 |
| Dividends Paid | 0 | 0 | -17.9M | -54.18M | -33.52M | -22.33M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -6.32M | 3.84M | 14.71M | -37.82M | -376.52M | -18.92M |
| Net Change in Cash | 169.93K | -31.12M | 44.43M | -39.27M | 22.33M | 19.58M |
| Free Cash Flow | -21.8M | 15.41M | 28.06M | 34.45M | 57.91M | 70.98M |
| FCF Margin % | -5.36% | 3.32% | 6.66% | 7.22% | 13.38% | 21.69% |
| FCF Growth % | -241.45% | -45.08% | -18.53% | -40.52% | -18.4% | - |
| FCF per Share | -0.37 | 0.24 | 0.50 | 0.90 | 1.54 | 1.89 |
| FCF Conversion (FCF/Net Income) | 1.22x | 0.33x | 0.23x | 0.50x | 0.93x | 1.84x |
| Interest Paid | 14.73M | 20.69M | 15.68M | 5M | 3.2M | 4.24M |
| Taxes Paid | 2.1M | 6.27M | 5.15M | 0 | 0 | 0 |
Volatile cash conversion cycles
According to the provided cash flow data, the relationship between net income and operating cash flow is highly erratic, evidenced by an OCF/NI ratio that swung from 41.10 in 2024Q4 to -0.72 in 2024Q1, suggesting that reported earnings are frequently disconnected from actual cash generation.
The extreme volatility in the OCF/NI ratio indicates that UHG's accrual-based accounting is heavily influenced by timing differences in home closings and inventory adjustments. Investors should monitor this divergence, as it suggests that net income may not be a reliable proxy for the company's ability to fund operations internally.
As reported in financial statements, UHG's free cash flow trajectory is characterized by sharp, unpredictable swings, ranging from a positive $27.4M in 2024Q4 to a negative $24.8M in 2025Q3, highlighting the inherent instability of a project-based revenue model that lacks consistent, recurring cash inflows.
The inability to maintain positive free cash flow across consecutive quarters suggests that the company's current scale is insufficient to absorb the capital requirements of its land-light model. This inconsistency warrants further investigation into whether the business can achieve self-sustaining growth without recurring to external financing or equity dilution.
Based on the quarterly cash flow figures, working capital changes are the primary driver of cash flow volatility, with a massive $23.5M outflow in 2025Q3 contrasting sharply with a $24.0M inflow in 2024Q4, indicating that inventory management and construction timing dominate the company's liquidity profile.
These dramatic shifts in working capital suggest that UHG's cash position is highly sensitive to the timing of land development and the closing of residential units. The reliance on these large, lumpy movements implies that liquidity can evaporate quickly if the pace of home deliveries slows unexpectedly.
Analysis of the cash flow statement reveals that stock-based compensation consistently adds back significant non-cash expenses, such as the $1.9M recorded in 2025Q3, which effectively obscures the true economic cost of labor and management incentives during periods of negative operating cash flow.
By consistently adding back SBC, the company's reported cash flow figures may appear more resilient than they are on an economic basis. Investors should adjust for these non-cash charges to better understand the actual cash burn associated with the company's current compensation structure.
Quick answers to the most common questions about buying UHG stock.
United Homes Group, Inc. (UHG) generated $-19.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
United Homes Group, Inc. (UHG) reported negative free cash flow of $21.8M in 2025, indicating capital requirements exceeded cash from operations.
United Homes Group, Inc. (UHG) spent $2.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.