Basis of Consolidation and Presentation The accompanying condensed consolidated financial statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Management believes the disclosures contained herein are adequate to make the information presented not misleading. However, these condensed consolidated f ...

Innovation is a vital part of our business, and we continue to expand and diversify our product offerings by leveraging our research and development capabilities. We constantly search for new technologies and innovations that will help us grow our business, either through higher sales or increased production efficiencies. To accomplish this objective, we seek out ideas and concepts both within our company and from outside inventors. We continue to focus our investments on our differentiated digital platform ...

Financial Performance - Q4 FY23 - Net sales were $68 million, a decrease of 43% compared to FY22 and 19% compared to FY20[3, 13] - Gross profit was $11 million, with a gross margin of 16%, a decrease of 2 percentage points compared to FY22's 18%[13] - Excluding Nautilus branded products, Q4 net sales were $62 million and gross margin was 20%, an increase of 2.5 percentage points year-over-year[13] - Adjusted EBITDA loss from continuing operations, excluding the Nautilus brand, was $11 million, a 37% reduction compared to FY22[3, 16] Financial Performance - FY23 - Net sales for FY23 were $287 million, a decrease of 51% compared to FY22[29, 31] - Gross profit was $52 million, with a gross margin of 18%, a decrease of 7 percentage points compared to FY22's 25%[31, 34] - Adjusted EBITDA loss from continuing operations was $47 million[29, 31] Balance Sheet and Liquidity - Liquidity was $33 million as of March 31, 2023[17] - Inventory decreased by 58% compared to Q4 FY22[4, 18] - Free cash flow was +$29 million in Q4 2023, an improvement of +$34 million compared to Q3 2023[18] FY24 Guidance - Revenue is projected to be between $270 million and $300 million[20] - Adjusted EBITDA is projected to be between a $15 million loss and break-even[29]

Table of Contents In accordance with Rule 13a-15 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of the end of the period covered by this Quarterly Report on Form 10-Q, our management evaluated, with the participation of our Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer, the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act). Based upon their evaluation of the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 NAUTILUS, INC. (Exact name of Registrant as specified in its charter) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-31321 Washington 94-3002667 (State or other jurisdict ...

Financial Performance - Net sales for the three months ended June 30, 2022, were $54.8 million, a decline of 70.3% compared to $184.6 million in the same period last year[92]. - Gross profit was $7.0 million with a gross profit margin of 12.7%, down from 30.1% last year, primarily due to increased discounting and unfavorable logistics overhead absorption[95]. - Operating loss was $51.2 million, resulting in a negative 93.4% operating margin, compared to operating income of $17.9 million last year[97]. - Loss from continuing operations was $60.2 million, or $(1.92) per diluted share, compared to income of $14.0 million, or $0.43 per diluted share, last year[98]. - The company reported a net loss of $60.2 million for the quarter, compared to a net income of $13.9 million in the same period last year[113]. Sales Breakdown - Direct segment net sales decreased by $36.9 million, or 58.2%, primarily due to higher sales discounting and a return to pre-pandemic seasonal demand[93]. - Retail segment net sales decreased by $93.0 million, or 77.2%, driven by lower cardio sales and higher sales discounting as retailers managed elevated inventory levels[94]. - Direct segment net sales were $26.5 million, down 58.2% from $63.4 million in the same period in 2021, primarily due to a return to pre-pandemic seasonal demand[116]. - Retail segment net sales were $27.4 million, down 77.2% from $120.5 million in the same period in 2021, with cardio sales decreasing by 86.8%[120]. Expenses - Selling and marketing expenses were $12.9 million, a decrease of 39.5% from $21.3 million in the same period last year, reflecting reduced media spend[126]. - Research and development expenses increased by 20.9% to $5.8 million compared to $4.8 million in the same period last year[113]. - General and administrative expenses increased to $12,463,000 for the three months ended June 30, 2022, up from $11,523,000 in the same period of 2021, representing an 8.2% increase[130]. - Research and development expenses rose to $5,823,000 for the three months ended June 30, 2022, compared to $4,815,000 in the same period of 2021, marking a 20.9% increase[132]. Cash Flow and Liquidity - Cash used in operating activities was $6.0 million for the three months ended June 30, 2022, a decrease from $28.2 million used in the same period of 2021[144]. - As of June 30, 2022, cash, cash equivalents, and restricted cash totaled $8.7 million, down from $14.2 million as of March 31, 2022[143]. - Cash used in investing activities was $3.4 million for the three months ended June 30, 2022, primarily for capital purchases related to the digital platform[148]. - As of June 30, 2022, outstanding borrowings totaled $37.2 million, with $9.8 million under the Term Loan Facility and $27.4 million under the Revolver[152]. Future Outlook - The company expects full-year revenue for fiscal 2023 to be between $380 million and $460 million, with the second half contributing 65% to 70% of total sales[103][104]. - Gross margins for the second half of the year are anticipated to be in the range of 27% to 30%, driven by lower inbound freight and logistics costs[105]. - The company aims to exceed 500,000 JRNY members by March 31, 2023[105]. - JRNY members exceeded 360,000, representing approximately 133% growth year-over-year, with 127,000 subscribers, a 290% increase[100]. Inventory and Backlog - The backlog for the retail segment totaled $48.0 million as of June 30, 2022, indicating a shift in ordering patterns by retailers[122]. - Trade receivables decreased to $27.5 million as of June 30, 2022, from $61.5 million as of March 31, 2022, primarily due to lower sales[145]. - Inventory was $103.9 million as of June 30, 2022, down from $111.2 million as of March 31, 2022, driven by sell-through and strategic demand planning[145]. Royalty Income - Royalty income increased by 25.8% to $0.9 million for the three-month period ended June 30, 2022, compared to the same period of 2021[125].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number: 001-31321 NAUTILUS, INC. (Exact name of Registrant as specified in its charter) Washington 94-3002667 (State or other jurisdiction of incor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 NAUTILUS, INC. (Exact name of Registrant as specified in its charter) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, no par value NLS New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 or ☐ TRANSITION ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 NAUTILUS, INC. (Exact name of Registrant as specified in its charter) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, no par value NLS New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITIO ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 NAUTILUS, INC. (Exact name of Registrant as specified in its charter) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, no par value NLS New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REP ...